title
Authorization to award a contract for Property Management Services for Scattered Sites Region Four (SSR4).
presenter
Presenter: Leonard Langston, Interim Chief Property Officer
Recommendation
The Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) approve the award of contract(s) to the below listed contractor(s) in the approximate aggregate value of $1,144,799 consisting of an aggregate original contract value of $559,680 for a two (2) year base term; and two (2) option years in the combined amount of $585,119 to provide property management services for Scattered Sites Region Four (SSR4).
The Board further authorizes the CEO to approve each request to exercise the options awarded under the contract.
|
Recommended Awardee |
Base Contract Value |
Base Term |
Option Terms |
Total Contract Value |
|
Manage Chicago, Inc. |
$559,680 |
2 years |
1st Option: $288,236 2nd Option: $296,883 |
$1,144,799 |
|
|
|
|
|
|
|
Total: |
$ |
|
Aggregate Total: |
$1,144,799 |
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 November 2019, a Request for Proposals (RFP) was released to solicit proposals from qualified property management firms experienced in managing and operating low-income, subsidized, affordable, and/or public housing properties. Respondents could apply for any of the twelve packages, which were organized by property type. The scope of work expected of the selected respondents includes those services customarily associated with third-party multifamily housing management including, but not limited to, overseeing occupancy/leasing, marketing, resident selection, resident relations, regularly scheduled resident re-examinations, lease enforcement, rent collection, evictions, routine and emergency maintenance and repairs, management of the grounds and public spaces, budgeting, accounting, and following CHA guidelines regarding procurement, MBE/WBE/OBE, Section 3 and Davis Bacon requirements.
Eight (8) respondents submitted proposals and were reviewed by an evaluation committee of fifteen (15) members broken into three (3) teams of five (5) members each. Proposals were scored on a 100-point scale in the following areas: qualifications and experience, past performance, approach/work plan, organization structure/key personnel, M/W/DBE and Section 3 hiring, and the proposed management fee. Eight (8) of the twelve (12) packages did not have sufficient competition and were canceled. For the remaining four packages, after the evaluation committee completed its evaluation of the proposals, the Contracting Officer approved the competitive range for each package. Oral presentations were held for three (3) firms that were in the competitive range for Package 7 (Scattered Sites), Packages 10, 11 (Senior Housing) and Package 12 (Tax Credit Housing). Following Oral Presentations, Best and Final Offers were requested and received and negotiations held.
Based upon the evaluations of the written proposals, oral presentations, and best and final offers, it was determined that The Habitat Company, Inc. for Packages 10, 11, and 12 and Manage Chicago, Inc. for Package 7 would provide the best overall service and value to CHA. A total of four contracts (one for each package) were awarded for property management services and included management fee compensation.
The previous agreement with Manage Chicago, Inc. is set to expire on August 31, 2025. We are currently soliciting new property management contracts for CHA’s entire residential portfolio. Based on historical performance and proposed pricing, it was determined that Manage Chicago, Inc. will provide the best overall service and value to CHA for SSR4. A new contract will be awarded, and Manage Chicago, Inc. will be compensated at the rates of $55 per unit per month for the base term, $56.65 per unit per month for option year 1, and $58.35 per unit per month for option year 2.
Procurement Activities
CHA used the exigency procurement approach to directly engage a property management firm in compliance with HUD rule CFR 200.320(c)(3) to continue to provide day-to-day uninterrupted management services. Ultimately, continuation of property management services with Manage Chicago is being requested. After reviewing the proposal, Manage Chicago was selected and is recommended for award to provide the property management services at the impacted SSR4 properties.
Diversity Contracting Requirements
The CHA has reviewed the proposed vendors and has determined the vendors utilization plans meets with the CHA’s stated goals.
Manage Chicago, Inc. will satisfy the CHA 20% compliance goal through subcontracting a portion of their contract to two different vendors to meet their M/W/DBE requirement. These vendors include 3 Brothers Landscaping & Snow Services (MBE 6.60%) indirectly and Lopez and Sons (WBE 13.40%) directly. They will satisfy their Section 3 subcontracting goal through subcontracting a portion of their contract (3%) to Lopez and Sons. Lopez and Sons is certified as a 51% Non-ROB tier Section 3 vendor and 3 Brothers Landscaping Snow Service LLC 51% Non-ROB tier Section 3 vendor.
Vendor Background Information
Chris Amatore, CEO 7118 S Yates, Chicago, IL 60649. Manage Chicago, Inc. offers a full range of services, including property management, project management, leasing and maintenance services for apartments, condominiums, and commercial properties. Manage Chicago entered into their initial contract with CHA in 2020 and was awarded additional units in 2021. They currently manage approximately 3,400 units for CHA across Altgeld and two scattered sites properties.
Based on the foregoing, it is in the best interest of CHA for the Board to authorize the CEO or her designee, to enter into a contract for property management services for SSR4 with Manage Chicago, Inc, in the aggregate amount of $1,144,799.
Respectfully Submitted:
______________________
Angela Hurlock
Interim Chief Executive Officer