2025 EPA Custom Clause C.## (draft).pdf

Tables and Links will be updated accordingly for solicitation and award.

Tables and Links included herein are valid and will provide a reference for review and consideration.

C.## Economic Price Adjustments-Cost Indexes of Transportation (Mar 2023)

(a) General. IAW FAR 16.203-4(d) - The mileage unit prices in Section B - Schedule of Items shall be adjusted annually at contract option renewal based on increases or decreases to DOL Bureau of Labor Statistics - Table 1. Consumer Price (CPI), in accordance with paragraphs (d) and (e) of this clause, except that-

(1) In no event shall the total amount paid under this contract exceed any ceiling price included in the contract, nor shall the total amount decrease lower than originally proposed base mileage rate.

(2) Any adjustment shall be limited to the effect on the elements increased or decreased in the rates for unit prices shown in the Schedule. There shall be no adjustment for-

(i) Supplies or services for which the cost is not affected by such changes;

(ii) Changes in rates or unit prices other than those shown in the Schedule; or

(iii) Changes in the quantities of labor or material used from those shown in the

Schedule for each item.

(3) No upward adjustment shall apply to supplies or services that are required to be delivered or performed before the effective date of the adjustment, unless the Contractor’s failure to deliver or perform according to the delivery schedule results from causes beyond the Contractor’s control and without its fault or negligence, within the meaning of the Default clause.

(4) There shall be no adjustment for any change in unit prices which would not result in a net change of at least 3 percent of the then-current unit price.

(b) Definitions. "Unit," as used in this clause, means unit pricing, not mobile food service ‘unit’.

(c) The Government has determined the following unit price element adjustments allocable as calculated in paragraph (d) based on common industry standards:

(1) Transportation

(i) Labor costs for incident drivers comprise approximately 45-50 percent of mileage rates.

(ii) Allocable transportation costs represent mileage, maintenance, fuel, fees, etc.

(approx. 75% of the index), minus non-allocable costs such as public transportation, leases, and rentals (approx. 25% of the index).

(d) Contract unit price adjustments applicable to each contract option renewal period will be based on increases or decreases in:

(1) the Unadjusted percent change (Dec. 20## – Dec. 20##) to the Food, Transportation services, and Services less energy services indexes found in Table 1 - Consumer Price Index for all Urban Consumers (CPI-U) – Expenditure category;

https://www.acquisition.gov/far/part-16#FAR_16_203_4

(i) The calculation of the of the percent change to the CPI-U Transportation index for each renewal option period will be based on the Unadjusted percent change, December through December. For example, price adjustments for calendar year 2025 will be based on unadjusted percent changes (Dec 2023 -Dec 2024) from the January 2025 release.

DOL BLS Consumer Price Index - September 2022 print

(See examples below, CPI-U Transportation = 14.6%)

(e) The newly adjusted prices will become effective upon renewal of each Option period, using the following formulas:

(1) The Mileage rate will be adjusted as follows:

(i) 50% of the current mileage price multiplied by 75% of the Unadjusted percent change in the CPI-U for the Transportation index.

For example: If the unadjusted percent change to the CPI-U Transportation index = 14.6% with a hypothetical current mileage rate of $15.00.

($15.00 x 50%) x (0.146 x 75%) = $0.82

New adjusted rate: $15.00 + $0.82 = $15.82

(f) Contract modifications. Each adjustment of prices shall be evidenced by a unilateral modification to this contract, providing the adjusted unit prices (unit summary) that apply during the next performance period; provided that the Government gives the Contractor timely preliminary written notice of its intent to extend IAW Contract Section C – Contract Clauses - C.14. (FAR 52.217-9, Option to Extend the Term of the Contract).

(g) The Contracting Officer may examine the Contractor’s books, records, and other supporting data relevant to the changes until the end of 3 years after the date of final payment under this contract or the time periods specified in subpart 4.7 of the Federal Acquisition Regulation (FAR), whichever is earlier.

(End of custom clause) https://www.bls.gov/news.release/archives/cpi_10132022.htm https://www.acquisition.gov/far/part-52#FAR_52_217_9 https://www.acquisition.gov/far/part-52#FAR_52_217_9 https://www.acquisition.gov/far/part-4#FAR_Subpart_4_7

C.## Economic Price Adjustments-Cost Indexes of Transportation (Mar 2023)