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AUTHORIZATION TO PARTICIPATE IN W.W. GRAINGER'S CONTRACT WITH THE NATIONAL JOINT POWERS ALLIANCE FOR FACILITIES MAINTENANCE, REPAIR AND OPERATING SUPPLIES
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To the Honorable Board of Commissioners of the Chicago Park District:
I. Recommendation
Pursuant to Chapter XI, Section D, 7, (a) of the Code of the Chicago Park District, it is recommended that an order be entered authorizing the General Superintendent and CEO or his designee to participate in W.W. Grainger's contract with the National Joint Powers Alliance for the supply and delivery of facilities maintenance, repair, and operating supplies. No work may commence and no payment shall be made prior to the execution of a written agreement.
II. Vendor Information
Vendor/Contractor: W.W. Grainger, Inc.
100 Grainger Parkway
Lake Forest, Illinois 60045-5201
Company Type: Illinois Corporation
Year Incorporated: 1927
Majority Interests: David W. Grainger 8.12%
James D. Slavik 6.00%
Of the remaining 85.88%, no shareholder owns more than 6.00%
Contract Period: Four (4) year initial contract term, January 1, 2015 to January 1, 2019. There's one (1) additional one (1) year extension option at the discretion of the NJPA.
Authorized Amount: $500,000.00 annually for the initial contract term. Expenditures for purchases under each extension term will be authorized by an annual appropriation and subject to each year's budget.
Scope of Services: The supply and delivery of facilities maintenance repair and operating supplies.
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: Operating
Fiscal Year: 2015
Source of Funds: 001.8485.8485.620020.00001.01.01.00001
IV. Procurement Information
Chapter XI, Section D, 7, (a) of the Code permits the participation in another governmental entity's contract when it is in the best of the Chicago Park District ("CPD"). Furthermore, the Code adds in Chapter XI, Section D, 7, (a), (i) that the contract which the CPD desires to participate in must be the result of a public procurement process.
The National Joint Powers Alliance ("NJPA") was created by Minnesota State Statute in 1978 and is a cooperative purchasing public agency that makes its contracts available to its nationwide members including cities, counties, and government agencies including the CPD. All of the NJPA's contracts are publicly advertised, competitively bid, and approved by their eight (8) member board, all of whom are public officials.
On July 10, 2014, the NJPA publicly advertised a Request for Proposals ("RFP") for facilities maintenance, repair and operating supplies. The RFP was publicly advertised in four newspapers, including the Star Tribune newspaper in Minnesota, where it was advertised for two consecutive weeks in both their print and online editions, e-commerce sites on the internet, and a notification of the advertisement was sent to state level NJPA members. The advertisement period was slightly more than two months, as proposals were due on September 14, 2014. Three proposals were received on the due date, and the NJPA convened an evaluation committee to review and evaluate the proposals. At the conclusion of their evaluation process, W.W. Grainger was the highest scoring proposal, and recommended for award. The NJPA Board approved the award to W.W. Grainger at their October 21, 2014 meeting.
V. Explanation
Through cooperative purchasing, the CPD regularly participates in contracts with public agencies and national cooperative purchasing entities whose economies are larger, including the National Joint Powers Alliance. The CPD is one of over 50,000 nationwide public and governmental agency members of the NJPA, and the NJPA leverages this national volume through its contracts by making available to its members its large volume pricing. This is reflected in the RFP that the NJPA advertised where in section 5.1, for example, it said the proposers must offer their equipment, products, and services at prices that are of "lower and better value than what they would ordinarily offer to a single governmental agency." Consequently, the CPD would gain the benefits of economy of scale pricing and an expeditious purchasing process through participation in W.W. Grainger's ("Grainger") contract with the NJPA.
In September 2013, the Board approved the CPD's participation in W.W. Grainger's contract with the NJPA for the same supplies. That contract has expired, and during the 16 months participation in that contract, the Department of Facility Management was pleased with the quality of supplies and services that Grainger provided.
Therefore, the Chicago Park District would like to take advantage of the NJPA's economy of scale by participating in W.W. Grainger's contract for maintenance, repair, and operating supplies with the NJPA. Therefore, it is in the best interest of the Chicago Park District to participate in W.W. Grainger's contract with the National Joint Powers Alliance.
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"): Contractors have submitted a full and complete EDS prior to execution of the contract.