Section 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