FAR 17.109 — Contract clauses
Regulatory text. Not legal advice.
(a)
(a) The contracting officer shall insert the clause at FAR 52.217-2, Cancellation Under Multiyear Contracts, in solicitations and contracts when a multiyear contract is contemplated.
(b)
(b) Economic price adjustment clauses. Economic price adjustment clauses are adaptable to multiyear contracting needs. When the period of production is likely to warrant a labor and material costs contingency in the contract price, the contracting officer should normally use an economic price adjustment clause (see FAR 16.203). When contracting for services, the contracting officer—
(1) Shall add the clause at FAR 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts), when the contract includes the clause at FAR 52.222-41, Service Contract Labor Standards;
(2) May modify the clause at FAR 52.222-43 in overseas contracts when laws, regulations, or international agreements require contractors to pay higher wage rates; or
(3) May use an economic price adjustment clause authorized by FAR 16.203, when potential fluctuations require coverage and are not included in cost contingencies provided for by the clause at FAR 52.222-43.
Citation history: [61 FR 39204, July 26, 1996, as amended at 72 FR 63078, Nov. 7, 2007; 79 FR 24202, Apr. 29, 2014]
Source: eCFR • Pulled 2026-04-16