CTR061868_Contract_Amendment_8.pdf

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Master Agreement AZ|CTR061868
Contract number
CTR061868
Issued by
Arizona

About this file

This document set comprises a contract amendment and supporting documentation for legal advisory services between the Arizona Department of Transportation (ADOT) and Mayer Brown LLP. The contract involves two specific agreement numbers (CTR061868 and CTR061869) for Legal Advisory Services Alternative Project Delivery, which are state-funded contracts. The documentation includes a formal contract amendment from ADOT, a rate increase request letter from Mayer Brown, and supplementary U.S. Bureau of Labor Statistics Employment Cost Index reports supporting the proposed rate adjustments.

The contract covers legal advisory services with rate increases for various professional levels, including Senior Partner, Junior Partner, Senior Associate, Junior Associate, and Paralegal positions. For the third renewal period beginning August 26, 2025, Mayer Brown is requesting a 9% maximum rate increase, which translates to specific hourly rates: Senior and Junior Partners at $746.65, Senior and Junior Associates at $599.50, and Paralegals at $223.45. The rate increase is justified by Bureau of Labor Statistics data showing compensation costs for private industry workers increased 3.4% over the year, with wages and salaries increasing by the same percentage. The contract allows for these incremental increases, and the rates will be valid for a 12-month period, consistent with the contract's renewal terms.

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ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary CONTRACTOR: Mayer Brown LLP AMENDMENT NO.: 8 DESCRIPTION: Legal Advisory Services Alternative Project Delivery – State Funded

Rev. 03/2025

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 26, 2025 is hereby approved as follows:

Line Item No. Line Item Description Unit Price

1 Senior Partner 746.65 2 Junior Partner 746.65 3 Senior Associate 599.50 4 Junior Associate 599.50 5 Paralegal 223.45

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

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PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 03/2025

Sections 1 through 3 MUST be completed Use Attachments as Necessary

1) Name: Bambi Brenden

Title: Procurement Officer

Date: August 20, 2025

Contract Number: CTR061868 and CTR061869

Contract Description: Legal Advisory Services Alternative Project Delivery

Contractor Name: Mayer Brown LLP

2) Line Item Pricing:

See below.

Line Item No.

Line Item Description Original Rate ($)

Year 1 Allowable

Increase (3%)

Year 2 Allowable

Increase (6%)

Year 3 Allowable

Increase (9%)

1 Senior Partner 685.00 705.55 726.10 746.65

2 Junior Partner 685.00 705.55 726.10 746.65

3 Senior Associate 550.00 566.50 583.00 599.50

4 Junior Associate 550.00 566.50 583.00 599.50

5 Paralegal 205.00 211.15 217.30 223.45

3) Provide justification:

Mayer Brown LLP requested a 9% increase on all line items for the contracts third renewal period. The U.S. Bureau of Labor Statistics shows that compensation for private industry workers in the Phoenix Metropolitan area increased 3.3% during the 12 months prior to this renewal period and 2.7% and 4.8% for the two prior years. Additionally, the Consumer Price Index went up 0.2%, 2.6% and 7.4% for this same period.

Price increase was reviewed and determined fair and reasonable based on the U.S Bureau of Labor Statistics data. Per the contract, a 3% increase is allowed each year during the renewal period and is computed against the original contract price. It is in the State’s best interest to approve the 9% maximum increase allowed by the contracts third renewal period. The price increase granted for each line item does not exceed the 9% 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:

Approved by:

Signature: Title:

Procurement Manager

Date:

Docusign Envelope ID: DA047E2B-EB22-46ED-A43D-F3A340BACACE

X

8/20/2025

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IJI

MAYER BROWN | 1

782151433.1

May 22, 2025

Mayer Brown LLP 71 South Wacker Drive

Chicago, Illinois 60606-4637

Main Tel +1 312 782 0600 www.mayerbrown.com

Stephanie D. Wagner Partner

Direct Tel +1 312 701 8475 swagner@mayerbrown.com

Bambi Brenden, CPPB

Arizona Department of Transportation

Senior Procurement Specialist bbrenden@azdot.gov

1739 W. Jackson, Suite A, Mail Drop 100P

Phoenix, AZ 85007

Re: Contract Renewal – Rate Change

Dear Ms. Brenden:

We have appreciated the opportunity to serve the Arizona Department of Transportation (the

“Department”) over the last two years and look forward to working with you in the upcoming renewal period as the third twelve (12) month period ends for each of contract number CTR061868 and

CTR061869.

In accordance with the Contract Special Terms and Conditions, item 9, please consider this our formal price increase request, being provided at least 60 days in advance of the third renewal date for the current contract awarded to Mayer Brown by the Department on August 26, 2022.

We are requesting the maximum 9% increase from the rates at the time of award or a ~3% increase from the 2nd renewal rates for the 3rd Renewal Period as submitted with our original response to Solicitation

No. BPM004124 in February 2022 and agreed to at the time of the award. This increase would be applied to the rates included in our Best and Final Offer submitted in June 2022, and agreed to at the time of award, and would be effective through the end of the 3rd Renewal Period. If approved, the below increased rates would go into effect August 26, 2025 and would be valid for 12 months.

Level Rates at the

Time of Award

New Rates for 3rd

Renewal Period

Rate Increase

Perecentage

Senior Partner $685 $746.65 9%

Junior Partner $685 $746.65 9%

Senior Associate $550 $599.50 9%

Junior Associate $550 $599.50 9%

Paralegal $205 $223.45 9%

Administrative Support $0 $0 0%

Points summarizing our rationale for a ~3% price increase from the 2nd renewal rates are below:

Per the Bureau of Labor Statistics Employment Cost Index – March 2025 report, found in the link below, compensation costs for private industry workers increased 3.4 percent over the year.

Wages and salaries increased 3.4 percent for the 12-month period ending in March 2025. The cost of benefits increased 3.5 percent for the 12-month period ending in March 2025.

Employment Cost Index Summary - 2025 Q01 Results

MAYER BROWN | 2

782151433.1

Mayer Brown’s 2025 standard rates for the below lawyers have increased an average of 15.3% in

2025 and we anticipate an increase of at least 8-10% on January 1st, 2026. In the table below, we have outlined the 2025 y-o-y standard rate increases for the lawyers currently serving the

Department and the projected 2026 discounts will continue to grow and average at least 40% in

2026.

Please let us know if you have any questions or need additional information. We look forward to hearing from you on next steps.

Best regards, Stephanie D. Wagner, Partner

Mayer Brown LLP

CTR061868 Contract Amendment 8
Price Increase Determination
Price Increase Determination
Changing Compensation Costs in the Phoe...fice _ U.S June 2025
Consumer Price Index, Phoenix area — Ju...fice _ U.S June 2025
Mayer Brown_ADOT_Price Increase Request for 3rd Renewal Period 5.22.25
Mayer Brown_ADOT_Price Increase Request for 3rd Renewal Period 5.22.25 (1)
Employment Cost Index Summary - 2025 Q01 Results

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