Process Change and the Effect on Price Updates

Mark DiBlasi, Contract Specialist II

Our process change officially took effect on January 1st of this year. Now that we are several months into the process, the contracts team has begun to address secondary issues that have arisen since then.

In our continual review of price files, the contracts team has come across some common problems that can be easily addressed by our vendors. The first involves allowable state rates for mileage reimbursement. We are finding that some contracts are still using the older rate of $.375 per mile. The rate was updated to $.445 on 11/15/06. If your contract pricing is still utilizing these older rates, you are entitled to increase your mileage rate to the newer rate of $.445. In-state lodging and meal and incidental rates were also updated in January 2008. Contact your Contract Specialist, and they can assist you in these changes.

Another common issue that we have encountered with the electronic price lists is with the Excel workbooks not using simple formulas to calculate prices. Electronic price updates must include at minimum the following: part numbers, descriptions, firm-fixed pricing or MSRP price along with discounts and the final Mohave price. For price lists that are submitted in the Excel format a simple formula can be used to calculate the Mohave prices. Using the following formula will ensure that any changes to the MSRP price, or pre-approved increases in the discount offered will calculate a proper and correct Mohave price. The formula is: MOHAVE PRICE=MSRP*(1-DISCOUNT).

For a sample of the above formula, contact your Contract Specialist. You may contact me at mark@mesc.org or (928) 718-3220. Nancy Colbaugh can be reached at nancy@mesc.org or (928) 718-3228.

The contracts team always likes to hear from our members. To request a contract go to the Solicitation Request page http://www.mesc.org/solicitation_request.html. To give us feedback on our contracts, go to the vendor performance report http://www.mesc.org/performance_report.html.

Rev. 7/14/08, MD