CTR078008_Ordering_Guidlines_for_Contracts_with_Not_to_Exceed_Pricing.pdf
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- Attached to
- Master Agreement AZ|CTR078008
- Contract number
- CTR078008
- Issued by
- Arizona
About this file
This document is a procedural guide for the Arizona Department of Transportation (ADOT) outlining the ordering process for contracts with not-to-exceed pricing. The document provides detailed instructions for state procurement personnel on how to manage and utilize task-assignment based contracts with specific pricing mechanisms.
The contracts described are task-assignment based, containing line items with fixed prices identified as not-to-exceed or maximum unit prices. Contractors can provide quotes on task assignments where the unit price is equal to or less than the predetermined price in the procurement system (APP). The process requires requisitioners to identify work scope, find available contractors, distribute task assignment requests, receive and review contractor responses, select a contractor based on price and other factors, and create a requisition in the system. A key feature is the flexibility for contractors to potentially offer lower unit prices depending on site conditions, while maintaining a maximum price ceiling. The procurement team will review all submitted quotes to confirm they were requested from awarded contractors, verify services, and validate pricing.
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Text version
These types of contracts are task assignment based.
They contain line items with fixed prices that are identified as not-to-exceed or maximum unit price. For those line items, contractors may provide quotes on a task assignment request where the unit price is equal to or less than the unit price found in APP. Please note that these unit prices cannot be changed in APP. So, each contract also has a ‘Task Assignment’ line with a $0.00 which can be modified by the requisitioner to reflect the total price for the task assignment.
Each contract will contain specific guidance on the task assignment process. It is important to become familiar with these task assignment requirements. For additional information and help, please reach out to the assigned Contract Owner listed in APP.
1. Identify work to be completed (project scope/ specifications).
2. Identify available contractors that can provide service in the area needed.
3. Distribute task assignment request, as found in the contract, to available contractors.
4. Receive contractor responses and review.
5. Select contractor to perform work based on price and other factors.
6. Create requisition in APP
a. All responses from contractors that are not selected must be attached to the requisition header. If a contractor does not respond, attach the email you sent to them in place of the quote.
b. Attach the selected contractors quote/task assignment response to line item #1.
A not-to-exceed price is the price ceiling identified for a specific contract line item. It is the maximum price that the supplier is allowed to charge for that particular product or service. Contracts that use not-to-exceed pricing are firm-fixed price contracts where, depending on task or site conditions, contractors can quote lower unit prices for those line items that are identified as not-to-exceed.
What does not-to-exceed mean?
Ordering Process for Contracts with Not-to-Exceed Pricing
Get Quotes
You will get the most benefit out of these contracts by requesting quotes from all available contractors. For example, a contractor may have another job already scheduled close by and would be able to pass some savings to you by reducing unit prices.
Once a requisition is received, Procurement will review all the quotes submitted by the contractors. The Procurement Officer will confirm:
Quotes were requested from all awarded contractors
Services being performed Pricing
If multiple quotes were not requested, Procurement may reach out to understand why not.
Revised 11/2022
File details come from the government source that posted it. Updated .