48 CFR § 216.203-4 - 216.203-4 Contract clauses.

---
identifier: "/us/cfr/t48/s216.203-4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 216.203-4 - 216.203-4   Contract clauses."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "216.203-4"
section_name: "216.203-4   Contract clauses."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "C"
subchapter_name: "CONTRACTING METHODS AND CONTRACT TYPES"
part_number: "216"
part_name: "TYPES OF CONTRACTS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36340, July 31, 1991, unless otherwise noted."
cfr_part: "216"
---


# 216.203-4 216.203-4   Contract clauses.

(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.

[71 FR 39007, July 11, 2006]