Title
REQUEST TO EXERCISE THE CONTRACT’S SECOND ONE (1) YEAR EXTENSION OPTION WITH JL CORP. D/B/A HARRY’S LUMBER COMPANY FOR THE SUPPLY AND DELIVERY OF LUMBER, BUILDING, AND ROOFING SUPPLIES-DISTRICTWIDE
SPECIFICATION NO. P-23006
Body
To: The Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
Pursuant to Chapter XI, Section C.3.a of the Code of the Chicago Park District, the Director of Purchasing and the Director of the Department of Facility Management recommend that the Board of Commissioners of the Chicago Park District (the “Board”) authorize the General Superintendent or his designee to exercise the second one (1) year extension option on the contract (Specification No. P-23006) (the “Contract”) with JL Corp. d/b/a Harry’s Lumber Company (the “Contractor”), for the supply and delivery of lumber, and building supplies districtwide.
Pursuant to Chapter XI, Section F.3 of the Code, the Director of Purchasing recommends that the Board waive the requirements of Section F of the Code (“Minority and Women Owned Business Enterprise Program”) for this extension of the Contract.
II. Initial Award Information
Date of Award: June 12, 2024 - Chicago Park District Board Meeting
Contractor: JL Corp. d/b/a Harry’s Lumber Company
6220 N. Northwest Highway
Chicago, IL 60631
Company Type: Illinois Business Corporation
Beneficial Interest: As noted in Section VII(4) below, the Contractor has submitted an Economic Disclosure Statement (“EDS”). As required by Chapter I, Section D.1(a)(1) of the Code of the Chicago Park District, Section II(B)(2) of the Contractor’s EDS discloses the following persons or legal entities having a direct or indirect, current or prospective beneficial interest (including ownership) in excess of 7.5% of the Contractor:
Ira Rosenthal 52%
Dana Shefren 48%
Contract Period: The initial Contract period is from August 7, 2024 to August 6, 2025. The first option to extend was authorized on July 11, 2026 and extended the Contract period to August 7, 2026. If the second extension option is exercised the Contract period will end August 6, 2027 and two (2) options to extend for additional one-year terms will be remaining.
Contract Amount: Not to exceed $1,500,000.00 for the initial contract term and first extension option; contract amount will not increase during the second one-year extension. Expenditure for services under each extension term will be authorized by annual appropriation and are subject to each year’s budget. This is a DUR (depends upon requirements) contract.
Scope of Services: For the supply and delivery of lumber and building materials and supplies-districtwide.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the extension agreement (the “Extension Agreement”). Authorize the General Superintendent or their designee to execute the Extension Agreement and the Secretary to attest as to the signing of the Extension Agreement and keep an original copy of the Extension Agreement on file.
III. Performance to Date:
JL Corp. d/b/a Harry’s Lumber Company has met the expectations under this Contract, in its initial term and in the subsequent first-year contract extension option to supply and deliver lumber, and building materials and supplies to the Chicago Park District. Furthermore, they have the capacity to meet the delivery requirements and have done so in a timely and efficient manner to the Chicago Park District and maintained good standing as a contractor.
IV. Current Expenditures:
Contract Start Date: August 7, 2024
Contract End Date: August 7, 2026
Contract Amount: $1,500,000.00
Payments to Date: $94,914.50 (6.3% as of 10/1/2025)
V. Current MBE/ WBE Compliance: See Section VI below.
VI. Explanation of Recommendation
The Director of Purchasing and the Director of Facility Management request the Board to authorize the second of four one (1) year extension option to the Contract for a new contract end date of August 6, 2027.
The Department of Facility Management (DFM) is responsible for repairing and maintaining Chicago Park District facilities districtwide and requires access to commercial vendors that can provide lumber and building materials supplies to perform this responsibility on an as-needed basis throughout the year. These supplies support both indoor and outdoor maintenance needs and include items such as lumber for benches, door framing, drywall, wood for gym floors and hardware products such as locks, keys, and hinges. Having this Contract in place enables the DFM to efficiently meet operational demands at fair and reasonable prices, ensuring the continued upkeep of several hundred heavily used facilities across the Park District. Notably, although the original Invitation for Bid (“IFP”), Specification P-23006 included a request for bids for roofing material and supplies, Contractor did not bid and was not awarded a contract for roofing materials and supplies.
Pursuant to Chapter XI, Section F.3 of the Code, the Director of Purchasing has determined that it is impractical to obtain qualified MBEs and WBEs to perform sufficient work to fulfill the contractual commitment of 25% MBE and 5% WBE for the Contract. The Director of Purchasing has further determined that the elimination of MBE and WBE participation goals is appropriate for the Contract and Contract extension. The Director of Purchasing has made these determinations based on the following: (1) an IFB, Specification No. 26006, was advertised for this product over the last month without any submittals to the IFB, though there were twenty-one (21) downloads of the bid documents; (2) a letter was provided by Harry’s Lumber noting the use of both minority and women owned companies, though not certified, in the course of their business, both initially and as this Contract is being prepared for an extension; and (3) outreach to other governmental agencies (City of Chicago, Cook County) for sources of MBE and WBE certified companies for this product, in alignment with Park District’s MBE/WBE goals has also occurred without a source for this product.
Therefore, it is in the best interest of the Chicago Park District to exercise the second one (1) year extension option of the Contract.
VII. General Conditions
1) Conflicts: The Extension Agreement authorized herein shall not be legally binding on the Chicago Park District if entered into in violation of the provisions of the Public Officer Prohibited Activities Act, 50 ILCS 105/0.01 et seq.
2) Ethics: The Extension Agreement shall contain a provision requiring compliance with Chapter III of the Code of the Chicago Park District (“Governmental Ethics”).
3) Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Park District may become liable in succeeding fiscal years pursuant to 70 ILCS 1505/17(i).
4) Economic Disclosure Statement (“EDS”). Contractor has submitted full and complete EDS prior to the submission of this recommendation to the Board.