Common use of Economic Price Adjustment Clause in Contracts

Economic Price Adjustment. Beginning twelve (12) months after the effective date of this Contract and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price adjustments will be made in accordance with the average percentage change in the United States Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this 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). The “Current Period Index” is the average of the most recent twelve months of non- preliminary BLS Index values, and the “Base Period Index” is the average of the twelve months of non-preliminary BLS Index values prior to the Current Period Index.

Economic Price Adjustment. Beginning twelve (12) months after the effective date of this Contract and for every annual anniversary thereafter, the prices Prices set forth in Exhibit A – Included Ammunition and Prices Water Treatment Products may be adjusted upon Contractor request. Requests for price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year according to the table below to be eligible for an adjustment on the following February 1for that period. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price adjustments will be made in accordance with the average percentage change in the United States Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Category PPI CODE Percentage Chemicals and Allied Products WPU06790961 80% Truck and Transportation PCU484-484 10% Fuel and related Products and power WPU053 10% Economic adjustment will lag one (1) calendar quarter past be effective according to the Contract commencement date to allow for publication of BLS datatable below. All calculations for the index shall be based upon the latest version of data published as of December 1st each yearaccording to the table below. Prices may shall be adjusted and effective on February 1st according to the table below. January 1- June 30 November 15 December 1 January 1 July 1 – December 31 May 15 March 1 July 1 The economic adjustment shall be calculated as follows: New Price = Old Price x (Current Period Index/Base Period Index). The “Current Period Index” is the average of each yearthe most recent six (6) months of non- preliminary BLS Index values, and the “Base Period Index” is the average of the six (6) months of non-preliminary BLS Index values prior to the Current Period Index. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this 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). The “Current Period Index” is the average of the most recent twelve months of non- preliminary BLS Index values, and the “Base Period Index” is the average of the twelve months of non-preliminary BLS Index values prior to the Current Period Index.

Economic Price Adjustment. Beginning twelve (12) months after the effective The Contractor’s Adjustment Factors shall be adjusted on each annual anniversary date of this Contract the award date to account for construction cost escalation or de-escalation provided the Contractor requests in writing, approximately fourteen to thirty days prior to the anniversary of the award date, that the Adjustment Factors be updated. Such request shall be delivered to the Owner and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1JAMB Services. In the event the Contractor fails to timely deliver the request a price adjustmenttimely, Enterprise Servicesthen the Owner shall determine the date on which the Adjustment Factors will be updated, at its sole discretionbut in no event will such date be later than thirty days after the written request to update the Adjustment Factors is received by the Owner. Thereafter, may allow an untimely adjustment; Providedthe Contractor’s Adjustment Factors will be adjusted according to the following: a) A Base Year Index shall be calculated by averaging the 12 month Construction Cost Indices (CCI) for the City of Los Angeles as published in the Engineering News Record (ENR) for the 12 months immediately prior to the bid due date. June 17, however, that such adjustment will not 2020 County of Ventura Bid #6001 Page C-73 General Conditions b) A Current Year Index shall be calculated by averaging the 12 month Construction Cost Indices (CCI) for the City of Los Angeles as published in the Engineering News Record (ENR) for the 12 months immediately prior to the month of the anniversary of the bid due date. c) The Economic Price Adjustment shall be calculated by dividing the Current Year Index by the Base Year Index. d) The Contractor’s original Adjustment Factors shall be multiplied by the Economic Price Adjustment to obtain the Contractor’s new Adjustment Factors effective for any the next 12 months. e) Averages shall be obtained by summing the 12 month indices and dividing by 12. f) All calculations in this article shall be carried to the fifth decimal place and rounded to the fourth decimal place. The following rules shall be used for rounding: (1) The fourth decimal place shall be rounded up when the fifth decimal place is five (5) or greater. (2) The fourth decimal place shall remain unchanged when the fifth decimal place is less than five (5). ENR occasionally revises indices. ENR CCIs used in the calculations described above shall be those currently published at the time prior to Enterprise Services’ price adjustment, and Contractor the Economic Price Adjustment calculation is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustmentsperformed. Price No retroactive adjustments will be made as a result of an ENR revision. Revised CCI indices, if any, shall be used in accordance subsequent calculations. Under all circumstances, should the Contractor submit a Work Order Proposal with inaccurate Adjustment Factors, the average percentage change act of submission by the Contractor is a waiver of all rights to any further compensation above the Work Order Price submitted in the United States Department Work Order Proposal. The Contractor cannot delay submission of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter Job Order Proposal past the Contract commencement due date to allow for publication take advantage of BLS dataa scheduled update of the Adjustment Factors. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e.In that event, the recoded index is a direct substitute for the prior index according to the BLS), this Contract will Contractor shall 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, Adjustment Factors that would have been in effect without 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). The “Current Period Index” is the average of the most recent twelve months of non- preliminary BLS Index values, and the “Base Period Index” is the average of the twelve months of non-preliminary BLS Index values prior to the Current Period Indexdelay.