Amendment 5 (28 May 2008)
May 28, 2008
AMENDMENT NO.: (640-002-06-1) -5
TO: Department Addressed / User Agency
FROM: Director, State Purchasing
SUBJECT: Contract No. 640-002-06-1
TITLE: Paper: Tissues and Towels
Pursuant to Section 287.057(14), F.S., the Department of Management Service, Division of State Purchasing requests approval to renew the above referenced State Term Contract for an additional one year term through July 31, 2009.
The Contractor has provided industry documentation of announced price increases for 2007 and 2008. Each time, the paper manufacturers have reported increases of up to 10% per incident, for accumulate increases of up to 36.9% for paper tissues and towels.
The resulting increases will impact our contract by commodity. The Contractor, as allowed by the Contract, is requesting an equitable adjustment of 1.93% to 33.77%, which is lower than the industry escalation rates. Based on FY07/08 purchase data (by commodity), the projected average escalation increase of 13.75% covers 89.3% of all Contract purchases, where 2.0% of purchases have an escalation of 20% or more. The overall average of escalation rate among all commodities is 8.86%.
Any questions or problems in delivery or service that may arise regarding this contract should be directed to the Contract Administrator.