2-[Price Increase] BPM006653 P E Ford.docx

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Attached to
Master Agreement AZ|CTR077157
Contract number
CTR077157
Issued by
Arizona

About this file

This document is a Price Increase Attachment for Solicitation No. BPM006653, associated with the Arizona Department of Transportation (ADOT). The attachment provides guidelines for potential price increases during contract renewal periods, specifically outlining the maximum percentage increases that can be requested for each renewal term.

The contract allows for four renewal periods with progressively increasing maximum price adjustments: 0% for the first renewal, 2% for the second and third renewals, and 5% for the fourth renewal. These percentage increases are calculated against the original contract price, and ADOT emphasizes that price increases are not automatic. Vendors must provide documentation justifying the need for any price increase at the time of renewal. The attachment includes an example table demonstrating how the incremental price increases would be calculated, highlighting that each percentage is computed based on the initial contract price.

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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 __________0_________% Maximum Increase

2nd Renewal Period _________2 _________% Maximum Increase

3rd Renewal Period __________2________% Maximum Increase

4th Renewal Period __________5_________% 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/

Rev. 11/2024 image1.jpeg

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