6-[On-Call Pipelining and Drainage Repair Services] 8 BPM005628 Price Increase Percentages.pdf
PDF 87 KB Posted
- Attached to
- On-Call Pipelining and Drainage Repair Services
- Solicitation number
- BPM005628
- Issued by
- Arizona
About this file
This is an attachment to a solicitation document issued by the State of Arizona Department of Transportation (ADOT) for On-Call Pipelining and Drainage Repair Services under Solicitation No. BPM005553. The attachment specifically addresses price increase percentages that offerors may request during contract renewal periods if ADOT exercises its renewal options. The contract structure includes four potential renewal periods, with offerors required to specify their maximum price increase percentage for each renewal period at the time of bid submission.
The pricing mechanism requires offerors to understand that each renewal period's increase percentage is calculated against the original contract price rather than the immediately preceding year's price. For example, if an offeror requests a 2% increase for each renewal period, the submission should reflect 2%, 4%, 6%, and 8% for the first through fourth renewal periods respectively, resulting in maximum contract prices of $102.00, $104.00, $106.00, and $108.00 on a $100.00 original contract price. The document emphasizes that the State of Arizona does not automatically grant price increases upon renewal and that documentation supporting the need for any requested increase must be provided at the time of renewal. If offerors fail to provide price increase percentages in the attachment, contract prices will remain unchanged from the original 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 ___________________% 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/
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