Section 2120. Fuel Adjustment
Fuel Adjustment (FA) is an adjustment to monthly progress payments for cost changes in diesel fuel used on specific items of work identified.
2120.02 price index Definition.
A. A Current Price Index (CPI) in dollars per gallon will be established by the Department of Transportation for each month. The CPI will be the price of No. 2 High Sulfur Diesel, as reported by the Oil Price Information Service, using the first weekday of the month and the average of all prices reported for Des Moines. This information will be available on the Departments’ website.
B. The Base Price Index (BPI) for each contract will be the CPI in effect during the month previous to the month of letting of that contract.
A. For contracts where the Department is the Contracting Authority,
applied to eligible items as the work is done. For contracts where the
Department is not the Contracting Authority,
Aapplied to eligible items as the work is done, when the contract quantity of that eligible item is 50,000
cubic yards or more.
B. Fuel adjustment using a fuel adjustment factor (FUF) of 0.20 gallon per cubic yard will be applied to:
1. Selected Backfill (including Stockpile)
2. Class 10 (Roadway & Borrow, Unsuitable, Waste, Stockpile, and Channel)
3. Class 12 (Roadway & Borrow, Channel, and Waste)
4. Class 13 (Roadway & Borrow, Channel, and Waste)
5. Topsoil, Furnish and Spread
6. Topsoil, Spread
7. Topsoil, Strip, Salvage, and Spread
8. Topsoil, Strip and Stockpile
9. Select Treatment, Contractor Furnished
C. Fuel
adjustment using a FUF of 0.27 gallon per cubic yard will be applied to Embankment-in-Place,
Contractor Furnished, and Embankment-in-Place (non-dredge
material).
D. Fuel adjustment will also be applied
to Embankment-In-Place (dredge material). The fuel usage will be based on
billed gallons (liters) of fuel used.
2120.04 Method of Measurement.
A. For contracts where the Department is not the Contracting Authority, Pprovide
the Engineer with a monthly spreadsheet (the Engineer will provide the format)
with quantities, and the fuel adjustment for the month (even if there will be
no adjustment).
B. For contracts where the Department is not the Contracting Authority, Iif the
contract quantity for an item is in tons, convert the quantity to cubic yards
using an appropriate conversion factor the Engineer approves. The total
quantity of cubic yards for each month (Y) is the sum of these quantities.
C. If the work is not completed within the contract period or authorized extensions thereof, the CPI to be used for work done after the contract period is to be the CPI that applied during the last working day within the contract period, including authorized extensions.
D. A fuel adjustment factor that accounts for the estimated amount of fuel used per cubic yard of work covered by this specification will be applied to items of work covered in Article 2120.03, B or 2120.03, C.
E. A fuel
adjustment will be made for items of work covered in this specification when
the CPI for the month the work is performed is more than $0.15 per gallon 5% different than the BPI established at the beginning of
the project.
1. For items of
work covered in Article 2120.03, B or 2120.03, C:
a. If the CPI is greater than the BPI plus $0.15 5%, then the fuel adjustment will be positive which warrants
additional payment to the Contractor. The following formula will be used to
calculate the additional payment:
FA = FUF(CPI - (BPI + 0.15))Y
FA = FUF(CPI – (BPI x 1.05))Y
b 2. If the CPI is less than the BPI minus $0.15 5%, then the fuel adjustment will be negative and a credit
will be due to the contracting authority. The following formula will be used
to calculate the credit:
FA = FUF(CPI - (BPI - 0.15))Y
FA = FUF(CPI – (BPI x 0.95))Y
2. For
the item of work covered in Article 2120.03, D:
a. If the CPI is greater than the
BPI plus $0.15, then the fuel adjustment will be positive which warrants
additional payment to the Contractor. The following formula will be used to calculate
the additional payment:
FA = (CPI - (BPI + 0.15)) x (billed
gallons of fuel used per month)
b. If the CPI is less than the BPI
minus $0.15, then the fuel adjustment will be negative and a credit will be due
to the contracting authority. The following formula will be used to calculate
the credit:
FA = (CPI - (BPI - 0.15)) x (billed
gallons of fuel used per month)
A. Payment will be the Fuel Adjustment (FA) for each month, subject to the deduction for partial payments described in Article 1109.05. Should the Fuel Adjustment (FA) be negative, an equal amount will be deducted on payments made to the Contractor from sums otherwise due. This payment or deduction will be made by change order for contracts where the Department is not the Contracting Authority or automatically in each pay estimate for contracts where the Department is the Contracting Authority.
B. On completion of the work of the contract:
1. For all items
covered in Article 2120.03, B or 2120.03, C, tThe
sum of the total quantities (Y) for each monthly period will be adjusted by pro-rating, if necessary, to agree with the
final quantities to be paid.
2. For the item covered in Article
2120.03, D, the sum of the total quantities for billed gallons of fuel used for
each monthly period will be adjusted, if necessary, to agree with the final
quantities to be paid. This adjustment will be made by either:
·
Subtracting
the proper quantity from the last adjustment made, or
·
Adding the
proper quantity and computing the adjustment on the basis of the CPI in effect
on the last working day any of this work was done.
C. On completion of the work of the
contract, the monthly fuel adjustment will be revised by pro-rating any
variance from the plan quantity.
D C.Payment
or deduction is full compensation for all fluctuations in fuel prices during
the time the contract work is being done.