1-ADOT Discounts 5-5-25 _638804086916789786 (003).docx

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Attached to
Master Agreement AZ|CTR077355
Contract number
CTR077355
Issued by
Arizona

About this file

This document is an attachment related to a state contract with the Arizona Department of Transportation (ADOT), specifically addressing price increase percentages for potential contract renewals. The document appears to be part of a solicitation (BPM006654) for a state-level procurement process.

The attachment outlines a structured pricing escalation model for up to four renewal periods, with progressively increasing maximum price adjustment percentages: 5% for the first renewal, 10% for the second, 15% for the third, and 20% for the fourth renewal period. All percentage increases are calculated against the original contract price, and the State of Arizona does not automatically approve increases. Contractors must provide documentation justifying any requested price adjustments at the time of renewal. The document emphasizes that if no increase information is provided, prices will remain consistent with the original contract term.

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ATTACHMENT

PRICE INCREASE PERCENTAGES

The offeror should use the space below to identify the maximum price increase percentage that they may want to request at the time of renewal if ADOT exercises its option per the applicable provisions under any resultant contract(s).

1st Renewal Period __________5________% Maximum Increase

2nd Renewal Period _________10________% Maximum Increase

3rd Renewal Period __________15_______% Maximum Increase

4th Renewal Period __________20______% Maximum Increase

The offeror is cautioned that each renewal period’s increase percentage shall be computed against the ORIGINAL contract price. If information is not provided in the space above, prices shall remain the same as the original contract term. Please see the following example for further clarification.

Example: If the offeror anticipates requesting a 2% increase at each renewal period per Special Terms and Conditions, they should enter 2%, 4%, 6%, and 8% in the attachment. Each percentage increase is calculated using the original contract price. See example in table below.

Renewal Period
% Maximum Increase from Attachment
Original Contract Price
Maximum Increase Allowed
Maximum Contract Price
1
2%
$100.00
$2.00
$102.00
2
4%
$100.00
$4.00
$104.00
3
6%
$100.00
$6.00
$106.00
4
8%
$100.00
$8.00
$108.00

Furthermore, the offeror is advised that the State of Arizona does not automatically grant any increase when renewing the contract. If an increase is requested, documentation of need must be provided at the time of renewal.

Solicitation No: BPM006654
Available online at

https://appstate.az.gov/

Rev. 11/2024 image1.jpeg

File details come from the government source that posted it. Updated .