CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS cn, or determination of, any such adjustment and its effective date, the Contractor shall continue performance. (c) Notwithstanding any other provision of this clause, any price adjustments under this clause shall be subject to the following limitations: (i) There shall be no adjustment for supplies or services whose production cost is not affected by a change in the rates of pay for labor (including fringe benefits) or unit prices for materials set forth in the Schedule. (ii) There shall be no adjustment other than for increases cr decreases in the rates of pay for labor (including fringe benefits) ΟΙ unit prices of materials set forth in the Schedule. (iii) There shall be no adjustment for any increase or decrease in the quantities of labor or materials set forth in the Schedule for each item to be delivered hereunder. (iv) No upward adjustment shall apply to supplies or services which are required to be delivered or performed prior to the effective date of the adjustment unless the Contrator's failure to deliver or perform in accordance with the delivery schedules results from causes beyond the control and without the fault or negligence of the Contractor within the meaning of the clause of this contract entitled "Default," in which case the contract shall be amended to make an equitable extension of the delivery or [erformance schedule. (v) There shall be no adjustment for any change in rates cf pay for labor (including fringe benefits) cr unit prices for materials which would not result in a net change of at least three percent (3%) of the then current total contract price; and except that, after delivery of the last unit called for by this contract, if either party requests an adjustment pursuant to (b) above, this limitation shall not apply. (vi) The aggregate of the increases in any contract unit Frice (or labor rate) made under this clause shall not Exceed ten percent (10%) of the original unit price (or labor rate). There is nc percentage limitation on the amount of decrease made under this clause. has not (including forth in of all such (d) The final invoice submitted under this contract shall include a certification that the Contractor experienced a decrease in rates of pay for labor fringe benefits) or unit prices for materials set the Schedule or that he has given notice decreases in compliance with (a) above. 30 156 0- 79 — — 9 NASA PROCUREMENT REGULATION CONTRACT CLAUSES the (e) The Contracting Officer may examine the Contractor's tocks, records, and cther supporting data relevant to cost of labor (including fringe benefits) and materials during all reasonable times until the expiration of three (3) years from the date of final payment under this contract cr for the time periods specified in Appendix M of the NASA Frocurement Regulation, whichever expires earlier. 7.108 Incentive Price Revision Clauses. 7.108-1 Firm Targets. When, in accordance with the provisions of Part 3, Subpart 4 of this Regulation, the fixed-price incentive contract described in 3.404-4(a) (2) is to be used, the following clause shall be made a part of the contract. As to each item which is to be subject to incentive price revision, the contract Schedule shall set forth the target cost, target profit, and target price. INCENTIVE PRICE REVISION (FIRM TARGET) (a) General. The Schedule as Items accordance with the ... (JULY 1977) supplies or services identified in the are subject to price revision in frovisions of this clause; provided, that in no event shall the total final price of such items Exceed dollars ($...............). Any supplies or services which are to be ordered separately under, or otherwise added tc, this contract, and which are to be subject to price revision in accordance with the provisions of this clause, shall be identified as such in a modification to this contract. (b) Definition cf Cost. For the purposes of this clause, "cost" or "costs" means allowable cost in accordance with Fart 15 of the NASA Procurement Regulation as in effect on the date of this ccntract. (c) Submission of Data. Within ..... (...........) days after the end of the month in which the Contractor has delivered the last unit of supplies and completed the services called for by those items referred to in paragraph (a) above, the Contractor shall submit, cn DD Form 633-6 or other form as the Contracting Officer may require, (i) a detailed statement of all costs incurred up to the end of that ronth in performing all work under such items, (ii) an estimate of costs of such further performance, if any, as may be necessary to complete performance of all work with re spect CFR TITLE 41 CHAPTER 18 CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS entory| to such items, and (iii) a list of all residual inventory and an estimate of the value thereof. (d) Price Revision. Upon submission of the data required by paragraph (c) above, the Contractor and the Contracting officer shall fromptly establish the total final price in accordance with the following: (1) on the basis of the information required by Faragraph (c) above, together with any other pertinent infcrmation, there shall be established by negotiation the total final cost incurred or to be incurred for the supplies delivered (or services performed) and accepted by the Government, which are subject to price revision under this clause. (2) The total final price shall be established by adjusting the total final negotiated cost by an amount for Frofit or loss determined as follows: WHEN THE TOTAL FINAL Less than the total target cost... THE ADJUSTMENT FOR PROFIT OR Total target profit. Total target profit less percent (%) of (3) The total final price of the items referred to in paragraph (a) above shall be evidenced by a modification to this contract signed by the Contractor and the Contracting cfficer. Such price shall not be subject to revision to notwithstanding any charges in the cost (i) insofar as the parties may agree in writing, prior to the determination of the total final price, (A) to exclude any specific elements of cost from the total final price and (B) to a procedure to provide subsequent disposition of such elements; and (ii) to the extent any adjustment or credit is explicitly femitted or required by this or any other clause of this ccntract. (e) Subcontracts. NO subcontract placed under this contract shall provide for payment on a cost-plus-aFercentage-of-cost basis. (f) Adjustment of Payments. Pending execution of the contract modification referred to in subparagraph (d) (3) above, the Contractor shall submit invoices or vouchers in NASA PROCUREMENT REGULATION CONTRACT CLAUSES accordance with billing prices as provided in this Faragraph. The billing prices shall be the target prices set forth in this contract; provided, that if at any time it appears that the then current billing prices will be substantially greater than the extimated final price in light of information provided by the Contractor in accordance with the provisions of subparagraph (g) (2) below, a reduction in the billing prices shall be negotiated. Similarly, the parties may negotiate an increase in billing Frices by any or all of the difference between the target price and the ceiling price upon submission of factual data from the Contractor showing that final costs under this contract will be substantially greater than target cost. Any adjustment of billing billing prices shall be reflected in a nodification to this contract, and shall not affect the determination of the total final price under paragraph (d) above. After execution of the contract modification referred to in subparagraph (d) (3) above, the total amcunt paid or to te paid on all invoices or vouchers shall be adjusted to reflect the total final price and any additional payments, refunds, or credits, resulting therefrom shall be promptly nade. (9) Limitation on Payments. (1) This paragraph (g) shall rct apply after final price revision. (2) Within forty-five (45) days after the end of each quarter of the Contractor's fiscal year, beginning for the quarter in which a delivery is first rade (or services are first perfcrmed) and accepted by the Government under this ccntract, and as of the end of each quarter, the Contractor shall submit to the Contracting Officer, with a copy thereof to the ccgnizant contract auditor, a cumulative statement setting forth: (i) the total contract price of all supplies delivered (or services performed) and accepted by the Government for which final prices have been established; (ii) on DD Form 633-6 cr other format approved by the Contracting Officer, the total costs (estimated to the extent necessary) reasonably incurred for and properly allocable solely to the supplies delivered (or services performed) and accepted by the Government for which final prices have not been established; (iii) that portion of the total target profit which is in direct proportion to the supplies delivered (or services performed) and accepted by the Government for which final prices have not been established, increased or decreased in CFR TITLE 41 CHAPTER 18 CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS accordance with the incentive profit fcrmula set forth in (d) (2) above when the amount of costs stated under (ii) above differs from the aggregate target costs of such supplies or services; and (iv) the total amount of all invoices or vouchers for supplies delivered (or services performed) and accepted by the Government (including ancunts applied or to be applied to liquidate progress payments). 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