2-BPM006653 Price Increase Percentages.pdf
PDF 114 KB Posted
- Attached to
- Master Agreement AZ|CTR077162
- Contract number
- CTR077162
- Issued by
- Arizona
About this file
This document is a Price Increase Percentages Attachment for the Arizona Department of Transportation (ADOT), associated with Solicitation No. BPM006653. The attachment is available online at https://appstate.az.gov/ and is designed for potential contractors to specify maximum price increase percentages during contract renewal periods.
The attachment outlines four potential renewal periods with escalating maximum price increase percentages: 5% for the first renewal, 10% for the second, 15% for the third, and 20% for the fourth renewal period. Each percentage increase is calculated against the original contract price, and ADOT emphasizes that price increases are not automatically granted. Contractors must provide documentation justifying the requested increase at the time of renewal. The document includes an example table demonstrating how these percentage increases would be applied to an initial contract price, providing clear guidance on the calculation method.
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Text version
ATTACHMENT
PRICE INCREASE PERCENTAGES
Solicitation No: BPM006653 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 ___________________% Maximum Increase
2nd Renewal Period ___________________% Maximum Increase
3rd Renewal Period ___________________% Maximum Increase
4th Renewal Period ___________________% 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.
File details come from the government source that posted it. Updated .