ARCHIVED Foreign Exchange Fluctuations

Legal text for SACC item

Where any rate of exchange, between the Canadian currency and those foreign 
currencies which form the basis of the costs of items set out at section B 
of the Claim for Exchange Rate Adjustments, form DSS-MAS 9411, differs from 
the rates of exchange actually obtained, the Contract Price shall be 
revised to reflect the impact of such difference on the costs, in 
accordance with the following provisions:

(a)  (1)  A change in the rate of exchange will have occurred if there
       is a difference in the rate of exchange on the dates when the 
       Contractor remitted payments for the items from that rate of 
       exchange described at section B of form DSS-MAS 9411.

       (2)  If the remittance for payment does not take place within thirty 
       days from the date of receipt of the items by the Contractor, the 
       Minister shall select a date within such thirty (30) days to 
       determine whether a change in the rate of exchange has taken place.

       (3)  For application purposes, the Contractor shall be deemed to 
       have remitted payment for each item set out in form DSS-MAS 9411 in 
       the respective currencies listed at section B of the form subject to 
       variation in accordance with this paragraph.

       (4)  Where the Contractor purchases an item set out in form DSS-MAS 
       9411 that was manufactured in Canada, that item shall be deemed to 
       be deleted from the form, and the appropriate foreign currency and 
       Canadian currency amounts shall also be deemed to be deleted.

       (5)  Where the Contractor purchases a part of an item set out in 
       form DSS-MAS 9411 that is manufactured in Canada, the identified 
       costs in the form shall be reduced in direct proportion to the 
       quantity of that part manufactured in Canada, and the appropriate 
       amounts set out at section C of the form shall be reduced 
       accordingly.

       (6)  Where, in accordance with the terms of the Contract, a change 
       is made to the Work that results in fewer purchases of material 
       manufactured outside of Canada, form DSS-MAS 9411 shall be amended 
       to reflect such changes in the purchases, and the rates of exchange 
       incorporated in this Agreement shall be the rates of exchange set 
       out in the form.

       (7)  Where, in accordance with the terms of the Contract, a change 
       is made to the Work that results in more purchases of material 
       manufactured outside of Canada, form DSS-MAS 9411 may, by agreement 
       of the parties, be amended to reflect such changes in the purchases; 
       and the rates of exchange incorporated in this Agreement with 
       respect thereto shall, unless other rates of exchange are agreed to 
       by the parties, be the rates set out in the form.

(b)  Payment for adjustments for fluctuations in the rates of exchange 
shall be made in accordance with paragraph _____ relating to payments, but 
where increases or decreases in costs in excess of $100,000 have been 
incurred by the Contractor as a result of changes in the rates of exchange, 
Canada or the Contractor, as appropriate, will pay to the other party such 
increases or decreases in costs, upon demand, which amounts will be 
reflected in the settlement of the matters set out in the above-mentioned 
paragraph.

(c)  The "rate of exchange" shall be the chartered bank noon mid-market 
rate prevailing on the relevant date for the respective currency as 
published in the Toronto Globe and Mail newspaper.

(d)  For application purposes, the costs of the items referred to in 
paragraph b) are the various amounts in the lists at section A (Value of 
foreign currency component expressed in foreign funds) and at section C 
(Value of foreign component in Canadian funds) in form DSS-MAS 9411.

(e)  For application purposes, if the total of the payments made for any 
   item in form DSS-MAS 9411 differs from the amounts listed in section A 
   of the form, payment will be deemed to have been made in the amount set 
   out in the form for purposes of determining the impact of the difference 
   in costs as a result of changes in the rate of exchange.  If partial 
   payments are made for an item in form DSS-MAS 9411, payments will be 
   deemed to have been made in the amounts set out in the form at the same 
   ratio as the partial payment is to the total payment for purposes of 
   determining the impact of differences in cost as a result of changes in 
   the rate of exchange.