2-[Price Increase] BPM006653 P R Ford.docx
DOCX document 1 MB Posted
- Attached to
- Master Agreement AZ|CTR077155
- Contract number
- CTR077155
- Issued by
- Arizona
About this file
This document is a Price Increase Attachment for a state contract (Solicitation No: BPM006653) issued by the Arizona Department of Transportation (ADOT), which outlines potential pricing adjustment parameters for contract renewal periods. The attachment provides a structured mechanism for vendors to propose maximum percentage increases during contract renewals.
The attachment specifies maximum price increase percentages for four potential renewal periods, with incremental increases ranging from 2% to 5%. The pricing increases are calculated against the original contract price, and each renewal requires documentation justifying the requested increase. ADOT explicitly notes that price increases are not automatically granted and must be substantiated with supporting documentation. The attachment provides a clear example demonstrating how percentage increases would be computed, emphasizing that each increase is calculated from the original contract price, ensuring transparency in potential future pricing adjustments.
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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 __________2_________% Maximum Increase
2nd Renewal Period _________3 _________% Maximum Increase
3rd Renewal Period __________4 _______% 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 .