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 Financial Investigation Service (FIS) Endorsed Indexes List are used. Generally, the Commonwealth prefers broad-based output indexes that are publically 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 FIS 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 FIS 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 FIS Endorsed Indexes, please send an email to the Defence Financial Investigation Service.