Amendment 4 (25 April 2008)
April 25, 2008
AMENDMENT NO.: (310-000-07-1) -4
TO: Department Addressed / User Agency
FROM: Director, State Purchasing
SUBJECT: Contract No. 310-000-07-1
TITLE: Envelopes, Kraft, White Wove, and Others
The following changes have been made to the subject contract:
ยท Section 5.25 Price Escalation / De-Escalation
The overall paper industry is being affected by factors to include, but not limited to, high escalation rates for the pulp, energy, chemical, recycled fiber, and transportation. The industry also suffers from a decreased demand in various papers and grades and a reduced production capacity due to multiple mill closures throughout the United States and Canada.
The Contractor has provided industry documentation outlining the announced increases for August 2007 and February 2008 to become effective in September and March respectively. Each time, the paper manufacturers reported increases of $3.00/cwt for virgin papers plus an upcharge of $2.00 and higher per cwt for each 10% of PCW.
The result of these increases has been a combined increase totaling $6.00/cwt for virgin papers and the upcharge of $2.00/cwt per 10% PCW. This increase will impact our contract by $ .06 per lb/M envelopes for virgin and $ .08 per lb/M envelopes for recycled.
This is the first escalation request submitted by the Contractor.
Any questions or problems in delivery or service that may arise regarding this contract should be directed to the Contract Administrator.
Attachment
______________________________________________________
STATE TERM CONTRACT NO. 310-000-07-1
Envelopes, Kraft, White Wove, and Others
Amendment No. 4
THIS AMENDMENT, effective as of the last date signed below, is by and between the State of Florida Department of Management Services (the "Department") and the entity identified below as Contractor (the "Contractor"), and amends State Term Contract No. 310-000-07-1 (the "Contract").
WHEREAS the Department awarded the above referenced Contract to MeadWestvaco for the provisions of Envelopes, Kraft, White Wove, and Others;
WHEREAS the Contractor provided the paper manufacturer's notifications of price increases and the Department accepted said increases;
WHEREAS the Contract allows for Price Changes Applicable only to Term Contracts as designated in Section 4.4 (e) Equitable Adjustments;
WHEREAS theContract specifies the potential for price escalation in accordance with Section 5.25 Price Escalation /De-escalation;
NOW THEREFORE, in consideration of the mutual promises contained below, receipt and sufficiency of which are hereby acknowledged, the parties agree to the following:
Price Escalation/ De-escalation. The Contract hereby allows all item prices to be revised to reflect a $6.00 per hundred weight (cwt) increase for virgin envelopes and $8.00 per hundred weight (cwt) increase for recycled envelopes in accordance with Section 5.25 Price Escalation/De-escalation.
AGREED AND ACCEPTED:
CONTRACTOR NAME: ______________________________________
Street Address or P.O. Box: _____________________________________
City, State, Zip: _______________________________________________
By: (Signature):______________________________________________
Date: _______________________________________________________
Its:__________________________________________________________

