Prices shall be FOB Destination Freight Prepaid to the delivery location designated. Contractor shall retain title and control of all goods until they are delivered and the Contract of coverage has been completed. All risk of transportation and all related charges shall be the responsibility of the Contractor. All claims for visible or concealed damage shall be filed by the Contractor. The City will assist the Contractor in arranging for inspection.

The Contractor shall comply with all applicable provisions of the City’s Living Wage Ordinance (Article XIV of the Tucson Procurement Code). Contractor further agrees, upon request, to affirm in writing that Contractor is in compliance. The City’s Living Wage ordinance can be found at the following link: https://tucsonprocurement.com/bidders_livingwage.aspx

The City will review fully documented requests for price adjustment after any Contract has been in effect for one (1) year. Following the first year of the contract, the City will review fully documented requests for price adjustments, bi-annually. Price adjustments, if approved, will become effective bi-annually. If a price adjustment is denied, the prior bi-annual's price shall remain until a subsequent price adjustment is approved.

The City will determine whether a request price adjustment or an alternative option is in the City's best interest.

Requests for price adjustment shall be made as soon as practical, but no later than the first Friday of month, prior to the date of its anticipated effectiveness.

Any price adjustment request relating to plastic products will be made in accordance with the plastics products pricing based on the Plastics News Index. NOTE: The City may, upon request, require the Contractor to provide an Annual Subscription to the Plastics News Index.

Contractor shall provide copies of Plastic News Index, and calculation sheets used in price adjustments pursuant to the following conditions.

• Daily Averages will be used for all index calculations. Data will be collected for every day in the 6 month period being analyzed to determine Daily Average to be used for each index.
• Sample calculation based on hypothetical data for the period of January 1, 2020 through June 30, 2020: January 1, 2020 - Plastics products price of $0.695/lb; June 20, 2020 - Plastics products price changed to $0.570/lb. The Daily Average would be calculated using $0.695 for each day from January 1, 2020 through June 19, 2020 and $0.570 for each day from June 20, 2020 through June 30, 2020 .
• Data Used for "Current Index" calculations shall be for the complete 6 month period prior to submission of the request. For this calculation, unedited data shall be used.
  • Example: An Adjustment Request to be effective on July 1, 2020 will use Plastics News Index data for January 1, 2020 through June 30, 2020.
  • Calculations of Change in Index
    • Standard: Current Index - Prior Index = Change in Index
    • Non-Market Move: Correct Current Index - Prior Index = Change in Index
  • Calculation of New Cart Price
    • Prior Cart Price + (Change in Index x Weight of Plastic in Cart) = New Cart Price

Any price adjustment will be effective upon the effective date of the Contract extension.

The term of the Contract shall commence upon award and shall remain in effect for a period of one (1) year, unless terminated, canceled or extended as otherwise provided herein. The Contractor agrees that the City of Tucson shall have the right, at its sole option, to renew the Contract for four (4) additional one-year periods or portions thereof. In the event that the City exercises such rights, all terms, conditions and provisions of the original Contract shall remain the same and apply during the renewal period with the possible exception of price and minor scope additions and/or deletions.