CTR058634_Contract_Amendment_Summary_Three__3_.pdf

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary CONTRACTOR: RR Donnelley AMENDMENT NO.: Three (3) DESCRIPTION: Arizona Certificate of Title

Rev. 04/2020

Procurement

Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended.

Summary of changes is as follows:

1. PRICING: The following price list item is hereby modified as follows, effective January 18, 2024.

2. This contract is hereby mutually extended from January 19, 2024 through January 18, 2025 unless terminated, canceled or extended as otherwise provided in the contract.

3. All other terms, conditions and provisions of this contract remain unchanged.

Product Code Name UOM Current Price Increased

Amount New Price

CTR058634-3 Certificate Of Title 8.5” x 11’ Laser Cut AZ State Title, 2k Per Box BX $ 175.24 $ 6.74 $ 181.98 javascript:void('0') javascript:void('0')

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Procurement

Sections 1 through 3 MUST be completed Use Attachments as Necessary

1) Name: Edwin Ramos

Title: Senior Procurement Officer

Date: December 20, 2023

Contract Number: CTR058634

Contract Description: Arizona Certificate of Title

Contractor Name: RR Donnelley

2) Line Item Pricing:

See below.

Line

Item No. Line Item Description Current Rate ($)

Increase Amount ($)

New Rate ($)

CTR058634-3 Certificate of Title 8.5”x11” Laser Cut AZ State Title, 2K per Box $175.24 $6.74 $181.98

3) Provide justification:

On November 3, 2023 RR Donnelley requested a 3.85% price increase on the above line item for the Contract’s second renewal period. The Supplier’s manufacturer has provided supporting documentation of an increase in the cost of labor, manufacturing and supply chain production. The Department has verified that the cost of labor for civilian workers has risen by 4.3% from the last renewal period.

Per the contract, a 4% increase is allowed each year during the renewal period and is computed against the original contract value. It is in the States best interested to approve the 3.85% increase allowed by the Contract’s second renewal period. The price increase granted for the line item above does not exceed the 4% as allowable in the contract for the second renewal period.

To Be Completed by Procurement Authority:

APPROVAL

Request Authorized Pursuant to A.A.C. R2-7-604A Request Denied Request Returned for Additional Information See Comments

Comments:

Approved by:

Signature:

Title:

Date:

DocuSign Envelope ID: D07DD67D-F7FF-45F4-A26D-11B09ADB8080

Procurement Manager

X

12/20/2023

---------- Forwarded message --------- From: Tim Macey <timothy.c.macey@rrd.com> Date: Fri, Nov 3, 2023 at 3:06 PM Subject: CTR058634 Arizona Certificate of Title To: Tiffany Connell <tconnell2@azdot.gov>, Thomas Carroll <tcarroll@azdot.gov> Cc: David Morrison <dave.morrison@rrd.com>

Tom and Tiffany, I hope you guys are both doing well.

I'm writing to notify you that we've received material and labor increases that we're required by our company to pass along to ADOT to the extent that our contract allows.

As a result, I've attached a summary document capturing the detials along with mill letters, CPI labor index, and our formal request to increase our price going into our next contract year. Of course, we enjoy working with ADOT and hope to continue to do so in 2024.

Please let us know if you have any questions or concerns.

Thank you, TIM MACEY

Account Executive 455 S 52nd Street, Tempe, AZ 85281 c 602.717.6864 e timothy.macey@rrd.com w rrd.com mailto:timothy.c.macey@rrd.com mailto:tconnell2@azdot.gov mailto:tcarroll@azdot.gov mailto:dave.morrison@rrd.com mailto:Kurt.Lanigan@rrd.com https://www.rrdonnelley.com/

CONFIDENTIAL

18 December 2023

Supply of ‘Screaming Eagle’ Cylinder Mould Security Paper to RR Donnelley for Arizona MVT

Dear Customer, There have been unprecedented changes in the cost base of our paper production following the global pandemic and the continued war in Ukraine. Consequently, we have seen increased manufacturing costs for our high-security, specialist production processes as well as our specialist feature suppliers that add to the renowned security of our cylinder mould papers.

Portals places great value on its relationships with the customer base and I would like to thank you for your understanding of our need to cover these increases in the price of our product. Portals Paper supply to RR Donnelley is deemed one of the most secure papers in the world, with the bespoke security in both paper and print, aimed at preventing the multi-billion financial losses suffered by the US as a result of odometer fraud and identity theft of various MVT document types.

With respect to the ‘Screaming Eagle’, high-security, vat-formed paper, we have seen the following trends and increases:

• The cost of the bespoke security threads has increased 18% since the beginning of the pandemic and has remained steady in 6% annual increments. These costs will affect the whole high-security industry as they have not yet seen any decline but stabilization.

• 35% increase in the cost of papermaking chemicals and security components.

• UK inflation affecting labour, manufacturing and supply chain costs (among others), is at an all-time high and the Bank of England has a current rate of 5.25%, which has remained at the highest level in 15 years and resulted in the 9% increase we passed in August 2023.

• Portals has hedged energy prices for approximately half of its forecasted consumption in 2023 and the first quarter of 2024. However, these forward contracts are purchased at a premium on the current day rate. While this does inflate the price we pay, it provides forward hedge and protection against spikes in pricing later in the year.

CONFIDENTIAL

In the event that raw material, energy and/or shipping costs decrease significantly, we will pass these consequential price reductions on to you without hesitation.

We write to inform you of this matter such that you may consider this when making your budget arrangements in the coming year.

If you would like to discuss this further, we are ready and eager to answer any questions or comments you may have.

Joe Skipper Sales Director remind

Transmission of material in this release is embargoed until USDL-23-2314

8:30 a.m. (ET) Tuesday, October 31, 2023

Technical information: (202) 691-6199 • ncsinfo@bls.gov • www.bls.gov/eci

Media contact: (202) 691-5902 • pressoffice@bls.gov

EMPLOYMENT COST INDEX – SEPTEMBER 2023

Compensation costs for civilian workers increased 1.1 percent, seasonally adjusted, for the 3-month period ending in September 2023, the U.S. Bureau of Labor Statistics reported today. Wages and salaries increased 1.2 percent and benefit costs increased 0.9 percent from June 2023. (See chart 1 and tables A, 1, 2, and 3.)

Compensation costs for civilian workers increased 4.3 percent for the 12-month period ending in

September 2023 and increased 5.0 percent in September 2022. Wages and salaries increased 4.6 percent for the 12-month period ending in September 2023 and increased 5.1 percent for the 12-month period ending in September 2022. Benefit costs increased 4.1 percent over the year and increased 4.9 percent for the 12-month period ending in September 2022. (See chart 2 and tables A, 4, 8, and 12.)

Compensation costs for private industry workers increased 4.3 percent over the year. In September

2022, the increase was 5.2 percent. Wages and salaries increased 4.5 percent for the 12-month period ending in September 2023 and increased 5.2 percent in September 2022. The cost of benefits increased 3.9 percent for the 12-month period ending in September 2023 and increased 5.0 percent in

September 2022. Inflation-adjusted (constant dollar) compensation costs for private industry increased

0.6 percent for the 12-month period ending in September 2023. Inflation-adjusted wages and salaries increased 0.8 percent for the 12 months ending September 2023. Inflation-adjusted benefit costs in the private sector increased 0.2 percent over that same period. (See charts 3, 4, and tables A, 5, 9, and 12.)

Chart 1. Three-month percent change, seasonally adjusted, civilian workers, total compensation

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Chart 2. Twelve-month percent change, not seasonally adjusted, civilian workers

Chart 5. Twelve-month percent change, not seasonally adjusted, state and local government workers

Among private industry occupational groups, compensation cost increases for the 12-month period ending in September 2023 ranged from 3.9 percent for production, transportation, and material moving occupations to 4.5 percent for service occupations. Within industry supersectors, compensation cost increases ranged from 3.7 percent for manufacturing to 4.9 percent for both education and health services and for other services, except public administration.

(See table 5.)

Compensation costs for state and local government workers increased 4.8 percent for the 12-month period ending in

September 2023, compared with an increase of 4.6 percent in September

2022. Wages and salaries increased 4.8 percent for the 12-month period ending in

September 2023 and increased 4.4 percent a year ago. Benefit costs increased 4.7 percent for the 12-month period ending in

September 2023. The prior year increase was 5.0 percent. (See chart 5 and tables

A, 7, 11, and 12.)

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Chart 4. Twelve-month percent change, constant dollar, private industry workers

Chart 3. Twelve-month percent change, current dollar, private industry workers

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