Common use of Prices and Price Adjustment Clause in Contracts

Prices and Price Adjustment. 6.1 The Contract unit prices will remain firm for the Initial Contract Term. Unit price increases for ensuing Renewal Contract Terms shall only be considered by the Procurement Agent upon receipt of a written request from the Contractor sixty (60) Days prior to the end of the Contract Term or Renewal Contract Term, substantiating to the satisfaction of the Procurement Agent increased cost of performance over the preceding Initial Contract Term or Renewal Contract Term. Any increases approved by the Procurement Agent shall be limited to an amount not to exceed the percentage of movement of the U.S. Department of Labor, Consumer Price Index, All Items, Unadjusted, US City Average (CPI-U) [Series ID CUUR0000SA0] for the twelve (12) month period ending three (3) months prior to end of the expiring Initial Contract Term or Renewal Contract Term. The Contract unit prices changed as a result of this formula will become effective on the commencement date of the Renewal Contract Term and shall be binding on the Contractor for the ensuing Renewal Contract Term.