3-Price increase.docx
DOCX document 50 KB Posted
- Solicitation number
- BPM006937
- Issued by
- Maricopa County, Phoenix City, Arizona
About this file
This is a Price Increase Percentages Attachment (Attachment Six) for a State of Arizona Department of Transportation solicitation (BPM006937) regarding Mechanical Street Sweeping Services for the Phoenix Metropolitan Area. The attachment establishes the framework for price escalation across four renewal periods, should the State exercise renewal options under the resulting contract. Offerors must specify maximum price increase percentages they may request at renewal, with the attachment providing designated spaces for entries at the 1st, 2nd, 3rd, and 4th renewal periods. The example provided illustrates that successive renewal periods use cumulative percentage increases calculated against the original contract price rather than compounded against previous renewal prices.
The pricing structure requires offerors to understand that each renewal period's increase percentage is applied to the original contract base price, not to the renewed contract price. The State of Arizona explicitly reserves the right to deny any requested price increase at renewal and requires documentation of need to be submitted at the time of renewal if an increase is requested. If offerors fail to provide pricing information in the designated spaces, contract prices will remain unchanged from the original contract term. This attachment emphasizes the State's procurement flexibility and cost control mechanisms while establishing transparent parameters for potential price adjustments across the contract's renewal options.
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Text version
ATTACHMENT SIX (6)
PRICE INCREASE PERCENTAGES
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.
| Solicitation No: BPM006937 |
| Available online at |
https://appstate.az.gov/
Rev. 03/2025 image1.jpeg
File details come from the government source that posted it. Updated .