CTR058634_Contract_Amendment_Summary_Two__2_.docx.pdf

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary CONTRACTOR: RR Donneley AMENDMENT NO.: 2 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. New pricing effective August 4th, 2023 is hereby approved as follows

Product Code Name UOM Currency Current Price ($)

Increase Amount

New Price

CTR058634-1 Certificate Of Title 8.5” x 11’ Laser Cut AZ State Title, 2k Per Box

Box USD $168.50 $6.74 $175.24

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

javascript:void('0') javascript:void('0')

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Sections 1 through 3 MUST be completed Use Attachments as Necessary

1) Name: Tom Carroll

Title: Senior Procurement Officer

Date: August 4, 2023

Contract Number: CTR058634

Contract Description: Arizona Certificate Of Title

Contractor Name: RR Donnelley

2) Line Item Pricing:

See below.

Product Code Name Current Price ($)

Increase Amount ($)

New Price ($)

CTR058634-1 Certificate Of Title 8.5” x 11’ Laser Cut AZ State Title, 2K Per Box

$168.50 $6.74 $175.24

3) Provide justification:

On November 18, 2022 RR Donnelley requested a 5% increase on the above line item for the contracts first renewal period. The Supplier’s manufacturer has provided supporting documentation of a material price increase, showing that a 15-17% increase in paper products had taken place within the 12 months leading up to the renewal period.

Additionally, the 2022 Consumer Price Index (CPI-U) demonstrates a 9% increase for the same period.

The price increase was reviewed and determined fair and reasonable based on the manufacturers material increase letter and the increase in the CPI-U. Per the contract, a 4% increase is allowed each year during the renewal period and is computed against the original contract price. It is in the States best interested to approve the 4% maximum increase allowed by the contracts first renewal period. The price increase granted for the above line item does not exceed the 4% allowed in the contract.

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:

DocuSign Envelope ID: 77F7597C-40FF-46F8-9633-D834EB71AE65

X

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Approved by:

Signature:

Title:

Date:

Procurement Manager

Tiffany Connell

8/4/2023

Hi Tim, I'm still your contract point of contact however Valaire did retire as of last week. Tiffany Connell has replaced her as the manager of our team going forward. I see that you have attached documentation with regards to your price increase request which I will be reviewing and should get back with you sometime next week should I have additional questions or need any other documentation.

Thanks and have a great Thanksgiving holiday.

Brett Jones

ADOT Procurement Officer

1655 W. Jackson Street

Phoenix, AZ 85007

602.712.4321

On Mon, Nov 21, 2022 at 9:17 AM Tim Macey <timothy.c.macey@rrd.com> wrote:

Good morning Brett.

I received a kickback from Valerie's email. Do you know who our contract contact is for this Title contract?

TIM MACEY

602.717.6864

---------- Forwarded message --------- From: Tim Macey <timothy.c.macey@rrd.com> Date: Fri, Nov 18, 2022 at 5:06 PM Subject: CTR058634 Arizona Certificate of Title To: Brett Jones <bjones@azdot.gov>, Valarie Erwin <verwin@azdot.gov> Cc: David Morrison <dave.morrison@rrd.com>

Brett and Valarie, Happy Friday to you both!

As you know, we're proud to support ADOT as your current supplier of your Arizona Certificates of Title.

We're writing to notify you that we've received material and labor increases and asking that we can pass those along to the extent that our contract allows. We've attached the mill letter, CPI labor index, and our formal request to increase our price going into our next contract year.

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

Thank you, 455 South 52nd Street Tempe, AZ 85281 www.rrd.com

Brett Jones and Valerie Erwin Arizona Department of Transportation 1739 W. Jackson Street Phoenix, AZ 85007

Subject: CTR048623 / Arizona Certificate of Title

Dear Brett and Valerie, We appreciate the opportunity to be the supplier providing ADOT with your Arizona Certificate of Title stock. We have appreciated working with you and your team over this past year.

As you know, we have held our pricing firm for the last year per our contract but are seeing significant increases from our paper supplier and with labor that we need to pass along. As it relates to your Title stock, material represents 75% of our total production cost.

We remain committed to helping ADOT and will continue to look for ways to reduce your costs however, we need to pass along the 5% maximum allowed for year 2 of our contract. Listed below is a summary of the increases RRD will incur along with the proposed price change.

1. Material increase 15% = 75% of product total price ($126.38 x 15% = $18.96)

2. CPI / Labor increase 9.06% = 25% of product total price ($42.12 x 9% = $3.79)

3. Net effect increase of 13.5% or $191.25 (not passed to ADOT due to contract cap)

4. Net increase RRD is able to pass to ADOT per our contract 5% ($168.50 x 5% = $176.93)

I have attached the material increase notification we’ve received from our paper mill along with a summary document with the CPI-U index. I’ve also listed the 2022 contracted pricing below along with our 2023 proposed pricing. If accepted, the price increase would be effective January 19, 2023.

Please let me know if you have any questions.

Thank you, Tim Macey Account Manager

455 South 52nd Street Tempe, AZ 85281 www.rrd.com

Item Description Qty Unit 2022 Unit Price

Arizona Certificate of Title – Paper “Screaming Eagle” Secure document paper N/A Case $168.50

Item Description Qty Unit

2023 Unit Price

Arizona Certificate of Title – Paper “Screaming Eagle” Secure document paper N/A Case $176.93

CONFIDENTIAL

Supply of ‘Screaming Eagle’ Cylinder-Mould Security Paper – Pricing Information

Dear Sirs, We are writing with reference to the supply of high-security paper to RR Donnelley, used for the secure production of ‘Screaming Eagle’ Secure document paper.

We live in unprecedented times of turmoil and change which are impacting supply chains around the world. We continue to see significant increases in our raw material and manufacturing costs.

To share some specific examples in relation to the manufacture of Security Papers:

▪ 900% increase in gas prices and 600% increase in electricity prices in the last year.

▪ Wood pulp prices have increased approximately 45% in the last 12 months.

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

▪ Shipping costs are currently 4 times previous costs (221% increase), and continue to fluctuate.

▪ Global Inflation has risen around to world to 9% on average.

We appreciate your custom and understand these increases will also be affecting you.

As a result, we have made every effort to absorb as much of the increased costs where possible, but there will be a 15 – 17% increase in the cost of Eagle papers, per lb.

We write to inform you of this matter such that you may consider this when making your budget arrangements in the coming year. We will always ensure that you receive the highest quality service and substrates.

As a final note, if there are any significant decreases in the cost of raw materials and/or manufacture – you can rest assured that we will pass any savings on to you at that time.

11 November 2022

RR Donnelley 100 American Drive Quakertown

PA

18951

CONFIDENTIAL

If you have any questions, please do not hesitate to contact me.

Yours sincerely, Harriet Plumb Sales Director Harriet.Plumb@portalspaper.com + 44 (0) 7585880796

PetSmart RRD Material Increase 8-15-22 (1).xlsx - CPI-Urban BEW Page 1 of 1 8/4/2023 - 2:05 PM

Consumer Price Index - All Urban Consumers Not Seasonally Adjusted, U.S. City Average, All Items CUUR0000SA0

Jan-96 Feb-96 Mar-96 Apr-96 May-96 Jun-96 Jul-96 Aug-96 Sep-96 Oct-96 Nov-96 Dec-96 Index 154.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 157.8 158.3 158.6 158.6 ∆ from Previous 0.3% 0.5% 0.4% 0.2% 0.1% 0.2% 0.2% 0.3% 0.3% 0.2% 0.0%

Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 Jul-97 Aug-97 Sep-97 Oct-97 Nov-97 Dec-97 Index 159.1 159.6 160.0 160.2 160.1 160.3 160.5 160.8 161.2 161.6 161.5 161.3 ∆ from Previous 0.3% 0.3% 0.3% 0.1% -0.1% 0.1% 0.1% 0.2% 0.2% 0.2% -0.1% -0.1%

Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Index 161.6 161.9 162.2 162.5 162.8 163.0 163.2 163.2 163.6 164.0 164.0 163.9 ∆ from Previous 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.0% 0.2% 0.2% 0.0% -0.1%

Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Index 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 ∆ from Previous 0.2% 0.1% 0.3% 0.7% 0.0% 0.0% 0.3% 0.2% 0.5% 0.2% 0.1% 0.0%

Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 Index 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0 ∆ from Previous 0.3% 0.6% 0.8% 0.1% 0.1% 0.5% 0.2% 0.0% 0.5% 0.2% 0.1% -0.1%

Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Index 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 ∆ from Previous 0.6% 0.4% 0.2% 0.4% 0.5% 0.2% -0.3% 0.0% 0.5% -0.3% -0.2% -0.4%

Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Index 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9 ∆ from Previous 0.2% 0.4% 0.6% 0.6% 0.0% 0.1% 0.1% 0.3% 0.2% 0.2% 0.0% -0.2%

Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Index 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3 ∆ from Previous 0.4% 0.8% 0.6% -0.2% -0.2% 0.1% 0.1% 0.4% 0.3% -0.1% -0.3% -0.1%

Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Index 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 ∆ from Previous 0.5% 0.5% 0.6% 0.3% 0.6% 0.3% -0.2% 0.1% 0.2% 0.5% 0.1% -0.4%

Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Index 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 ∆ from Previous 0.2% 0.6% 0.8% 0.7% -0.1% 0.1% 0.5% 0.5% 1.2% 0.2% -0.8% -0.4%

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Index 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 ∆ from Previous 0.8% 0.2% 0.6% 0.9% 0.5% 0.2% 0.3% 0.2% -0.5% -0.5% -0.1% 0.1%

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Index 202.4 203.5 205.4 206.7 207.9 208.4 208.3 207.9 208.5 208.9 210.2 210.0 ∆ from Previous 0.3% 0.5% 0.9% 0.6% 0.6% 0.2% 0.0% -0.2% 0.3% 0.2% 0.6% -0.1%

Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Index 211.1 211.7 213.5 214.8 216.6 218.8 220.0 219.1 218.7 216.6 212.4 210.2 ∆ from Previous 0.5% 0.3% 0.9% 0.6% 0.8% 1.0% 0.5% -0.4% -0.2% -1.0% -1.9% -1.0%

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Index 211.1 212.2 212.7 213.2 213.856 215.693 215.351 215.834 215.969 216.177 216.33 215.949 ∆ from Previous 0.4% 0.5% 0.2% 0.2% 0.3% 0.9% -0.2% 0.2% 0.1% 0.1% 0.1% -0.2%

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Index 216.69 216.74 217.631 218.009 218.178 217.965 218.011 218.312 218.439 218.711 218.803 219.179 ∆ from Previous 0.3% 0.0% 0.4% 0.2% 0.1% -0.1% 0.0% 0.1% 0.1% 0.1% 0.0% 0.2%

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Index 220.22 221.31 223.47 224.91 225.96 225.722 225.922 226.55 226.89 226.42 226.23 225.672 ∆ from Previous 0.5% 0.5% 1.0% 0.6% 0.5% -0.1% 0.1% 0.3% 0.2% -0.2% -0.1% -0.2%

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Index 226.67 227.66 229.39 230.09 229.82 229.478 229.104 230.38 231.41 231.32 230.22 229.60 ∆ from Previous 0.4% 0.4% 0.8% 0.3% -0.1% -0.1% -0.2% 0.6% 0.4% 0.0% -0.5% -0.3%

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Index 230.28 232.17 232.77 232.53 232.95 233.504 233.596 233.88 234.15 233.55 233.07 233.05 ∆ from Previous 0.3% 0.8% 0.3% -0.1% 0.2% 0.2% 0.0% 0.1% 0.1% -0.3% -0.2% -0.01%

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Index 233.92 234.78 236.29 237.07 237.90 238.343 238.25 237.85 238.03 237.43 236.15 234.81 ∆ from Previous 0.4% 0.4% 0.6% 0.3% 0.3% 0.2% 0.0% -0.2% 0.1% -0.3% -0.5% -0.57%

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Index 233.71 234.72 236.12 236.60 237.81 238.638 238.654 238.32 237.95 237.84 237.34 236.53 ∆ from Previous -0.5% 0.4% 0.6% 0.2% 0.5% 0.4% 0.0% -0.1% -0.2% 0.0% -0.2% -0.34%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Index 236.92 237.11 238.13 239.26 240.23 241.018 240.63 240.85 241.43 241.73 241.35 241.43 ∆ from Previous 0.2% 0.1% 0.4% 0.5% 0.4% 0.3% -0.2% 0.1% 0.2% 0.1% -0.2% 0.03%

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Index 242.84 243.60 243.80 244.52 244.73 244.955 244.79 245.52 246.82 246.66 246.67 246.52 ∆ from Previous 0.6% 0.3% 0.1% 0.3% 0.1% 0.1% -0.1% 0.3% 0.5% -0.1% 0.0% -0.06%

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Index 247.87 248.99 249.55 250.55 251.59 251.989 252.01 252.15 252.44 252.89 252.04 251.23 ∆ from Previous 0.5% 0.5% 0.2% 0.4% 0.4% 0.2% 0.0% 0.1% 0.1% 0.2% -0.3% -0.32%

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Index 251.71 252.78 254.20 255.55 256.09 256.143 256.57 256.56 256.76 257.35 257.21 256.97 ∆ from Previous 0.2% 0.4% 0.6% 0.5% 0.2% 0.02% 0.2% 0.0% 0.1% 0.2% -0.1% -0.09%

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Index 257.97 258.68 258.12 256.39 256.39 257.797 259.10 259.92 260.28 260.39 260.23 260.47 ∆ from Previous 0.4% 0.3% -0.2% -0.7% 0.0% 0.55% 0.5% 0.3% 0.1% 0.0% -0.1% 0.09%

Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Index 261.58 263.01 264.88 267.05 269.20 271.70 273.00 273.57 274.31 276.59 277.95 278.80 ∆ from Previous 0.4% 0.5% 0.7% 0.8% 0.8% 0.93% 0.5% 0.2% 0.3% 0.8% 0.5% 0.31%

Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Index 281.15 283.72 287.50 289.11 292.296 296.31 ∆ from Previous 0.8% 0.9% 1.3% 0.6% 1.1% 1.37% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

8/9/2022 Max change CPI-U index increase (decrease):

9.06% 3% Cannot exceed +- 3%

Svcs Component % 50.00

CPI-U Increase Allowed: 1.50%

CPI-U Increase Allowed = Services Component Percentage times (New Index Value minus Old Index Value) divided by Old index Value

(1) Revised Sept 2016 - The indexes for Prescription drugs were incorrect as published for May 2016 through August 2016, which affected the

Certificate Of Completion Envelope Id: 77F7597C40FF46F89633D834EB71AE65 Status: Completed

Subject: Complete with DocuSign: CTR058634 Price Increase Determination Package.pdf

Source Envelope:

Document Pages: 8 Signatures: 1 Envelope Originator:

Certificate Pages: 2 Initials: 1 Thomas Carroll

AutoNav: Enabled

EnvelopeId Stamping: Enabled

Time Zone: (UTC-07:00) Arizona

206 S 17th Ave

Phoenix, AZ 85007 tcarroll@azdot.gov

IP Address: 54.189.240.137

Record Tracking Status: Original

8/4/2023 12:17:20 PM

Holder: Thomas Carroll tcarroll@azdot.gov

Location: DocuSign

Signer Events Signature Timestamp Thomas Carroll tcarroll@azdot.gov

ADOT

Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style

Using IP Address: 165.225.242.92

Sent: 8/4/2023 12:18:40 PM

Viewed: 8/4/2023 12:18:54 PM

Signed: 8/4/2023 12:18:58 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

Tiffany Connell

TConnell2@azdot.gov

Procurement Manager

ADOT

Security Level: Email, Account Authentication (None)

Signature Adoption: Pre-selected Style

Using IP Address: 104.129.198.51

Sent: 8/4/2023 12:18:59 PM

Viewed: 8/4/2023 1:20:30 PM

Signed: 8/4/2023 1:20:56 PM

Electronic Record and Signature Disclosure:

Not Offered via DocuSign

In Person Signer Events Signature Timestamp

Editor Delivery Events Status Timestamp

Agent Delivery Events Status Timestamp

Intermediary Delivery Events Status Timestamp

Certified Delivery Events Status Timestamp

Carbon Copy Events Status Timestamp

Witness Events Signature Timestamp

Notary Events Signature Timestamp

Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 8/4/2023 12:18:40 PM

Certified Delivered Security Checked 8/4/2023 1:20:30 PM

Signing Complete Security Checked 8/4/2023 1:20:56 PM

Envelope Summary Events Status Timestamps Completed Security Checked 8/4/2023 1:20:56 PM

Payment Events Status Timestamps

CTR058634 Price Increase Determination Package