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File #: 21-2305    Version: 1 Name: Bright Horizons Children’s Center LLC, Newton, Massachusetts
Type: Contract Amendment Status: Approved
File created: 3/22/2021 In control: Board of Commissioners
On agenda: 5/13/2021 Final action: 5/13/2021
Title: 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): ...
Indexes: JESSICA CAFFREY, Director, Real Estate Management Division

title

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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