2-Price_Increase_Percentages.pdf
PDF 177 KB Posted
- Attached to
- Acquisition and Relocation Services On Call
- Solicitation number
- BPM006797
- Issued by
- Maricopa County, Phoenix City, Arizona
About this file
This is an attachment containing price increase percentage guidelines for a solicitation issued by the State of Arizona Department of Transportation (ADOT) under Solicitation No. BPM006797. The document establishes the framework for offerors to propose maximum price increase percentages applicable during four potential renewal periods if ADOT exercises its contract renewal options. Offerors must specify their requested maximum increase percentages for each renewal period in the designated spaces: 1st Renewal Period, 2nd Renewal Period, 3rd Renewal Period, and 4th Renewal Period. The contract term structure allows for consecutive renewal options, with pricing adjustments calculated against the original contract price rather than compounding against previous renewal period prices.
The document emphasizes that all percentage increases for each renewal period must be computed using the original contract price as the baseline. For example, if an offeror proposes a 2% increase per renewal period, the entries would be 2%, 4%, 6%, and 8% respectively, with each percentage applied only to the original contract price. If no price increase information is provided by the offeror, prices remain unchanged from the original contract term. The State of Arizona cautions that automatic renewal with price increases is not guaranteed; offerors requesting any increase at renewal must provide documentation demonstrating the necessity of the price adjustment at the time of renewal. This attachment applies to the On Call Acquisition and Relocation Services opportunity for ADOT with a solicitation release date of April 4, 2025, and a proposal submission deadline of April 25, 2025.
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Text version
ATTACHMENT 8
PRICE INCREASE PERCENTAGES
Solicitation No: BPM006797 Available online at https://appstate.az.gov/
Rev. 03/2025
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.
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