4-BPM007037_Price_Increase_Percentages (2).docx

This is a price increase percentages attachment for a Mobile Aerial Equipment Maintenance and Repair contract solicitation (BPM007037) issued by the Arizona Department of Transportation (ADOT). The document provides offerors with the opportunity to specify maximum price increase percentages they may request during contract renewals if ADOT exercises its renewal options. The contract includes four potential renewal periods, and offerors must submit their anticipated increase percentages for each renewal period in the designated spaces provided. 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 initial contract term is twelve months with potential extensions available through July 10th, 2029, allowing for up to four renewal periods.

Offerors are advised that price increases are not automatically granted upon renewal; any requested increase must be accompanied by supporting documentation of need at the time of renewal. If no price increase percentages are submitted in the attachment, contract prices will remain unchanged from the original contract term. This pricing structure applies to a maintenance and repair contract covering approximately 40 pieces of mobile aerial equipment statewide, with services to be priced as discounts from manufacturer price lists. The State of Arizona retains discretion over approval of any renewal price increases, and contractors must demonstrate justification for requested increases prior to contract renewal.