1-Price_Increase_Percentages completed.pdf
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- Attached to
- Master Agreement AZ|CTR077358
- Contract number
- CTR077358
- Issued by
- Arizona
About this file
This document is a Price Increase Percentages Attachment from the Arizona Department of Transportation (ADOT) for Solicitation No. BPM006654, available online at https://appstate.az.gov/. The attachment is designed for potential offerors to specify maximum price increase percentages they may request during contract renewal periods.
The attachment outlines four potential renewal periods with escalating maximum percentage increases: 3% for the first renewal, 6% for the second, 9% for the third, and 10% for the fourth renewal period. Importantly, all percentage increases are calculated against the original contract price, and ADOT does not automatically grant price increases. Any requested increase requires documentation demonstrating the need for the price adjustment at the time of renewal. The document provides a clear example illustrating how these incremental increases would be applied to an initial contract price, using a $100 base price to show the potential maximum contract price after each renewal period.
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Text version
ATTACHMENT
PRICE INCREASE PERCENTAGES
Solicitation No: BPM006654 Available online at https://appstate.az.gov/
Rev. 11/2024
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 __________3_________% Maximum Increase
2nd Renewal Period _________6__________% Maximum Increase
3rd Renewal Period __________9_________% Maximum Increase
4th Renewal Period __________10_________% 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 3% $100.00 $3.00 $103.00
2 6% $100.00 $6.00 $106.00
3 9% $100.00 $9.00 $109.00
4 10% $100.00 $10.00 $110.00
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 .