TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 7, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase purchase order and exercise an option to extend the agreement for an additional two-year period, for Contract 21-RFP-01 for Claims Management Services, with McLarens, LLC, in an amount of $100,000.00, from an amount of $44,000.00, to an amount not to exceed $144,000.00, Account 901-30000-667220, Purchase Order 3116741
Body
Dear Sir:
On October 7, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement for Contract 21-RFP-01 with McLarens, LLC, in an amount not to exceed $150,000.00, to provide Claims Management Services on an ongoing basis for a three-year period, with the option to extend for an additional two-year period. The purpose of this contract is to obtain claims management services which includes expertise for the adjustment of large or complex losses, including first-party damages and third-party liability and property damage loss adjustment. The contract will expire on November 14, 2024.
Under the terms of the agreement, McLarens, LLC will continue to provide claims management services at the 2021 rates, and then only on an as-needed basis, for expert adjustment of large or complex losses. The increase is requested to have funds available for the extension period.
As of February 15, 2024, the attached list of change orders has been approved.
Original Contract Amount $150,000.00
Date of Board Approval October 7, 2021
Cumulative Change Orders (02/15/2024) ($106,000.00)
% Change of Original Contract Value -70.67%
Current Contract Value $44,000.00
Request Increase $100,000.00
New Contract Amount $144,000.00
% change of Current Contract Value 227.27% (After the original contract was reduced)
The effect of these change orders resulted in a decrease of the purchase order in the amount of $106,000.00 (a 70.67% decrease) from the original amount awarded of $150,000.00 to a current value of $44,000.00 and reflect the reduction and closing of purchase order lines for prior years.
The change order increase requested in this letter is required to assure adequate funding for the extension of the contract for claims management service on an as-needed basis. This change order and option to extend are in compliance with the Illinois Criminal Code because they are germane to the original contract as signed and are 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 McLarens, LLC for an additional two-year period, and to execute a change order to increase the purchase order and amend the agreement for Contract 21-RFP-01 in an amount of $100,000.00 (227.27% of the current contract value), from an amount of $44,000.00, to an amount not to exceed $144,000.00.
Funds are available in Account 901-30000-667220.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:BLW
Recommended, Darlene A. LoCascio, Director of Procurement and 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 March 7, 2024
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