TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 7, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian Perkovich, Executive Director
Title
Authority to exercise the option to extend the agreements for an additional two (2) year period and increase purchase orders for Contract 20-RFP-21 Legal Services for Workers’ Compensation Defense with Dennis Noble & Associates, P.C., in an amount of $230,000.00, from an amount of $317,680.54, to an amount not to exceed $547,680.54, and Nyhan, Bambrick, Kinzie & Lowry P.C., in an amount of $120,000.00, from an amount of $187,763.32, to an amount not to exceed $307,763.32, Account 101-25000-612430, Purchase Orders 3114172 and 3114173
Body
Dear Sir:
On April 1, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into agreements for Contract 20-RFP-21 Legal Services for Workers’ Compensation Defense, for the period of June 1, 2021 through May 31, 2024, with the option to extend for an additional two-year period, with Dennis Noble and Associates, P.C., in an amount not to exceed $300,000.00, and Nyhan, Bambrick, Kinzie & Lowry P.C., in an amount not to exceed $200,000.00.
As of August 25, 2023, the attached list of change orders has been approved for Dennis Noble and Associates, P.C.
Original Contract Amount $300,000.00
Date of Board Approval 4/1/2021
Cumulative Change Orders (8/25/23) $17,680.54
Change of Original Contract Value 5.89%
Current Contract Value $317,680.54
Requested Increase $230,000.00
New Contract Value $547,680.54
% Change of Current Contract Value 72.40%
Total % Change of Original Contract Value 82.56%
As of August 25, 2023, the attached list of change orders has been approved for Nyhan, Bambrick, Kinzie, & Lowry P.C.
Original Contract Amount $200,000.00
Date of Board Approval 4/1/2021
Cumulative Change Orders (8/25/23) $(12,236.68)
Change of Original Contract Value (6.12%)
Current Contract Value $187,763.32
Requested Increase $120,000.00
New Contract Value $307,763.32
% Change of Current Contract Value 63.91%
Total % Change of Original Contract Value 53.88%
The prior change orders were required for continued legal representation on workers’ compensation cases. Services to be provided by legal counsel include advice and counsel on disputed and litigated claims, processing of pro se settlements, and representation before arbitrators at the Illinois Workers’ Compensation Commission and on appeals.
These change orders and agreement extensions are required to provide continuity of service while the District advertises a key, related contract for Third-Party Claims Administrator Services, and manages transition following the retirement of District personnel responsible for these contracts, anticipated in April 2024. The hourly rates that are paid by the District remain unchanged.
These change orders are in compliance with the Illinois Criminal Code since the changes are germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute these change orders to increase the purchase orders and to extend the agreements with Dennis Noble & Associates, P.C., in the amount of $230,000.00 (72.40% of the current value), from an amount of $317,680.54, to an amount not to exceed $547,680.54 and with Nyhan, Bambrick, Kinzie & Lowry P.C., in an amount of $120,000.00 (63.91% of the current value), from an amount of $187,763.32, to an amount not to exceed $307,763.32 for the two-year period from June 1, 2024 to May 31, 2026.
The estimated expenditures for years 2024, 2025, and 2026 for Dennis Noble & Associates, P.C. are $77,500.00, $115,000.00 and $37,500.00, respectively. The estimated expenditures for years 2024, 2025, and 2026 for Nyhan, Bambrick, Kinzie & Lowry P.C. are $35,000.00, $60,000.00 and $25,000.00, respectively.
Funds for 2024, 2025, and 2026 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years from Account 101-25000-612430.
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 September 7, 2023