Approach to Quantification

To quantify the level of inflation risk associated with each bidder's response, the table below should be populated.

ASF

Indexation

Assumed

Initial Assumption

Bidder A

Component

 Proposal

Rate

% of ASF

Weighted Indexation

% of ASF

Weighted Indexation

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Column 7

 

 

 

 

 

 

Column 1:  Each separately indexed and non-indexed component of the ASF must be identified.

Column 2:  The indexation proposal for each component should be described with reference provided to the relevant indexation rate, such as Consumer Prices Index.

Column 3:  Should describe the rate at which the component will index.  This should be the latest published rate for the applicable index.

Column 4:  This is the proportion of the ASF indexed by the component described in the same row, but in column 1.

Column 5:  This is the product of Column 4 x Column 3.

Column 6 and Column 7:  This is the relevant information for each bidder (separate columns should be used for each bidder) and corresponds to that in Column 4 and Column 5.

Each indexing and non-indexing component of the Annual Service Fee should be described in the table for each bidder's proposal.