Title
REQUEST TO EXERCISE THE CONTRACTS (2) YEAR EXTENSION OPTION WITH THE JOINT US COMMUNITIES CONTRACT #USC-001 WITH HERC RENTALS INC. FOR THE SUPPLY AND DELIVERY OF SMALL AND LARGE RENTAL EQUIPMENT
BODY
To: The Honorable Board of Commissioners of the Chicago Park District
I. Initial Award Information
Date of Award: May 8, 2024 - Chicago Park District Board Meeting
Contractor: Herc Rentals Inc.
4039 S. Peoria St
Chicago, IL 60609
Company Type: Business Corporation
Majority Interest: Herc Rentals Inc. is a wholly owned subsidiary of Herc Holdings Inc., a publicly traded company. The Vanguard Group, Inc. has a 10.2% beneficial interest and BlackRock Inc. has a 8.9% beneficial in Herc Holdings Inc.
Contract Period: If the extension option is exercised, funding shall be based upon annual appropriations. (Effective Date January 1, 2024 - ending October 31, 2025)
Contract Amount: Expenditure for services under the extension term will be authorized by annual appropriation and subject to the year’s budget. Not-to-exceed $2,500,000.00 and is DUR (depends upon requirements).
Scope of Services: Supply and delivery of rental of small and large equipment for districtwide use.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Agreement. Authorize the General Superintendent to execute the Agreement and the Secretary to attest as to the signing of the Agreement and keep an original copy of the Agreement on file.
II. Performance to Date:
Herc Rentals Inc. has met the expectations under this contract in the first, two-year term to supply and deliver the rental of small and large equipment for districtwide use 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 for the Chicago Park District and maintained good standing as a vendor.
III. Current Expenditures: (10/19/2023 - 7/25/2025)
Contract Start Date: October 19, 2023
Contract End Date: October 31, 2025
Department: DCNR $669,753.65
Department: Facility Management $841,972.03
Current
Compliance: The Minority and Women-Owned Business Enterprise (MBE/WBE) participation for this contract meets the compliance goals of 25% MBE participation and 5% WBE participation. During the initial term of their contract, the vendor has achieved 34% MBE participation and 6% WBE participation.
The percentages shown are against paid contract spend.
IV. Explanation of Recommendation
The Chicago Park District requests approval by the Board to authorize the two (2) year extension option to Herc Rentals Inc. for a new contract end date of October 31, 2027.
The Department of Cultural and Natural Resources and the Department of Facility Management are responsible for repairing and maintaining Chicago Park District facilities and parks districtwide and require a company to supply and deliver the rental of small and large equipment for personnel to conduct maintenance and capital projects in parks districtwide.
Therefore, the Chicago Park District would like to take advantage of the national government purchasing cooperative larger buying power and economies of scale by entering into this two-year extension option agreement with Herc Rentals Inc. as a joint purchaser with the “USC”.
V. General Conditions
1) Conflicts: The Agreement shall not be legally binding on the Chicago Park District if entered into in violation of the provisions of 50 ILCS 105, the Public Officer Prohibited Activities Act.
2) Ethics: The 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.