2-Senergy ADOT_Price Increase Percentages_with_disclosure (1).pdf
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- Attached to
- Master Agreement AZ|CTR063147
- Contract number
- CTR063147
- Issued by
- Arizona
About this file
This document consists of two parts: a letter from Senergy Petroleum, LLC dated 9/8/2022, and an Arizona Department of Transportation (ADOT) Procurement form for Price Increase Percentages related to Solicitation No. BPM04763. The document involves Senergy Petroleum and the State of Arizona, specifically ADOT's procurement process for a contract with variable renewal pricing.
The document outlines the maximum percentage increases Senergy Petroleum can request during contract renewal periods. Specifically, the company has proposed a tiered price increase structure: 30% for the 1st renewal period, 40% for the 2nd renewal period, 50% for the 3rd renewal period, and 50% for the 4th renewal period. Each increase would be calculated against the original contract price, and ADOT emphasizes that increases are not automatically granted. The offeror must provide documentation justifying the need for any price increase at the time of renewal. The solicitation is available online at https://appstate.az.gov/, and the pricing mechanism is designed to provide transparency and control over potential contract price escalations.
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Text version
9/8/2022
To whom it may concern:
Please be advised that Senergy Petroleum, LLC., has speculatively forecasted the yearly fuel price increase percentages for bid purposes. This forecasted percentage amount does not mean that this increase will be uniform, nor applicable, across all fuel tiers.
Carlos Zubiate
Contract Specialist
Procurement
PRICE INCREASE PERCENTAGES
Solicitation No: BPM04763 Available online at https://appstate.az.gov/
Rev. 12/2020
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 ___________________% Maximum Increase
2nd Renewal Period ___________________% Maximum Increase
3rd Renewal Period ___________________% Maximum Increase
4th Renewal Period ___________________% 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.
https://appstate.az.gov/
| ADOT_Letterhead_Senergy.pdf |
| [Bulk Fuels and Bulk Fuels Propane] BPM004763 Price Increase Percentages.pdf |
File details come from the government source that posted it. Updated .