Draft EPA Clause

Silver Reclamation EPA Clause
Solicitation Section B Note:
The pricing for CLINs [to be identified with solicitation] is subject to the Economic Price Adjustment (EPA) Text located in Section I of this solicitation. The "Unit Price" entered by the offeror in this section shall be the proposed Base Service Price. This Base Service Price corresponds to the Base Market Index Value for silver as defined in the Section I EPA clause.
The final unit price for any delivery order awarded under these CLINs will be calculated at the time of order issuance in accordance with the formula and the "Adjustment Increment" proposed by the offeror in the Section I EPA text. Offerors shall not include any contingency for market fluctuation in their proposed Base Service Price.
In accordance with DFARS PGI 216.203-4(17), the Contracting Officer reserves the right to request additional data from the offeror to verify that the proposed Base Service Price constitutes a reasonable and realistic baseline from which future adjustments will be made.

Economic Price Adjustment Text (Applies to CLINS – to be identified with solicitation) (a) General: The prices for the service CLINs identified in Section B as subject to this clause may be adjusted upward or downward in accordance with the procedures set forth herein. This clause provides for adjustment based on the economic fluctuations of the market price index for silver. By submitting an offer, the offeror certifies that the index and methodology used are an appropriate basis for adjustment for this contract.
(b) Definitions: As used throughout this text—
(1) "Base Service Price" means the firm-fixed-price per unit (troy ounce) proposed by the Contractor in Section B for a given CLIN.
(2) "Base Market Index Value" means the established benchmark price for silver against which all adjustments will be calculated. For this contract, the Base Market Index Value is hereby established as $75.00 per troy ounce.
(3) "Actual Market Index Value" means the final afternoon London Bullion Market Association (LBMA) Silver Price as published on the LBMA website (www.lbma.org.uk) for the date of one day before a Delivery Order is issued by the Government. (4) "Adjustment Increment" means the fixed dollar amount, proposed by the offeror in paragraph (c) below, used to calculate upward or downward adjustments to the Base Service Price for each full one-dollar ($1.00) change between the Base Market Index Value and the Actual Market