3-Attachment 6 - Price Increase Percentages.pdf
PDF 184 KB Posted
- Solicitation number
- BPM006937
- Issued by
- Maricopa County, Phoenix City, Arizona
About this file
This is an attachment containing pricing and renewal terms guidance for a solicitation issued by the State of Arizona Department of Transportation (ADOT) for Mechanical Street Sweeping Services in the Phoenix Metropolitan Area. The attachment specifies the process by which offerors must identify their requested maximum price increase percentages for each of four optional renewal periods. Offerors are required to provide proposed increase percentages in the designated spaces for the 1st, 2nd, 3rd, and 4th renewal periods, with pre-filled examples showing potential increases of 1%, 2%, 3%, and 4% respectively. The document emphasizes that each renewal period's increase percentage shall be calculated against the original contract price rather than compounded against previous renewal prices, and provides a detailed example demonstrating this calculation methodology.
The attachment explicitly cautions offerors that failure to provide information in the designated spaces will result in prices remaining unchanged from the original contract term. Additionally, the State of Arizona reserves the right to deny any requested price increase upon renewal, regardless of the percentages submitted, and requires offerors to provide documentation justifying the need for any increase at the time of renewal. This pricing structure ensures transparency and allows ADOT to maintain cost control while providing offerors clarity on the formula for calculating allowable increases across the contract's renewal options.
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Text version
ATTACHMENT SIX (6)
PRICE INCREASE PERCENTAGES
Solicitation No: BPM006937 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 ________1% ________% Maximum Increase
2nd Renewal Period _______2%_________% Maximum Increase
3rd Renewal Period ______ 3%_____ __% Maximum Increase
4th Renewal Period _______4% ___ _____% 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/
File details come from the government source that posted it. Updated .