This ensures that the position is tracked under the budget area for personal services and the documentation can be used by the agency to support a request for an additional FTE during the budget process. Another question that has arisen is whether a worker hired under this term contract can drive a vehicle or operate motorized equipment as part of the duties under the contract. The additional duties may increase the cost of hiring the temporary worker and require a different workers' compensation classification. We assume that the offerors will not be willing to commit to firm pricing beyond the first contract period. That means that the RFP you are working on now needs to state how those price adjustments will be made at the time of renewal.
Several options are available to responsibly adjust prices after the first contract period.
First, a common approach to adjusting prices is one that ties the adjustments to national indices such as the Consumer Price Index, the Production Price Index, Medical Care Services Index, or a manufacturer's price index. For instance, a service contract may permit price increases at the time of renewal commensurate with the Consumer Price Index. Price increases for items that are handled through a distributor such as photocopiers and fax machines can be tied to the manufacturer's price index. An additional method to permit price adjustments is to arrive at a percentage increase that the price may not exceed. Special formulas can also be developed based on measurable factors such as the number of clients, hours of service, prevailing or minimum wage rates, etc.