Federal activity overview — Fixed-Price with Economic Price Adjustment
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Fixed-Price with Economic Price Adjustment Government Contracts & Federal Records
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A fixed-price contract with an economic price adjustment clause that provides for upward or downward revision of the stated contract price upon the occurrence of specified contingencies, such as changes in published price lists, material costs, or labor rates.
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FAR 16.203
Appropriate for multi-year contracts or when market conditions are volatile. Used when there is serious doubt about the stability of market or labor conditions during the contract period.
Advantages: Protects both parties against market volatility, enables longer-term contracts. Disadvantages: Requires tracking of economic indices, more complex administration.
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Bureauify. (2026). Fixed-Price with Economic Price Adjustment — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/fixed-price-economic-price-adjustment
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