title
Authorization to award contract for a Financial Management System subscription and implementation services.
presenter
Presenter: Anna Chen, Chief Information Officer
Recommendation
The Interim Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) approve the award of contract to Yardi Systems, Inc. in the aggregate compensation value of $4,398,008 for a five (5) year base term commencing on or about December 1, 2024.
|
Recommended Awardee |
Base Contract Value |
Base Term |
Option Terms |
Total Contract Value |
|
Yardi Systems, Inc. |
$4,398,008 |
5 years |
N/A |
$4,398,008 |
|
Total: |
$4,398,008 |
|
Aggregate Total: |
$4,398,008 |
The requested action complies in all material respects with all applicable federal, state, and local laws, and CHA policies. CHA staff has completed all necessary due diligence to support the submission of this initiative.
Funding
MTW Funds
Background
In 2006, CHA implemented an Infor/Lawson ERP system primarily to replace three disparate legacy systems, Finance, Human Resources/Payroll and Procurement and Compliance, into a single integrated solution. This system has since provided CHA with essential capabilities required for managing Finance, Human Resources/Payroll, Procurement and Compliance. However, the current version of the Infor/Lawson system version is now approaching a decommissioning. To continue meeting CHA’s evolving business needs, enhance system functionality, and comply with current technology and security requirements, a replacement of our existing financial management system is necessary.
Procurement Activities
In accordance with non-competitive procedures, CHA staff prepared a Request for Information (RFI) Event. No. MB2023 on October 6, 2023 inviting our existing system of record providers, Oracle, Yardi and Lawson, to respond with potential solutions, augmentations or new systems to replace and/or supplement the legacy system(s), in whole or in part. Two (2) responses were received November 3, 2023, and the CHA engaged in an extensive solicitation development process to assess and establish necessary technical and operational specifications, as well as integration parameters and standards for the proposed system solution(s). Following CHA’s development of refined project requirements and specifications the two responding vendors submitted detailed proposals which were reviewed and evaluated in a competitive solicitation process assessing technical merits and the cost and price parameters of the vendors’ respective proposals. The respondents to the RFI and competitive solicitation are depicted in the table below:
|
Responsive Proposal(s) |
|
Oracle/Denovo Ventures LLC. |
|
Yardi Systems, Inc. |
Infor Lawson did not submit a response to this effort.
Based on the responsive proposals the two respondents were invited for oral presentations based on usage case scenarios and Best and Final Offers were requested from the respondents. The vendor(s) responses were that evaluated in accordance with HUD regulations and guidelines, including 2 CFR 200, et seq. and other applicable standards and procedures in the following areas, utilizing a weighted score methodology:
1. Functional Fit 5 Maximum Points
2. Business Fit 5 Maximum Points
3. Technical Fit 5 Maximum Points
Final scores were received from the evaluation committee and it was determined that Yardi Systems, Inc. was selected for contract award as the better business fit for the organization, representing the best overall value among the viable competitive proposals.
Diversity Contracting Requirements
The CHA has reviewed the proposed vendor’s proposal and supplemental documentation and has determined the vendor’s utilization plan meets with the CHA’s stated goals.
Yardi Systems, Inc. will satisfy the 20% M/WBDE requirement through direct subcontracting to MAC Computer Consulting, Inc. (DBE) implementation services and indirect participation for AMA Consulting Group, LLC and Dashboard Solutions/ Lynne Berge. A partial waiver was granted for the license subscription.
Yardi will also satisfy their Section 3 requirement through 10% contribution to provide funds for CHA to internally recruit and hire CHA residents to work with the Information Technology Department to implement the new financial management system. This contribution is more than the required 3% goal and will allow CHA to better control and promote opportunities for employment directly to our residents. A 5% contribution will be made upfront in year one and the remaining 5% will be distributed over the remaining contract years.
Vendor Background Information
Anant Yardi, President and Founder, 430 S Fairview Avenue, Santa Barbara CA 93117. Established in 1982, Yardi Systems, Inc. ("Yardi") is a software provider for the real estate investment management and property management industries. The company offers business solutions for the real estate market, including multi-family, affordable, public housing, senior and military housing, as well as office, industrial, retail, and self-storage market segments. Yardi has been providing software, maintenance, support, and implementation services for the CHA's Housing Management System since 2003.
Based on the foregoing, it is in the best interest of the CHA for the Board of Commissioners to authorize the Chief Executive Officer or her designee, to enter into a contract with Yardi Systems, Inc. for a Financial Management System including subscription components and implementation services in the total compensation amount not exceed $4,398,008.03.
Respectfully Submitted:
______________________
Angela Hurlock
Interim Chief Executive Officer