Where a contract contains a formula for the escalation of prices according to published indexes, it is the preference of the Commonwealth that indexes from the Commercial and Financial Analysis (CFA) Endorsed Indexes List are used. Generally, the Commonwealth prefers broad-based output indexes that are publicly available, however, the list also includes specific input indexes for use where appropriate.
Where tenderers propose an index for escalation, as part of a tender response, they should choose the index from the CFA Endorsed Indexes List which best aligns with the work being undertaken.
In the event that no index is appropriate for the item being escalated, tenderers may propose a suitable index outside the list. It should be noted that the proposed index will be reviewed by CFA to confirm it meets Commonwealth standards of applicability and stability prior to acceptance for use in the contract.
For more information or to provide feedback on the CFA Endorsed Indexes, please send an email to the Defence Commercial and Financial Analysis at casg.cfa@defence.gov.au.