Nogales_Price_increase.docx
DOCX document 22 KB Posted
- Attached to
- Master Agreement AZ|CTR072359
- Contract number
- CTR072359
- Issued by
- Arizona
About this file
This document is a contract amendment for the DCS-Nogales facility, specifically addressing an annual price adjustment for space and emergency services rates. The contract involves Arizona state services, with potential implications for minimum wage increases and market-driven pricing modifications.
The amendment details a price increase for the 6,930 square foot facility, raising the annual rate from $3.61 to $3.82 per square foot, which represents a $0.21 per square foot increase translating to $117.20 more per month or $1,406.40 annually. The emergency rate remains unchanged at $65.00 per hour. The pricing revision is attributed to the Arizona state minimum wage increase to $14.70 per hour, projected additional wage increases, inflationary pressures, and tariff impacts. This is the first price adjustment since 2023, with the new rates effective January 1, 2025.
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Text version
Line
Current Rates
With increase
| Increase amount |
| Net Annual |
Nogales 6,930 sq. ft $3.61 per square foot annually $2,086.76 per month $3.82 per square foot annually $2,203.96 per month +$0.21 sq. ft +$117.20 per month
+$1,406.40 annually
Nogales Emergency Rate
| $65.00 hourly |
| $65.00 hourly |
The DCS–Nogales contract is due for annual renewal, and pricing has been revised to align with current market conditions. Effective January 1, 2025, the Arizona state minimum wage increased to $14.70 per hour and is projected to increase by an additional 2.6% in January 2026. Inflationary pressures and imposed tariffs have also raised the cost of supplies. This amendment accounts for actual supply costs based on costs incurred during calendar year 2025. These costs have now been incorporated into this amendment. No price increase since 2023.
File details come from the government source that posted it. Updated .