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TITLE 48 - FEDERAL ACQUISITION REGULATIONS SYSTEM
CHAPTER 2 - DEFENSE ACQUISITION REGULATIONS SYSTEMS, DEPARTMENT OF DEFENSE
SUBCHAPTER H - CLAUSES AND FORMS
PART 252 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.217 - 7021 - Deficiency adjustment.
As prescribed in 217.7203(b)(2), use the following clause: Deficiency Adjustment (DEC 1991) (a) When the Contractor is required under the Examination and Testing clause of the contract to reimburse the Government for deficiencies in the amount of butterfat, milk solids non-fat, or total solids, reimbursement shall be determined by the following formula (1) Butterfat. Subtract the total pounds of butterfat delivered from the total pounds of butterfat required to be delivered, and multiply the remainder by the butterfat value. The butterfat value is 1.30 multiplied by the average Central States top Wholesale Selling Price of Grade A, 92 score butter during the monthly period for which the deficiency is computed, as reported in the Dairy Market News, published by the Department of Agriculture, Agricultural Marketing Service, Madison, Wisconsin.
(2) Milk solids nonfat. Subtract the total pounds of milk solids non-fat delivered from the total pounds of milk solids non-fat required to be delivered, and multiply the remainder by the milk solids non-fat value.
The milk solids non-fat value is 1.45 multiplied by the average Central States top price for Extra Grade, Non-fat Dry Milk, Spray (bags) during the monthly period for which the deficiency is computed, as reported in the Dairy Market News.
(3) Total solids. Add to the total solids delivered the total amount of any shortages for butterfat and milk solids non-fat that the Contractor has already reimbursed. Subtract this amount from the total solids required to be delivered. Multiply the remainder by the milk solids non-fat value.
(b) The Government will not assess amounts totaling $25 or less during a monthly accounting period. Monthly periods begin on the first day of the contract period and on the same day of each succeeding month.
(c) The butterfat, milk solids non-fat, and total solids content of one type of product shall not be averaged with or offset against the content of another type of product, and the content of products delivered in any one monthly period will not be averaged with or offset against the content of products delivered in any other monthly period.
(d) The Contractor shall identify the tare weights of all containers on the shipping documents, and furnish a copy to the Government inspector at destination. The tare weight of dispenser containers shall include all parts of the container delivered as a unit, including lids, tubes, and seals. If different types of containers with different tares are included in a single delivery, the Contractor shall furnish the tare weight and identifying characteristics of each type of container.
(e) The Government shall inspect a representative sample of the line item. If volume and net weight shortages are found, the Government will adjust the entire quantity of the line item delivered on the day the shortage is discovered. For the purpose of determining net weight, the following weight factors apply: ------------------------------------------------------------------------ Product Weight factor ------------------------------------------------------------------------ Chocolate flavored milk or drink.... 8.8 pounds/gallon.
Milk whole fresh, buttermilk fluid, 8.6 pounds/gallon.
milk whole fresh. cultured, and milk skim fresh.
Fresh cream (18 percent butterfat or 8.5 pounds/gallon.
less), half-and-half fresh, and cream sour cultured.
Fresh cream (more than 18 percent 8.4 pounds/gallon.
butterfat).
Cottage cheese, butter, and other Weight on container.
non-frozen products.
Ice cream and frozen desserts....... Applicable commodity specification.
------------------------------------------------------------------------ (f) Contractor reimbursement for deficient supplies does not prejudice the Government's right to terminate for default or to pursue any other remedy under this contract or as provided by law.
(End of clause)
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