SP10-2009: Economic Price Adjustments in Vendor Contracts

Last Modified: 12/06/2013
Friday, January 23, 2009

Today’s unpredictable economy has made it important to consider accounting for the fluctuating costs of goods and services that are beyond the control of either the School Food Authority (SFA) or the vendor. As a result, SFAs need to contemplate not only the need for including an economic price adjustment clause (sometimes referred to as an escalator) in their contracts, but also to carefully enforce the terms of the clause and demand price
reductions when appropriate.