TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 2, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase purchase order and amend agreement for an additional twelve (12) month period for Contract 17-RFP-10 Commercial Banking and Investment Custody Services with The Northern Trust Corporation formally known as The Northern Trust Company for investment custody services, in an amount of $45,000.00, from an amount of $200,444.44 to an amount not to exceed $245,444.44, Account 101-11000-612430, Purchase Order 3104902
Body
Dear Sir:
On November 15, 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to enter into an agreement with The Northern Trust Corporation, formally known as The Northern Trust Company (“Northern Trust”), for Contract 17-RFP-10 to provide Commercial Banking and Investment Custody Services for the period from February 1, 2019, through January 31, 2024, in an amount not to exceed $225,000.00, with the option to extend for an additional twelve-month period.
As of October 31, 2023, the attached list of change orders has been approved for Northern Trust.
Original Contract Amount $225,000.00
Date of Board Approval 11/15/2018
Cumulative Change Order (10/31/2023) ($24,555.56)
% Change of Original Contract Value (10.91%)
Current Contract Value $200,444.44
Requested Increase $45,000.00
New Contract Value $245,444.44
% Change of Current Contract Value 22.45%
Total % Change of Original Contract Value 9.09%
The prior change orders for PO 3104902 comprise a close-out of $32,055.56 in unused funds during 2020 and an increase of $7,500.00 to remit payment on an outstanding invoice not billed in 2020.
The agreement extension and change order are required to provide continuity of service while the District advertises a new RFP for Commercial Banking and Investment Custody Services, which will be completed prior to the end of the twelve-month extension period. The service rates that are paid by the District will remain unchanged during this extension period.
This change order is in compliance with the Illinois Criminal Code since the changes are germane to the contract and in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to increase the purchase order and amend the agreement for The Northern Trust Corporation formally known as The Northern Trust Company, in an amount of $45,000.00 (22.45% of the current value), from an amount of $200,444.44 to an amount not to exceed $245,444.44, for the twelve-month period from February 1, 2024, to January 31, 2025.
The estimated expenditures for 2024 and 2025 for Northern Trust are $45,000.00 and $3,750.00, respectively. Funds for 2024 and 2025 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years from Account 101-11000-612430.
Requested, Mary Ann Boyle, Treasurer, MAB
Recommended, Darlene A. LoCascio, Director of Procurement & Materials Management
Respectfully Submitted, Marcelino Garcia, 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 November 2, 2023
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