Title
AUTHORITZATION TO ENTER INTO A CONTRACT WITH SMG FOR THE MANAGEMENT AND OPERATION OF THE BEVERLY/MORGAN PARK SPORTS COMPLEX
SPECIFICATION P-15018
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the General Superintendent and CEO or his designee enter into a contract with SMG for the Management and Operation of the Beverly/Morgan Park Sports Complex. The contractor was selected pursuant to a publicly advertised Request for Proposals (“RFP”). No work may commence and no payment shall be made to vendor prior to the execution of a written agreement.
II. Award Information
Company: SMG
300 Conshohocken State Road
W. Conshohocken, Pennsylvania 19428
Company Type: Pennsylvania General Partnership
Majority Interests: SMG Holdings I, LLC 50%
SMG Holdings II, LLC 50%
Contract Term: Three (3) year initial contract term with two (2) one (1) year extension options.
Contract Amount: See Exhibit A.
Scope of Services: The management and operation of the Beverly/Morgan Park Sports Complex (“BMPSC”), including: (i) keeping the BMPSC in a clean, safe, and attractive state at all times by providing all maintenance and custodial services both indoors and outdoors; (ii) marketing, permitting, and booking events; (iii) programming and staffing the ice rink and gymnastics area; (iv) operating the concessions; (v) providing all administrative services; and (vi) providing all personnel and subcontractors necessary for the management and operation of the BMPSC.
Affirmative
Action Goals: The Minority and Women Owned Business Enterprise participation for this contract include: 46% MBE and 5% WBE.
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: 2015-2018
Source of Funds: 001.9310.9310.623100.00001.01.01.00001
IV. Procurement Information
Specification Number: P-15018
Date Issued: May 8, 2015
Date of Pre-Submittal Meeting: May 20, 2015
Date Proposals Due: June 8, 2015
Number of Proposals Received: Two (2)
This contract was publicly advertised as a Request for Proposals (“RFP”). Two (2) proposals were received on the due date and both proposals were found by the Department of Purchasing (“Purchasing”) to be compliant and responsive.
The Evaluation Committee (“EC”) was comprised of five (5) voting members, all CPD staff. The EC began their evaluation of the proposals at their first meeting on June 17, and they met again on June 22 where they continued their evaluation of the proposals and decided to invite both proposers to oral presentations. Oral presentations were held on June 26, and each session lasted approximately one hour and 15 minutes. The EC met immediately after oral presentations and decided to send both proposers a request for Best and Final Offers. The Department of Purchasing sent both proposers the request for Best and Final Offers on June 26 with a due date of July 1st. The EC met on July 2nd to continue their evaluation and review of the Best and Final Offers. The EC concluded their evaluation by unanimously scoring SMG the highest and therefore recommending them for award.
V. Explanation
The Beverly/Morgan Park Sports Complex is a newly built multi-use facility that features and NHL size indoor ice rink, a gymnastics center that can accommodate USAG competition events, and the Chicago Park District (“CPD”) requires the services of a firm to manage and operate this facility. Specifically, the manager will: (1) maintain and program the ice rink; (2) maintain and program the gymnastics center; (3) keep the facility in a clean, safe, and attractive state at all times by providing maintenance and custodial services both indoors and outdoors; (4) market, permit, and book events at the facility; (5) operate the concessions; (6) provide all administrative services; and (7) provide all personnel and subcontractors necessary for the management and operation of the facility.
SMG began managing and operating facilities since 1977, and to date they manage and operate 233 arenas, stadiums, convention centers of all sizes around the world. Further, SMG has been managing and operating Soldier Field since it re-opened in 2003, the McFetridge Center since late-November 2012, and the Baseball Stadium at Devon and Kedzie since April 2012.
At the Soldier Field, SMG has (i) consistently booked and programmed more events of all types and sizes annually in all spaces which generates increasing revenue and attendance (ii) created events (iii) achieved LEED-EB certification for Soldier Field, the first NFL stadium to attain this distinction (iv) consistently worked to control annual operating expenses, and (v) managed and implemented approved capital improvements knowledgably and skillfully. In the short time that they have been managing and operating the McFetridge Center and the Baseball Stadium, SMG has (i) increased the programming, (ii) increased revenues and manage the operating expenses; and (iii) implemented capital improvements.
SMG has the demonstrated experience and capability to manage and operate the Beverly/Morgan Park Sports Complex. Therefore, it is in the best interest of the Chicago Park District to recommend SMG for the award for the Management and Operation of the Beverly/Morgan Park Sports Complex contract.