Subpart 5152.1 -- Instructions for Using Provisions and Clauses
Subpart 5152.2 -- Texts of Provisions and Clauses
AFARS -- Part 5152
Texts of Provisions and Clauses
Subpart 5152.1 -- Instructions for Using Provisions and Clauses
(b) Numbering.
(2) Provisions or clauses that supplement the FAR.
(ii)
(A) The numbers of clauses or provisions published in the Federal Register and codified in Title 48, Code of Federal Regulations (CFR), shall be preceded by 51, the Chapter number assigned to the Army by the CFR staff.
(iii) Army major commands must number supplemental provisions or clauses using four-digit sequential numbers in the 5000 series. Their subordinate commands or contracting offices shall use numbers in the 4000 series.
Subpart 5152.2 -- Texts of Provisions and Clauses
5152.237-9000 – Adjustments to Contractor’s Coefficient for Option Years (Job Order Contracts).
Application. For job order contracts, insert the following clause in solicitations and contracts in accordance with 5117.9004-2(h).
Adjustments to Contractor’s Coefficient for Option Years
(Job Order Contracts)
‘Pricing’ of option periods, to include consideration of any adjustments must be performed by an economic price adjustment for those periods, as follows:
An economic adjustment will be applied to the contract coefficient(s) addressing changes in the cost of labor, equipment and material in the Unit Price Book (UPB) (this includes consideration of Davis Bacon issues). This allows for economic increase or decrease of the prices in the Unit Price Book (UPB) and serves to adjust line item prices by the percentage increase or decrease of the economic trend in the construction market. The economic price adjustment will be based on the Building Cost Index (BCI) found in the Market Trend pages of the Engineering News Record (ENR). The economic adjustment is not applied to the cost items comprising the coefficient. No upward adjustment can apply to delivery orders awarded prior to the effective date of the adjustment, regardless of the date of commencement of work thereunder.
The adjustment will be made in accordance with the following equation. The resulting revised coefficient(s) must be applied throughout the option year.
N = C + i
Where: N = New Coefficient
C = Base Year Coefficient
i = Change Factor (% increase or decrease from base to option year)
The Index Factor, i, shall be computed according to the following equation:
i = BCIN – 1
BCIC
Where:
BCIN is the Building Cost Index, published in the ENR, for the month prior to the effective date of the option period.
BCIC is the Building Cost Index, as published in the ENR, on the date of the award of the contract. The BCIC is _____, based on the award date of ____________.
If the BCI or the ENR ceases to be published, the parties shall agree on substitute indices.
Example: For the base year of a contract the coefficient is 1.10. The cost to the government for a line item whose cost is $100.00 is 1.10 x $100.00 = $110.00.
Option Year 1. For the first option year the coefficient will be adjusted as follows:
i = BCIN – 1 = 3111.86 – 1 = 1.0133 – 1 = –.0133
BCIC 3071.10
The new coefficient would be calculated as follows:
N = C + i = 1.10 + 0.0133 = 1.1133
The above line item under the option period would be 1.1133 x $100.00 = $111.33.
Option Year 2. For the second option year, if the BCI for the month prior to the effective date of the option period was 3002.99, the coefficient will be adjusted as follows:
i = BCIN – 1 = 3062.99 – 1 = .9974 – 1 = –0.0026
BCIC 3071.10
The new coefficient would be calculated as follows:
N = C + i = 1.10 -- 0.0026 = 1.0974
The above line item under the second option period would be 1.0974 x $100.00 = $109.74
Note 1. Round calculations for the Change Factor (i) to the nearest ten thousandth.
Note 2. ENR indices for calculation of coefficients for the option years are taken from the McGraw Hill publication, ENR, published during the month prior to the effective date of the option. The ENR Index for the base year (contract award) is the most recent ENR index published for the month prior to initial contract award.