CTR058634_Price_Increase_2024.pdf

Procurement

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary

CONTRACTOR: RR Donnelley AMENDMENT NO.: Four (4)

DESCRIPTION: Arizona Certificate of Title

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

Summary of changes is as follows:

1. The following price list item is hereby modified as follows, and will take effective January 18, 2025, per the contract renewal in the Arizona Procurement Portal (APP).

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 $ 181.98 $ 3.37 $ 185.35

2. This contract is hereby mutually extended from January 19, 2025 through January 18, 2026 unless terminated, canceled or extended as otherwise provided in the contract.

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

Rev. 04/202

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Sections 1 through 3 MUST be completed Use Attachments as Necessary

1) Name: William Haynes

Title: Senior Procurement Officer

Date: November 15, 2024

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 ($)

CTR0586

34-3

Certificate of Title 8.5”x11” Laser Cut AZ State Title, 2k per Box

181.98 3.37 185.35

3) Provide justification:

On October 2nd 2024 RR Donnelley requested a 1.85% increase on the above line item for the contracts third renewal period. The Supplier’s manufacturer has provided supporting documentation of a material price increase, showing that a 4.5%-8.7% increase in paper products had taken place within the 12 months leading up to the renewal period.

Additionally, the 2024 Consumer Price Index (CPI-U) demonstrates a 11% increase for the same period.

While price increases can be approve during the renewal period, if and when there is an approved increase, this is computed against the original contract price. The price increase requested for the above line items does not exceed that which is allowed by the contract therefore it is in the States best interested to approve the requested increase.

The price increase was reviewed and determined fair and reasonable based on the manufacturers material increase letter and the increase in the CPI-U.

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: 978A7BD4-87BC-4CD3-B8F1-808ECF2A95BB

X

12/10/2024

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Approved by:

Signature:

Title:

Date:

Docusign Envelope ID: 978A7BD4-87BC-4CD3-B8F1-808ECF2A95BB

12/10/2024Procurement Manager

PRICE INCREASE PERCENTAGES

Solicitation No: BPM003653 Available online at https://appstate.az.gov/

Rev. 04/2020

The offeror should use the space below to identify the maximum price increase percentage that they may want to request at the time of renewal if ADOT exercises its option per the applicable provisions under any resultant contract(s).

The offeror is cautioned that each renewal period’s increase percentage shall be computed against the

ORIGINAL contract price. If information is not provided in the space above, prices shall remain the same as the original contract term. Please see the following example for further clarification.

Example: If the offeror anticipates requesting a 2% increase at each renewal period per Special Terms and Conditions, they should enter 2%, 4%, 6%, and 8% in the attachment.

Each percentage increase is calculated using the original contract price. See example in table below.

Renewal Period

% Maximum Increase from Attachment

Original Contract Price

Maximum Increase Allowed

Maximum Contract Price

1 2% $100.00 $2.00 $102.00

2 4% $100.00 $4.00 $104.00

3 6% $100.00 $6.00 $106.00

4 8% $100.00 $8.00 $108.00

Furthermore, the offeror is advised that the State of Arizona does not automatically grant any increase when renewing the contract. If an increase is requested, documentation of need must be provided at the time of renewal.

1st Renewal Period ________________5___% Maximum Increase

2nd Renewal Period ________________8___% Maximum Increase

3rd Renewal Period ____________________% Maximum Increase

4th Renewal Period ____________________% Maximum Increase

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

Monday, December 2, 2024 (Revised from original notification sent 10/1/24)

William Hayes CC: Edwin Ramos, Tom Carroll, Brett Jones Arizona Department of Transportation 1739 W. Jackson Street Phoenix, AZ 85007

Subject: CTR058634 / Arizona Certificate of Title

Edwin, We appreciate working your team and for the opportunity to continue being ADOTs provider for your Arizona Certificate of Title stock.

As you know, our contract contains favorable cap language to ADOT during a period where we continue to see both material and labor increases. The net effect from last year to this year is only a 2.22% increase however, RRD has carried over a 13.06% net increase from the first three years of our contract.

We remain committed to helping ADOT and will continue to look for ways to reduce both your and our costs, however, we need to pass along an additional 2% (12% cumulative from original RFP) maximum allowed for year 4 of our contract. Listed below is a summary of the increases RRD will incur along with the proposed price change.

1. 2022 increase was 13.52% actual (4% passed to ADOT due to contract cap); 9.52% RRD carried

2. 2023 increase was 17.06% (7.54% actual + 9.52% carry; Net increase to ADOT 4% due to the contract cap); 13.06% RRD carried

3. 2024 Net effect increase of 17.06% (2.22% actual + 13.06% carry; Net increase to ADOT 4% due to the contract cap); 11.28% RRD will carry in 2025

4. Actual increase RRD is able to pass to ADOT per our contract 10% from the original contract price or $168.50 x 10% = $185.35

I’ve attached the related material increase notifications from Portals and our labor/CPI index from our Corporate Pricing team who have captured these in a summary document for our files. Please review these and if you accept them, the price increase would be effective January 19, 2025.

Please let me know if you have any questions.

Thank you, Tim Macey Dave Morrison Account Manager 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

2023 Unit Price document paper N/A Case $175.24

2024 Unit Price document paper N/A Case $181.98

2025 Unit Price document paper N/A Case $185.35

CONFIDENTIAL

03 September 2024

Supply of Cylinder Mould Security Paper to RR Donnelley for Eagle Motor Vehicle Title Papers

Dear Customer, In recent years, we have seen unprecedented changes in our global economy which has directly impacted the cost base of our paper production. We have also seen a huge rise in counterfeit certificates, being used to gain access to multiple identities and fraudulent activities such as odometer fraud. The combination of RR Donnelley’s high security printing expertise and the cylinder mould papers (specialist, non-commercially available substrate), provides you as a customer, assurance that your title certification protects against the fraud.

Portals places great value on its relationships with our customer base and ensuring the highest quality of product and partnership. In relation to such, please see below detail relating to the price increases necessary for the supply of the high-security papers of high -security title papers featuring the cylinder mould Eagle Watermark and bespoke threads.

Since 2023, we have experienced inflationary rates up to 8.7%, with the average of last year’s inflation being approximately 4.5%.

This combined with the residual effects of the pandemic and war between Russia and Ukraine, has increased the demand and value of labour dramatically. Since the beginning of our financial year 2024 (March 24), labour costs have increased by 20%.

From July 2023 to today, woodpulp has increased by 34.12%. Based on current trends, we anticipate this increasing further before Autumn.

Whilst we have made every effort to mitigate some of the impact of rising costs through improving manufacturing efficiencies; it has not been possible to totally counter all the inflationary pressures on our current business nor the increase in material costs and as a direct result, the cost of the high-security substrate for the protection of Eagle Watermarked papers, has increased by up to 2%.

Please be assured, that if raw material, labour, freight costs decrease significantly, we will pass these consequential price reductions on to you without hesitation.

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 Manager

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 211.1 212.2 212.7 213.2 213.86 215.7 215.4 215.83 215.97 216.2 216.3 215.9 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 216.69 216.74 217.63 218 218.18 218 218 218.31 218.44 218.7 218.8 219.2 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 220.22 221.31 223.47 224.91 225.96 225.72 225.922 226.55 226.89 226.42 226.23 225.7 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 226.67 227.66 229.39 230.09 229.82 229.48 229.104 230.38 231.41 231.32 230.22 229.60 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 230.28 232.17 232.77 232.53 232.95 233.5 233.596 233.88 234.15 233.55 233.07 233.05 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 233.92 234.78 236.29 237.07 237.90 238.34 238.25 237.85 238.03 237.43 236.15 234.81 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 233.71 234.72 236.12 236.60 237.81 238.64 238.654 238.32 237.95 237.84 237.34 236.53 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 236.92 237.11 238.13 239.26 240.23 241.02 240.63 240.85 241.43 241.73 241.35 241.43 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 242.84 243.60 243.80 244.52 244.73 244.96 244.79 245.52 246.82 246.66 246.67 246.52 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 247.87 248.99 249.55 250.55 251.59 251.99 252.01 252.15 252.44 252.89 252.04 251.23 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 251.71 252.78 254.20 255.55 256.09 256.14 256.57 256.56 256.76 257.35 257.21 256.97 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 257.97 258.68 258.12 256.39 256.39 257.8 259.10 259.92 260.28 260.39 260.23 260.47 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 281.15 283.72 287.50 289.11 292.3 296.3 296.3 296.2 296.8 298.01 297.71 296.80 from Previous 0.8% 0.9% 1.3% 0.6% 1.1% 1.37% 0.0% 0.0% 0.2% 0.4% -0.1% -0.31%

Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23

Index 299.17 300.84 301.84 303.36 304.13 305.11 305.69 307.03 307.8 307.67 307.05 306.75 from Previous 0.8% 0.6% 0.3% 0.5% 0.3% 0.32% 0.2% 0.4% 0.2% 0.0% -0.2% -0.10%

Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24

Index 308.42 310.3 312.3 313.5 314.07 314.2 314.5 from Previous 0.5% 0.6% 0.6% 0.4% 0.2% 0.03% 0.1% ###### ###### ##### ##### #####

11/1/2024

CPI-U index increase (decrease):

2.89%

Svcs Component % 25.00

CPI‐U Increase Allowed: 0.72%

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

RFA_ADOT CTR058634 11‐2024 R1.xlsx ‐ CPI‐Urban BEW Page 1 of 1 12/2/2024 ‐ 3:08 PM