---
kind: "section"
citation: "48 C.F.R. § 17.109"
title: "48"
number: "17.109"
heading: "Contract clauses."
url: "https://uscodex.org/cfr/48/17.109"
---

# §17.109. Contract clauses.

- (a) The contracting officer shall insert the clause at 52.217-2, Cancellation Under Multiyear Contracts, in solicitations and contracts when a multiyear contract is contemplated.
- (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 16.203). When contracting for services, the contracting officer—
  - (1) Shall add the clause at 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 52.222-41, Service Contract Labor Standards;
  - (2) May modify the clause at 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 16.203, when potential fluctuations require coverage and are not included in cost contingencies provided for by the clause at 52.222-43.

## Notes

### Amendments

[61 FR 39204, July 26, 1996, as amended at 72 FR 63078, Nov. 7, 2007; 79 FR 24202, Apr. 29, 2014]

### Source

Source: 61 FR 39204, July 26, 1996, unless otherwise noted.

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42231, Sept. 19, 1983, unless otherwise noted.

### Amendments

[61 FR 39204, July 26, 1996, as amended at 72 FR 63078, Nov. 7, 2007; 79 FR 24202, Apr. 29, 2014]