2-Increase 6 [Automotive Parts and Repair for Light Duty Vehicles] BPM006653 P.docx

DOCX document 115 KB Posted

Attached to
Master Agreement AZ|CTR077147
Contract number
CTR077147
Issued by
Arizona

About this file

This document is an attachment to a state contract for automotive parts and repair services for light-duty vehicles, issued by the Arizona Department of Transportation (ADOT) under solicitation number BPM006653. The document specifically addresses price increase percentages and renewal terms for the contract.

The contract outlines a structured pricing mechanism for potential renewals, allowing maximum percentage increases for four consecutive renewal periods: 3% for the first renewal, 6% for the second, 9% for the third, and 12% for the fourth renewal. 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 any requested price increase at the time of renewal. The attachment provides a clear example of how these incremental price increases would be calculated and applied throughout the contract's potential extension periods.

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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 ____________3_______% Maximum Increase

2nd Renewal Period ____________6_______% Maximum Increase

3rd Renewal Period ____________9_______% Maximum Increase

4th Renewal Period ____________12_______% 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: BPM006653
Available online at

https://appstate.az.gov/ Page of

Rev. 11/2024 image1.jpg

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