TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 3, 2015
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to increase the purchase orders and exercise an option to extend the agreements for an additional twenty four (24) month period for Contract 12-RFP-22 for Broker Services to Obtain Property and Other Insurance Coverage with Mesirow Insurance Services, Inc. in an amount of $159,000.00, from an amount of $238,500.00 to an amount not to exceed $397,500.00, and Willis of Illinois, Inc. in an amount of $244,000.00, from an amount of $340,000.00 to an amount not to exceed $584,000.00, Account 101-25000-612430, Purchase Orders 3075793, 3075937
Body
Dear Sir:
On December 6, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into two separate agreements for Contract 12-RFP-22 Broker Services to Obtain Property and Other Insurance: 1) with Mesirow Insurance Services, Inc. (Mesirow) in an amount not to exceed $238,500.00 for casualty lines of insurance and related services, and 2) with Willis of Illinois, Inc. (Willis) in an amount not to exceed $340,000.00 for property insurance and related services. The original agreements were for three years, with an option to extend for two additional years. The contracts will expire on December 31, 2015.
Under the terms of the agreements, Mesirow and Willis will continue to provide insurance broker services for the District for an additional twenty four (24) month period from January 1, 2016 to December 31, 2017. These increases are requested in order to assure adequate funding for the extension of the agreements for broker services.
There are no prior change orders for this contract.
This change order and option to extend the agreements are in compliance with the Illinois Criminal Code because it was specifically provided for in the original contracts, is germane to the contracts as signed, and is in the best interest of the District.
In view of the foregoing, it is requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to extend the agreement with Mesirow Insurance Services, Inc. for an additional twenty four (24) month period and to increase the purchase order to Mesirow in an amount of $159,000.00 (66.77% of the current contract value) and to extend the agreement with Willis of Illinois, Inc. for an additional twenty four (24) month period and to increase the purchase order to Willis in an amount of $244,000.00 (71.76% of the current contract value).
The estimated expenditures for 2016 and 2017 for Mesirow Insurance Services, Inc. are $79,500.00 and $79,500.00, respectively. The estimated expenditures for 2016 and 2017 for Willis of Illinois, Inc. are $120,200.00 and $123,800.00, respectively.
Funds are being requested in 2016 and 2017 in Account 101-25000-612430 and are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Denice E. Korcal, Director of Human Resources, DEK:RAJ
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 3, 2015