CTR057882 A2.pdf

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PROCUREMENT FILE MEMORANDUM

MEMOFORM.DOC

Contract CTR057882 was established on November 8, 2021 via Request for Proposal (RPF) for Certified Paper Stock and Warehousing for Birth and Death Certificates as described in the Solicitation for the Bureau of Vital Records.

The Bureau of Vital Records, submitted a request in September 23, 2023 to extend Contract CTR057882 through November 7, 2024. Upon submitting the document for supplier signature, Veritrace’s representative shared with Procurement the documents providing justification on the price increase of the Carton of Certified Paper supplied to the BVR. The documentation was shared with the Chief of the Bureau and approval was received via email on October 13, 2023.

In accordance with R2-7-702, after conducting a Price Analysis and Market Research (document is attached for review), the justification provided by the Supplier is reasonable based on the current paper price trends and historical courier price increases of the last two years. The Arizona Department of Health Services (ADHS), Bureau of Vital Records (BVR) is requesting approval of this price increase via Amendment Two (2).

DATE: January 19, 2024.

TO: Procurement File | CTR057882 - Amendment Two (2)

SUBJECT: R2-7-702 Determination of Fair and Reasonable Price.

Description

Old Price - Original Contract

Price

1st Price Increase -

Amendment One. End of year 2022.

% Difference Contract price and

Amendment One.

2nd Price Increase and Final Price.

End of year

2023.

(CURRENT)

% Difference Amendment

One and Amendment

Two.

% Difference Original Contract Price and

Latest Price Increase

Cartons are to contain 2,000 certified sheets with engraved intaglio printed blue ink border based on 1,000,000 sheets. 548.00$ 593.09$ 7.60 $ 640.00 7.33 14.93

Price of Paper increase in 2022 12.80%

Price of Paper increase in 2023 3.60%

UPS Ground 2022 price increase 5.90%

UPS Ground 2023 price increase 6.90%

Fedex Ground 2022 Price Increase 5.90%

Fedex Ground 2023 Price Increase 6.90%

VERITRACE PRICE INCREASE ANALYSIS - CTR057882 - Amendment Two (2)

We do not have the source/manufacturer used by Veritrace. Information being provided based on Industry reports regarding the Price of Paper that is represented by a Bureau of Labor Statistics Index.

Added FedEx for price increase comparison.

UPS is Veritrace's preferred courier. Shippping is inclusive in our price per carton.

MANUFACTURING PRICE INCREASES

COURIER PRICE INCREASES

The supplier justified their price increase to an increase in raw material and shipping costs on the item listed above. The increase of carton of 2000 certified sheets increased by 7.32%, therefore, price revision was requested. The Supplier letter of explanation and amendment were sent to the Bureau of Vital Records Chief on October 13th, 2023. The Amendment and Price Increase were reviewed and approved via email the same day.

Market analysis research was done regarding paper manufacturing costs and shipping rates, and the following information was found.

Increase in the paper of price in 2022 was due to the raised in energy costs and inflationary pressures from reopening the economy after the pandemic.

With a more tempered 2023 due to manufacturers ramping up their energy output, oil prices, the increase was significantly less than the prior year.

Increases in courier pricing reflect the costs associated with operating environment, service enhancement, fleet maintenance and technology innovations.

9487 Dry Fork Road

Harrison, OH 45030 USA Ph. +1 513.202.0790 Fax +1 513.202.0593 www.veritrace.com

September 21, 2023

Arizona Department of Health Services Attn: Karla Varela 150 N. 18th Avenue, Suite 530 Phoenix, AZ 85007

Dear Ms. Varela, Thank you for the opportunity to extend our contract as we consider it a privilege to provide your security paper. Although the supply chain has begun to stabilize, we continue to see some increases. Delivery of the documents to the Counties and State is one key component and your contract, as written, includes delivery costs. Our proposed price increase is restricted to raw materials and shipping with no increases in margin or company overhead. We consider this a partnership and only look to capture the direct cost increases which are attached.

Your current 2022 price negotiated on the last extension is $0.2965. Taking into consideration the evidence presented, the new extended price would move to $0.32.

It is our hope we can extend rather than participate in an open RFP. In the event a decrease on any raw material occurs that would be immediately passed on to the State.

I look forward to your response. Feel free to reach out if necessary. I can be reached at 815 735-1159 or Jcolumbus@veritrace.com.

I again thank you for the privilege and look forward to continuing our relationship.

Best Regards, James D. Columbus V.P. Document Security mailto:Jcolumbus@veritrace.com

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Entity#:

Filing Type:

Original Filing Date:

Location:

Business Name:

Status:

Exp. Date:

4211119

FOREIGN CORPORATION

07/19/2018

VERITRACE, INC

Active

Agent/Registrant Information

CT CORPORATION SYSTEM

4400 EASTON COMMONS WAY, SUITE 125

COLUMBUS OH 43219

07/19/2018 Active

Filings

Filing Type Date of Filing Document ID

FOREIGN LICENSE/FOR-PROFIT 07/19/2018 201820002088

Fri Jan 19 2024

UNITED STATES OF AMERICA

STATE OF OHIO

OFFICE OF SECRETARY OF STATE

I, Frank LaRose, Secretary of State of the State of Ohio, do hereby certify that this is a list of all records approved on this business entity and in the custody of the Secretary of State.

Witness my hand and the seal of the Secretary of State at Columbus, Ohio this 19th of January, A.D. 2024

Ohio Secretary of State

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