CTR067054_Contract_Amendment_Summary_1.pdf

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary CONTRACTOR: Trooper USA LLC AMENDMENT NO.: One (1)

DESCRIPTION: Deck Park Tunnel Cleaning

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. The contract is hereby mutually extended from September 1st, 2024 to August 31st, 2025 unless terminated, canceled, or extended as otherwise provided in the contract.

2. The line items pricing below will take effect upon the upcoming renewal in the Arizona Procurement Portal (APP) as follows:

A. CTR0607054-1: SUPPLEMENTAL SERVICES; Acoustic Sound Attenuators and Air Shaft Cleaning -including all labor, equipment, cleaning supplies and mobilization. (Pricing indicated shall not include taxes) increases from $6,608.93 to $6,840.24

B. CTR0607054-2: Cleaning of Tunnel - including all labor, equipment, cleaning supplies and mobilization. (Pricing indicated shall not include taxes) increases from $79,815.57 to $82,609.11

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

PROCUREMENT DETERMINATION

PRICE INCREASE

Cc: File Rev. 04/2020

Procurement

Sections 1 through 3 MUST be completed Use Attachments as Necessary

1) Name: Sage Brenner

Title: Senior Procurement Specialist

Date: July 8, 2024

Contract Number: CTR067054

Contract Description: Deck Park Tunnel Cleaning

Contractor Name: Trooper USA LLC

2) Line Item Pricing:

See below.

Line Item No.

Line Item Description Current Rate ($)

Increase Amount ($)

New Rate ($)

CTR067054-1 SUPPLEMENTAL SERVICES; Acoustic Sound Attenuators and Air Shaft Cleaning - including all labor, equipment, cleaning supplies and mobilization.

(Pricing indicated shall not include taxes)

$6,608.93 $231.31 $6,840.24

CTR067054-2 Cleaning of Tunnel - including all labor, equipment, cleaning supplies and mobilization. (Pricing indicated shall not include taxes)

$79,815.57 $2793.54 $82,609.11

3) Provide justification:

On July 1, 2024, Trooper USA LLC submitted a 3.5% price increase request and provided documentation for a price increase. The three components to the request were based on increases in wage cost with minimum wage increasing 3.6% from 2023 to 2024, increase to equipment cost based requiring a customized truck designed specifically for use in this contract and the cost of pressure washing equipment, and the increase in degreaser cost which has gone up by 6.5%. In their original bid, the Contractor indicated the maximum price increase percentage they may want to request for the first renewal period would be 3.6%. According to data found on ProcurementIQ, High-Pressure Cleaning Services, has increased in pricing by 2.5% in the past year. Based upon the analysis of the evidence, a 3.5% price increase to both line items is fair, reasonable, and 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: D4164694-F38F-4109-A2D3-C411A2A1EC58

Procurement Manager 7/8/2024

X

3707 East Southern Avenue | Mesa, Arizona 85206 | Phone (480) 246-8016 | Fax (480) 807-4447 www.trooperusa.com

June 28, 2024

Arizona Department of TransportaƟon I-10 Deck Tunnel AƩn: Mr. Sage Brenner

Re: Contract: CTR 067054

Mr. Sage Brenner, Sir, as per contract, Trooper USA is requesƟng an increase of three and one-half percent (3.5%) for our periodic cleaning of the I-10 Deck Park Tunnel as well as for the periodic cleaning of the aƩenuators. The three and one-half percent (3.5%) to take effect immediately and as of July 1, 2024, and for the rest of the 2024 – 2025 contract year.

As you are aware the minimum wage increased in the State of Arizona for 2024 went up to $14.35 per hour from the previous year of 2023 which was at $13.85 per hour. As per the contract, the specificaƟons in the contract call for manual scrubbing of the walls. The overall requirements for the cleaning of the tunnel are all very labor intensive and with the increase in minimum wage our labor costs have increased substanƟally.

In addiƟon, our costs for supplies that are used to perform the cleaning of the tunnel have increased as well. Last year, 2023, we were paying $50.98 per gallon for the degreaser we use and for 2024 we are now paying $54.29 which is .065% increase over last year. The degreaser is a necessary product used to perform our services and the cleaning of the tunnel requires a minimum of 44 gallons per clean and someƟmes more than 44 gals.

The tradiƟonal method of cleaning requires that we lease at least six (6) scissor liŌs to perform the cleaning of the tunnel.

With the usage of so much equipment that operates at different speeds and heights it is difficult for all scissors liŌs/teams to maintain the same pace, which is necessary for us to perform quality work, not to menƟon the high frequency of scissor liŌs stalling out because the street surfaces are not flat. The soluƟon is to replace the use of scissor liŌs with a large flatbed truck that will have a driver in addiƟon to 3 teams of 3 to 4 employees each and 3 complete self-contained units of pressure washers mounted on the truck. In the past we have requested financial assistance from the AZDOT so we can purchase the truck and pressure washers, but we have always been told that there is not enough money in the State’s budget for this expense. To provide a beƩer quality of service to AZDOT, Trooper USA has taken on the burden and expense of purchasing this 26-foot flatbed truck and other equipment and absorbing all of the costs to purchase the 26-foot flatbed truck, have Drake Services of Arizona customize and prepare the truck for the specific task of cleaning the tunnel. In addiƟon, Trooper USA will cover the cost of the three mounted pressure washers. The truck alone was purchased at a price of $55,305.97 in addiƟon there will be another $31,000.00 and more in customizing costs to prepare the truck for this service and addiƟonal insurance cost.

We understand that there is a limit to the increase we can ask for, but I hope that you will recognize that we at Trooper USA are truly going above and beyond in our efforts to provide the quality of service that is required to clean the tunnel.

Therefore, I hope you will agree to our request for an annual increase of three and one-half percent (3.5%) and approve our request for this increase.

Best regards

Jesse Villarreal

CEO

(713) 384-4589 jvillarreal@trooperusa.com

DocuSign Envelope ID: D4164694-F38F-4109-A2D3-C411A2A1EC58

Subject: RE: ENTERPRISE TRUCK SALES - AZ

<Timothy.L.Astor@em.com> Tue, Jun 25, 3:17 PM (6 days to Jesse Villarreal

Astor, Timothy L

You are viewing an attached message. State of Arizona Mail can't verify the authenticity of attached messages.

Hi, Jesse!

I attached an invoice with the brekadown in price for you.

All I need is a copy of your insurance with this truck represented on the policy. I’ll need to get this prior to you com Thusrday as I have to print the documents tomorrow.

Please bring a cashier’s check payable to “Enterprise Leasing Company of Phoenix, LLC” for $55,305.97.

Let me know what time you plan on arriving. Signing only takes five minutes.

Thanks!

Tim Astor Remarketing Account Manager

Truck Sales

Truck Rental Division

602-374-3823 direct

602-818-1909 cell

602-374-3827 fax

Timothy.L.Astor@em.com www.enterprisetrucksales.com

330 N 24th St

Phoenix, AZ 85008

From: Jesse Villarreal <jvillarreal@trooperusa.com>

7/1/24, 11:01 AM RE: ENTERPRISE TRUCK SALES - AZ - sbrenner@azdot.gov https://mail.google.com/mail/u/0/popout?ver=17t4tdrs0m4fa&msg=%23msg-f%3A1803142625717488961&attid=0.3 1/1

DocuSign Envelope ID: D4164694-F38F-4109-A2D3-C411A2A1EC58 mailto:Timothy.L.Astor@em.com http://www.enterprisetrucksales.com/ https://www.enterprisetrucksales.com/home https://www.enterprisetrucksales.com/home mailto:jvillarreal@trooperusa.com

Now proudly part of BradyPLUS

BradyPLUS.com

Jade “J” McCaleb | Account Consultant

4136 East McDowell Road | Mesa, AZ 85215

T: (480) 333-1000 ext.437 | C: (480) 416-2146 | F: (480) 968-1539 jmccaleb@waxie.com | www.waxie.com

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From: Jesse Villarreal <jvillarreal@trooperusa.com> Sent: Wednesday, June 26, 2024 12:49 PM To: Charlie Cole <ccole@waxie.com>; Jade Mccaleb <jmccaleb@waxie.com> Subject: Degreaser

ALERT: This message originated outside of BradyPlus' network. BE CAUTIOUS before clicking any link or attachment

Hi Charlie and Jade, please let me know what my cost per Gallon is for the Degreaser that we purchase for the cleaning of the Tunnel 1st qtr. Of 2023 vs. our current Cost. We are submitting a request for an increase to our customer but we need to show that our supplies cost increase 2024 over 2023 before they approve.

Respectfully, Jesse Villarreal

CEO

Trooper USA, LLC 3707 E. Southern Ave., Ste. 2003 | Mesa, AZ 85206 M: (713) 384-4589 | O: (480) 246-8016 | F: (480) 807-4447 jvillarreal@trooperusa.com | www.trooperusa.com

7/1/24, 11:02 AM RE: Degreaser - sbrenner@azdot.gov https://mail.google.com/mail/u/0/popout?ver=17t4tdrs0m4fa&msg=%23msg-f%3A1803142625717488961&attid=0.1 1/1

DocuSign Envelope ID: D4164694-F38F-4109-A2D3-C411A2A1EC58 mailto:jmccaleb@waxie.com http://www.waxie.com/ http://info.waxie.com/about-us/ http://www.facebook.com/WaxieSanitarySupply https://twitter.com/WAXIEbuzz http://info.waxie.com/blog/ http://www.youtube.com/user/Waxietube mailto:jvillarreal@trooperusa.com mailto:ccole@waxie.com mailto:jmccaleb@waxie.com mailto:jvillarreal@trooperusa.com http://www.trooperusa.com/

MONEY

The 50-cent increase means minimum wage in the state of Arizona is

$14.35 per hour, which is $7.10 above the national wage.

PHOENIX — Arizona minimum wage workers will see an increase in their pay in 2024. Starting

Jan. 1, Arizona's state minimum wage will be $14.35, according to the Industrial Commission of

Arizona. That is nearly double the federal minimum wage.

The minimum wage in Arizona has increased steadily since 2017, increasing from $10 to $14.35 over the past six years. But even in 2017, Arizona was ahead of the federal minimum wage. The minimum wage federally is $7.25 and has stayed the same since 2009, despite inflation.

Minimum wage increases in Arizona for 2024

Author: Kyra O’Connor

Published: 9:41 AM PST January 1, 2024

Updated: 5:50 AM PST January 2, 2024

7/8/24, 1:16 PM How much will minimum wage workers make in Arizona in 2024? | 12news.com https://www.12news.com/article/money/minimum-wage-increases-arizona-2024/75-681d73ee-d9f6-4202-9c1b-b2d81e8c3e52 1/4

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VERSIÓN EN ESPAÑOL: Aumenta el salario mínimo en Arizona para el 2024

In cities across Arizona, the minimum wage could be even higher. In Flagstaff, the minimum wage was $16.80 per hour and the tipped minimum wage was $14.80 per hour in 2023. In

2024, the hourly minimum wage will increase to $17.40 and to $15.90 for hourly tipped employees.

Arizona is one of 25 states raising the minimum wage in 2024. Three states will have minimum wages at or above $16: California, New York and Washington. While most states will see the raise take effect on Jan. 1, Nevada and Oregon won't raise the minimum wage until July 1, and

Florida's increase won't take effect until Sep. 30.

The state with the highest minimum wage is Washington: in 2024, minimum wage workers will be paid $16.28 per hour. Montana is increasing the minimum wage to $10.30 per hour, the lowest minimum wage among states with increases in 2024.

Many of the states not increasing state minimum wage and sticking with federal rates are in the

South and Midwest.

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