Casa_Grande_price_increase.docx

DOCX document 22 KB Posted

Attached to
Master Agreement AZ|CTR066429
Contract number
CTR066429
Issued by
Arizona

About this file

This document appears to be a price increase notification for a custodial services contract for the Casa Grande facility, involving Beacon, a service provider, and the Arizona state government's Department of Consolidated Services (DCS). The document details a contract renewal and pricing adjustment for a 29,000 square foot facility, with specific reference to state-mandated minimum wage changes and market conditions.

The contract includes base cleaning rates increasing from $2.50 to $2.68 per square foot annually, representing a $0.18 per square foot increase. Emergency rate services will rise from $55.00 to $65.00 per hour. The total annual contract value is increasing from $72,600 to $77,797.32, which represents a 7.16% overall increase. The price adjustment is attributed to the Arizona state minimum wage increase from $13.85 to $14.70 per hour, inflation, tariffs, and additional accounting for lead custodian inspection hours. The contract is set to be effective January 1, 2025, with pricing based on 2023 initial contract rates and reflecting current market conditions.

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Text version

Line

Current Rates

With increase

Increase amount
Net Annual

Casa Grande 29,000 sq. ft $2.50 per square foot annually $6,050 per month $2.68 per square foot annually $6,483.11 per month +$0.18 sq. ft +$433.11 per month

+$5,197.32 annually

Casa Grande Emergency Rate

$55.00 hourly
$65.00 hourly

+$10.00 hourly

No Price increase since 2023 (2 years).

The DCS - Case Grande contract is up for annual renewal and prices have been updated to reflect current market conditions. All current pricing is based on 2023 rates and has not changed since contract initiation in 2023. Effective January 1, 2025, the Arizona state minimum wage increased to $14.70 from $13.85 per hour in 2023. Additionally, over the last two years, inflation and recently implemented tariffs have increased the cost of supplies. The new quotation below reflects a 6.13% wage increase and a 3% overhead and material cost increase since 2023. Furthermore, it was identified that Beacon failed to account for hours spent at the site by the Lead Custodian performing monthly inspections and contract management responsibilities. Overall, we are presenting a 7.16% increase from $72,600 to $77,797.32 annually.

File details come from the government source that posted it. Updated .