Page 37 Contract DAAK 30-77-C-0018 SECTION J (CONT'D) J.9.4.4 The first quarterly period shall commence on the first day of the calendar month following the effective date of exercise of option. J.9.4.5 The Material Indexes for any quarterly period shall be the arithmetical average (carried to one decimal place) of the monthly Material Index for the three months comprising such quarterly period, 3.9.4.6 The initial target cost shall not be revised unless this contract is partially terminated and then only to the extent provided in paragraph J.9.7 of this clause. J.9.5 Adjustments in the target cost and ceiling price due to changes in material cost shall be made as follows for each quarterly period shown in the first column of Table I and II below, based upon changes in the Wholesale Price Index, Steel Mill Products, Code 1013, for Table I and Wholesale Price Index, Aluminum Plate, Code 1205, 0128 for Table II as published by the U.S. Department of Labor, Bureau of Labor Statistics, herein referred to as the "Material Index": 3.9.5.1 The Matereal Index base in the arithmetical average of the Material Index for the month before, the month of, and the month after final proposal submission. The Material Index base shall be subtracted from the Material Index for the quarterly period involved, as determined in accordance with subparagraph 3.9.4.5 above. 3.9.5.2 The difference computed (a plus or minus figure, as the case may be) shall then be divided by the Material Index base and the resulting quotient carried to four decimal places. J.9.5.3 This quotient shall then be multiplied by that dollar amount of the initial target cost set forth in the thrid column corresponding to the appropriate quarterly period and the resulting product carried to six decimal places. 3.9.5.4 The resulting amount shall constitute the adjustment in the target cost and ceiling price due to change in the Material Index during the quarterly Page 39 Contract DAAK 30-77-C-0018 SECTION J (CONT'D) 3.9.6 Nothing contained in this clause shall be construed as prohibiting the inclusion of changes in the cost of labor or material in any adjustment in the target cost, target profit, target price, ceiling price or total final price provided for under any other provisions of this contract. For example, pricing actions pursuant to the "Changes" clause of the contract shall be priced as though there were no provisions for economic price adjustment. J.9.7 If this contract is terminated in whole, for any reason, no price adjustment shall be made under this clause for any quarterly period subsequent to that during which the contract is terminated. In the event that this contract is terminated in part, for any reason, and such partial termination affects the completion of one or more contract line items subject to the provisions of this clause, notwithstanding any other provisions of this clause, the amounts of the initial target cost set forth in subparagraphs J.9.4.1 and J.9.4.2 and each column of Tables I and II of paragraph 3.9.5 shall be adjusted to reflect the reduction. J.9.8 In the event the Bureau of Labor Statistics discontinues determining either of the indexes cited herein, the parties shall mutually agree upon an appropriate substitute for the discontinued index for use in determining the price adjustments described herein. 3.9.9 In the event the Bureau of Labor Statistics alters its method of calculating either of the indexes cited herein (including a change in the base period), appropriate adjustments in the affected index shall be agreed upon by the parties, to put it on a comparable basis with the index as calculated before the change. J.9.10 The contractor shall submit a proposal to the Government within thirty (30) days after publication of the BLS Indexes identified in paragraph J.9.5 applicable to any quarter showing any changes thereof. The Contracting Officer shall promptly review such proposals and prepare contractual documents reflecting the appropriate adjustment under this provision. Any contractual price adjustment shall be reflected only on undelivered vehicles except for final adjustment. J.9.11 No increases in contract line item billing prices shall apply to quantities scheduled to be delivered before the effective date of any increase in the contract line item billing prices, unless the contractor's failure to deliver in accordance with the contract delivery schedule is due to excusable causes within Page J10 Contract DAAK 30-77-C-0018 SECTION J (CONTD) schedule shall be revised and the revised schedule used to determine when delivery is scheduled for the purpose of this clause. 3.9.12 Any dispute arising under this clause shall be determined in accordance with and subject to the provisions of the "Disputes" clause of the contract. 3.9.13 The aggregate of the increases in the target cost and ceiling price made pursuant to this clause shall not exceed 10% of the initial target cost. There shall be no percentage limitation on the amount of decrease under this clause. J.10 PROJECT HAND-OFF (APPLIES TO IP ONLY): 3.10.1 Privileges of Contractor (FSR) Personne! Overseas: J.10.1.1 In connection with the performance of work under Project HandOff (para F.17.5) by FSR personnel overseas, the Government may accord the contractor's FSR's the same privileges with the same corresponding obligations to reimburse the Government, as Military Company Grade Officers at the discretion of the cognizant U.S. Army area commanders with respect to any or all of the following if assigned to military facilities or activities. 3.10.1.1.4 Communication and/or postal services when adequate commercial services and facilities are not available. 3.10.1.2 Should the area commander be unable or unwilling to grant any or all of the foregoing privileges or services, it is recognized that it will be necessary for the contractor or the individual FSR's to furnish or secure those privileges or services not provided by the Government, under this section. J.10.1.3 If contractor personnel fail to reimburse the Government for use of the above services or facilities at rates which may be specified by regulation, such failure shall be noted on the Certificate of Performance by the certifying officer of the using command and contract payment will be reduced accordingly. J.10.2 Deceased Personnel: In the event that contractor FSR personnel should die while assigned overseas, for performance of work under this contract, the care and disposition of their remains shall be in accordance with Army Regulation (AR) 638-40. J.10.3 Contractor Personnel In Overseas Areas: Contractor FSR personnel, although recognized as employees of the contractor and under the administrative supervision and control of the contractor, while on overseas assignment shall be subject to such military regulations as apply in the foreign theatre of operations in which they are located. Furthermore, they are subject to such regulations and orders as may be issued by the military commander of the area(s) in which they are located while overseas. 3.10.4 Security Requirements: J.10.4.1 This contract has a security classification and, during the performance of work hereunder, the contractor's FSR's may be required to handle classified material up to and including "SECRET". Security clearances, for FSR personnel, must be obtained prior to assignment of FSR personnel at worksites overseas. 3.10.4.2 The contractor shall be responsible for securing all necessary security clearances and identification for the FSR's. All such personnel are entitled to a Civilian Identification Card (DA Form 1602) (See AR 606.5). Upon assignment overseas, the FSR's are entitled to a Noncombatent's Certificate of Identity (DD Form 489) (See AR 606-5). 3.10.5 Removal and Replacement: The Contracting Officer may require the contractor to remove his FSR personnel from the job for (i) misconduct on or off duty, (ii) conduct reflecting adversely against the interests of the United States, (iii) conduct which endangers persons or property; or whose continued employment under this contract is inconsistent |