Price Index Guidelines 2014.pdf

The document outlines guidelines for price adjustments in contracts referencing the Consumer Price Index (CPI) and the Producer Price Index (PPI). It explains how to calculate price adjustments based on the latest CPI or PPI data published by the U.S. Department of Labor, Bureau of Labor Statistics. For CPI, the adjustment is calculated using a simple percentage model based on the index values at the time of initial award and the latest data. For PPI, a similar method is used, with adjustments based on industry data using the North American Industry Classification System (NAICS). The document also specifies procedures for handling price decreases during the contract term and the consequences of failing to pass on such decreases to the contracting party.