1-BPM007111_Price_Increase_Percentages.pdf
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- Solicitation number
- BPM007111
- Issued by
- Arizona
About this file
This is a Price Increase Percentages attachment document for Solicitation No. BPM007111 issued by the Arizona Department of Transportation (ADOT) for Vehicle Glass Replacement, Repair, Tinting and Accessories services. The solicitation establishes a statewide contract with an initial twelve-month term and up to four renewal periods. Offerors must specify their maximum requested price increase percentages for each renewal period, with increases calculated cumulatively against the original contract price rather than compounding year-over-year. The document provides a structured framework where offerors can request increases of up to 2% for the first renewal, 4% for the second renewal, 6% for the third renewal, and 8% for the fourth renewal period.
Price increases are not automatic upon contract renewal; offerors must provide documentation of need at the time of renewal to justify any requested increase. If offerors fail to complete this attachment, contract prices will remain unchanged at their original levels throughout all renewal periods. The example provided in the document illustrates the calculation methodology, clarifying that each percentage increase applies only to the original base contract price, ensuring transparency in pricing adjustments and preventing compound inflation calculations across multiple renewal periods.
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Text version
PRICE INCREASE PERCENTAGES
Solicitation No: BPM007111 Available online at https://appstate.az.gov/
Rev. 03/2025
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.
https://appstate.az.gov/
File details come from the government source that posted it. Updated .