ECONOMIC PRICE ADJUSTMENTS. a) If DES elects to extend this Contract for any Renewal Terms, the Contract pricing for each Renewal Term shall be automatically increased or decreased, as applicable, by DES by not more than the percentage increase/decrease of the U.S. Department of Labor “Consumer Price Index, US City Average, All Items, Not Seasonally Adjusted” (CPI-U, Series Id: CUUR0000SA0). b) The baseline index shall be the index announced for April of the year preceding the one in which the Renewal Term would begin. The percent change shall be calculated by subtracting the baseline index from the index announced for the April in the year in which the renewal option is exercised, and dividing the result by the baseline index. The percent change shall be rounded to the nearest one-hundredth of one percent and shall be the maximum price adjustment permitted. Contractor may offer price decreases in excess of the allowable CPI-U percent change at any time. The following example illustrates the computation of percent change using April 2008 as the Baseline: CPI-U for April 2009 213.240 Less CPI-U for April 2008 (baseline) 214.823 Equals index point change -1.583 Divided by previous period (baseline) CPI-U 214.823 Equals -0.0074 Results multiplied by 100 -0.0074 x 100 Equals percent change -0.74
Appears in 4 contracts
Samples: Services Agreement, Master Contract for Information Technology Professional Services, Master Contract for Information Technology Professional Services
