1-BPM006654_Price_Increase_Percentages (1).docx

DOCX document 1 MB Posted

Attached to
Master Agreement AZ|CTR077344
Contract number
CTR077344
Issued by
Arizona

About this file

This document is an Attachment for Price Increase Percentages related to a state contract with the Arizona Department of Transportation (ADOT), specifically Solicitation No. BPM006654. The document outlines the maximum percentage increases that can be requested during contract renewal periods by the offeror.

The contract allows for four potential renewal periods with incrementally increasing maximum price adjustments: 2% for the first renewal, 4% for the second, 6% for the third, and 8% for the fourth renewal period. Each percentage increase is calculated against the original contract price, and the State of Arizona does not automatically grant increases. Any requested price increase must be accompanied by documentation demonstrating the need for the adjustment. The document provides an example calculation showing how these percentage increases would be applied to a hypothetical original contract price, emphasizing that increases are not guaranteed and must be justified at the time of renewal.

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Text version

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 ________2%___________% Maximum Increase

2nd Renewal Period _________4%__________% Maximum Increase

3rd Renewal Period _________6%__________% Maximum Increase

4th Renewal Period _________8%__________% 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 .