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Example Formula:
PPI Index: Future Award Month
Less PPI Index: Base Award Month
Equals Index Point Change
Index Percent Change
Index Point Change
Divided by PPI Index: Base Award Month
Equals Percent Change
Or (Maximum 10% from previous year)
Base Order Price
Plus Percent Change (2.54% x $1,000)
Revised Price for Future Order
Example:
Index Point Change
141.1
137.6
1,000.00
25.40
$1,025.40 _
Contract is awarded in October 2015 with the published data for PPI-category 1413 showing an
index value of 137.6. NTS has received its initial order of buses. In December of 2016, NTS
elects to purchase more buses for delivery. The published data for PPI-category 1413 shows
an index value of 141.1 in December 2016. The percentage change in the PPI index for
October 2015 to December 2016 would be 2.54%. The buses ordered in December 2016
would be 2.54% higher than those ordered in December 2015.
This example assumes that the two purchases are for identically equipped buses.
If any significant equipment modifications are made, in compliance with the terms of the
contract, the NTS and the Bidder will enter into negotiations to determine the price of the
equipment modification(s) and the impact of the modification(s) on the Base Order Price(s).
The following catculations will be used to convert the then-current price of the modification(s)
to the value of the modification(s) on the date of the Base Order Price:
Example Formula:
PPI Index: Future Equipment Modification Month
Less PPI Index: Base Award Month
Equals Index Point Change
Index Percent Change
Index Point Change
Divided by PPI Index: Base Award Month
Equals
Or (Maximum 10% from previous year)
Future Equipment Modification Price
Less Percentage Change (2.54%x$200.00)
Value of Equipment Modification(s) in Base Award Month
Base Order Price
Plus Equipment Modification(s) Cost
Equals Revised Base Order Price
Index Point Change
141!
137.6
$200.00
5.08
194,92
1,000.00
194.92
1,194.92
All future releases, including the equipment modification(s), will be priced based upon the new
revised Base Award Price.
VEHICLE AMOUNTS/TYPES
Bidder will furnish NTS vehicles in accordance with specifications as contained in the Technical
Specifications. Bidder shall provide all labor, vehicles, equipment, insurance, licenses, delivery
cost, any Altoona testing reporting, etc. at no additional cost to NTS.
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