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DocuSign Envelope ID: E53DCC3C-B8E8-410C-BB50-A039C27BD393 <br /> Following issuance of the Contract, the pricing shall remain as part of the proposal through June 30, <br /> 2019 as per the contract term as proposed by the Contractor in the RFP. Adjustments in the amount <br /> for ensuing years shall be made in accordance with the following to include labor services alone: <br /> A. LABOR CPI-U: The County will allow an annual CPI-U price adjustment for each year of the <br /> Contract after the first year as described herein. The CPI-U used shall be the percentage of <br /> movement of the U.S. Department of Labor. Consumer Price Index, All Urban Consumers (CPI-U) <br /> for all items for the 12-month period ending in January of each Contract year. The CPI-U <br /> adjustment shall be limited to fifty percent (50%) of each unit price, unless otherwise specified <br /> herein. The Adjusted Contract Unit Prices shall become effective on July 1st of the initial contract <br /> term (July 1, 2019) and shall be adjusted every twelve (12) months thereafter on the Contract <br /> anniversary date according to the formula in the example below and shall be binding on the <br /> Contractor for the ensuing Contract year. <br /> CPI-U ADJUSTMENT EXAMPLE: For the monthly Labor Rate, take the maximum of the change of <br /> the CPI-U multiplied by 50% of unit price. The calculation for the adjusted monthly per <br /> participation collection service unit price for the ensuing contract year shall be derived as <br /> follows: <br /> (1/2 Monthly Labor Rate x CPI-U) + (1/2 Monthly Labor Rate) = Adjusted Unit Price, rounded <br /> to the nearest cent <br /> If the monthly labor rate is $2000 per HHW collection site,then the CPI-U adjustment would <br /> apply to 50% of the unit price or$1000. Assuming an annual CPI-U adjustment of 3.5%, then the <br /> formula would be as follows: <br /> ($1000 X 1.035 ) + ($1000) =the Adjusted Monthly Labor Price of$2035.00 <br /> If the CPI-U exceeds 4%,the calculation for that year shall remain at 4% or 1.04. <br /> B. PROCESSING: The County will consider yearly adjustments to the processing cost per pound or <br /> gallon as proposed in the RFP but yearly increases shall not exceed 4%. Any increase request <br /> should provide justification as to why the price increase is needed. A written explanation must be <br /> received prior to the notification deadline. Examples of justification include disposal cost <br /> increases, inflation, or fuel price increases. The County will not pay a fuel surcharge. <br /> PROCESSING EXAMPLE: For the pound processing rate, an increase of two percent(2%) was <br /> approved through negotiations between the Contractor and County in January for the next fiscal <br /> year. The processing rate shall be derived as follows: <br /> If the processing rate is $0.80 per pound, and the adjustment is two percent(2%), then the <br /> formula would be as follows: <br /> (0.80 X 1.02) =0.816 or$0.82 per pound <br /> C. NOTIFICATION: If the Contractor plans to increase costs within the guidelines of the increase <br /> limitations listed in A& B above, the County must be notified in January of each year. <br /> 1.14.5 Adjustments for Change in Scope <br /> The County may order changes to the contract within the general scope of services consisting of <br /> additions, deletions or other revisions. No claim may be made by the Contractor that the scope of <br /> work or that the Contractor's services have been changed requiring adjustments to the amount <br /> of compensation due to the Contractor unless such adjustments have been made by a written <br /> 10 of 45 <br /> RFP No. 5255 <br />