www.flh.fhwa.dot.gov
Section 109. — MEASUREMENT AND PAYMENT109.06 Pricing of Adjustments. Add the following:FUEL PRICE AD
Section 109. —MEASUREMENT AND PAYMENT 109.06 Pricing of Adjustments. Add the following: FUEL PRICE ADJUSTMENT PROVISION GENERAL The Fuel Price Adjustment Provision provides for aprice adjustment in the form of a payment to the Contractor or arebate to the Government for fluctuations in the cost of diesel fuel consumed in the performance of applicable construction work. The price adjustment provisions are applicable only to those contract items listed as eligible pay items in Table 1below, if diesel is used as the primary fuel in the production of the affected items. The price adjustment provisions are also applicable when the Government adds extra work to the eligible pay items already existing under the Contract. The provision will remain in effect throughout the duration of the contract. Enactment of the Fuel increase or decrease Price Adjustment Provision will only be considered when the in the price of diesel fuel as defined herein exceeds 10 percent. The Fuel Price Adjustment Provision is intended to reduce but not eliminate the cost effects of price uncertainty to the Contractor and the Government for diesel fuel consumed in the construction of this contract. It provides for sharing by the Government in aportion of the Contractor's risk, which could result from unusual price fluctuations. The provision is not intended to compensate the Contractor for normal day-to-day fluctuations and seasonal changes or to serve as aguarantee of full compensation for diesel fuel price fluctuations. PRICE INDEXES The Government will generate amonthly performance price index for Ultra Low Sulfur, No. 2Diesel Fuel using price data obtained from the Oil Price Information Service (OPIS), which publishes aweekly report on gasoline and distillate reseller prices for major cities in five regions throughout the United States including the East Coast (PADD 1), the Midwest (PADD 2), the Gulf Coast (PADD 3), the Rockies (PADD 4) and the West Coast (PADD 5). Weekly average rack price data reported for (insert the applicable region and city) will be averaged and used to establish abase price index, BP1, for this project and amonthly performance price index, MPPI, for the duration of the contract. These indexes are defined as follows: •BASE PRICE INDEX The base price index, BPI, is the price index determined by the arithmetic average, as specified above, shown in the four weekly publications immediately preceding the bid opening. The BPI will be provided by the Government after contract award. It is as follows: BASE PRICE INDEX (BPI) FOR ULTRA LOW SULFUR, NO. 2DIESEL FUELPER GALLON =$

