5.5 Price Adjustments No price escalations (increases) will be permitted during the three (3) year term of this contract. Price de-escalation (decrease) is permissible at any time during the contract term. The Department reserves the right to require a decrease based on industry pricing indicators (PPI and CPI) Contractors may request a price increase at renewal, if any (see Section 4.26). Price increase requests must be based on the Producer Price Index (PPI) Table Containing PPI-U All Items Indexes and Annual Percent Changes, http://data.bls.gov/PDQ/servlet/SurveyOutputServlet;jsessionid=f030761aed77$3FB$0A$
and may not exceed 4 percent.
The price increase request must be submitted 60 days before the expiration of the Contract, to the Contract Administrator, in writing and substantiated by a copy the appropriate (meaning specific to that Contractor’s commodity code) PPI index reports. http://www.bls.gov/news.release/ppi.toc.htm
