title
Authorization to add additional funding to Contract No.12941 with Nan McKay and Associates.
presenter
Presenter: Leonard Langston, Jr., Interim Chief Property Officer
end
Recommendation
The Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that CHA’s Board of Commissioners (“Board”) approve the funding addition of $150,000.00 to Contract No. 12941 with Nan McKay and Associates (“NMA”), in accordance with the respective contract Terms and Values set forth in the table below.
The Board delegates authority to the CEO or his designee to use his discretion to exercise this funding addition to the respective base and option terms, which shall only be exercised individually following the completion of the respective base term. This funding addition is for the implementation of inspections to vacant units, per HUD regulations.
Contract Summary
|
Vendor: Nan McKay and Associates |
Term |
Amount |
Reason for Amendment |
|
Base Contract $24,223,341 |
3 years |
$50,000 |
Additional funding needed to comply with new HUD regulations to inspect vacant units |
|
Option Year No. 1 $8,478,180 |
1 year |
$50,000 |
To accommodate and pay the additional inspections per HUD’s new regulation |
|
Option Year No. 2 $8,960,952 |
1 year |
$50,000 |
To accommodate and pay the additional inspections per HUD’s new regulation |
|
Aggregate Contract Amount: $41,662,473 |
5 years |
$150,000 |
$41,812,473 |
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 Funding
Background
The U.S. Department of Housing and Urban Development (HUD) now requires Public Housing agencies to conduct annual inspections on all units, including those that are vacant, in addition to occupied residences. The Chicago Housing Authority oversees 17,563 Public Housing and RAD (non-mixed income) units, all of which must be inspected at least once per year to remain compliant. The amendment to this contract will enable CHA to meet this requirement by ensuring all vacant units are included in the annual inspection cycle. This remains a necessary requirement to comply with HUD required inspections.
Procurement Activity
The Board previously approved NMA via Board Resolution No. 2023-CHA-19, dated July 18, 2023 to provide inspections for CHA, as required, for a term commencing on October 1, 2023 through September 30, 2026 with two (2) one-year options to renew. In accordance with HUD regulation CFR 200.318.CHA's, the vendor was selected through a competitive procurement process.
Contract Requirements
CHA staff has reviewed the proposed vendor and determined the vendor’s utilization plan meets the CHA’s goals.
Nan McKay & Associates, Inc., (Section 3 Business) will satisfy CHA’s MWDBE requirement by subcontracting with AMA Consulting Group, LLC (MWBE) 4% certified by the National Women’s Business Enterprise and State of Florida, and JRA Management, LLC (MBE) 16% certified by the State of Illinois. Nan McKay & Associates will satisfy the 3% Section 3 requirement as a self-performing (75%+ LI) Business.
Vendor Background Information
John McKay, Program Executive; 1855 Gillespie Way, El Cajon, CA 92020. NMA was founded in 1980, NMA is a San Diego-based, woman-owned California corporation with offices in Connecticut, Florida, Illinois, Kentucky, Louisiana, and Texas. Our affordable housing industry expertise includes program management, professional services, regulatory training, financial management, inspections, customer call centers, and technology solutions. NMA has been providing a range of consulting services to the CHA since 2006. NMA has managed approximately 47,000 HCV; 141 MS5; 333 Homeownership; 850 NED; 3,773 demonstration; 1,303 VASH; 678 FUP; 622 TPV; and 596 FSS vouchers on behalf of the Chicago Housing Authority. NMA earned SEMAP High Performer status for twelve (12) consecutive years. Additionally, NMA’s team earned maximum points on multiple SEMAP indicators, maintained a 99.8% PIC transmission rate, increased file accuracy, and improved customer satisfaction from below 3 to 4.5 out of 5. Other consulting services provided are: Evaluation of CHA’s multiple Computer Management Tracking Systems (CMTS), Program Assessment, RFP Evaluation, Transition Administration, Strategic Services, Technical Assistance, and Mentoring Services.
Based on the foregoing, it is in the best interest of the CHA for the Board to authorize the Chief Executive Officer or their designee, to amend Contract No. 12941 with NMA in the amount of $195,694.00 for a total aggregate amount not to exceed $41,858,167.00.
Respectfully Submitted:
______________________
Keith Pettigrew
Chief Executive Officer