4-BPM006639_Price_Increase_Percentages.pdf
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- Attached to
- Master Agreement AZ|CTR077436
- Contract number
- CTR077436
- Issued by
- Arizona
About this file
This document is Attachment 6 from the Arizona Department of Transportation (ADOT) for Solicitation No. BPM006639, which outlines the maximum price increase percentages for contract renewal periods. The document is available online at https://appstate.az.gov/ and is specifically designed for potential offerors to specify their proposed maximum price increases across multiple renewal periods.
The attachment allows offerors to propose incremental price increases for up to four renewal periods, with percentages escalating from 4% in the first renewal to 16% in the fourth renewal period. Importantly, these percentage increases are calculated against the original contract price, and ADOT emphasizes that price increases are not automatically granted. Offerors must provide documentation justifying any requested price increase at the time of renewal. The document includes an example table demonstrating how these percentage increases would be applied, showing that each increase is computed from the original contract price, regardless of previous increases.
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ATTACHMENT 6
PRICE INCREASE PERCENTAGES
Solicitation No: BPM006639 Available online at https://appstate.az.gov/
Rev. 11/2024
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 ______4___________% Maximum Increase
2nd Renewal Period ______8_____________% Maximum Increase
3rd Renewal Period ______12_____________% Maximum Increase
4th Renewal Period _______16____________% 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 .