6-8_BPM005628_Price_Increase_Percentages.pdf
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- Attached to
- On-Call Pipelining and Drainage Repair Services
- Solicitation number
- BPM005628
- Issued by
- Arizona
About this file
This attachment outlines price increase percentages for a solicitation issued by the State of Arizona Department of Transportation (ADOT) for On-Call Pipelining and Drainage Repair Services under Solicitation No. BPM005553. The document serves as a bidding form where offerors identify the maximum price increase percentages they may request during renewal periods if ADOT exercises its contractual renewal options. The contract structure includes four potential renewal periods, with offerors able to propose maximum increase percentages for each period: 5% for the first renewal, 10% for the second renewal, 15% for the third renewal, and 20% for the fourth renewal.
The pricing methodology requires that each renewal period's increase percentage be calculated against the original contract price rather than compounded against previous renewal prices. Offerors are cautioned that failure to provide information in the designated spaces will result in prices remaining unchanged from the original contract term. The State of Arizona emphasizes that price increases are not automatically granted upon contract renewal; any requested increase must be supported by documented justification provided at the time of renewal. This attachment ensures transparency in pricing structure and allows both the state and bidders to understand potential cost escalations throughout the contract term.
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Text version
Procurement
ATTACHMENT 8
PRICE INCREASE PERCENTAGES
Solicitation No: BPM005553 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 ______5_____________% Maximum Increase
2nd Renewal Period ______10_____________% Maximum Increase
3rd Renewal Period _______15___________% Maximum Increase
4th Renewal Period _______20___________% 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 .