Common use of ECONOMIC ADJUSTMENT Clause in Contracts

ECONOMIC ADJUSTMENT. Beginning twelve (12) months after the effective date of this Master Contract and for every annual anniversary thereafter, the prices set forth in Exhibit B – Prices shall be adjusted, based upon the percent changes (whether up or down) in the indices described below, for the most recent year. Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. Index Description Index Serial Number Weighting Truck Transportation of Freight BLS PPI – WPU3012 xxxxx://xxxx.xxx.xxx/dataViewer/view/timeseries/WPU3012 100% Index Description Index Serial Number Weighting Average Statewide Wages for Farmworkers and Laborers, Crop Nursery, and Greenhouse ESD OEWS – 452092 xxxxx://xxx.xx.xxx/labormarketinfo/occupations 50% Consumer Price Index All Urban Consumers – Pacific Region xxxxx://xxx.xxx.xxx/xxxx.xxxxxxx/cpi.t04.htm 50% If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this Master Contract will use the recoded index, as applicable. If an index becomes unavailable, Enterprise Services shall substitute a proxy index. If there is not a direct substitute, the next higher aggregate index available will be used. The economic adjustment shall be calculated as follows: New Price = Old Price x (Current Period Index/Base Period Index).