3-BPM005725_Price_Increase_Percentages - RTS.pdf
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- Attached to
- Master Agreement AZ|CTR070669
- Contract number
- CTR070669
- Issued by
- Arizona
About this file
This document is Attachment 5 from the Arizona Department of Transportation (ADOT) Procurement division, specifically related to a solicitation numbered BPM005725. The attachment is designed for potential offerors to specify maximum price increase percentages for contract renewal periods.
The document outlines a structured approach for price increases during contract renewals, with the offeror able to propose maximum percentage increases for up to four renewal periods. Each renewal period's increase is calculated against the original contract price, with the example showing incremental increases of 2%, 4%, 6%, and 8%. The State of Arizona emphasizes that price increases are not automatically granted and require documentation of need at the time of renewal. The attachment provides a clear methodology for calculating potential price adjustments, ensuring transparency and predictability in the contract renewal process.
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Text version
Procurement
ATTACHMENT 5
PRICE INCREASE PERCENTAGES
Solicitation No: BPM005725 Available online at https://appstate.az.gov/
Rev. 09/2022
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/
File details come from the government source that posted it. Updated .