VDOT Continues Suspension of Escalation Rate Limitations for Professional Services Contracts

VDOT recently posted the escalation rates for professional services contracts for the period starting July 1, 2025, and running through June 30, 2026. To help offset inflationary stressors, they are continuing the temporary suspension of range limitations as outlined in Section 4.7.7. of the Manual for the Procurement and Management of Professional Services. The escalation rate for professional services contracts for Fiscal Year (FY) 2026 will be 3.3% in accordance with the U.S. Bureau of Labor Statistics, Employment Cost Index: Wages and Salaries: Private Industry Workers (Table 9)(April 30, 2025). 

The memo can be found at VDOT’s website for Consultant Business Opportunities: FY26 Escalation Memo.