Ordering_Guidlines_for_Contracts_with_Not_to_Exceed_Pricing.pdf

PDF 699 KB Posted

Attached to
Master Agreement AZ|CTR067772
Contract number
CTR067772
Issued by
Arizona

About this file

This document is a procurement guidance document from the Arizona Department of Transportation (ADOT) Procurement division, detailing the ordering process for contracts with not-to-exceed pricing. The document provides a comprehensive overview of how task assignment-based contracts are to be managed within the agency's procurement system (APP).

The contracts described contain line items with fixed prices identified as not-to-exceed or maximum unit prices. Contractors can provide quotes on task assignments where their unit price is equal to or less than the predetermined maximum price. The process involves identifying work scope, selecting available contractors, distributing task assignment requests, reviewing contractor responses, and creating requisitions in the APP system. A key feature is the flexibility for contractors to offer lower unit prices based on site conditions, while maintaining a price ceiling. Procurement will review all submitted quotes to confirm that quotes were requested from all awarded contractors, services are appropriately defined, and pricing is acceptable.

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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?

Procurement

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 .