Attachment_1_-_Sample_Price_Adjustment_Calculation_26.06.26.pdf

This is a Sample Price Adjustment Calculation document for the Miami-Dade Aviation Department's International Waste Hauling & Disposal Services contract for Miami International Airport and two general aviation airports. The document provides a methodology for calculating price adjustments based on fuel surcharges and labor cost indices, establishing a framework for how contract prices may be modified throughout the contract term. The calculation model includes baseline pricing components and adjustment factors that allow the contract price to fluctuate in response to external cost variables, ensuring that pricing remains equitable for both the vendor and the government throughout the contract performance period.

The price adjustment calculation methodology utilizes fuel surcharge indices and labor cost escalation factors to determine periodic price modifications. The document outlines the specific formula and variables used to calculate adjustments, including reference indices or benchmarks against which costs will be measured. This approach protects the contractor from absorbing unexpected increases in fuel and labor expenses while preventing the government from paying inflated prices during periods of cost reduction. The sample calculation demonstrates the application of these adjustment factors to the base contract pricing, providing transparency in how future pricing modifications will be determined and applied to the waste hauling and disposal services throughout the contract performance term.