TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 1, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
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Authority to increase the purchase orders and to exercise the option to extend the agreements for an additional two-year period for Contract 17-RFP-32 Insurance Broker Services, with Mesirow Insurance Services, Inc., in an amount of $193,000.00, from an amount of $289,500.00 to an amount not to exceed $482,500.00 and Willis of Illinois, Inc., whose name was changed to Willis Towers Watson Midwest, Inc. as of January 1, 2020, in an amount of $240,000.00, from an amount of $360,000.00 to an amount not to exceed $600,000.00, Account 101-25000-612290, Purchase Orders 3097548, 3097559, 3108935
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Dear Sir:
On December 21, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue two purchase orders and enter into two separate agreements for Contract 17-RFP-32 Insurance Broker Services: 1) with Mesirow Insurance Services, Inc. (Mesirow) in an amount not to exceed $289,500.00 for casualty lines of insurance and related services (including general liability, public officials liability, employment practices liability, law enforcement/police professional liability, employee benefits liability, employers lability, automobile liability, marine, special events, and umbrella/excess liability), and for fiduciary liability, government crime, group business travel accident, group term life coverages and related services, and 2) with Willis of Illinois, Inc. whose name was changed to Willis Towers Watson Midwest, Inc. as of January 1, 2020 (Willis) in an amount not to exceed $360,000.00 for property insurance and related services (including property, flood, earthquake, windstorm, and business interruption/time element), cyber risk and environmental liability. The original agreements ran for three years, with an option to extend for two additional years. The contracts will expire on December 31, 2020.
Under the terms of the agreements, Mesirow and Willis will continue to provide insurance broker services for the District for an additional two-year period from January 1, 2021 to December 31, 2022. These increases are requested to assure adequate funding for the extension of the agreements for broker services.
As of September 16, 2020, there have been no prior change orders for Mesirow Insurance Services,Inc. The attached change order was approved for Willis of Illinois, Inc The effect of that change order was the assignment of the purchase order from Willis of Illinois, Inc. to Willis Towers Watson Midwest, Inc. due to a name change.
This change order and option to extend are in compliance with the Illinois Criminal Code because it was specifically provided for in the original contracts, is germane to the original contracts as signed, and is in the best interest of the District.
The Affirmative Action goals for Contract 17-RFP-32 are 10% Minority Business Enterprises (MBE), 5% Women Business Enterprises (WBE) and 10% Small Business Enterprises (SBE).
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 two-year period and to execute a change order to increase the purchase order to Mesirow in an amount of $193,000.00 (66.7% of the current contract value) and to extend the agreement with Willis Towers Watson Midwest, Inc. for an additional two-year period and to execute a change order to increase the purchase order to Willis in an amount of $240,000.00 (66.7% of the current contract value).
The estimated expenditures for 2021 and 2022 for Mesirow Insurance Services, Inc. are $96,500.00 and $96,500.00, respectively. The estimated expenditures for 2021 and 2022 for Willis Towers Watson Midwest, Inc. are $120,000.00 and $120,000.00, respectively. Funds for the 2021 and 2022 expenditures will be budgeted in Account 101-25000-612290 and are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Beverly K. Sanders, Director of Human Resources, BKS: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 October 1, 2020
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