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PROPOSED CONTRACT AMENDMENT
Department(s): Office of the Chief Financial Officer
Vendor: Bottling Group LLC (“Pepsi”), Chicago, Illinois
Request: Authorization for the Chief Financial Officer to amend contract
Good(s) or Service(s): Beverage Services and Pouring Rights
Original Contract Period: 5/1/2016 - 4/30/2026
Proposed Amendment Type: Scope change
Proposed Contract Period: N/A
Total Current Contract Amount Authority: This is a revenue generating contract for Cook County
Original Approval (Board or Procurement): Board - 6/8/2016
Increase Requested: N/A
Previous Board Increase(s): N/A
Previous Chief Procurement Officer Increase(s): N/A
Previous Board Renewals: N/A
Previous Chief Procurement Officer Renewals: N/A
Previous Board Extension(s): 6/16/2022 - 5/1/2016 - 4/30/2028
Previous Chief Procurement Officer Extension(s): N/A
Potential Fiscal Impact: N/A
Accounts: N/A
Contract Number(s): AM-2016-001
Concurrences:
The vendor has met the Minority- and Women-owned Business Enterprise Ordinance via: Full MWBE waiver.
The Chief Procurement Officer concurs.
Summary: Pepsi and Cook County (the “County) entered into a Professional Services and Beverage Sales Agreement on May 1, 2016 (the “Agreement”). The Agreement grants exclusive pouring rights to Pepsi products on Cook County and Cook County Forest Preserve properties. Under the terms of the Agreement, the County receives a portion of the commission of the sale of all Pepsi products sold on designated County-owned properties. Pepsi and the County wish to amend the Agreement to exclude a gift shop and coffee kiosk (the “Auxiliary Space”) located at John H. Stroger, Jr. Hospital (“Stroger Hospital”). These areas at Stroger Hospital are being excluded from the terms of the Agreement (and therefore, are permitted to sell non-Pepsi products) because both of the referenced locations were the subjects of a lease between the Stroger Hospital and a not-for-profit entered into prior to the County’s Agreement with Pepsi for exclusive pouring rights. Therefore, the gift shop and coffee shop were not eligible to be included as part of the Agreement between Pepsi and the County. Although the County does not receive a portion of the commission of the sales of the non-Pepsi products from the Auxiliary Space at Stroger Hospital, it is important to note that the not-for-profit who is the lessee of the Auxiliary Space reinvests money it receives back into the Cook County community by donating essential products to patients in need at Stroger Hospital (i.e., the not for profit donates car seats to new mothers who give birth at Stroger Hospital). All other terms of the Agreement will remain the same.
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