Agenda - Council - 06/27/2017 - Laserfiche WebLink

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June 4, 2014 (1910) FUEL ESCALATION CLAUSE The provisions set forth in Mn/DOT 1910 are hereby supplemented with the following: These provisions provide for compensation adjustments in the cost of motor fuels (diesel and gasoline) consumed in prosecuting the Contract work. The Engineer will calculate the Fuel Cost Adjustments. Payments or credits will be applied to partial and final payments for work items set forth herein. For this purpose, the Department will establish a Base Fuel Index (BFI) for fuel to be used on the Project. The Base Fuel Index will be the average of the high and low rack prices shown for No. 2 ultra low sulfur fuel oil in the "OPIS Energy Group" tabulation titled "RackFax, Minneapolis, MN, OPIS Direct Gross No. 2 Distillate Fuels" for the day of the Contract letting. A Current Fuel Index (CFI) in cents per gallon will be established for each month. The CFI will be the average of the high and low rack prices shown for No. 2 ultra low sulfur fuel oil in the "OPIS Energy Group" tabulation titled "RackFax, Minneapolis, MN, OPIS Direct Gross No. 2 Distillate Fuels" averaged for the beginning and ending dates of the monthly period being adjusted. The Engineer will compute the ratio of the Current Fuel Index to the Base Fuel Index (CFIBFI) each month. If that ratio falls between 0.85 and 1.15, no fuel adjustment will be made that month. If the ratio is less than 0.85, a credit to the Department will be computed. If the ratio is greater than 1.15, additional payment to the Contractor will be computed. Credit or additional payment will be computed as follows: (1) The Engineer will estimate the quantity of work done in that month under each of the Contract items listed below. (2) The Engineer will compute the gallons of fuel used in that month for each of the Contract items listed below by applying the unit fuel usage factors shown. (3) The Engineer will summarize the total gallons (Q) of fuel used in that month for the applicable items. (4) The Engineer will determine the Fuel Cost Adjustment (FCA) from the following formulas: If the Current Fuel Index (CFI) is greater than the Base Fuel Index (BFI), the following formula shall be used to determine the amount of Fuel Cost Adjustment to be paid to the Contractor. FCA = [(CFIBFI) — 1.15] x Q x BFI If the Current Fuel Index (CFI) is less than the Base Fuel Index (BFI), the following formula shall be used to determine the amount of Fuel Cost Adjustment to be credited to the Department. Page 1 of 3