CTR066077_Contract_Amendment_Summary_Two__2_.pdf

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary CONTRACTOR: LZ Delta LLC AMENDMENT NO.: Two (2)

DESCRIPTION: CTR066077 – Motorcycles, Side by Side Vehicles and ATV Quad Bikes

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:

Contract Line Items per Scope of Work, Section 12:

1. The following Contract line items validity end date is hereby modified to read 07/25/2024:

1,2,5,6,7, 17, 19, 20, 21, 22, 24, 25, 26, 27, 28, 29, 30, 31, 32, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 46, 47, 58, 62, 63, 65, 66, 70, 71, 73, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 96, 97, 103, 104, 105, 106, 108, 109, 110, 111, 112, 113, 114, 115 and 118.

2. Lines 120 through 185 are hereby added to reflect updated pricing for model years 2024/2025:

Line item # 120 “BMW 0% off MSRP Phase 1” is hereby added.

Line item # 121 “Harley-Davidson (Excludes Live wire) 4% off MSRP Phase 1” is hereby added.

Line item # 122 “Honda 4% off MSRP Phase 1” is hereby added.

Line item # 123 “Kawasaki 4% off MSRP Phase 1” is hereby added.

Line item # 124 “Zero 1% off MSRP Phase1” is hereby added.

Line item # 125 “Stark 1% off MSRP Phase 1” is hereby added.

Line item # 126 “Honda (700cc or under) 3% off MSRP Phase 1” is hereby added.

Line item # 127 “Honda (Over 700cc) 3% off MSRP Phase 1” is hereby added.

Line item # 128 “Kawasaki MULE SX 3% off MSRP Phase 1” is hereby added.

Line item # 129 “All other Kawasaki Side x Side 8% off MSRP Phase 1” is hereby added.

Line item # 130 “Polaris Ranger (570cc or smaller) 3% off MSRP Phase 1” is hereby added.

Line item # 131 “Polaris Ranger (over 570cc, excl Northstar) 5% off MSRP Phase 1” is hereby added

Line item # 132 “Polaris Ranger Northstar models (HVAC) 0% off MSRP Phase 1” is hereby added.

Line item # 133 “Polaris Ranger XP Kinetic (Electric) 0% off MSRP Phase 1” is hereby added.

Line item # 134 “Polaris General 1000 (Non-XP) 6% off MSRP Phase 1” is hereby added.

Line item # 135 “Polaris General XP 1000 3% off MSRP Phase 1” is hereby added.

Line item # 136 “Polaris Razor 5% off MSRP Phase 1” is hereby added.

Line item # 137 “Can-Am Defender Limited (HVAC) 0% off MSRP Phase 1” is hereby added.

Line item # 138 “All other Can-Am Side x Sides 5% off MSRP Phase 1” is hereby added.

Line item # 139 “Honda (250cc or under) 1% off MSRP Phase 1” is hereby added.

Line item # 140 “Honda (Over 250cc) 4% off MSRP Phase 1” is hereby added.

Line item # 141 “Kawasaki (300cc or under) 1% off MSRP Phase 1” is hereby added.

Line item # 142 “Kawasaki (Over 300cc) 4% off MSRP Phase 1” is hereby added142

Line item # 143 “Polaris 3% off MSRP Phase 1” is hereby added.

Line item # 144 “Can-Am (BRP) 3% off MSRP Phase 1” is hereby added.

Line item # 145 “Suzuki 4% off MSRP Phase 1” is hereby added.

Line item # 146 “Yamaha 4% off MSRP Phase 1” is hereby added.

Line item # 147 “BMW 0% off MSRP Phase 2” is hereby added.

Line item # 148 “Harley-Davidson (Excludes Live wire) 4% off MSRP Phase 2” is hereby added.

Line item # 149 “Honda 4 % off MSRP Phase 2” is hereby added.

Line item # 150 “Kawasaki 4% off MSRP Phase 2” is hereby added.

Line item # 151 “Stark 1% Off MSRP Phase 2” is hereby added.

Line item # 152 “Kawasaki Mule 2% off MSRP Phase 2” is hereby added.

Line item # 153 “All other Kawasaki Side by Side 7% off MSRP Phase 2” is hereby added.

Line item # 154 “Polaris Ranger (570cc or smaller) 2% off MSRP Phase 2” is hereby added.

Line item # 155 “Polaris Ranger (over 570cc, excl Northstar) 3% off MSRP Phase 2” is hereby added.

Line item # 156 “Polaris General XP 1000 2% off MSRP Phase 2” is hereby added.

Line item # 157 “Polaris RZR 4% off MSRP Phase 2” is hereby added.

Line item # 158 “All other Cam-AM Side by Sides 2% off MSRP Phase 2” is hereby added.

Line item # 159 “Honda (250cc or under) 1% off MSRP Phase 2” is hereby added.

Line item # 160 “Honda (over 250cc) 4% off MSRP Phase 2” is hereby added.

Line item # 161 “Kawasaki (300 or under) 1% off MSRP Phase 2” is hereby added.

Line item # 162 “Kawasaki (over 300cc) 4% off MSRP Phase 2” is hereby added.

Line item # 163 “Polaris 3% off MSRP Phase 2” is hereby added.

Line item # 164 “Can AM (BRP) 3% off MSRP Phase 2” is hereby added.

Line item # 165 “Suzuki 4% off MSRP Phase 2” is hereby added.

Line item # 166 “Yamaha 4% off MSRP Phase 2” is hereby added.

Line item # 167 “Base labor Rate” is hereby added.

Line item # 168 “FMS Accessories (BMW Authority Parts) 2% off List Price” is hereby added.

Line item # 169 “BMW Authority-specific options (Code3 Lighting etc..) 2% off List Price” is hereby added.

Line item # 170 “Genuine BMW Parts & Accessories 12% off list Price” is hereby added.

Line item # 171 “Polaris Parts 9% off list Price” is hereby added.

Line item # 172 “Can-Am Parts 9% off list Price” is hereby added.

Line item # 173 “PVP Communications Parts -2% off list Price” is hereby added.

Line item # 174 “Setcoms Parts -2% off list Price” is hereby added.

Line item # 175 “Kustom Signal Parts -2% off list Price” is hereby added.

Line item # 176 “Stalker Radar Parts 0% off list Price” is hereby added.

Line item # 177 “Shoei Helmets Parts 14% off list Price” is hereby added.

Line item # 178 “HJC Helmets 14% off list Price” is hereby added.

Line item # 179 “Tomar Parts 1% off list Price” is hereby added.

Line item # 180 “Michelin Tires 23% off list Price” is hereby added.

Line item # 181 “Dunlop Tires 23% off list Price” is hereby added.

Line item # 182 “Bridgestone Tires 23% off list Price” is hereby added.

Line item # 183 “Metzeler Tires 23% off list Price” is hereby added.

Line item # 184 “Harley Davidson Genuine Parts 9% off list Price” is hereby added.

Line item # 185 “Non-OEM (aftermarket) Parts / Accessories 8% off List Price” is hereby added.

3. Contract line item number 186 “Additional Tax” is hereby added to the contract.

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

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Sections 1 through 3 MUST be completed Use Attachments as Necessary

1) Name: Tom Kornell

Title: Senior Procurement Officer

Date: July 25, 2024

Contract Number: CTR066077

Contract Description: Motorcycles, Side by Side Vehicles and ATV Quad Bikes

Contractor Name: LZ Delta

2) Line Item Pricing:

See attached spreadsheet.

3) Provide justification:

LZ Delta is requesting price increases on certain phase one (1) and Phase two (2) Motorcycles, Side by Side Vehicles and ATV Quad Bikes, due to yearly cost increases in overhead and labor rates caused by inflation.

ADOT Procurement has reviewed and researched the request. It was determined that Procurement IQ reports that vehicle prices have exhibited high volatility during the last three years due to heavy fluctuations in the supply chain and price increases due to inflation and wage increases. Procurement IQ shows pricing continuing to grow annually at 5.4%. Additionally, the overall price level as measured by the Producer Price Index (PPI) has also increased 3.9% over the last year.

Based on this information, the new decrease in discount pricing off of MSRP requested from the supplier has been shown and determined to be fair and reasonable and is in the best interest of the State.

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: 2F9E04E2-2FFC-48CE-A2DD-3283B1AE68F1

X

Procurement Manager 7/25/2024

BLS Data Viewer

Net Monthly Changes:

1-Month Net Change 3-Month Net Change

6-Month Net Change 12-Month Net Change

Percent Monthly Changes:

1-Month % Change 3-Month % Change

6-Month % Change 12-Month % Change

Latest Observation:

June 2024

164.159 Jan 2023 - Jun 2024 Minimum Value: January 2023 159.343

Maximum Value: June 2024 164.159

Data Availability:

1984 - 2024

Time Period: Start Year: 2023 End Year: 2024

Data extracted on: Jul 25, 2024 (3:41:09 PM)

PPI Industry Data

Series Title : PPI industry data for Motorcycle, bicycle, and parts mfg, not seasonally adjusted

Series ID : PCU336991336991

Seasonality : Not Seasonally Adjusted

Survey Name : PPI Industry Data

Measure Data Type : Motorcycle, bicycle, and parts mfg

Industry : Motorcycle, bicycle, and parts mfg

Item : Motorcycle, bicycle, and parts mfg

Footnotes

U.S. BUREAU OF LABOR STATISTICS

Permalink

Update

M ot or cy cl e, b ic yc le

, a nd p ar ts m fg

PPI industry data for Motorcycle, bicycle, and parts mfg, not seasonally adjusted

PCU336991336991

Jan '23 Mar '23 May '23 Jul '23 Sep '23 Nov '23 Jan '24 Mar '24 May '24

Click and drag in the plot area to zoom in. Hover over chart to view data.

Source: U.S. Bureau of Labor Statistics.

.CSV.XLSX

2023 M01 2023 Jan 159.343 2.5 3.1

2023 M02 2023 Feb 159.390 2.6 2.9

2023 M03

Mar

160.926 1.8 3.9

2023 M04 2023 Apr 160.067 0.7 3.3

2023 M05 May

160.307 0.8 3.4

2023 M06

Jun

160.790 1.2 3.5

2023 M07 2023 Jul 160.628 0.8 3.4

2023 M08

A

160.628 0.8 3.4

Year Period Label Value 6-Month % Change 12-Month % Change

7/25/24, 12:44 PM BLS Data Viewer https://data.bls.gov/dataViewer/view/timeseries/PCU336991336991 1/2 https://www.bls.gov/ https://www.bls.gov/

Bureau of Labor Statistics

Series Title PPI industry data for Motorcycle, bicycle, and parts mfg, not seasonally adjusted Series ID PCU336991336991

Seasonality Not Seasonally Adjusted Survey Name PPI Industry Data

Measure Data Type Motorcycle, bicycle, and parts mfg Industry Motorcycle, bicycle, and parts mfg Item Motorcycle, bicycle, and parts mfg

Year Period Label Observation

Value 6‐Month % Change 12‐Month % Change

2023 M01 2023 Jan 159.343 2.5 3.1 2023 M02 2023 Feb 159.390 2.6 2.9 2023 M03 2023 Mar 160.926 1.8 3.9 2023 M04 2023 Apr 160.067 0.7 3.3 2023 M05 2023 May 160.307 0.8 3.4 2023 M06 2023 Jun 160.790 1.2 3.5 2023 M07 2023 Jul 160.628 0.8 3.4 2023 M08 2023 Aug 160.628 0.8 3.4 2023 M09 2023 Sep 160.628 -0.2 1.6 2023 M10 2023 Oct 160.637 0.4 1.1 2023 M11 2023 Nov 160.818 0.3 1.2 2023 M12 2023 Dec 160.846 0.0 1.3 2024 M01 2024 Jan 161.064 0.3 1.1 2024 M02 2024 Feb 161.420 0.5 1.3 2024 M03 2024 Mar 164.130 2.2 2.0 2024 M04 2024 Apr 164.139 2.2 2.5 2024 M05 2024 May 164.139 2.1 2.4 2024 M06 2024 Jun 164.159 2.1 2.1

PPI Industry Data

Source: Bureau of Labor Statistics Generated on: July 25, 2024 (02:02:40 PM)

Current Percent Off of

MSRP

New Percent Off of

MSRP

Change to Percent Off of

MSRP

Line # Corresponding line #

Current Percent Off of

MSRP

New Percent Off of MSRP

Change to Percent Off of

MSRP

Line # Corresponding line #

1 -1 2 1 120 1 -1 2 42 147 6 4 2 2 121 6 4 2 43 148 2 2 0 3 2 2 0 44 2 2 0 4 2 2 0 45 5 4 1 5 122 5 4 1 46 149 5 4 1 6 123 5 4 1 47 150 2 1 1 7 124 1 1 0 48 2 2 0 8 2 2 0 49 2 2 0 9 2 2 0 50 2 2 0 10 2 2 0 51 2 2 0 11 2 2 0 52 2 2 0 12 2 2 0 53 2 2 0 13 2 2 0 54 2 2 0 14 2 2 0 55 5 3 2 15 5 5 0 56 2 2 0 16 2 2 0 57 2 1 1 17 125 2 1 1 58 151 2 2 0 18 2 2 0 58

Current Percent Off of

MSRP

New Percent Off of

MSRP

Change to Percent Off of

MSRP

Line # Corresponding line #

Current Percent Off of

MSRP

New Percent Off of MSRP

Change to Percent Off of

MSRP

Line # Corresponding line #

3 1 2 19 126 1 1 0 60 5 3 2 20 127 1 1 0 61 5 3 2 21 128 3 2 1 62 152

10 8 2 22 129 8 7 1 63 153 5 5 0 23 3 3 0 64 5 3 2 24 130 4 2 2 65 154 7 5 2 25 131 5 3 2 66 155 1 0 1 26 132 0 0 0 67 2 0 2 27 133 0 0 0 68 7 6 1 28 134 5 5 0 69 5 3 2 29 135 3 2 1 70 156 7 5 2 30 136 5 4 1 71 157 1 0 1 31 137 0 0 0 72 6 5 1 32 138 3 2 1 73 158 3 3 0 33 3 3 0 74

All other Can-Am Side x Sides

Polaris Ranger (over 570cc, excl Northstar) Polaris Ranger Northstar models (HVAC)

Polaris Ranger XP Kinetic (Electric) Polaris General 1000 (Non-XP)

Polaris General XP 1000

Polaris Ranger XP Kinetic (Electric)

Manufacturer/Model/Classification

Honda (700cc or under) Honda (Over 700cc) Kawasaki MULE SX

All other Kawasaki Side x Side

Manufacturer/Model/Classification

Honda (700cc or under)

Can-Am Defender Limited (HVAC)

SSR MotorsportsSSR Motorsports

Ducati Moto Guzzi

Polaris Slingshot

Honda (Over 700cc) Kawasaki MULE SX

All other Kawasaki Side x Side Yamaha

Polaris Ranger (570cc or smaller)

Polaris Rzr

Piaggio / Vespa / Aprilia Stark

Livewire

Yamaha

Polaris General 1000 (Non-XP) Polaris General XP 1000

Polaris Rzr Can-Am Defender Limited (HVAC)

All other Can-Am Side x Sides

Yamaha Polaris Ranger (570cc or smaller)

Polaris Ranger (over 570cc, excl Northstar) Polaris Ranger Northstar models (HVAC)

Manufacturer/Model/Classification

Royal Enfield Suzuki

BMW

Harley-Davidson

Triumph Indian Honda

Kawasaki Honda

Livewire

Zero Husqvarna

KTM

Zero Husqvarna

KTM

Ducati

Moto Guzzi Polaris Slingshot

CTR066077

LZ Delta Price Analysis

Phase 2 off the Lot MotorcyclesPhase 1 Off the line Pricing Motorcycles

Phase 1 Off the line Pricing Motorcycles Phase 2 off the Lot Motorcycles

Manufacturer/Model/Classification

Royal Enfield Suzuki

Yamaha Piaggio / Vespa / Aprilia

Stark

Kawasaki

BMW

Harley-Davidson (Excludes Live wire)

Triumph Indian

Current Percent Off of

MSRP

New Percent Off of

MSRP

Change to Percent Off of

MSRP

Line # Corresponding line #

Current Percent Off of

MSRP

New Percent Off of MSRP

Change to Percent Off of

MSRP

Line # Corresponding line #

2 1 1 34 139 2 1 1 75 159 5 4 1 35 140 5 4 1 76 160 2 1 1 36 141 2 1 1 77 161 5 4 1 37 142 5 4 1 78 162 5 3 2 38 143 5 3 2 79 163 5 3 2 39 144 5 3 2 80 164 5 4 1 40 145 5 4 1 81 165 5 4 1 41 146 5 4 1 82 166

Previous discount

25%

Requested new discount 23% (-2%)

Line # Correspo nding line

Current Percent Off List Price

New Percent Off List Price

Change to Percent Off List Price

Line # Corresponding line #

116.25 119.35 83 167

3 2 1 84 168 Retail labor rate is currently $155

3 2 1 85 169

14 12 2 86 170 2 2 0 87 2 2 0 88 10 10 0 89 10 10 0 90 5 5 0 91 2 2 0 92 2 2 0 93 2 2 0 94

2 2 0 95 Series Title

10 9 1 96 171 Series ID PCU3369913369913

10 9 1 97 172 Seasonalit y Not Seasonally Adjusted

5 5 0 98 Survey Name PPI Industry Data

5 5 0 99 Measure Data Type

2 2 0 100 Industry

Can-Am (BRP)

Suzuki

Yamaha

Piaggio / Vespa / Aprilia

Honda Kawasaki

Zero Husqvarna

KTM

Triumph Indian

Labor Rate(s)

Base Labor Rate

Genuine BMW Parts & Accessories

BMW Authority-specific options (Code3 Lighting etc..)

FMS Accessories (BMW Authority Parts)

Manufacturer/Classification

Price increase renewal per contract documentation 1st Renewal Period ________3__________% Maximum Increase 2nd Renewal Period ________4___________% Maximum Increase 3rd Renewal Period _________5__________% Maximum Increase 4th Renewal Period _________5__________% Maximum Increase

Motorcycle, bicycle, and parts mfg

Ducati

Moto Guzzi

Polaris

Yamaha

Manufacturer/Model/Classification

Honda (250cc or under) Honda (Over 250cc)

Kawasaki (300cc or under)

Polaris Can-Am (BRP)

Suzuki Yamaha

Manufacturer/Model/Classification

Honda (250cc or under) Honda (Over 250cc)

Kawasaki (300cc or under) Kawasaki (Over 300cc)Kawasaki (Over 300cc)

Polaris Can-Am (BRP)

Suzuki

Phase 2 off the Lot MotorcyclesPhase 1 Off the line Pricing Motorcycles

Parts for Repair or Modifications

PPI industry data for Motorcycle, bicycle, and parts mfg‐Motorcycles, including three‐wheel motorbikes, motorscooters, mopeds, and parts, Motorcycles, including three‐wheel motorbikes, motorscooters, mopeds, and parts

2 2 0 101 Item

2 2 0 102 Year Period Label Observation

Value 6‐Month % Change

12‐Month % Change

0 -2 2 103 173 2023 M01 2023 Jan 159.343 2.5 3.1 0 -2 2 104 174 2023 M02 2023 Feb 159.390 2.6 2.9 0 -2 2 105 175 2023 M03 2023 Mar 160.926 1.8 3.9 2 0 2 106 176 2023 M04 2023 Apr 160.067 0.7 3.3 3 3 0 107 2023 M05 2023 May 160.307 0.8 3.4

15 14 1 108 177 2023 M06 2023 Jun 160.790 1.2 3.5 15 14 1 109 178 2023 M07 2023 Jul 160.628 0.8 3.4 3 1 2 110 179 2023 M08 2023 Aug 160.628 0.8 3.4

25 23 2 111 180 2023 M09 2023 Sep 160.628 -0.2 1.6 25 23 2 112 181 2023 M10 2023 Oct 160.637 0.4 1.1 25 23 2 113 182 2023 M11 2023 Nov 160.818 0.3 1.2 25 23 2 114 183 2023 M12 2023 Dec 160.846 0.0 1.3 10 9 1 115 184 2024 M01 2024 Jan 161.064 0.3 1.1 5 5 0 116 2024 M02 2024 Feb 161.420 0.5 1.3 5 5 0 117 2024 M03 2024 Mar 164.130 2.2 2.0

10 8 2 118 185 2024 M04 2024 Apr 164.139 2.2 2.5

119 2024 M05 2024 May 164.139 2.1 2.4 2024 M06 2024 Jun 164.159 2.1 2.1

HJC Helmets Tomar

Non-OEM (Aftermarket) Parts / Accessories

Setcom Kustom Signal Stalker Radar

B&B Enterprises Shoei Helmets

Royal Enfield

SSR Motorsports

PVP Communications

Michelin Tires Dunlop Tires

Bridgestone Tires Metzeler Tires

Harley-Davidson Genuine Parts Whelen

Motorcycles, including three‐wheel motorbikes, motorscooters, mopeds, and parts

Standard Delivery charges

Sound off Signal

LZ Delta, LLC DBA GO AZ Motorcycles

Sent via email: Thomas Kornell <tkornell@azdot.gov>

RE: Contract No. CTR066077

Dear Mr. Kornell, This letter serves as a formal request for a price increase for the above-mentioned contract for the upcoming renewal period.

The justification for this requested increase is based upon the fact that MSRP on products we offer under the contract has remained the same while the PPI for our industry has risen considerably.

Since the time our contract was awarded in May of 2023, the 12-month PPI increase has averaged 3.9%.

I have attached data from the Bureau of Labor Statistics for reference on this, with additional tabs showing some MSRP data for actual products we have fulfilled on the contract.

The highest volume product we provide to the State and its Cooperative members via this contract is the BMW R1250RT-P Motorcycle. The MSRP of this model has remained the same since 10/1/2020 at $21,250. This has already been confirmed to remain the same for the 2024 model year, which stays in production through the end of the calendar year and will remain available as late as mid-2025.

Nearly all operating costs related to our business (fuel, electricity etc..) have increased while manufacturers have chosen to keep MSRP consistent. Dealers offset some of these additional expenses to a retail customer in the form of additional fees or markups, however that is not possible to do within the terms of the contract.

We submitted a revised price increase percentages document prior to our award that stated we may want to request a maximum of 3% during this 1st renewal period.

Based on the information provided above, as well as a desire to remain fair and competitive, we are requesting only a 0 - 2% increase at this time (depending on the brand). In some cases, I am only requesting a price increase on phase one pricing.

I have attached a copy of the pricing sheet with the requested changes highlighted. There were no requested increases in delivery charges. Please let me know if you have any questions or require further information. Thank you for your consideration.

Sincerely, Jay Tucker Parts / Service Director LZ Delta, LLC DBA GO AZ Motorcycles 480-398-2545 jtucker@goaz.com mailto:jtucker@goaz.com