Before processing a pricing amendment, the contract administrator must review the contract's pricing language. The modification may entail a simple unit/line item addition, deletion or adjustment that has no impact on the contract's total value or milestone pricing. If the modification requires an increase in the contract's value, the contract administrator must ensure that budget is available with the business owner/project manager and that such budget is funded, not just approved for funding. Any modification to the contract's total value must follow the requirements of § 2.2-4309 of the Code of Virginia, provided in full text in subsection 34.3, above.
Additionally, pricing changes must comply with any parameters specified in the contract, for example: " No such increase shall exceed the lesser of three percent (3%) or the annual increase in the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, All Items, Not Seasonally Adjusted, as published by the Bureau of Labor Statistics of the Department of Labor (http://www.bls.gov/cpi/home.htm), for the effective date of the increase compared with the same index one (1) year prior. Any such change in price shall be submitted in writing in accordance with the above and shall not become effective for sixty (60) days thereafter. Supplier agrees to offer price reductions to ensure compliance with the Competitive Pricing Section."