When are prices for JWOD Program products changed?
The Committee usually changes product prices on an annual basis in conjunction with the contract period or the beginning of the calendar year (effective Jan. 1). If market conditions for certain raw materials are extremely volatile, the contracting activity and nonprofit agency may include an economic price adjustment clause in the contract that could result in more frequent price changes. The preferred method for establishing base prices is by negotiation between the producing nonprofit agency and the contracting activity, with the assistance of NIB or NISH. The method of determining future prices will be a part of those negotiations and may include price adjustment based on changes in the appropriate U.S. Department of Labor Producer Price Index or another appropriate index, market surveys, or changes in the nonprofit agency’s costs. The nonprofit agency, NIB and/or NISH, and the contracting activity negotiate recommended price changes to be submitted to the Committee for final appro
