Home / Case Study RE125: Procurement Services in Support of the PHA’s Moving to Work Demonstration Program

Case Study RE125: Procurement Services in Support of the PHA’s Moving to Work Demonstration Program

Moving to Work
Client:

Chicago Housing Authority

Project Name:

Housing Choice Vendor Project

Market:

Federal Government

Project Description:

The Chicago Housing Authority (CHA) is a municipal corporation which administers federal housing programs for low and very low income families. The CHA receives funding from the United States Department of Housing and Urban Development (“HUD”) and is entitled to apply for additional funding to construct, acquire, modernize, maintain and operate housing developments.  In addition, the CHA administers federal housing programs that include conventional, rental assistance or community development components. The CHA instituted the Plan for Transformation, which drives the CHA business, policy, and organizational initiatives. The Plan is supported by $1.5 billion in capital funds and articulates the CHA’s vision – to move from being an owner and manager of public housing to that of a facilitator of housing opportunities.

The CHA contracted the running of its Section 8 programs, primarily the Housing Choice Voucher Program (HCVP) to an outside consulting company. Prior to the contract expiration, CHA needed the external expertise of a third party firm with appropriate industry experience to assist CHA by creating different organizational and management scenarios by which the HCVP could be run; identifying vendors who could operate under those different scenarios; assist in the assessment and selection of one scenario; assist in the creation and distribution of RFP(s) to obtain bids from qualified vendors; assist in the selection of one or more vendors; and act as project management of the transition process from the current vendor to one or more new vendors. The firm Nan McKay and Associates, along with North American Management as a sub-contractor was selected.

With the single mission of re-competing the outsourcing of their Housing Choice Voucher Program contract, strict time constraints, the lack of a qualified vendor pool, the qualitative value of the contract, and the explicit requirement to save money, North American Management was tasked with developing a strategic plan to (a) identify strategies to enhance vendor competition and responses, to include “unbundling” the incumbent contract; (b) on behalf of CHA, write two Request for Proposals; (c) on behalf of CHA, respond to vendor inquiries and draft the government’s response; (d) to strategically conduct vendor negotiations, consistent with the stated goals and objectives; and (e) to assist the CHA to contract execution with the successful vendors.

North American Management, on behalf of CHA, proficiently executed two RFPs for the seamless and integrated management of the HCVP. Executed CHA’s strategic goals and objectives by “unbundling” existing services so that a greater and more diverse pool of vendors, including small and Minority Business Enterprises were able to successfully compete on the RFPs. Made specific and concise recommendations to the CHA in the evaluation and ranking of qualified vendors upon review of submitted proposals. Based on the CHA stated goals and the Project Team Strategic Plans, on behalf of the CHA, conducted vendor oral presentations and Best and Final negotiated offers, in which the stated goal to save money was achieved, and two prime vendors were selected, one of which was a small Minority Business Enterprise. 

For more information:

Division Director, Housing & Community Revitalization

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