Avondale_price_increase.docx
DOCX document 22 KB Posted
- Attached to
- Master Agreement AZ|CTR068284
- Contract number
- CTR068284
- Issued by
- Arizona
About this file
The document appears to be a price increase amendment for the DCS-Avondale contract, involving Beacon and a state-level contract in Arizona. The file specifically addresses a price adjustment for facilities maintenance or custodial services, with details related to a specific location covering 20,853 square feet.
The contract reflects a price increase from $2.83 to $3.31 per square foot annually, representing a $0.48 per square foot increase and an additional $10,055.28 annually. An emergency rate has also increased from $55.00 to $65.00 per hour. The price adjustment is attributed to multiple factors, including the upcoming 2.6% Arizona state minimum wage increase in 2026, inflation, tariffs on supply costs, and the incorporation of previously unaccounted labor hours for monthly inspections and contract management. Beacon has limited its adjustment to 0.5% above actual 2025 supply costs, with the total price adjustment accounting for 6.7% of the proposed amendment.
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Text version
Line
Current Rates
With increase
| Increase amount |
| Net Annual |
Avondale 20,853 sq. ft $2.83 per square foot annually $4,914.15 per month $3.31 per square foot annually $5,752.09 per month +$0.48 sq. ft +$837.94 per month
+$10,055.28 annually
Avondale Emergency Rate
| $55.00 hourly |
| $65.00 hourly |
+$10.00 hourly
No Price increase since 2023 (2 years).
The DCS-Avondale contract is due for annual renewal, and pricing has been updated to reflect current market conditions. The contract rate has remained unchanged since 2023. Effective January 1, 2026, the Arizona state minimum wage will increase by 2.6% compared to 2025 and by 8.9% compared to the rate at the start of this contract. In addition, inflation and recently implemented tariffs have resulted in higher supply costs. Beacon has limited its adjustment to only 0.5% above the actual supply costs incurred in 2025.
It was also identified that labor hours associated with monthly inspections and contract management, performed by the Lead Custodian since January 2023, were not previously included in the pricing. In addition, updated vehicle transportation and maintenance costs have now been incorporated. These adjustments are reflected in the proposed amendment and account for 6.7% of the price adjustment.
File details come from the government source that posted it. Updated .