Sky_Harbor_price_increase.docx

DOCX document 22 KB Posted

Attached to
Master Agreement AZ|CTR070663
Contract number
CTR070663
Issued by
Arizona

About this file

This document appears to be a contract amendment or price increase notice for a facilities maintenance contract between Beacon and the Department of Consolidated Services (DCS) for Sky Harbor facility services in Arizona. The contract involves facility maintenance and custodial services for a 31,160 square foot location, with pricing adjustments effective January 1, 2025.

The contract includes rate increases driven by multiple factors: the Arizona state minimum wage increase to $14.70, inflationary pressures, new tariffs, and previously unaccounted labor costs for contract management. Specific pricing changes include a rate increase from $1.24 to $1.57 per square foot annually, resulting in a $10,206.04 annual increase, and an emergency service hourly rate escalation from $45 to $65, representing a $20 per hour increase. This is the first price adjustment since 2019, spanning a six-year period, and incorporates additional costs for lead custodian site inspections and management responsibilities.

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Text version

Line

Current Rates

With increase

Increase amount
Net Annual

Sky Harbor 31,160 sq. ft $1.24 per square foot annually $3,245.83 per month $1.57 per square foot annually $4,088 per month +$0.33 sq. ft +$842.17 per month

+$10,206.04 annually

Sky Harboe Emergency Rate

$45.00 hourly
$65.00 hourly

+$20.00 hourly

No Price increase since 2019 (6 years).

The DCS-Sky Harbor contract is up for annual renewal and prices have been updated to reflect current market conditions. Effective January 1, 2025, the Arizona state minimum wage increased to $14.70. Additionally, inflation and recently implemented tariffs have increased the cost of supplies. Furthermore, it was identified that Beacon failed to account for hours spent at the site by the Lead Custodian performing monthly inspections and contract management responsibilities. These costs have been incorporated into this amendment.

File details come from the government source that posted it. Updated .