Fuel
Price Guidance – Extension of Retroactive Fuel Price Adjustment for CY2006
Fuel Price Guidance – Existing Contracts that do not meet threshold
Fuel Price Guidance – Existing
Contracts that meet threshold
Fuel Price Guidance –
Change Order Instructions
Fuel
Price Guidance – Calculation Spreadsheet
Updated-6/19/2007!
Fuel
Price Guidance – Decision Matrix
Extension of
Retroactive Fuel Price Adjustment for CY2006
For Immediate Implementation
This policy provides Fuel Price
Adjustment Guidance for Existing Contracts that Meet Threshold Quantities and
Do Not Contain a Fuel Price Adjustment Provision only.
Purpose: This fuel price adjustment provision is intended to provide partial compensation for unanticipated dramatic fluctuations in the price of fuel consumed in the construction of ODOT projects. This provision is not designed to estimate actual quantities of fuel used in construction operations, but to provide a reasonable basis for calculating a fuel price adjustment based on average conditions.
A. Eligibility and Price Adjustment Criteria: Only non-LPA projects for which the
contractor submits a written request are eligible for consideration for a fuel
price adjustment. Further, only those
items in the contract as grouped by category and identified in Table A-1 and placed between
Fuel Adjustment Categories, Table A-1
|
Category |
Basis of
Calculation and Threshold Quantity |
Item |
Units |
Fuel Usage Factor |
|
Earthwork |
Apply only to the Greater
of the sum of all Excavation items or the sum of all Borrow and Embankment
items. Threshold Quantity* =
30,000 c.y. (22,936 c.m.) |
203, 204 |
Gallons per cubic yard, (Gallons per cubic meter) |
0.50 (0.65) |
|
Aggregate Bases |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 2,500
c.y. (1,912 c.m.) |
304, 307, 690 |
Gallons per cubic yard, (Gallons per cubic meter) |
0.75 (0.98) |
|
Flexible Bases and Pavements |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 1,200
c.y. (917 c.m.) |
301, 302, 308, 402, 404, 424, 442, 443, 446, 448,
690, 803, 826, 854, 855, 856, 857, 858, 880 |
Gallons per cubic yard, (Gallons per cubic meter) |
4.50 (5.88) |
|
Rigid Bases and Pavements |
Apply to quantity calculated
based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 1,200
c.y. (917 c.m.) |
305, 306, 451, 452, 526, 690, 851, 884, 888, 896 |
Gallons per cubic yard, (Gallons per cubic meter) |
1.00 (1.31) |
|
Structural Concrete |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 350
c.y. (268 c.m.) |
511, 524, 842, 844, 892, 893, 894, 898 |
Gallons per cubic yard, (Gallons per cubic meter) |
4.00 (5.23) |
* A Fuel
Price Adjustment will only apply when the sum of all original contract quantities for the category meet or exceed the
specified Threshold Quantity.
B. Calculation of Fuel Price Adjustment: The Department will calculate a Monthly Base Price (Mbp) for fuel for each month of each calendar year beginning with January 2001. The method for calculating the Monthly Base Price (Mbp) will be on file in the Division of Construction Management. The Monthly Base Price (Mbp) will be used to calculate all Fuel Price Adjustments. The Contract Base Price (Cbp) will be the Monthly Base Price (Mbp) for the month the contract was bid. All Monthly Base Price (Mbp) values will be posted on the Division of Construction Management, Office of Construction Administration website at:
http://www.dot.state.oh.us/construction/OCA/default.htm
During each month
of the contract beginning
For projects bid prior to
Fpa = 0.80(Mbp-Cbp) x Q
For projects bid between
Fpa = 0.70(Mbp-Cbp) x Q
For projects bid after to
Fpa = 0.60(Mbp-Cbp) x Q
where:
Fpa = Fuel Price Adjustment
Mbp = Monthly Base Price
Cbp = Contract Base Price
Q = The number of gallons of fuel used in the placement of items identified in Table A-1 during that month at the specified Fuel Usage Factor. Q will be determined for each category by multiplying the applicable Fuel Usage Factor by the sum of quantities of completed and accepted work for the specified items.
The total Monthly Fuel Price Adjustment will be the algebraic sum of the Fuel Price Adjustments for materials placed during the month for each applicable category identified in Table A-1. The Total Fuel Price Adjustment for the project will be the algebraic sum of all Monthly Fuel Price Adjustments. All adjustments will be made based on fuel consumption indicated by Table A-1 and no changes will be made for actual consumption rates.
C. Payment: Payment will only be made if the calculation of the Total Fuel Price Adjustment exceeds $30,000.00 per project.
D. Expiration of Contract Time: When eligible items of work are performed after expiration of contract time and liquidated damages are chargeable, the value of Monthly Base Price (Mbp) used to compute the price adjustment will be either the Monthly Base Price (Mbp) at the time of actual performance or the Monthly Base Price (Mbp) at the time contract time expired, whichever is less.
E. Extra Work: When items of work identified in Table A-1 are added to the contract as Extra Work the appropriate price for fuel is to be used by the contractor when preparing required backup data for extra work to be performed at a negotiated price. No Fuel Price Adjustment will be made for fuel consumed in the performance of the extra work at a negotiated price provided work commences within 90 days of the approval of the change order authorizing said extra work. If the extra work at a negotiated price commences more than 90 days after the approval of the change order authorizing said extra work and the associated quantities exceed the appropriate threshold quantity of Table A-1 a Fuel Price Adjustment is permitted. The Fuel Price Adjustment for qualifying extra work will be calculated using the Monthly Base Price (Mbp) value for the month the change order authorizing said extra work was approved as the value for its Contract Base Price (Cbp).
When items of work identified in Table A-1 are added to the contract as Extra Work on a force account basis and the quantity of the extra work exceeds the appropriate threshold quantity the contractor will be reimbursed for the actual cost of fuel consumed during the performance of the extra work. The contractor must submit documentation of the actual quantity of fuel consumed and invoices to validate the unit cost of fuel. Blue Book operating costs will not be added to equipment costs when reimbursement for the actual cost of fuel is made.
Blue Book operating costs adjusted according to the Blue Book supplemental publication for manually computing equipment specific fuel adjustments using the option 2 tables may be used in lieu of actual invoice fuel cost reimbursement. When computing the equipment specific fuel price adjustments using the Blue Book Method, use the Monthly Index Data provided by ODOT. The Contract Base Price value is the fuel index value from the first publication month of the most current Blue Book for the effective equipment rate period. The Monthly Base Price value is the fuel index value for the month in which the equipment is used. (Note: The Blue Book is published semi-annually with updates to approximately half of the equipment in each publication. So, use January of the effective Blue Book year for equipment updates in the first half and use July of the effective Blue Book year for equipment updates in the second half to establish the Cost Basis Index Value.) No further Fuel Price Adjustment will be made for extra work performed on a force account basis.
F. Final Quantities: Upon completion of the work and determination of final pay quantities a change work order will be prepared to reconcile any difference between estimated quantities previously paid and the final quantities. In this situation, the value for Monthly Base Price (Mbp) used in the price adjustment formula will be the average of all Monthly Base Price (Mbp) previously used for computing price adjustments.
Fuel Price
Adjustment Guidance for Existing Contracts that Do Not Meet Threshold
Quantities and Do Not Contain a Fuel Price Adjustment Provision
Purpose: This fuel price adjustment provision is intended to provide partial compensation for unanticipated dramatic fluctuations in the price of fuel consumed in the construction of ODOT projects. This provision is not designed to estimate actual quantities of fuel used in construction operations, but to provide a reasonable basis for calculating a fuel price adjustment based on average conditions.
A. Eligibility and Price Adjustment Criteria: Only non-LPA projects for which the contractor submits a written request are eligible for consideration for a fuel price adjustment. Further, only those projects that do not meet any threshold quantity for any category identified in Table A-1 are eligible for a Fuel Price Adjustment by the method described herein. If any threshold quantity for any category identified in Table A-1 is met compensation for a Fuel Price Adjustment will be made by a different method.
Fuel Adjustment Categories, Table A-1
|
Category |
Basis of Calculation
and Threshold Quantity |
Item |
Units |
Fuel Usage Factor |
|
Earthwork |
Apply only to the Greater
of the sum of all Excavation items or the sum of all Borrow and Embankment
items. Threshold Quantity* =
30,000 c.y. (22,936 c.m.) |
203, 204 |
Gallons per cubic yard, (Gallons per cubic meter) |
0.50 (0.65) |
|
Aggregate Bases |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 2,500
c.y. (1,912 c.m.) |
304, 307, 690 |
Gallons per cubic yard, (Gallons per cubic meter) |
0.75 (0.98) |
|
Flexible Bases and Pavements |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 1,200
c.y. (917 c.m.) |
301, 302, 308, 402, 404, 424, 442, 443, 446, 448,
690, 803, 826, 854, 855, 856, 857, 858, 880 |
Gallons per cubic yard, (Gallons per cubic meter) |
4.50 (5.88) |
|
Rigid Bases and Pavements |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 1,200
c.y. (917 c.m.) |
305, 306, 451, 452, 526, 690, 851, 884, 888, 896 |
Gallons per cubic yard, (Gallons per cubic meter) |
1.00 (1.31) |
|
Structural Concrete |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 350
c.y. (268 c.m.) |
511, 524, 842, 844, 892, 893, 894, 898 |
Gallons per cubic yard, (Gallons per cubic meter) |
4.00 (5.23) |
* The sum of all original
contract quantities for the category must meet or exceed the specified
Threshold Quantity.
B. Calculation of Fuel Price Adjustment: The Department will calculate a Monthly Base Price (Mbp) for fuel for each month of each calendar year beginning with January 2001. The method for calculating the Monthly Base Price (Mbp) will be on file in the Division of Construction Management. The Monthly Base Price (Mbp) will be used to calculate all Fuel Price Adjustments. The Contract Base Price (Cbp) will be the Monthly Base Price (Mbp) for the month the contract was bid. All Monthly Base Price (Mbp) values will be posted on the Division of Construction Management, Office of Construction Administration website at:
http://www.dot.state.oh.us/construction/OCA/default.htm
During each month of the contract beginning May 2005 and ending with November 2005, the Engineer will select the applicable Monthly Base Price (Mbp) and calculate the ratio of the Monthly Base Price (Mbp) divided by the Contract Base Price (Cbp). When, and only when, the ratio of the Monthly Base Price (Mbp) divided by the Contract Base Price (Cbp) is less than 0.95 or greater than 1.05 the Engineer will calculate a Fuel Price Adjustment (Fpa) using the following formula:
Fpa = 0.80(Mbp-Cbp) x Q
where:
Fpa = Fuel Price Adjustment
Mbp = Monthly Base Price
Cbp = Contract Base Price
Q = 1 gallon per each $1000 dollars of work placed during that month.
The Total Fuel Price Adjustment for the project will be the algebraic sum of all Monthly Fuel Price Adjustments. No changes will be made for actual consumption amounts.
C. Payment: Payment will only be made if the calculation of the Total Fuel Price Adjustment exceeds $300. The Total Fuel Price Adjustment will be paid upon approval of a change order prepared after completion of all work. Upon written request by the Contractor, partial payments may be made prior to total completion when the unpaid accrued Monthly Fuel Price Adjustments exceed $10,000 or once every 12 months.
D. Expiration of Contract Time: When eligible items of work are performed after expiration of contract time and liquidated damages are chargeable, the value of Monthly Base Price (Mbp) used to compute the price adjustment will be either the Monthly Base Price (Mbp) at the time of actual performance or the Monthly Base Price (Mbp) at the time contract time expired, whichever is less.
E. Extra Work: When items of work identified in Table A-1 are added to the contract as Extra Work the appropriate price for fuel is to be used by the contractor when preparing required backup data for extra work to be performed at a negotiated price. No Fuel Price Adjustment will be made for fuel consumed in the performance of the extra work at a negotiated price provided work commences within 90 days of the approval of the change order authorizing said extra work. If the extra work at a negotiated price commences more than 90 days after the approval of the change order authorizing said extra work and the associated quantities exceed the appropriate threshold quantity of Table A-1 a Fuel Price Adjustment is permitted. The Fuel Price Adjustment for qualifying extra work will be calculated using the Monthly Base Price (Mbp) value for the month the change order authorizing said extra work was approved as the value for its Contract Base Price (Cbp).
When items of work identified in Table A-1 are added to the contract as Extra Work on a force account basis and the quantity of the extra work exceeds the appropriate threshold quantity the contractor will be reimbursed for the actual cost of fuel consumed during the performance of the extra work. The contractor must submit documentation of the actual quantity of fuel consumed and invoices to validate the unit cost of fuel. Blue Book operating costs will not be added to equipment costs when reimbursement for the actual cost of fuel is made.
Blue Book operating costs adjusted according to the Blue Book supplemental publication for manually computing equipment specific fuel adjustments using the option 2 tables may be used in lieu of actual invoice fuel cost reimbursement. When computing the equipment specific fuel price adjustments using the Blue Book Method, use the Monthly Index Data provided by ODOT. The Contract Base Price value is the fuel index value from the first publication month of the most current Blue Book for the effective equipment rate period. The Monthly Base Price value is the fuel index value for the month in which the equipment is used. (Note: The Blue Book is published semi-annually with updates to approximately half of the equipment in each publication. So, use January of the effective Blue Book year for equipment updates in the first half and use July of the effective Blue Book year for equipment updates in the second half to establish the Cost Basis Index Value.) No further Fuel Price Adjustment will be made for extra work performed on a force account basis.
F. Final Quantities: Upon completion of the work and determination of final pay quantities a change work order will be prepared to reconcile any difference between estimated quantities previously paid and the final quantities. In this situation, the value for Monthly Base Price (Mbp) used in the price adjustment formula will be the average of all Monthly Base Price (Mbp) previously used for computing price adjustments.
Fuel Price
Adjustment Guidance for Existing Contracts that Meet Threshold Quantities and
Do Not Contain a Fuel Price Adjustment Provision
Purpose: This fuel price adjustment provision is intended to provide partial compensation for unanticipated dramatic fluctuations in the price of fuel consumed in the construction of ODOT projects. This provision is not designed to estimate actual quantities of fuel used in construction operations, but to provide a reasonable basis for calculating a fuel price adjustment based on average conditions.
A. Eligibility and Price Adjustment Criteria: Only non-LPA projects for which the
contractor submits a written request are eligible for consideration for a fuel
price adjustment. Further, only those
items in the contract as grouped by category and identified in Table A-1 and placed between
Fuel Adjustment Categories, Table A-1
|
Category |
Basis of
Calculation and Threshold Quantity |
Item |
Units |
Fuel Usage Factor |
|
Earthwork |
Apply only to the Greater
of the sum of all Excavation items or the sum of all Borrow and Embankment
items. Threshold Quantity* = 30,000
c.y. (22,936 c.m.) |
203, 204 |
Gallons per cubic yard, (Gallons per cubic meter) |
0.50 (0.65) |
|
Aggregate Bases |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 2,500
c.y. (1,912 c.m.) |
304, 307, 690 |
Gallons per cubic yard, (Gallons per cubic meter) |
0.75 (0.98) |
|
Flexible Bases and Pavements |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 1,200
c.y. (917 c.m.) |
301, 302, 308, 402, 404, 424, 442, 443, 446, 448,
690, 803, 826, 854, 855, 856, 857, 858, 880 |
Gallons per cubic yard, (Gallons per cubic meter) |
4.50 (5.88) |
|
Rigid Bases and Pavements |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 1,200
c.y. (917 c.m.) |
305, 306, 451, 452, 526, 690, 851, 884, 888, 896 |
Gallons per cubic yard, (Gallons per cubic meter) |
1.00 (1.31) |
|
Structural Concrete |
Apply to quantity
calculated based on the Method of Measurement and Basis of Payment. Threshold Quantity* = 350
c.y. (268 c.m.) |
511, 524, 842, 844, 892, 893, 894, 898 |
Gallons per cubic yard, (Gallons per cubic meter) |
4.00 (5.23) |
* A Fuel Price Adjustment will only apply when the sum
of all original contract quantities
for the category meet or exceed the specified Threshold Quantity.
B. Calculation of Fuel Price Adjustment: The Department will calculate a Monthly Base Price (Mbp) for fuel for each month of each calendar year beginning with January 2001. The method for calculating the Monthly Base Price (Mbp) will be on file in the Division of Construction Management. The Monthly Base Price (Mbp) will be used to calculate all Fuel Price Adjustments. The Contract Base Price (Cbp) will be the Monthly Base Price (Mbp) for the month the contract was bid. All Monthly Base Price (Mbp) values will be posted on the Division of Construction Management, Office of Construction Administration website at:
http://www.dot.state.oh.us/construction/OCA/default.htm
During each month
of the contract beginning
For projects bid prior to
Fpa = 0.80(Mbp-Cbp) x Q
For projects bid after
Fpa = 0.70(Mbp-Cbp) x Q
where:
Fpa = Fuel Price Adjustment
Mbp = Monthly Base Price
Cbp = Contract Base Price
Q = The number of gallons of fuel used in the placement of items identified in Table A-1 during that month at the specified Fuel Usage Factor. Q will be determined for each category by multiplying the applicable Fuel Usage Factor by the sum of quantities of completed and accepted work for the specified items.
The total Monthly Fuel Price Adjustment will be the algebraic sum of the Fuel Price Adjustments for materials placed during the month for each applicable category identified in Table A-1. The Total Fuel Price Adjustment for the project will be the algebraic sum of all Monthly Fuel Price Adjustments. All adjustments will be made based on fuel consumption indicated by Table A-1 and no changes will be made for actual consumption rates.
C. Payment: Payment will only be made if the calculation of the Total Fuel Price Adjustment exceeds $300. The Total Fuel Price Adjustment will be paid upon approval of a change order prepared after completion of all work. Upon written request by the Contractor, partial payments may be made prior to total completion when the unpaid accrued Monthly Fuel Price Adjustments exceed $10,000 or once every 12 months.
D. Expiration of Contract Time: When eligible items of work are performed after expiration of contract time and liquidated damages are chargeable, the value of Monthly Base Price (Mbp) used to compute the price adjustment will be either the Monthly Base Price (Mbp) at the time of actual performance or the Monthly Base Price (Mbp) at the time contract time expired, whichever is less.
E. Extra Work: When items of work identified in Table A-1 are added to the contract as Extra Work the appropriate price for fuel is to be used by the contractor when preparing required backup data for extra work to be performed at a negotiated price. No Fuel Price Adjustment will be made for fuel consumed in the performance of the extra work at a negotiated price provided work commences within 90 days of the approval of the change order authorizing said extra work. If the extra work at a negotiated price commences more than 90 days after the approval of the change order authorizing said extra work and the associated quantities exceed the appropriate threshold quantity of Table A-1 a Fuel Price Adjustment is permitted. The Fuel Price Adjustment for qualifying extra work will be calculated using the Monthly Base Price (Mbp) value for the month the change order authorizing said extra work was approved as the value for its Contract Base Price (Cbp).
When items of work identified in Table A-1 are added to the contract as Extra Work on a force account basis and the quantity of the extra work exceeds the appropriate threshold quantity the contractor will be reimbursed for the actual cost of fuel consumed during the performance of the extra work. The contractor must submit documentation of the actual quantity of fuel consumed and invoices to validate the unit cost of fuel. Blue Book operating costs will not be added to equipment costs when reimbursement for the actual cost of fuel is made.
Blue Book operating costs adjusted according to the Blue Book supplemental publication for manually computing equipment specific fuel adjustments using the option 2 tables may be used in lieu of actual invoice fuel cost reimbursement. When computing the equipment specific fuel price adjustments using the Blue Book Method, use the Monthly Index Data provided by ODOT. The Contract Base Price value is the fuel index value from the first publication month of the most current Blue Book for the effective equipment rate period. The Monthly Base Price value is the fuel index value for the month in which the equipment is used. (Note: The Blue Book is published semi-annually with updates to approximately half of the equipment in each publication. So, use January of the effective Blue Book year for equipment updates in the first half and use July of the effective Blue Book year for equipment updates in the second half to establish the Cost Basis Index Value.) No further Fuel Price Adjustment will be made for extra work performed on a force account basis.
F. Final Quantities: Upon completion of the work and determination of final pay quantities a change work order will be prepared to reconcile any difference between estimated quantities previously paid and the final quantities. In this situation, the value for Monthly Base Price (Mbp) used in the price adjustment formula will be the average of all Monthly Base Price (Mbp) previously used for computing price adjustments.
Fuel Price
Adjustment Change Order Instructions
1. Use Change Order Reason Code: 30 - Fuel Price Adj.
2. Enter the Change Order into CMS as follows:
a. Enter the adjustment as an Extra Work Change Order under a new reference number. If the change order amount is above the contract limits, then include the following statement in the Change Order Explanation, “As per the Change Order Standard Procedure, Section XII. G. 1. State Controlling Board approval is not required for added payments due to a contract specified formula.”
b. Enter an “N” in the Claim, Final Measurement, Cost Analysis, and Emergency indicator fields.
c. Enter the applicable funding information and populate the CO Funding Program field as required for the particular project.
i.
Retroactive payments (Contracts that do not originally
contain a Fuel Price Adjustment Provision) must be 100% State funded. Establish a 100
ii. Change Orders for project that originally contain a fuel price adjustment provision are to be coded according to the funding established for the item of work for which the adjustment is being processed.