2-Sanderson ADOT 2 Price Increase.pdf

PDF 240 KB Posted

Attached to
Master Agreement AZ|CTR077154
Contract number
CTR077154
Issued by
Arizona

About this file

This document is an Attachment for Price Increase Percentages from the Arizona Department of Transportation (ADOT), specifically associated with Solicitation No. BPM006653. The attachment provides a template for potential contractors to specify maximum price increase percentages for contract renewal periods.

The document outlines four potential renewal periods with escalating maximum price increase percentages: 5% for the first renewal, 10% for the second, 15% for the third, and 20% for the fourth renewal period. Critically, the State of Arizona does not automatically grant increases, and contractors must provide documentation justifying any requested price increases at the time of renewal. The percentage increases are calculated against the original contract price, ensuring transparency and predictability in potential cost adjustments. The attachment includes an illustrative example demonstrating how these percentage increases would be applied incrementally across renewal periods.

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Text version

ATTACHMENT

PRICE INCREASE PERCENTAGES

ARIZr&NA

— DEPARTMENT OF —

TRANSPORTATION

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).

% Maximum Increase1st Renewal Period

ID % Maximum Increase2nd Renewal Period

IS % Maximum Increase3rd Renewal Period

Ad % Maximum Increase4th Renewal Period

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.

Original Contract

Price

Maximum

Contract

Price

$102.00

Maximum

Increase

Allowed

Renewal

Period

% Maximum

Increase from

Attachment

$100.00 $2.002%1

$4.00 $104.00

$106.00

$108.00

$100.004%2

$100.00 $6.00

$8.00

6%3

$100.008%4

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.

Page 1 of 1Available online at https://apDstate.az.eov/

Solicitation No: BPM006653

Rev. 11/2024

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