Common use of Price Adjustment Clause in Contracts

Price Adjustment. Price may be adjusted annually, beginning 12 months after the contract effective date based on the percent change (up or down) of the Producers Price Index (PPI). All requests must be submitted to the Contract Manager during the months of January or July only. Price adjustments correlate with the PPI for the Series ID’s in the table below and as published by the Bureau of Labor Statistics, in the Department of Labor, Xxxxxxxxxx, XX 00000. These reports are accessible at the following website: xxxx://xxx.xxx.xxx/data/. Groups Industry Code Industry Baseline 1, 2, 16 44121 Recreational vehicle dealers PCU44121-44121- Recreational vehicle dealers June 2001 3, 10 333112 Lawn and garden equipment manufacturing PCU3331123331121 Consumer non-riding lawn, garden, and snow equipment December 1982 6 PCU3331123331123 Consumer riding lawn, garden, and snow equipment 4, 5, 7, 8, 9, 17,18 333111 Farm machinery and equipment manufacturing PCU333111333111J Commercial turf and grounds care equipment, including parts and attachments December 1982 11, 12, 13, 14, PCU3331113331111 Farm-type (power take-off hp) wheel tractors (2/4- wheel drive)(with or without attachments) December 1982 15 PCU333111333111G All other farm machinery and equipment, excluding parts, including attachments December 1982 19 PCU333111333111 Farm machinery and equipment manufacturing December 1982 20, 21 33621 Motor vehicle body and trailer manufacturing PCU33621-33621- Motor vehicle body and trailer manufacturing December 2003 The Contractor may have up to 60 days after the posting of the month or quarter non-preliminary data at each contract anniversary to request a price increase. When requesting a price increase, the Contractor may submit a justification in writing to the Contract Manager detailing the reasons for the price adjustment request and demonstrating the calculable change in PPI over the last 12 months of the Contract that supports a price adjustment. The requested adjustment for a price increase may not exceed the percentage change of the PPI the preceding twelve months prior to the adjustment. The contractor must complete Price Update Form (Attachment H) to have the price adjustment processed. The Department reserves the exclusive right to accept or reject any request for price adjustment. Price adjustments may be effective only upon written approval by the Department and may not be applied retroactively. The Department reserves the right to request price decreases at any time during the term of the Contract if it’s found to be in the best interest of the State.

Price Adjustment. Price may be adjusted annually, beginning 12 months after the contract effective date based on the percent change (up or down) of the Producers Price Index (PPI). All requests must be submitted to the Contract Manager during the months of January or July only. Price adjustments correlate with the PPI for the Series ID’s in the table below and as published by the Bureau of Labor Statistics, in the Department of Labor, XxxxxxxxxxWashington, XX 00000DC 20212. These reports are accessible at the following website: xxxx://xxx.xxx.xxx/data/. Groups Industry Code Industry Baseline 1, 2, 16 44121 Recreational vehicle dealers PCU44121-44121- Recreational vehicle dealers June 2001 3, 10 333112 Lawn and garden equipment manufacturing PCU3331123331121 Consumer non-riding lawn, garden, and snow equipment December 1982 6 PCU3331123331123 Consumer riding lawn, garden, and snow equipment 4, 5, 7, 8, 9, 17,18 333111 Farm machinery and equipment manufacturing PCU333111333111J Commercial turf and grounds care equipment, including parts and attachments December 1982 11, 12, 13, 14, PCU3331113331111 Farm-type (power take-off hp) wheel tractors (2/4- wheel drive)(with or without attachments) December 1982 15 PCU333111333111G All other farm machinery and equipment, excluding parts, including attachments December 1982 19 PCU333111333111 Farm machinery and equipment manufacturing December 1982 20, 21 33621 Motor vehicle body and trailer manufacturing PCU33621-33621- Motor vehicle body and trailer manufacturing December 2003 The Contractor may have up to 60 days after the posting of the month or quarter non-preliminary data at each contract anniversary to request a price increase. When requesting a price increase, the Contractor may submit a justification in writing to the Contract Manager detailing the reasons for the price adjustment request and demonstrating the calculable change in PPI over the last 12 months of the Contract that supports a price adjustment. The requested adjustment for a price increase may not exceed the percentage change of the PPI the preceding twelve months prior to the adjustment. The contractor must complete Price Update Form (Attachment H) to have the price adjustment processed. The Department reserves the exclusive right to accept or reject any request for price adjustment. Price adjustments may be effective only upon written approval by the Department and may not be applied retroactively. The Department reserves the right to request price decreases at any time during the term of the Contract if it’s found to be in the best interest of the State.

Price Adjustment. Price may be adjusted annually, beginning 12 months after the contract effective date based on the percent change (up or down) of the Producers Price Index (PPI). All requests must be submitted to the Contract Manager during the months of January or July only. Price adjustments correlate with the PPI for the Series ID’s in the table below and as published by the Bureau of Labor Statistics, in the Department of Labor, Xxxxxxxxxx, XX 00000. These reports are accessible at the following website: xxxx://xxx.xxx.xxx/data/. Groups Industry Code Industry Baseline 1, 2, 16 44121 Recreational vehicle dealers PCU44121-44121- Recreational vehicle dealers June 2001 3, 10 333112 Lawn and garden equipment manufacturing PCU3331123331121 Consumer non-riding lawn, garden, and snow equipment December 1982 6 PCU3331123331123 Consumer riding lawn, garden, and snow equipment 4, 5, 7, 8, 9, 17,18 333111 Farm machinery and equipment manufacturing PCU333111333111J Commercial turf and grounds care equipment, including parts and attachments December 1982 11, 12, 13, 14, PCU3331113331111 Farm-type (power take-off hp) wheel tractors (2/4- 2/4-wheel drive)(with or without attachments) December 1982 15 PCU333111333111G All other farm machinery and equipment, excluding parts, including attachments December 1982 19 PCU333111333111 Farm machinery and equipment manufacturing December 1982 20, 21 33621 Motor vehicle body and trailer manufacturing PCU33621-33621- Motor vehicle body and trailer manufacturing December 2003 The Contractor may have up to 60 days after the posting of the month or quarter non-preliminary data at each contract anniversary to request a price increase. When requesting a price increase, the Contractor may submit a justification in writing to the Contract Manager detailing the reasons for the price adjustment request and demonstrating the calculable change in PPI over the last 12 months of the Contract that supports a price adjustment. The requested adjustment for a price increase may not exceed the percentage change of the PPI the preceding twelve months prior to the adjustment. The contractor must complete Price Update Form (Attachment H) to have the price adjustment processed. The Department reserves the exclusive right to accept or reject any request for price adjustment. Price adjustments may be effective only upon written approval by the Department and may not be applied retroactively. The Department reserves the right to request price decreases at any time during the term of the Contract if it’s found to be in the best interest of the State.