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FAR and DFARS › DFARS Part 216: Types of Contracts › Subpart 216.2

DFARS 216.203-4 Contract clauses.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers when they may generally use the economic price adjustment clauses found in the FAR for standard supplies, semistandard supplies, and labor and material. Those clauses are generally used only if the total contract price exceeds the simplified acquisition threshold and delivery or performance will not finish within 6 months after award. It also directs contracting officers to follow PGI 216.203-4 procedures when using an economic price adjustment clause based on cost indexes of labor or material.

Applies to: DoD contracting officers using economic price adjustment clauses

What it requires

  • Generally use the FAR economic price adjustment clauses only when the total contract price exceeds the simplified acquisition threshold and delivery or performance will not be completed within 6 months after contract award.
  • Follow the procedures at PGI 216.203-4 when using an economic price adjustment clause based on cost indexes of labor or material.

Key terms: economic price adjustment · simplified acquisition threshold · standard supplies · semistandard supplies · cost indexes of labor or material

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(1) Generally, use the clauses at FAR 52.216-2, Economic Price Adjustment—Standard Supplies, FAR 52.216-3, Economic Price Adjustment—Semistandard Supplies, and FAR 52.216-4, Economic Price Adjustment—Labor and Material, only when—

(i) The total contract price exceeds the simplified acquisition threshold; and

(ii) Delivery or performance will not be completed within 6 months after contract award.

(2) Follow the procedures at PGI 216.203-4 when using an economic price adjustment clause based on cost indexes of labor or material.

Sections it refers to

  • 52.216-2 Economic Price Adjustment—Standard Supplies.
  • 52.216-3 Economic Price Adjustment—Semistandard Supplies.
  • 52.216-4 Economic Price Adjustment—Labor and Material.

Sections that refer to it

  • 252.216-7000 Economic Price Adjustment—Basic Steel, Aluminum, Brass, Bronze, or Copper Mill Products.
  • 252.216-7001 Economic Price Adjustment-Nonstandard Steel Items.
  • 252.216-7003 Economic price adjustment—wage rates or material prices controlled by a foreign government.
  • 252.216-7007 Economic price adjustment—basic steel, aluminum, brass, bronze, or copper mill products-representation.
  • 252.216-7008 Economic price adjustment—wage rates or material prices controlled by a foreign government—representation.

← 216.203 Fixed-price contracts with economic price adjustment. · 216.203-4-70 Additional provisions and clauses. →

Rule changes for DFARS Part 216

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 216.203-4 Contract clauses · SpendQuery