13-CPI-U Based Price Adjustment Calculations.pdf

This is a CPI-U based price adjustment calculation document supporting a landfill services contract for Harris County and the Harris County Flood Control District in Texas. The document establishes the methodology for adjusting pricing based on the Consumer Price Index for All Urban Consumers (CPI-U) to account for inflation or deflation during the contract term. The adjustment mechanism applies to the disposal fees and other variable costs associated with accepting Type IV, non-putrescible, non-compacted solid waste and recycling materials at the designated landfill facility.

The pricing adjustment calculations utilize CPI-U indices to modify the base contract rates periodically throughout the contract performance period, ensuring that the contractor's compensation remains equitable relative to changes in labor, materials, and operational costs. This adjustment clause protects both the county entities and the service provider by creating a transparent, index-based mechanism for price modifications rather than requiring contract amendments or renegotiations. The specific calculation methodology references baseline CPI-U values and establishes the parameters for applying annual or periodic adjustments to the bid pricing, allowing the contract to remain economically viable across the full contract term while maintaining cost predictability for the government entities.