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Economic Price Adjustment - Fixed Price Contract
By Scott Stermer on Monday, April 02, 2001 - 10:45 am:

I am looking for any information or sample clauses dealing with FP-EPA's. Specifically, dealing with medical costs and utilities.

Can anyone point me in the right direction!!

Thanks Scott


By joel hoffman on Monday, April 02, 2001 - 10:36 pm:

I have some experience with utility costs on fixed price construction contracts. I'm assuming that you want to reduce contingencies in case rates go up.

We didn't use a "clause". You could write a special contract requirement which bases the contract price on the utility rates in effect at the time of award. Adjustments would be allowed, pursuant to the changes clause, based on the difference in standard rates charged by the utility, plus markups for overhead (bond, if construction) but not profit. The Contractor wouldn't be encouraged to waste utilities, because usage at the base rate would still be its risk. You could even include some type of cost savings sharing for reducing consumption after some period. Just some thoughts for your consideration. Happy Sails! Joel


By Kennedy How on Tuesday, April 03, 2001 - 12:30 pm:

I've only have limited experience with EPA clauses, for hardware, and the one thing I learned (the hard way, via ASBCA Claim) is that you want to have your indices as close to what is actually being measured as possible. If it isn't close, or it doesn't fit any existing category, you ought to either write your own, or pick a combination to cover your situation. If you don't you're asking for trouble.

I usually preferred writing my own, because it can be tailored to the instant situation. As long as the parties agree to the rationale behind the indices, you can avoid a lot of problems down the road.

In my case, even though it was in a competetive RFP, the indicies weren't really representative, there were other indices much more representative; and that came out when we were working the claim. Turned out the provisions were lifted out of a contract for a totally unrelated weapon system.

Kennedy


By bob antonio on Tuesday, April 03, 2001 - 12:46 pm:

Scott:

One of our users has a very good idea that she shared some time ago. It was to go to the CBD or EPS and run a search for your term.

I tried it a few moments ago with "economic price adjustment" and got a number of hits at the CBD. I used a period beginning on 1/1/00.

Here is the CBD search page.

http://cbdnet.access.gpo.gov/search2.html

One you get some hits, you can either get a copy of the solicitation (and clauses) online or contact a contracting officer that used the clauses.


By Anonymous on Wednesday, April 04, 2001 - 07:58 am:

I am curious to learn why you would consider a medical EPA. Also many utilities are governed by Public Utility Commissions---why would you need an independent indices?


By Scott Stermer on Wednesday, April 04, 2001 - 11:10 am:

To: Anonymous

I do long term (10-20 Years) private prisons contracts (co/co) which are fixed price...which requires the contractor provide all services including medical and utilities, we are looking for ways to reduce contingencies.

Scott


By Anonymous on Monday, April 16, 2001 - 03:42 pm:

Hey, I need an EPA clause for telecommunications services (dedicated circuits). Anyone know of a good one?


By anon www on Tuesday, April 17, 2001 - 08:38 am:

Are you talking about embedded base or up to the switch? anon 3:42


By Anonymous on Tuesday, April 17, 2001 - 03:58 pm:

End to end, from a point overseas to a point here in the U.S. Just the circuit/pipe, not the equipment, not the "last mile".

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