Title
REQUEST TO EXERCISE THE CONTRACT FIRST (1) YEAR EXTENSION OPTION TO J.P. SIMONS AND MIDCO ELECTRIC SUPPLY, INC. FOR THE SUPPLY AND DELIVERY OF ELECTRICAL SUPPLIES
SPECIFICATION NO. P-23004
Body
I. Initial Award Information
Award Date: Spec. # P-23004 was awarded on April 12, 2023, by the Chicago Park District Board of Commissioners for the Department of Facility Management to:
Contractor: J.P. Simons
Contract Amount: $47,288.30 DUR
Contractor: Midco Electric Supply, Inc.
Contract Amount: $4,920,469.15 DUR
Scope of Services: For the supply and delivery of Electrical Supplies to the Chicago Park District, on an as-needed basis.
Contract Period: One (1) year initial term with four (4) additional one (1) year extension options. Contract execution date June 9, 2023, and expiration of June 8, 2024, for Midco Electric, and Contract execution date of July18, 2023 and expiration of July 17, 2024 for JP Simons.
Contract Amount: Not to exceed $4,967,757.45 for the initial contract term (see below for amounts by category). Expenditures for services under each extension term will be authorized by annual appropriation and subject to each year’s budget. This is a Depends Upon Requirements (DUR) contract.
Award By Categories (DUR)
Category Awardee Amount
CATEGORY A - Lamps, Fixtures, LED’s Midco Electric Supply $ 2,137,843.19
CATEGORY B - Conduit, Clamps Midco Electric Supply $ 88,498.52
CATEGORY C - Fuses, Ignitors, LED DriversMidco Electric Supply $ 27,555.45
CATEGORY D - Receptacles, Switches J.P. Simons $ 47,288.30
CATEGORY E - Wire, Cable, TransformersMidco Electric Supply $ 247,577.60
CATEGORY F - Breakers, Contactors Midco Electric Supply $ 115,873.75
CATEGORY G - **Poles Midco Electric Supply $ 1,920,019.50
CATEGORY H - Hardware, Tools Midco Electric Supply $ 138,599.69
CATEGORY I - Misc. & Capital Midco Electric Supply $ 244,501.45
** Indicates Sole Bidder for Category
II. Current Expenditures: (6/9/2023-2/15/2024)
Contractor: J.P. Simons
Amount: Purchase Orders Issued to date - $2,343.35
Purchase Orders paid to date - $ 2,343.35
Contractor: Midco Electric Supply, Inc.
Amount: Purchase Orders Issued to date - $1,096,629.01
Purchase Orders paid to date - $ 747,455.19
III. Current MBE/WBE Compliance- Both awardees are City of Chicago certified WBE’s.
Goals: The Minority and Women Owned Business Enterprise participation for this contract includes 100% WBE participation, self-performing, as a certified women business enterprise. (Both awardees are City of Chicago certified WBE’s.)
The opportunity for direct and indirect M/WBE spend is limited for these commodity purchases.
IV. Vendors have an anticipated request for 2024 item price escalation, per the terms of contract:
Under Contract Guidelines of VI. General Conditions, in regard to Pricing and Price Escalation Pricing will be firm for the initial contract period.
After an extension option has been utilized, requests for increases in prices may be submitted in writing to the Director of Purchasing. Requests must be based on and include documentation of increases in the awardee’s cost that are due to (1) direct labor increases, (2) consumer price inflation index increases for appropriate supply items, or (3) if the actual usage levels of the supplies and/or services vary substantially from the given usage estimates. Such increased costs must not represent an increase for profits or other overhead. No more than one price increase will be considered during any consecutive twelve-month period.
Traditionally the Department of Facility Management reviews and negotiates the requested price increase. Results of this negotiation would be reviewed by the Director of Purchasing, upon which Purchasing would complete an’ Extension Option Review” and an executed contract modification reflecting the price changes and the date on which such changes are effective.
If the Director of Purchasing approves a price increase, both the Park District and the awardee must sign a properly executed contract modification reflecting the price changes and the date on which such changes are effective. Original prices shall remain in effect until such a contract modification has been fully executed.
Producer Price Index for Electronic Wire and Cable and for Electrical Products show flat pricing to a 1.5% increase.
Anticipated price escalation does not increase the total contract value.
V. Explanation of Recommendation
The Department of Facility Management is responsible for repairing and maintaining Chicago Park District facilities, district wide and requires the services of companies that electrical supplies to perform this responsibility on an as needed basis year-round. Having to maintain several hundred facilities district wide, which have heavy use and require constant upkeep and maintenance, having these contracts in place will allow the Department of Facility Management to expeditiously meet its operational needs at a fair and reasonable price. Further, the supplies are varied and required for both indoor and outdoor maintenance including outlets, switches, fixtures, breakers, wiring, light poles and LED lighting products.
Both J.P. Simons and Midco Electric have met the expectations under this contract in the first year to supply and deliver plumbing supplies to the Chicago Park District. Further, they have the capacity to meet the delivery requirements of the Chicago Park District.
Therefore, it is in the best interest of the Chicago Park District to grant the first of 4-one year extension options, with the negotiated prices, and no change to the contract value, to the awarded contracted vendors of J.P. Simons and Midco Electric for the applicable categories.