Because there is an "and" as opposed to an "or" between the bullet points, you are correct that all three have to be invoked.
When doing an estimating or compensation event course, I show how a Contractor can present an argument that for pretty much any change in quantity, the Defined Cost per unit of quantity changes. i.e. Bullet 2 can almost always be true if it is in the Contractor's interests for it to be so ... but because of the "and", the other two bullets also have to apply for it to be a compensation event.
However, the same rate x QUANTITY is therefore re-measurable if it falls below the 0.5% threshold and that would also be true if the rate decreased.
When doing an estimating or compensation event course, I show how a Contractor can present an argument that for pretty much any change in quantity, the Defined Cost per unit of quantity changes. i.e. Bullet 2 can almost always be true if it is in the Contractor's interests for it to be so ... but because of the "and", the other two bullets also have to apply for it to be a compensation event.
However, the same rate x QUANTITY is therefore re-measurable if it falls below the 0.5% threshold and that would also be true if the rate decreased.