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PROPOSED CONTRACT AMENDMENT
Department(s): Department of Real Estate Management
Vendor: Bright Horizons Children’s Center LLC, Newton, Massachusetts
Request: Authorization for the Chief Procurement Officer to extend contract
Good(s) or Service(s): Child Care Center Operating Agreement
Original Contract Period: 05/15/2001 - 05/31/2006, with one, five-year renewal option
Proposed Amendment Type: Extension
Proposed Contract Period: 06/01/2021 - 05/31/2026
Total Current Contract Amount Authority: $0.00
Original Approval (Board or Procurement): Board, 05/15/2001, $71,925.00
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): 06/06/2006, (06/01/2006 to 05/31/2011); 05/17/2011, (06/01/2011 to 05/31/2016); 04/13/2016 (06/01/2016 to 05/31/2021)
Previous Chief Procurement Officer Extension(s): N/A
Potential Fiscal Impact: Revenue Generating
Accounts: NA
Contract Number(s): 01-401-806
Concurrences:
The contract-specific goal set on this contract was zero.
The Chief Procurement Officer concurs.
Summary: Article 2, Section 2.4 of the subject contract provides for five-year extensions. This five-year extension request will allow Bright Horizons to continue to provide childcare services, an Operator who is familiar with the County procedures during the pandemic. This will also allow sufficient time for a smooth transition as a new Request for Proposals (RFP) is processed.
This contract was awarded through a publicly advertised Request for Proposals (RFP) in accordance with the Cook County Procurement Code. Bright Horizons Children’s Center LLC was selected based on established evaluation criteria.
The anticipated revenue to Cook County from this contract during the extension period is as follows:
Anticipated revenue of approximately $925K or $185K annually from the profit-sharing agreement. Said agreement stipulates the Childcare provider share with the County fifty percent (50%) of any Net Operating Profit experienced by the Child Care Center each year, calculated on a total contract-to-date basis, in excess of the targeted 8% Net Operating Profit.
Additionally, as the Center is located within 69W Washington, Operating Expenses are paid by the County, but the cost is shared with the City of Chicago. The last quarterly bill resulted in $19,534 paid to the County by the City of Chicago. Over the 5-year term, this would be approximately $391K in additional revenue. Adding these two figures would result in $1,316,000 in additional revenue in the contract period.
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