SOW - OBVAMC - 20210805.docx

SCOPE OF WORK

This requirement is for consolidated courier service between the Overton Brooks VA Medical Center (OBVAMC), non-VA Medical facilities throughout the Shreveport/Bossier metropolitan area, three VA Community-Based Outpatient Clinics (CBOC), and the Central Arkansas Veterans Healthcare System (CAVHS). The CBOCs are in Monroe, LA, Texarkana, AR, and Longview, TX. Services will be required in and between Texarkana, AR; Monroe, LA; Longview, TX; Little Rock, AR; and local service in the Shreveport and Bossier City metropolitan areas. The Contractor shall transport multiple items weighing up to 50 pounds each. Unit pricing shall be for all-inclusive round- trip service. Transport of furniture items shall not be including in this contract.

Scope of Work: The contractor shall provide all supervision, labor, equipment, vehicles, transportation, personnel licensing, and insurance needed to provide local courier service for OBVAMC, CAVHS, and CBOC’s located in Monroe, LA, Texarkana, AR, and Longview, TX. Services shall be provided daily as described below. Items to be transported include inter office correspondence, pharmaceuticals, expendable and nonexpendable commodity, x-rays, specimens, patient records, and equipment that can fit with in requested half-ton panel van, forms and/or other items as required. This service will be of two types: the first is “scheduled trips” and second is “as needed trips” as described below. Services are to be provided for the Base period (01 October 2021 to 30 Sep 2022), with four (4) Year option periods depending upon a continued need and availability of funds.

Performance Requirements:

SCHEDULED TRIPS:

Two roundtrips daily from OBVAMC, 510 E. Stoner Ave., Shreveport, LA 71101, to 1800 Buckner Square, Shreveport, LA 71101, Monday through Friday, excluding federal holidays. The departure times for these runs are 9:30AM and 2:30PM The official pick-up and drop off point at the OBVAMC for the Buckner Square scheduled trips is the Mailroom (room 1W25) and the Warehouse (room BE21). The pickup and delivery points (drop off points) for the scheduled trips to Buckner Square are Room C200 for Human Resources and Room A200 for the Business Office.

Two roundtrips from OBVAMC to the Knight Street VA Clinic at 3000 Knight Street, Shreveport, LA 71105, Monday through Friday, excluding federal holidays. The departure times for this run will be 9:30AM and 2:30PM the official pick-up and drop off point at the OBVAMC for the Knight Street schedule trips is the Mailroom (1W25), and the Warehouse (BE21). All lab specimens are to be delivered to the 2nd-floor of the Pathology Laboratory. The pickup and delivery point (drop off point) for the scheduled trips to Knight Street is Room 57.

Two roundtrips daily from OBVAMC to the Monroe, Longview, and Texarkana CBOCs Monday through Friday, one in the morning and one in the afternoon. The departure time for this run will be 9:00AM and 1:15PM.

One roundtrip weekly from OBVAMC to the CAVHS, 4300 West 7th Street, Little Rock, Arkansas, 72205, Friday excluding federal holidays. The Courier is responsible for contacting the lab for the pick-up times. The contact will be made between the hours of 7:00 AM through 11:00 AM at OBVAMC Pathology Laboratory Service, @ 318-990-4268. The departure times for these runs are 11:00 AM. The official pick-up point is OBVAMC, 2E21, 2nd-floor Pathology Laboratory Service. All COVID-19 tests are to be delivered to CAVHS room 2D-159.

AS NEEDED TRIPS: One-hour response time for returned calls and the driver’s maximum arrival time at the pick-up location is three hours.

As needed round trip courier service between OBVAMC and non-VA medical facilities throughout the Shreveport/Bossier metropolitan area, Non-Stat Trips (non-emergency) are on weekdays, to non-VA medical facilities throughout the Shreveport-Bossier metropolitan area, during weekdays (normal business hours) Monday through Friday 8 AM - 5 PM.

As needed round trip courier service between OBVAMC and non-VA medical facilities throughout the Shreveport/Bossier metropolitan area, Non-Stat Trips Monday - Friday 5 PM - 8 AM on weekdays and 24/7 on weekends and federal holidays and observances. 24/7 starts at 5 PM on the workday before the weekend or federal holiday and ends at 8 AM on the first workday after the weekend or federal holiday.

As needed round trip courier service between OBVAMC and non-VA medical facilities through the Shreveport/Bossier metropolitan area, Stat Trips (emergency trips) weekdays (normal business hours) Monday through Friday 8 AM - 5 PM.

As needed round trip courier service between OBVAMC and non-VA medical facilities throughout the Shreveport/Bossier metropolitan area, Stat Trips Monday-Friday 5 PM - 8 AM on weekdays and 24/7 on weekends and holidays.

The courier service will be on an as needed basis and will be coordinated through OBVAMC Logistics Service. Should this service be needed, the courier will be notified by the Contracting Officer Representative (COR), or other specified Logistics representative designated to authorize trips. Both the contractor and COR are to keep an accurate total count of all stops made during this contract so invoices can be correctly certified. Unscheduled trips that are for the delivery of medicine from the pharmacy or lab specimens in direct support of patient care, along with trips to and from other labs and medical centers need not be pre-approved. All other non-scheduled trips need pre-approval as explained above. In the event the courier service is made after normal business hours, the service authorizing the run is responsible for informing Logistics Service representative the next business day.

When needed, the courier, will be directed for additional stops in route or return from the CBOC, at a medical center located within the same town as the CBOC. Should this service be needed, the courier will be notified by the CBOCs respective Contracting Officer Representative (COR), or other competent authority at the CBOC or OBVAMC. Both the contractor and COR shall keep accurate total counts of all stops to ensure invoices can be correctly certified.

There are four designated pick-up points at the OBVAMC. The first is the Warehouse located in the basement of building one in room BE21. The second pick-up point is the Mail Room located on the first floor of building one room 1W25. The third pick-up point is the Pathology Laboratory located on the 2nd-floor of building one room 2E21. The fourth pick-up point is the Pharmacy located on the first floor of building one room 1E95. All items listed above, except pharmaceuticals will be picked up at these points. The contractor shall sign for and keep the pharmaceutical bag in their possession until released and signed for by a designated VA employee at the delivery location.

Upon return from the CBOCs delivery at the OBVAMC shall be made at five (5) different delivery points. The items marked “Mail Room” shall be delivered to the Mailroom (Room 1W25), the items marked “Pharmacy” shall be delivered to the “Pharmacy first floor Pharmacy (Room 1E95), the container marked “Laboratory” shall be delivered to the second floor Laboratory (Room2N8), All Equipment items” shall be delivered to the “Warehouse Basement room (BE21). All remaining items shall be delivered to the Administrative Officer of the Day (AOD), who is in the Emergency Room, 1North Room 1E92.

Parking is available near entrance of each CBOC. Parking for OBVAMC is in the rear loading dock area. The courier vehicles should park in the area mark “for small trucks” at the loading dock. If the space is occupied, the courier vehicle may park in the area marked for “Vendors and Contractors.” The courier vehicles must display a sign in the front window identifying them as the courier.

All time listed above refer to central time and are estimated times of departures and arrivals. Flexibility in actual departures and arrivals must be given to the contractor who must face the many hazards and differing conditions that exist on the roadways. If the courier is directed to make an as needed local stop the driver will according, run behind schedule at that point. Likewise, because there may be times the pickup point is unable to have the transportable goods ready at the designated time in the schedule, the Contractor must exercise flexibility in their departures, which also will put the courier behind schedule. The scheduled time listed are not meant to put a driver in any situation that may cause the unsafe operation of a vehicle.

Schedule of Service between OBVAMC and the CBOCs:

LONGVIEW, TX SCHEDULE: The Longview CBOC is located at 1005 North Eastman Road. Contractor shall make Two daily trips Monday through Friday between the OBVAMC and CBOC.

Morning Schedule: The contractor shall arrive at the Warehouse at 9:00AM and depart from the OBVAMC at 9:30AM. Arrival at the CBOC at 10:45AM. Departure from the CBOC will be at 11:00AM. Arrival at the OBVAMC will be at 12:20 PM.

Afternoon Schedule: The contractor shall schedule to leave the warehouse at 1:15PM. Arrival at the CBOC will be at 2:45PM. Departure from the CBOC will be at 4:00PM. Arrival at the OBVAMC will be 5:15PM.

Make stops as directed to Good Shepherd Medical Center, located at 700 East Marshall Avenue, Longview, TX. This distance is approximately 1.9 miles.

Make stops as directed to Open Imaging of Longview, located at 2901 North 6th Street, Longview, TX. This distance is approximately 1.5 miles.

It is approximately 70 miles one way form the OBVAMC, Shreveport, LA and to the CBOC, Longview, TX.

MONROE, LA SCHEDULE: The Monroe CBOC is located at 1691 Bienville Drive. Two daily trips Monday through Friday are made between the OBVAMC and CBOC.

Morning Schedule: The Contractor shall arrive at the Warehouse at 9:00AM and depart from the OBVAMC at 9:30AM. Arrival at the CBOC will be at 10:45AM. Departure from the CBOC will be 11:30AM. Arrival the OBVAMC will be at 12:45PM.

Afternoon Schedule: The Contractor shall schedule to leave the OBVAMC Warehouse at 1:15PM. Arrival at the CBOC will be at 2:45PM. Departure from the CBOC will be 4:00PM. Arrival at the OBVAMC will be at 5:15PM.

Make stops as directed at St. Francis Medical Center, located at 309 Jackson Street, Monroe, LA. This distance is approximately 3.3 miles.

It is approximately 110 miles one way from the OBVAMC, Shreveport, LA to the CBOC, Monroe, LA.

TEXARKANA, AR SCHEDULE: The Texarkana, AR CBOC is located at 910 Realtor Road. Two daily trips Monday through Friday are made between the OBVAMC and the CBOC.

Morning Schedule: The Contractor shall arrive at the Warehouse at 9:00AM. and depart from the OBVAMC at 9:30AM. Arrival at the CBOC will be at 10:45AM. Departure from the CBOC will be 11:30AM. Arrival at the OBVAMC will be at 12:45PM.

Afternoon Schedules: The Contractor shall schedule to leave the OBVAMC Warehouse at 1:15PM. Arrival the CBOC will be at 2:45PM. Departure from the CBOC will be at 4:00PM. Arrival at the OBVAMC will be at 5:15PM.

Make stops as directed at Christus-St. Michaels Hospital, located at 2600 St. Michaels Drive, Texarkana, TX. This distance is approximately 3.35 miles.

It is approximately 80 miles one way from the OBVAMC, Shreveport, LA to the CBOC, Texarkana, AR.

The contractor shall pick up pharmaceuticals, supplies, samples, x-rays, specimens, patient records, equipment that can fit within a mini-transit van or weighs up to 50 pounds, forms and/or other items required by OBVAMC and delivered to the specified destination. These same types of items will be picked up from other medical centers and facilities throughout the Shreveport/Bossier City area, including the scheduled trip destinations for delivery to OBVAMC.

Knight Street schedule: The Knight Street Clinic is located at 3000 knight Street, Shreveport LA, Two daily trips Monday through Friday. This distance is approximately 2.5 one way.

Morning Schedule: The contractor shall arrive at the Mail Room at 9:30AM. and depart from the OBVAMC at 10:00AM. Arrival at the Knight Street at 10:30AM. Departure from Knight Street will be at 11:00AM. Arrival at the OBVAMC will be at 11:30AM.

Afternoon Schedule: The Contractor shall schedule to leave the OBVAMC Warehouse at 2:30PM. Arrival at the Knight Clinic will be at 3:00PM. Departure from the Knight Street will be 3:30PM. Arrival at the OBVAMC will be at 4:00PM.

Buckner Square: The Buckner Square Clinic is located at 1800 Buckner Street Shreveport LA, Two daily trips Monday through Friday. This distance is approximately 4.5 one way.

Morning Schedule: The contractor shall arrive at the Mail Room at 9:30AM and depart from the OBVAMC at 10:00AM. Arrival at the Buckner Square clinic at 10:30AM. Departure from Buckner Square will be at 11:00AM. Arrival at the OBVAMC will be at 11:30AM.

Afternoon Schedule: The Contractor shall schedule to leave the OBVAMC Warehouse at 2:30PM. Arrival at the Buckner Square clinic will be at 3:00PM. Departure from the Buckner Square clinic will be 3:30PM. Arrival at the OBVAMC will be at 4:00PM.

CAVHS Little Rock, AR Schedule: The CAVHS is located at 4300 West 7th Street, Little Rock, AR 72205, PLMS 113/LR Clinic Services, Room 2D-159 Little Rock, AR. One trip Friday of each week made between the OBVAMC and CAVHS.

Morning Schedule: The Contractor shall arrive at the 2nd floor Laboratory at 11:00AM. Arrival at the CAVHS facility at 2:00PM. Departure from the CAVHS facility at 2:30PM arrival at the OBVAMC will be at 5:30PM.

The locations of the CBOC’s currently are: 1005 North Eastman Road, Longview, Texas; 1691 Bienville Drive, Monroe, LA; and 910 Realtor Road, Texarkana, AR. The locations are subject to change as the current lease expire.

The Contractor shall provide a driver an enclosed vehicle that is properly licensed and insured for all trips. Fleet vehicles must be owned or leased by the contractor. Contractor employees or subcontractor employee must not use personal vehicles in the performance of this contract.

Contractor shall ensure vehicles are clean, well always maintained and in good mechanical condition.

Contractor shall have a contingency plan if the primary vehicle(s) and driver(s) are unavailable. Minimally an alternate, reliable vehicle and qualified driver must be able to perform the duties of this contract. Vehicles must be licensed and meet the minimum inspection requirements of the State of Louisiana. Contractor must demonstrate capability of managing all operations at a local level to ensure proper quality assurance.

Performance Period: The Period of Performance shall include one (1) base period and four (4) twelve (12) month option periods. The base period may be less than 12 full months.

· Base Period: October 1, 2021 - September 30, 2022

· Option Period 1: October 1, 2022 - September 30, 2023

· Option Period 2: October 1, 2023 - September 30, 2024

· Option Period 3: October 1, 2024 - September 30, 2025

· Option Period 4: October 1, 2025 - September 30, 2026

Business Associates Agreement (BAA): In accordance with the requirements of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), this contract shall require a Business Associate Agreement (BAA). The contractor shall enter a BAA with the Department of Veteran Affairs, unless a previously execute BAA is on file. The BAA is an instrument that will hold the contractor liable for any release of confidential medical information by any of its employees. A copy of a BAA will be in the Contract Documents, Exhibits, or Attachment section.

Contract Monitoring and Administration: The Contracting Officer will appoint COR to assist with the contract monitoring requirements. The COR will monitor such items as quality of service, timeliness of performance customer service, cost control, and business relations. In accordance with FAR 1.601 (a) “Contracts may be entered into and signed on behalf of the Government only by contracting officers.” A COR may not modify the stated terms of the contract, including extending the length of the contract period.

Contract performance shall be evaluated against Quality Assurance Surveillance Plan (QASP)

The contractor shall acknowledge receipt by signing and returning the COR Delegation Letter to the Contracting Officer.

Management and Quality: The Contractor shall ensure qualified management is in place to maintain oversight of all operational aspects of the contract. Management shall ensure requirements are met concerning implementation, reporting, record keeping, contingency operations, key personnel, staffing, quality, and daily operations. The contractor shall identify a primary and alternate point of contact responsible for operational oversight. The contractor shall maintain electronic records available to the Government upon request. It may be necessary for Government Officials to occasionally meet face to face with contractor personnel; therefore, the contractor’s management officials shall be available to be on site within four business hours of receiving such notice. The Contractor shall develop and maintain a quality control program that ensures courier services are performed in accordance with these specifications. The contractor shall develop and implement procedures to track, identify, prevent, remedy, and ensure non-recurrence of defective services. The contractor shall provide a method to accept and resolve customer complaints and notify the customer of the resolution. The contractor shall immediately notify the VA COR upon receipt of a customer complaint so joint validation may be accomplished. The contractor is responsible for quality control and specification compliance. The contractor shall use a logical and coherent approach to implementing this contract. The contractor shall also implement a consistent communication process with the government throughout the implementation process.

Additional Contractor Qualifications: See Clauses C6 52.228-5 Insurance-Work on a Government Installation (JAN 1997), C7 Supplemental Insurance Requirements and Clause and C.13 VAAR 852.237-70 Contractor Responsibilities (April 1984). All contractor’s drivers shall be trained in and required to comply with requirements of VA Regulations pertaining to the transport of laboratory specimens. The laboratory specimen’s training is to ensure that the drivers are protected while transporting lab specimens and is accomplished annually. The VA will provide this training at the VA’s expense, but the VA will not pay for the time the driver is receiving the training.

Training: All contractor employees and subcontractor employees requiring access to VA information and VA information systems shall complete the following before being granted access to VA information and its system.

Sign and acknowledge (either manually or electronically) understanding of and responsibilities for compliance with the Contractor Rules and Behavior, relating to access to VA information and information systems.

Successfully complete the VA Cyber Security Awareness and Rules of Behavior training and annually complete required security training. Successfully complete the appropriate VA privacy training and annually complete required privacy training. Successfully complete any additional cyber security or privacy training, as required by VA personnel. Successfully complete “Dangerous Goods Training” to ensure that the drivers are protected while transporting lab specimens. This training shall be completed annually by all drivers. The training is available at no charge using the following website:

http://www.mayomedicallaboratories.com/education/online/dangerousgoods/index.html

The contractor shall provide to the contracting officer and/or the COR a copy of the training certificates and certification of signing the Contractor Rules of Behavior for each applicable employee with 1 week of the initiation of the contract and annually thereafter as required.

Failure to complete the mandatory annual training and sign the Rules of Behavior annually, within the timeframe required, is grounds for suspension or termination of all physical or electronic access privileges and removal from work on the contract until such time as the training and documents are complete.

Contractor Employees: The parties agree contractor employees shall not be considered Government employees for any purposes. A list of key personnel shall include primary and alternate Project and Program Managers responsible for ensuring successful performance of the courier services. The individual(s) shall be competent to oversee all aspects of the contract.

The Contract shall ensure the confidentiality of all patient information being transported and will be held liable in the event of a breach of confidentiality. The contractor shall comply with the provisions of the Federal Privacy Act of 1974(Public Law 93-579). All contractor employees are required to complete the Privacy HIPAA Training and a list of all employees completing the training will be made available to the VA Contract Officer (CO) and Contract Officers Representative (COR) annually. The COR will notify the contractor with training information and when the training is required to be re-certified.

The Contractor’s supervisors, drivers, and alternates must be able to read, write, speak, and understand English. The name of these persons, and an alternate, or alternates, who shall act for the contractor when the manager is absent, shall be designated in writing to the contracting officer. An updated listing will be provided as changes in personnel occur.

The Contractor and any subcontractors shall utilize only qualified personnel for this contract. The personnel shall always conduct themselves in a professional manner, present a neat appearance, Contractor employees shall wear identification badges above the waist clearly identifying contractor employees.

Drivers shall provide a signed and date trip ticket with designated VA employees at the laboratory or pick up site.

The VA reserves the right to restrict contractor employees from performing services under this contract who violate federal regulations or are identified as a potential threat to the security, safety, health and/or operational mission of VA and its veteran population. The restriction of such contractor personnel shall not relive the contractor from performing all the required services in accordance with all terms, condition, and schedules contained herein.

Subcontractors: All subcontractors used in performance of this contract shall be clearly identified by the contractor. The contractor agrees and certifies that minimally 51% of the cost of performance will be for work performed by employees of the prime contractor. Breach of this term by the contractor shall result in contract termination by the government. All requirements for submitting permits, licenses and insurance certificates and past performance data shall also apply to subcontractors.

Invoices and payment for services: Payment for services rendered by the contractor under the terms of this contract will be made monthly in arrears upon receipt of a properly executed invoice. In accordance with FAR clause 52.232-34 all payments by the government under this contract shall be made by electronic funds transfer (EFT). Invoices shall be submitted electronically within fifteen (15) calendar days following the end of a month in which the contractor rendered services. The COR will verify services have been performed and certify invoices for payment within thirty (30) days of receiving an invoice.

Any identified discrepancy(is) in billings shall be cause for extending the provision of this paragraph until such time as the discrepancy or other identified problem with the billing invoice has been remedied.

The terms of any prompt payment discounts offered shall be identified on invoices. The parties agree that the government due to fluctuating workloads and service requirements may increase or decrease periodically. Accordingly, except for minimum ordering requirements identified elsewhere in the contract, the government shall only be charged for such services on an as need basis.

Price cost schedule - Supplies or Service

The scheduled round trip price is a round trip price and includes the cost of the trip from OBVAMC to Knight Street or Buckner Square and the return trip back to OBVAMC. The as needed service within the Shreveport/Bossier City area will be priced on a cost per trip basis: from OBVAMC to other medical centers and facilities, or from the other medical centers to OBVAMC. Both the scheduled round trip price and the as needed cost per trip price are all inclusive rates and no other payment will be made for services provided. The quantities given below are estimated amounts. These are not guaranteed numbers and the contractor will be paid for only the actual number of trips made up to the amount of contract funding. The minimum amount and maximum amount the government will purchase is as follows:

13,500

Note: Please note that the rates below will be subject to annual adjustment based on the terms of the PROPORTIONAL ECONOMIC PRICE ADJUSTMENT OF CONTRACT PRICE(S) based on a Price Index clause (EPA clause) which follows this price/cost schedule. Note the adjustment may result in a price increase or decrease.

For purposes of calculation in accordance with the clause the current price of gas at start of contract per web site specified in the clause for regular for the Shreveport/Bossier City area will be taken on the date the solicitation proposals are due, Block 8 SF149 of this solicitation. This rate will be used in the calculation of the first adjustment under the EPA clause. The new rate will be taken annually on this same date, or the first business day after this date if it falls on a weekend or holiday. The rate increase or decrease will be effective in accordance with the clause on October 1st, the beginning of each option period.

Contractor shall supply courier service between Overton Brooks VA Medical Center (OBVAMC) and the three VA Community Based Outpatient Clinics (including service to local hospitals within the same town as the CBOC) in accordance with statement of work and all terms, conditions, and provisions of this contract. Payments will be made bi-weekly, every two weeks, in arrears upon receipt of a proper invoice at the office designated to receive the invoice. The trip price is a round trip price and includes the cost of the trip from Shreveport VA Medical Center to each CBOC and the return trip back to the Shreveport VA Medical Center. The trip price and the cost per stop price are all inclusive rates and no other payment will be made for services provided. The number of round trips and extra stops to local hospitals within the same town as the CBOC are estimated amounts. These are not guaranteed number and the contractor will be paid for only the actual number of trips and stops made up to the dollar amount of contract funding. The minimum amount and maximum amount the government will purchase is as follow:

Note: Please note that the rates below will be subject to annual adjustment based on the terms of the PROPORTIONAL ECONOMIC PRICE ADJUSTMENT OF CONTRACT PRICE(S) based on a Price Index clause (EPA clause) which follows this price/cost schedule. Note the adjustment may result in a price increase or decrease. For purposes of calculation in accordance with the clause the current price of gas at start of contract per web site specified in the clause for regular for the Shreveport/Bossier City area will be taken on the date the solicitation proposals are due, Block 8 SF149 of this solicitation. This rate will be used in the calculation of the first adjustment under the EPA clause. The new rate will be taken annually on this same date, or the first business day after this date if it falls on a weekend or holiday. The rate increase or decrease will be effective in accordance with the clause on October 1st, the beginning of each option period.

The contractor agrees the following list is not list is not exhaustive and delivery of other items may be required at no additional cost the government provided such items are within the stated weight limitations. The following items shall be included.

Interoffice correspondence Pharmaceutical items and medications Boxes or various size and shape Office supplies Medical supplies Laboratory specimens and samples X-Rays Patient records Oxygen tank-single tanks, portable Sterile instruments Small portable compressed nitrogen cylinders Blood and urine specimens packed in a rolling ice chest Various types of medical equipment Computer equipment to include laptops, monitors desktops Trash cans Posters, pictures, and frames Sharps containers (NO NEEDLES) Signage Bottled water by the case Package food items Sandbags up to stated weight limit Hand sanitizer COVID-19 Test

PORPORTIONAL ECONOMIC PRICE ADJUSTMENT OF CONTRACT PRICE(S) BASED ON A PRICE INDEX

To the extent that contract cost increases are provided for by this economic price adjustment clause, the offeror warrants that the prices in this proposal for any option periods do not include any amount to protect against such contingent cost increases.

The cost index, for the purpose of price adjustment under this clause, shall be AAA Fuel Gauge web site found at http://www.fuelgaugereport.com/LAmetro.asp as published by AAA Auto Club. All adjustments authorized under this clause shall be made by using the Shreveport-Bossier City regular rate which is updated daily.

The Base Index, for the purposes of price adjustment under this clause, shall be the most recent Index published prior to the closing date for receipt of offers, or the due date for receipt of best and final offers if discussions are held. This Base Index shall remain constant throughout the life of the contract, including all options.

The adjusting index shall be the most recent Index published prior to the due date of contract adjustment, as specified in paragraph (f).

For purposes of this clause, it will be conclusively presumed that 9.2469 percent (%) of the price of both the per mile rate for on demand stops and the per roundtrip rate represents the base cost of regular grade gasoline, and the resulting base cost will be the basis upon which adjustment will be made under this clause. This base cost will be used in calculating all adjustments to the following line items:001 through 0030. A new base cost will be calculated for each option year period based on the new year option prices.

The percentage of the price of the indexed commodity (see paragraph (c) remains fixed throughout the life of the contract and is not subject to modification under this clause. Any pricing actions pursuant to the “Changes” clause or other clause or provision of the contract, except for this clause, will be priced as though there were no provisions for economic price adjustment.

All price adjustments shall be applicable only to the specific contract adjustment period to which the calculations are made. For every contract adjustment period, new calculations shall be made, and new prices determined. Every adjustment during the Base Year shall be based on the original contract prices for that contract year and every adjustment during an option year shall be based on the original contract prices for that option year. The contracting officer must make new calculations for each contract adjustment period specified in paragraph (1) and at the beginning of each new option year, if different.

The dates of contract adjustment shall be annually on October 1 and the starting date of each option year, if not already included in these dates. The contracting officer shall retain a copy of the Base Index in the contract file and, on each date of adjustment specified herein, obtain a copy of the Adjusting Index. The contracting officer shall calculate the adjustment due and shall, within 5 business days, issue a modification to the contract adjusting the contract or unit price(s). the adjusted contract or unit price(s) shall be effective for all orders placed or services provided after the date of the next contract adjustment. If the contracting officer fails to act, the contractor shall request a contract adjustment writing and subsequent adjustment shall be retroactive to the applicable date of contract adjustment. The contractor’s entitlement to price increases for a prior contract period (base year or option year) shall be waived unless the contractor’s written request for an adjustment under this clause is received by the contracting officer no later than 30 days following the end of the base year for changes applicable to the base year, or 30 days following the end of each option year for changes applicable to that option years. The Government’s right to contract decreases for prior contract periods (base year or option year) shall be waived unless the contracting officer processes a contract modification no later than 30 days following the end of the base year for changes applicable to the base year, or 30 days following the end of each option year for changes applicable to that option year.

An example of and adjustment calculation is provided herein for informational purposes only.

For purposes of this example, assume that a contract is for ambulance services, that the contract price is $2.10 per mile one way, that price adjustments will be made on the basis of the cost of gasoline, that the cost of gasoline represents 10% of the total cost per mile (the Base Cost is 10% of $2.10 (the per mile one way price in Line Item X), or $0.21), and that contract adjustments will be made quarterly. If the Base Index (the price of the gasoline the week prior to receipt of bids) is $1.559 per gallon and the first date of contract adjustment is $2.129 per gallon, the calculations for contract price adjustment would be as follows:

Adjusting Index (most recent Index of gasoline as of the date of the first adjustment period) $2.129 per Gallon.

Minus the Base Index (index cost of gasoline as the date of the receipt offers) -$1.559 per gallon

Equals increase (or decrease) to the Base Index $0.570

Divide increase (or decrease) to the Base Index by the Base Index $0.570/$1.559 = .3656*(36.56% increase)

Base Cost of $0.21 (10% of $2.10) multiplied by .3656 = $0.0768 unit price increase

New Unit price following the adjustment is $2.10 plus $0.0768 = $2.1768 per mile (rounded to $2.18)

This figure shall be round to the fourth decimal place. When the fifth decimal is 1 to 4, the figure shall be rounded down, 5 to 9, rounded up.

The unit price adjustment shall be rounded up or down, as above, to match the number of decimal places in original bid.

For the second contract adjustment period, all calculations would base on the original contract bid price for that contract year, $2.10 per mile in this example. If the price of gasoline goes down during the second adjustment period to the original Base Index price of $1.559 per gallon, the adjusted contract price that second period would return to $2.10 per mile (there would be a zero percent increase or decrease to the Base Cost and thus no change to the original bid price for that contract adjustment period). The contracting officer would then issue a contract modification returning the contract price from $2.18 to $2.10 per mile for that contract adjustment period. If, on the hand, the price of gasoline went below the Base Index price, say to $1.449 per gallon, the calculations for the second economic price adjustment would be as follows:

Adjusting Index (most recent Index cost of gasoline as of the date if the second adjustment period) $1.449 per gallon.

Minus the Base Index (index cost of gasoline as of the date of receipt offers) -$1.559 per gallon

Equals increase (or decrease) to the Base Index ($0.110) (a negative $.11)

Divide increase (or decrease) to the Base Index by the Base Index ($0.11)/$1.559 = (.0706) (7.06% decrease) Base Cost of $0.21 (10% of $2.10) multiplied by (.0706) = ($0.0148) unit price decrease

New unit price following the second economic price adjustment is $2.10 minus $0.0148 = $2.0852 per mile (rounded to $2.09)

At the start of the first option year, the contracting officer shall recalculate the price per based on any changes in the price of gasoline from the original contract award date and based on the contractor’s new first option year price per mile. Assuming the contractor’s bid price per mile for the first option year was $2.25 per mile, the new Base Cost for gasoline would be 10% of $2.25, or $0.225 (note that the original percent figure from paragraph (c) (10% in this sample) stays constant throughout the life of the contract), but the Base Cost would change if the option year contract price changes. If the Adjusting Index for gasoline at the start of the first option year was now up to $1.899 per gallon, the new first option year price for the first contract would be calculated as follows:

Adjusting Index (most recent Index cost gasoline as of the first day of the first option period) $1.899 per gallon.

Minus the Base Index (Index cost gasoline as of the date of receipt of offers) -$1.559 per Equals increase (or decrease) to the Base Index $0.340 Divide the increase (or decrease) to the Base Index by the Base Index $0.34/$1.559 =.218 (21.81% increase)

Base Cost of $0.225 (10%* of $2.25) multiplied by .2181 = $0.0491 unit price increase

New unit price for the first contract adjustment period in the first option year is $2.25 plus $0.0491 = $2.2991 per mile (rounded up to $2.30 per mile)

Note that the percentage remains constant (10%) but that the Base Cost has been increase for the first contract adjustment period in the first option year, since the Base Cost is a percentage of the first option year unit cost per mile (in this sample), and the unit cost per mile has increased in this sample for the first option year from $2.10 to $2.25.

Although the new unit price for the first contract adjustment period of the first option year following application of the economic price adjustment in this sample would be $2.30 per mile, all economic price adjustment calculations made during that first option year would be based on the original first option year bid price ($2.25 in this sample). If in the second contract adjustment period of the first option year, the calculations resulted in a unit price increase for gasoline of $0.0332, the adjusted price for that period would be $2.25 + $0.0332 = $2.2832, rounded to $2.28 per mile.

Price adjustments pursuant to this clause, which shall be made by contract modification issued by the contracting officer, shall show the Base Index (see paragraph (b)(1)), the Adjusting Index, the Base Cost (see paragraph (c)), the mathematical calculations used to arrive at the adjusted contract unit price, and the effective date of the adjustment.

If AAA Auto Club discontinues, or alters substantially, its method of calculating the Index cited herein, the parties shall manually agree upon an appropriate substitute for determining the price adjustment described herein. If the contracting officer determines that the Index consistently and substantially fails to reflect market conditions, the contracting officer may modify the contract to specify use of an appropriate substitute index, effective on the date the Index specified herein begins to consistently and substantially fail to reflect market conditions.

Any dispute arising under this clause shall be determined in accordance with and subject to the “Disputes” clause of the contract.

(End of Clause)