Title
AUTHORITY TO PARTICIPATE IN CITY OF CHICAGO CONTRACTS 28038 AND 28924 WITH LIFE FITNESS AND FITNESS EXPERIENCE, LLC RESPECTIVELY FOR THE WELLNESS AND FITNESS EQUIPMENT AND MAINTENANCE
Body
To the Honorable Board of Commissioners of the Chicago Park District:
I. Recommendation
Pursuant to the Joint Purchasing Agreement between the Chicago Park District and the City of
Chicago and the recommendation from the Assistant Director of Community Recreation, the Director of Purchasing recommends that the General Superintendent and CEO or his designee enter into a contracts with Life Fitness and Fitness Experience, LLC for the supply, delivery, and maintenance of wellness and fitness equipment. The amount of services provided each year will depend upon requirements and shall not exceed budget appropriations for operations and capital expenses for the applicable year.
II. Award Information
Contractor: Fitness Experience
16704 Advantage Ave.
Crest Hill, IL 60403
Company Type: Illinois Limited Liability Company
Majority Interests: Danny Green 30%
Michael Lyons 32%
Darius Nakvosas 32%
Contractor: Life Fitness
5100 N. River Road
Schiller Park, Illinois 60176
Company Type: Delaware Business Corporation
Majority Interests: No owners with greater than 7.5% ownership interest.
Contracts Period: The initial term for the Fitness Experience contract is January 8, 2014 to January 7, 2019.
The initial term for the Life Fitness contract is August 1, 2013 to July 31, 2018.
The City of Chicago's Chief Procurement Officer may extend both contracts for a period of no more than 181 days after expiration of the initial contract term or until new contracts are in place.
Authorized Amount: $285,000 annually combined for the initial contract terms. Expenditures under any extension term will be authorized by an annual appropriation and subject to each year's budget.
Scope of Services: The supply, delivery, maintenance, and repair of fitness and wellness equipment.
Fitness Experience
Group E Star Trac Catalog
Group F Nautilus Catalog
Group K Cross Fit Catalog
Group L On Site Repair Service and Preventive Maintenance
Life Fitness
Group A Precor Catalog
Group B Life Fitness Catalog
Group C Cybex Catalog
Group D Free Motion Catalog
Group G Universal Catalog
Group H Hammer Strength Catalog
Group I Pro Maxima Catalog
Group J Ring Side Catalog
Affirmative Action
Goals: Minority- and Women-Owned Participation for this contract includes: 25% Minority-owned and 5% Women-owned
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.
III. Budget and Financial Information
Budget Classification: Capital and Operating Funds
Fiscal Year: 2015-2019
Source of Funds: 351.8260.8260.627070.PG156.G4.09.55018
001.8425.8425.623055.0001.01.01.0001
IV. Procurement Information
The City of Chicago ("City") publicly advertised Request for Quotation ("RFQ") 4085 (viz. IFB) for Wellness, Fitness Equipment and Maintenance on September 12, 2012. Eleven categories for the purchase of fitness and wellness equipment were advertised: each category represented the catalog of a specific manufacturer where bidders bid a percentage discount for one, some, or all categories. Additionally, the RFQ included one category for the repair and maintenance of all fitness and wellness equipment and bidders bid an hourly rate. The award was by category to the lowest, responsible and responsive bidder. At the time of advertisement, Section 3.1.4.12 of the RFQ, "Participation by Other Local Government Agencies," named the Chicago Park District as a local government agency that is eligible to participate in the agreement during the contract term. The Department of Purchasing submitted this joint purchasing request to the Chief Procurement Officer of the City and received her approval to proceed (see attached letter). Accordingly, this request complies with the terms of the Joint Purchasing Agreement.
V. Explanation
The Chicago Park District currently has over 72 fitness centers, 12 youth activity centers, and multiple outdoor fitness courses, and all are designed to accommodate the general public, inviting all fitness levels from beginners to experienced fitness enthusiasts. All fitness equipment in the fitness and youth activity centers and outdoor fitness courses must be repaired and maintained on a regular basis. In addition to repairs and maintenance, new equipment is needed to furnish new centers, and replace or upgrade current equipment.
The contractors provide the type of fitness and wellness equipment that is currently in our fitness and youth activity centers including: cardiovascular equipment, including computerized treadmills, elliptical or cross trainers, various recumbent and upright stationary bikes, as well as stair steppers. The contractors will also provide strength training equipment, free weights, and various fitness accessories, including proper fitness flooring to prevent injuries. Further, the contractors will train CPD staff at the fitness centers regarding proper usage and maintenance of the fitness and wellness equipment. Lastly, Fitness Experience will be available to provide on-site maintenance and repair services of all fitness and wellness equipment throughout the contract term.
The City is a significantly larger economy than the Chicago Park District, and the pricing they receive is better than what the CPD would receive if it advertised its own solicitation for these services. Therefore, it is in the best interest of the Chicago Park District to take advantage of the City's larger buying power and economy of scale by participating in this City agreement.
VI. General Conditions
1. Conflicts: No agreement authorized herein shall 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 Chicago Park District's Ethics Code, Chapter III of the Code of the Chicago Park District, shall be incorporated into and made part of all agreements authorized herein.
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 Section 17(i) of the Chicago Park District Act, 70 ILCS 1505/17(i). All agreements authorized herein shall contain a clause that any expenditure beyond the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4. Economic Disclosure Statement ("EDS"): Contractor has submitted a full and complete EDS prior to execution of the contract.