2-PRICE INCREASE PERCENTAGES BPM006653 P.docx

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Attached to
Master Agreement AZ|CTR077174
Contract number
CTR077174
Issued by
Arizona

About this file

This document is an Attachment for Price Increase Percentages related to a state contract solicitation issued by the Arizona Department of Transportation (ADOT) under solicitation number BPM006653. The document outlines the maximum percentage increases that can be requested during contract renewal periods.

The contract provides for four potential renewal periods with escalating maximum price increase percentages: 2% for the first renewal, 4% for the second, 6% for the third, and 8% for the fourth renewal. Each percentage increase is calculated against the original contract price, and the State of Arizona does not automatically grant increases. Vendors must provide documentation justifying any requested price increase at the time of renewal. The attachment serves as a mechanism for potential price adjustments while maintaining transparency and requiring vendor justification for cost escalations.

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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 _______2____________% Maximum Increase

2nd Renewal Period _______4____________% Maximum Increase

3rd Renewal Period ________6___________% Maximum Increase

4th Renewal Period ________8___________% 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 .