City of Milwaukee - File #: R13506

• File #: R13506
• Version: 0
• Type: Housing Authority Resolution
• Status: In Commission
• File created: 10/7/2024
• In control: HOUSING AUTHORITY
• On agenda: 10/9/2024
• Final action: 10/30/2024
• Title: Resolution approving an award of contract to CVR Associates, Inc. for the management and operation of the Housing Choice Voucher Program
• Sponsors: THE CHAIR

Date	Ver.	Action By	Action	Result	Tally
10/30/2024	0	HOUSING AUTHORITY	ADOPTED; Minutes note: Ken Barbeau, HACM’s Chief Operating Officer – Program Services, and Dena Hunt, HACM’s Chief Operating Officer – Real Estate and Housing, answered Commissioners' questions about the utilization of subcontractors, the surveying of tenants and landlords for feedback on services, and the training and hiring of current HCV program staff.	Pass	4:0
10/11/2024	0	HOUSING AUTHORITY	HELD IN COMMISSION; Minutes note: Ken Barbeau, Chief Operation Officer – Program Services, directed the Board to a 16-page document provided with the agenda that outlined the Request for Proposal (RFP) process for the Management and Operation of the Housing Choice Voucher Program (HCV). The document describes the entire process, including the analysis of the six proposals that were submitted and why staff is recommending awarding the contract to CVR Associates Inc. Mr. Barbeau explained the hire of a highly qualified third-party contractor was one of the main corrective actions from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division (QAD) Corrective Action Plan, which required several corrective actions to improve the performance of the HCV program. The RFP scope of work also included a 100% Participant File Review. Mr. Barbeau further explained that working with HUD’s Quality Assurance Division, and the HUD field office, HACM drafted an RFP which involved operating the entire HCV program. An RFP was issued in January 2024 and the responses were due back on March 8, 2024. Mr. Barbeau shared a few details of the RFP, which included the requirement that the fee to manage and operate the program could not exceed 80% of the amount of the annual Administrative Fee which HACM receives from HUD. It also included that the awardee must operate a local office, with local staff hired in Milwaukee. HACM offered their current Section 8 office location to whomever the ultimate contractor would be. He continued that the two final top-scoring contractors were invited back for a second interview and were asked to submit financial reports for HACM’s Evaluation Committee to assess. In addition, HACM also vetted references for past performance with other housing authorities where they have done similar work. The review committee also worked with the two finalists to create an initial draft of contract language. Mr. Barbeau concluded that after a very thorough process, the Evaluation Committee is recommending the highest-scoring proposal, from CVR Associates, Inc. (CVR) based on the overall analysis. The following were some of the points which the Evaluation Committee found notable. CVR has 30 years of experience working on similar projects for housing authorities. The evaluators were impressed by CVR’s processes, systems and metrics, especially those of ongoing concern in HACM’s Corrective Action Plan, as well as their quality control, and customer service. CVR has a good history of improving their clients to high-performer status. This includes long-term clients, such as Chicago’s South Side Voucher Program, New York State Homes and Community Renewal, and Buffalo Municipal Housing Authority who have remained with CVR even after the contract has ended. CVR’s final score was 91.08 points compared to Quadel Consulting and Training LLC’s score of 85.59 points. Mr. Barbeau responded to extensive questions from the Commissioners, some of which covered CVR’s history of rent payments to landlords, property inspections, Emerging Business Enterprise percentage participation, CVR’s transparency with the Board, and whether CVR fairly evaluated HACM’s needs. Lastly, Mr. Barbeau introduced the individual who will be handling the relationship between HACM and CVR. Dena Hunt, HACM’s Chief Operation Officer - Real Estate Operations, summarized her history of performance with the Milwaukee County Rent Assistance Program, and the HUD Quality Assurance Division, specifically working to help troubled housing authorities get to standard status and then to high-performer status. Ms. Hunt stated that she is committed to HACM and understands the directives she is facing, knowing that there are some challenges ahead as well. Commissioners inquired if CVR Associates, Inc. and Quadel Consulting and Training LLC are owned by the same company. They also requested more information on CVR’s subcontractors, whether a landlord participant and a resident council could be created, and if CVR could be a part of those meetings. Lastly, Commissioners asked if staff could provide feedback from CVR and Quadel’s HCV participants with their current clients regarding the customer service component. Mr. Barbeau stated that he would provide the information to the Board shortly after the meeting. Vice Chair VandeBerg proposed a motion authorizing staff to move forward with negotiations on the contract and for staff to come back to the Board with answers to the questions identified during the Board meeting. Vice Chair VandeBerg made a motion to hold over R13506, seconded by Commissioner Yepez-Klassen, there being no objections, this motion carried.	Pass	4:0
10/9/2024	0	HOUSING AUTHORITY	HELD IN COMMISSION; Minutes note: Vice Chair VandeBerg made a recommendation to hold item R13506 until feedback was received from Commissioner Luckett. She asked if Mr. Barbeau, who would be presenting the item, would like to present or defer until a later time when the item would be brought back to the Board. Ken Barbeau, HACM’s Chief Operating Officer of Program Services, stated that HUD has wanted the item, however, if the Board is going to hold until Commissioner Luckett is present, he will defer his presentation until then. Mr. Hines commented that because of the sensitive timeframe of this item, it may be wise to have a meeting before the November Board meeting. Vice Chair VandeBerg recommended scheduling a special board meeting to cover this item before the November meeting. She also noted her appreciation of the analysis and the work the Evaluation Committee has put in place for this contract. Vice Chair VandeBerg made a motion to hold over R13506, seconded by Commissioner Yepez-Klassen, there being no objections, this motion carried.	Pass	4:0

Number

13506

Version

Original

Reference

Sponsor

The Chair

Title

Resolution approving an award of contract to CVR Associates, Inc. for the management and operation of the Housing Choice Voucher Program

Analysis

Body

WHEREAS, the Housing Authority of the City of Milwaukee (HACM) is currently under a Corrective Action Plan with the Quality Assurance Division (QAD) of the U.S. Department of Housing and Urban Development (HUD); and

WHEREAS, two of the corrective actions requested by HUD included: (1) the contracting of the management and operation of the entire Housing Choice Voucher (HCV) program to an outside contractor; and (2) the contracting of a 100% participant file review to ensure all documentation and calculations are correct with all participant files; and

WHEREAS, to address the corrective actions, HACM issued a Request for Proposals (RFP) on January 19, 2024 seeking proposals from highly-qualified professional consulting and management firms or highly-qualified public housing authorities to manage and operate all of the key functions of HACM’s entire HCV program, with proposals due on March 8, 2024; and

WHEREAS, proposals were due on March 8, 2024 and HACM received six proposals; and

WHEREAS, HACM formed an evaluation committee to review the proposals in accordance with the evaluation process outlined in the RFP, with evaluation factors in the RFP that include:  Team Expertise/Firm Experience; HCV Management Plan; and Past Performance; and

WHEREAS, based on a review of proposals, interviews with the Proposers, financial review, reference checks, and draft contract negotiations, HACM staff are recommending approval of a contract with CVR Associates, Inc. (CVR) to manage and operate the entire Housing Choice Voucher program; and

WHEREAS, the term of the contract shall be for an initial term of five (5) years with an option to extend the contract for an additional three (3) years for a potential total term of eight (8) years, and that the option to extend for another 3 years shall be at the sole discretion of HACM; and

WHEREAS, the cost related to the services as proposed by CVR for the management and operation of the HCV program as a percentage of the administrative fee received by HUD are 86% of Administrative Fee for Year 1, 81% for Year 2, 79% for Year 3, 78% for Year 4, 78% for Year 5, resulting in an average of 80% of the administrative fee for the five years, with an additional transition fee of $84,000 payable in the first year of the contract; and

WHEREAS, the cost related to the 100% participant file review was a not-to-exceed amount of $989,843; and 

RESOLVED, by the Commissioners of the Housing Authority of the City of Milwaukee that they hereby authorize and approve entering into a contract(s) with CVR Associates, Inc. for professional services to manage and operate the Housing Choice Voucher program and for the 100% participant file review required by the Corrective Action Plans with HUD; and be it

FURTHER RESOLVED, that funds for these services will come from HCV administrative funds received from HUD; and, be it

FURTHER RESOLVED, that the proper officers of the Housing Authority, including counsel and other designees, be and hereby are authorized and directed to properly finalize and execute said contract for and on behalf of the Housing Authority; and, be it

FURTHER RESOLVED, that all of above is contingent upon receiving the approval of the U.S. Department of Housing and Urban Development, if required; and, be it

FURTHER RESOLVED, that all acts previously performed relative to this matter by the Commissioners and the Secretary-Executive Director of the Housing Authority be and hereby are approved, ratified, and confirmed in all respects.

Requestor

Drafter