CTR073891_Contract_Amendment_Summary_One__1_.pdf

ARIZONA DEPARTMENT OF TRANSPORTATION

1739 W. Jackson Street, MD 100P

Phoenix, AZ 85007 602.712.7211

Contract Amendment Summary

CONTRACTOR: 3M COMPANY AMENDMENT NO.: ONE (1)

DESCRIPTION: PREFORMED PAVEMENT MARKING TAPE

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. Price Decrease on Line Items 1 through 35 and 40 (see attached documentation)

2. Add Line Item – Standard Straight Arrow Symbol, Type I - $80.00 ea

3. Add Line Item – Standard Straight Arrow Symbol, Type I with Contrast - $500.00 ea

4. Add Line Item – Catalog Item (16% Discount Off MSRP)

5. Price Increase on Line Items 36 through 39 (see attached documentation)

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

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3M Commercial Branding & Transportation Division

3M Center, Building 223-3S-33 St. Paul, MN 55144-1000

Via Email: ghenry@azdot.gov

October 3, 2024

Mr. Gary Henry Senior Procurement Specialist Arizona Department of Transportation 1665 W Jackson St

MD 10P

Phoenix, AZ 85007

Subject: Pricing Decrease BPM006131, Pavement Marking Tape

Attachments: Decreased Pricing Offer

Dear Mr. Henry, 3M Company thanks your agency for recent contract award BPM00613.

Recently we became aware that lower and more advantageous pricing to your agency was not properly reflected on our BAFO price sheet. We’ve pasted the affected lines below (Lines 1 through 35 and 40), with the lower pricing we are currently offering to Arizona Department of Transportation, for the subject solicitation and associated contract award.

Please acknowledge receipt of this offer and reach out with any questions.

We look forward to hearing from you on next steps in the process. Please reach out to Catherine Zaske, Contract Specialist, at 651-467-3795 or cdzaske@mmm.com with any questions.

Sincerely, Maria Paraschou

Senior Proposal & Contract Manager

Arizona Department of Transportation

Decreased Pricing Offer:

Line Description Unit New BAFO

1 Assorted linear pavement markings at a square foot price, Type I SF $5.25

2 Assorted linear pavement markings at a square foot price, Type I, w/ Contrast SF $5.75

3 Assorted legends and symbols at a square foot price, Type I SF $10.00

4 Assorted legends and symbols at a square foot price, Type I, w/ Contrast SF $14.00

5 Single capital letter, 10' x width varies, Durable High Performance, Type I, ADOT Std. Dwg EA $445.00

6 Single capital letter, 10' x width varies, Durable High Performance, Type I, ADOT Std. Dwg, w/ Contrast EA $1,200.00

7 Full Size Single Capital Letter or Number Legend, 8' Long x Width Varies, Type I EA $140.00

8 Full Size Single Capital Letter or Number Legend, 8' Long x Width Varies, Type I, w/ Contrast EA $450.00 9 Single capital digit/number, 18' x width varies, Durable High Performance, Type I, ADOT Std. Dwg EA $513.00

Single capital digit/number, 18' x width varies, Durable High Performance, Type I, ADOT Std. Dwg, w/ Contrast

EA

$1,400.00

11 YIELD Word Legend, 8'-0 High Capital Letters, Type I EA $230.00

12 STOP Word Legend, 8'-0 High Capital Letters, Type I EA $200.00

13 STOP Word Legend, 8'-0 High Capital Letters, Type I w/ Contrast EA $1,200.00

14 XING Word Legend, 8'-0 High Capital Letters, Type I EA $230.00

15 R For Railroad Crossing Letter Legend, 6'-6 High Capital Letter, Type I EA $100.00

16 AHEAD Word Legend, 8'-0 High Capital Letters, Type I EA $230.00

17 ONLY Word Legend, 8'-0 High Capital Letters, Type I EA $200.00

18 ONLY Word Legend, 8'-0 High Capital Letters, Type I w/ Contrast EA $1,000.00

19 Triple Headed Left Turn/Straight/Right Turn Arrow Symbol, 12'-9 Long x 12'-9 Wide, Type I EA $500.00

20 Triple Headed Left Turn/Straight/Right Turn Arrow Symbol, 12'-9 Long x 12'-9 Wide, Type I w/ Contrast EA $2,300.00

21 Standard Right Turn Arrow Symbol, 8' Long x 6'-5 Wide, Type I EA $100.00

22 Standard Right Turn Arrow Symbol, 8' Long x 6'-5 Wide, Type I w/ Contrast EA $600.00

23 Standard One Right/Left Double Headed Turn Arrow Symbol, 8' Long x 11'-9 Wide, Type I EA $500.00

24 Standard One Right/Left Double Headed Turn Arrow Symbol, 8' Long x 11'-9 Wide, Type I w/ Contrast EA $1,900.00

25 Standard Left Turn Arrow Symbol, 8' Long x 6'-5 Wide, Type I EA $100.00

26 Standard Left Turn Arrow Symbol, 8' Long x 6'-5 Wide, Type I w/ Contrast EA $600.00

27 Standard Lane-Reduction (or Drop) Arrow Symbol, 18'-0 Long x 5'-0 @ 20 Degrees, Type I EA $500.00

28 Standard Lane-Reduction (or Drop) Arrow Symbol, 18'-0 Long x 5'-0 @ 20 Degrees, Type I w/ Contrast EA $2,000.00

29 Standard Combination Right Turn and Thru Arrow Symbol, 12'-9 Long x 7'-6 Wide, Type I EA $500.00

30 Standard Combination Right Turn and Thru Arrow Symbol, 12'-9 Long x 7'-6 Wide, Type I w/ Contrast EA $1,900.00

31 Standard Combination Left Turn and Thru Arrow Symbol, 12'-9 Long x 7'-6 Wide, Type I EA $500.00

32 Standard Combination Left Turn and Thru Arrow Symbol, 12'-9 Long x 7'-6 Wide, Type I w/ Contrast EA $1,900.00

33 Long Roll Of Line, 8 Wide x 30 Yards Long, White or Yellow, Durable High Performance, Type I EA $315.00

34 Long Roll Of Line, 6 Wide x 30 Yards Long, White or Yellow, Durable High Performance, Type I EA $236.25

35 Long Roll Of Line, 12 Wide x 30 Yards Long, White or Yellow, Durable High Performance, Type I EA $472.50

40 Low VOC Surface Preparation Adhesive, 5 gallon container EA $200.00

Arizona Department of Transportation 1665 W Jackson St

MD 10P

Subject: Request to Add Pricing Lines - BPM006131, Pavement Marking Tape

Dear Mr. Henry, 3M Company thanks your agency for recent contract award BPM006131.

3M Company requests for consideration the addition of two lines (see below). These line items are a Straight Arrow and a Straight Arrow with Contrast. This provides ADOT Operations with expanded options to select either combo arrows or single arrows from 3M. Keep in mind that single arrows purchased from 3M allows ADOT the option to construct combo arrows at significantly lower material cost than combo arrows from 3M.

Please acknowledge receipt of this communication and reach out with any questions.

We look forward to hearing from you on next steps in the process. Certainly reach out to Catherine Zaske, Contract Specialist, at 651-467-3795 or cdzaske@mmm.com with any questions.

Standard Straight Arrow Symbol, Type I EA $80.00 Standard Left Straight Arrow Symbol, Type I w/ Contrast EA $500.00

Arizona Department of Transportation 1665 W Jackson St

MD 10P

Subject: Pricing Increase – Lines 36-39 BPM006131, Pavement Marking Tape

Dear Mr. Henry, 3M Company thanks your agency for recent contract award BPM006131.

Recently we became aware of pricing errors on our BAFO price sheet (Pricing Lines 36 through 39) submitted via email on September 10, 2024.

Prices for line items 36-39 increased based on an error in calculation due to the solicitation description not clearly indicating final roll width for contrast markings. The RFP description showed either 6” or 12”, and therefore our submitted was based on $498.09 per roll/6”x50yd or 12”x25yd. See 2024 Proposal Solicitation Line Item Description below.

However, the actual width of a 6” contrast roll is 10” (2” black – 6” white – 2” black – the 2” is the new std for ADOT with respect to contrast). The actual width of a 12” contrast roll is 16” (2” black – 12” white

– 2” black). The 2022 bid description reflected the contrast as being wider than either 6” or 12”. See 2022 Bid Solicitation Line Item Description below.

2024 Line Item Description:

Contrast Line for 6 Wide x 50 yards long, Yellow Preformed Tape, Durable High Performance, Type I

Contrast Line For 6 Wide x 50 yards long, White Preformed Tape, Durable High Performance, Type I

Contrast Line For 12 Wide x 25 yards long, Yellow Line Preformed Tape, Durable High Performance, Type I Contrast Line For 12 Wide x 25 yards long, White Line Preformed Tape, Durable High Performance, Type I

Arizona Department of Transportation

2022 Line Item Description:

Contrast Line For 6 Wide x 50 yards long, (1.5 inches black x 6 inches white x 1.5 inches black) White Preformed Tape, Durable High Performance, Type I

Contrast Line For 12 Wide x 25 yards long, (2 inches black x 12 inches white x 2 inches black)White Line Preformed Tape, Durable High Performance, Type I

Therefore, we respectfully request that ADOT consider price increases for line items lines 36-39, which will require higher prices, as follows:

Please acknowledge receipt of this communication and reach out with any questions.

We look forward to hearing from you on next steps in the process. Certainly reach out to Catherine Zaske, Contract Specialist, at 651-467-3795 or cdzaske@mmm.com with any questions.

36 Contrast Line for 6 Wide x 50 yards long, Yellow Preformed Tape, Durable High Performance, Type I EA $718.75

37 Contrast Line For 6 Wide x 50 yards long, White Preformed Tape, Durable High Performance, Type I EA $718.75

38 Contrast Line For 12 Wide x 25 yards long, Yellow Line Preformed Tape, Durable High Performance, Type I EA $575.00

39 Contrast Line For 12 Wide x 25 yards long, White Line Preformed Tape, Durable High Performance, Type I EA $575.00

Gary Henry <ghenry@azdot.gov>

FW: Re: BPM006131, Pavement Marking Tape 1 message

Maria Paraschou <mparaschou@mmm.com> Wed, Oct 9, 2024 at 10:01 AM To: Gary Henry <ghenry@azdot.gov>, Catherine Zaske <cdzaske@mmm.com> Cc: Timothy Gibson <tgibson@mmm.com>

Good afternoon, Gary.

Thank you for your follow-up email and request to explain the error 3M Company observed after the contract award. Please see our response below.

3M Company confirms a good faith price correction request, wholly consistent with fair competition and supports the State’s best interest.

As requested in our letter to your agency dated 10/03/2024, the correction is needed due to the lack of description width clarity in the original solicitation. The width of the black was not indicated, and therefore, resulted in calculation errors. This requested price increase is based on the same square foot price originally bid but is now calculated on the correct width needed for contrast tape. The correct width for contrast is ultimately the reason for the increased roll price.

This request is consistent with any manufacturer providing contrast tape. Based on the solicitation line item description, the State would receive a total width of 6" or 12". However, based on the State Specification the State requires a total width of 10" for the 6" line item and 16" for the 12" line item.

Feel free to contact the undersigned and/or Cathy Zaske directly with any questions/concerns.

Kind regards, Maria

Maria Paraschou | Senior Proposal & Contract Manager 3M Commercial Branding & Transportation Division (CBTD) 3M Center, Building 223-3S-33 | St. Paul, MN 55144-1000 | United States Phone +1 651-650-1420 (direct line) | +1 970-690-4664 (mobile) | mparaschou@mmm.com mailto:mparaschou@mmm.com https://www.facebook.com/3M https://www.facebook.com/3M https://instagram.com/3m/ https://instagram.com/3m/ https://www.youtube.com/3m https://www.youtube.com/3m https://www.linkedin.com/company/3m https://www.linkedin.com/company/3m https://twitter.com/3m https://twitter.com/3m http://www.3m.com/ http://www.3m.com/

From: Gary Henry <ghenry@azdot.gov> Sent: Tuesday, October 08, 2024 5:46 PM To: Catherine Zaske <cdzaske@mmm.com>; Maria Paraschou <mparaschou@mmm.com> Cc: Timothy Gibson <tgibson@mmm.com> Subject: [EXTERNAL] Re: BPM006131, Pavement Marking Tape

WARNING: This email is not from 3M. If you are not expecting an email from this sender, do not click on links or open attachments and report it using the Report Phish button.

Dear Ms. Paraschou:

Solicitation BPM006131, Preformed Pavement Marking Tape, was awarded to your company on September 24, 2024. The awarded contract is CTR073891. It was realized after the award that 3M Company had four line items that pricing was miscalculated based on the unclear line item description. On October 3, 2024 the Department received your explanation of the mistake and request to adjust the pricing.

In accordance with A.A.C. R2-7-C318, Mistake Discovered After Award, three things are required. First is the explanation of the mistake and any other relevant information which you provided in your letter. Second is a request for correction including the corrected offer or a request for withdrawal. The last piece required is the reason why correction is consistent with fair competition and in the best interest of the state.

Please confirm you are requesting for the pricing to be corrected and the reason why correction is consistent with fair competition and in the best interest of the state.

The Department will review the complete request and based on the consideration of fair competition and the best interest of the state make one of the following determinations.

1. Allow correction of the mistake;

2. Cancel all or part of the award; or

3. Deny correction or withdrawal

Gary Henry

On Thu, Oct 3, 2024 at 2:37 PM Catherine Zaske <cdzaske@mmm.com> wrote:

Good afternoon, Gary:

Pursuant to your conversation with Tim Gibson, we have placed the contents of our September 25, 2024 email into three separate letters, by subject. Once you’ve had a chance to review the attachments, please let us know of any questions or needs. Thank you.

Kind regards, Cathy mailto:ghenry@azdot.gov mailto:cdzaske@mmm.com mailto:mparaschou@mmm.com mailto:tgibson@mmm.com mailto:cdzaske@mmm.com

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson St. | MD 100P | Phoenix, AZ 85007 | azdot.gov

Procurement

MEMORANDUM

TO: CTR073891 Preformed Pavement Marking Tape – Contract File

FROM: Gary Henry

CC: Christine Fruitman

DATE: October 11, 2024

RE: Mistakes Discovered After Award

Solicitation BPM006131, Preformed Pavement Marking Tape, was awarded to 3M Company (3M) on September 24, 2024. The awarded contract number is CTR073891. After contract award, 3M realized they had miscalculated the pricing of four line items due to unclear line item descriptions. On October 3, 2024, the Department received a letter from 3M which contained an explanation of the mistake and a request to adjust the pricing.

As requested in 3M’s letter, the correction is needed due to the unclear description width identified in the solicitation line items. The width of the black contrast line was not clearly indicated, resulting in pricing calculation errors.

The calculation 3M used to price the line items relied on the description contained in the solicitation (i.e.

Contrast Line for 6” wide x 50 yards long). Based on this description, the Department would receive a total width of 6" or 12" which would be inclusive of color and contrast marking tape combined. However, as required by the published specification for pavement marking tape, the Department requires a total width of 10" for a 6" colored line and 16" for a 12" colored line. The 6” and 12” are the initial width of the colored white or yellow line. An additional width of 2” black contrast is then applied on either side of the color line (i.e 2” black contract line – 6” or 12” color line – 2” black contract line). The resultant pavement marking tape is 10” wide x 50 yards long and 16” wide x 25 yards long.

3M’s request for a correction is consistent with any manufacturer providing contrast tape and is based on the same square foot price originally contained in BPM006131. The revised pricing calculation is based on the correct width needed for contrast tape.

In accordance with A.A.C. R2-7-C318, allowing 3M to correct their mistake is consistent with fair competition and is in the best interests of the State. 3M Company was the only offer received in response to BPM006131. 3M’s miscalculation of price based on unclear line item descriptions affected 4 of the 40 line items contained in the solicitation. The lack of description width clarity would not have prevented other vendors from submitting a proposal. The Department did not receive any questions regarding line item descriptions from any suppliers during the solicitation process.

Docusign Envelope ID: 5BA0FA00-C45A-4470-899E-89DA1B4F3E94