sunrise003.pdf

E-24 REVISED 05/19/2009

AZ PFH 43-1(3)

Sunrise Park – Big Lake Road

Pave the full 75 mm depth from Sta. 46+300 to Sta. 46+700 in a single lift. This section of pavement must be in place before hauling loaded asphalt trucks from Station 47+000 to the end of project.

Preparation and installation of the rolled erosion control products must be completed prior to the start of the monsoon season in early July.

Section 109. - MEASUREMENT AND PAYMENT

109.06 Pricing of Adjustments Add the following

ASPHALT CEMENT PRICE ADJUSTMENT PROVISION

GENERAL The Asphalt Cement Price Adjustment Provision contained herein provides for a price adjustment in the form of payment to the Contractor or a rebate to the Government for fluctuations in the cost of asphalt cement consumed in the performance of applicable construction work for the Sunrise Park – Big Lake Road project. The price adjustment provisions are applicable only to the asphalt cement, as defined in Section 702.01, and incorporated in the following eligible contract pay items:

• 40101 Superpave pavement

• 40110 Superpave pavement

The price adjustment provisions are also applicable to these eligible pay items when the Government adds extra work to the Contract.

The provision will remain in effect throughout the duration of the contract. Enactment of the Asphalt Cement Price Adjustment Provision will only be considered when the increase or decrease in the price of asphalt cement as defined herein exceeds 10 percent.

The Asphalt Cement Price Adjustment Provision is intended to reduce but not eliminate the cost effects of price uncertainty to the Contractor and the Government for asphalt cement used in the construction of this contract. It provides for sharing by the Government in a portion 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 a guarantee of full compensation for asphalt cement price fluctuations.

PRICE INDEXES The Government will post a monthly performance price index at http://www.cflhd.gov/procurement/construction/price-indexes/ for asphalt cement using price data obtained from Poten and Partners, Inc. (PPI), which publishes a weekly report (Asphalt Weekly Monitor) on high and low selling prices for states in five regions throughout the United States including the East Coast/Northeast, the Mid-Continent/Midwest, the Gulf Coast/Mid

E-25 REVISED 05/19/2009

AZ PFH 43-1(3)

Sunrise Park – Big Lake Road

South, the Rocky Mountains and the West Coast/Northwest. Weekly high and low selling price data reported for West Coast/Northwest Rocky Mountains will be averaged and used to establish a base price index, BPI, for this project and a monthly 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 posted by the Government as determined by arithmetic average, as specified above, shown in the four weekly publications immediately preceding the bid opening. It is as follows:

BASE PRICE INDEX (BPI) FOR ASPHALT CEMENT

PER SHORT TON (TON) OR PER METRIC TON = $

• MONTHLY PERFORMANCE PRICE INDEX The monthly performance price index, MPPI, is the monthly price index at the time of performance of applicable work as determined by arithmetic average, as specified above, shown in the four weekly publications issued prior to the last Wednesday of the month (i.e. the monthly performance price index during which asphalt cement is used in the performance of applicable construction work).

PRICE ADJUSTMENTS Price adjustments are calculated by the Government for average conditions and are not intended to reflect the Contractor’s actual purchase price. The ratio of the monthly performance price index and the base price index (MPPI/BPI) is calculated and used to determine price adjustments as follows:

• No Price Adjustment – When the ratio MPPI/BPI falls within the range of 0.90 to 1.10, no price adjustment will be made for any asphalt cement used in construction work performed during the relevant month.

• Government Rebate – When the ratio MPPI/BPI is calculated to be less than 0.90, the

Government is due a rebate determined in accordance with the following formula:

Government Rebate = [0.90 – (MPPI/BPI)] (BPI) (Q)

• Contractor Payment - When the ratio MPPI/BPI is calculated to be greater than 1.10, the Contractor is due additional payment determined in accordance with the following formula:

Contractor Payment = [(MPPI/BPI) – 1.10] (BPI) (Q)

The following definitions are applicable to both the Government Rebate and the Contractor Payment formulas:

MPPI = Monthly Performance Price Index for the month during which asphalt cement is used in the performance of applicable construction work.

BPI = Base Price Index that is established immediately preceding the bid opening.

CENTRAL FEDERAL LANDS HIGHWAY DIVISION

12300 WEST DAKOTA AVENUE, SUITE 360

LAKEWOOD, COLORADO 80228

ATTENTION: LORI KLIETHERMES

1:

Remove and Replace Pages E-24 and E-25 bearing revision date 05/19/2009. Corrections made to Superpave reference and Price Index Reporting.

*FAILURE TO ACKNOWLEDGE THIS AMENDMENT BY THE DESIGNATED DATE AND HOUR SPECIFIED IN THE SOLICITATION MAY RESULT IN REJECTION OF YOUR BID (REFER TO ITEM 11.)