Common use of Adjustments to Task Order Hourly Rates Clause in Contracts

Adjustments to Task Order Hourly Rates. Labor-hour (L-H) and time-and-materials (T&M): Task order loaded (loaded pursuant to the specific terms for T&M and L-H loading discussed in this Section B) hourly rates may be adjusted, if specified in the task order Statement of Work (SOW), for each of the option years by applying no more than the same adjustment factor to the task order rates as was applied to the loaded contract ceiling hourly rates. The specific escalation shall be fully definitized in the applicable order, else escalation is not permitted. If an order does not specifically provide for such adjustment, no such adjustment is permitted (order level escalation is not automatic, shall not be presumed, and doesn’t inhere from the Contract to task orders) – the parties to the order may not write it in after the fact. Fixed Price (FP) tasks: Fixed price task orders and their option periods, if any, shall be fully definitized and pre-priced. Unless the Order definitizes an Economic Price Adjustment (EPA) or escalation, none applies (Contract level EPA or escalation doesn’t apply to task orders).