SSJF Develop Supportive Housing - B-51449 SPO approved.pdf

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Sole Source Justification Form Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229 Ellen.H.Daley@illinois.gov

• Co-convene in Housing Forums

• Develop & implement consumer assessment process

• Maintain current Bridge Program policy and procedures

• Support Housing Location Team

• Ensure Consumer Satisfaction

• Develop DMH & mental health agency understanding of Permanent Supportive Housing (PSH) models, financing & best practices

• Engage additional developers & property managers in PSH creation for class members and assist with class member referral/placement into units

• Foster partnerships & creative financing strategies

• Create and implement policy to develop PSH for Williams Consent Decree and subsequent settlements

The consent decree requires that the state provide resources to facilitate Williams and Colbert Class Members transition into Permanent Supported Housing or alternatives in the community of their choice. While many class members utilize the Bridge Subsidy, this assistance is intended to be a temporary "bridge" to other long term option such as SRN or HUD funded units. A vendor is necessary to manage the SRN/HUD 811 unit placement in order to provide timely and efficient access.

Additionally, to meet the needs of the class member population as required by the consent decrees, housing capacity must increase significantly across the state. A vendor is necessary to support this work of local, state, and federal coordination.

Q2Answer: The vendor will work extensively with DBHR's Consent Decree Diversion Administrator, the Divisions' Statewide Housing Coordinator, the local Regional Contract Monitors and the DBHR Executive staff to enhance vendor established partnerships and foster new partnerships with developers, local vendors, and property management entities that promote the identification and development of Permanent Supportive Housing. The vendor, through partnership's, will develop strategies to enhance access to open market rental housing stock (units) as a means to expand the portfolio of potentially available apartments for the Permanent Supportive Housing models' expansion. The vendor will possess comprehensive knowledge of creative financing strategies within the external array of diverse audiences in the world of housing development, including independent financing entities, housing developers, the Illinois Housing Development Authority (IHDA), local Housing Authorities, and the federal Housing and Urban Development (HUD). This knowledge is essential for the State of Illinois to advance affordable housing stock.

The vendor will also provide dedicated staff that will work with DBHR staff to facilitate the application, matching, referral, and placement of eligible persons to units made available through the Statewide Referral Network and PAIR system to increase utilization of IHDA financed units set aside for this purpose. While the Statewide Referral Network has grown in the number of units, partner properties, and applicants over the past several years - there has been no investment in additional personnel dedicated to the increased need for facilitating the referral process by working with care managers, property managers, the PAIR system software vendor, and state staff at DHS and IHDA.

The vendor will collect and add to existing data on housing utilization and housing satisfaction outcomes for DBHR in its model of Permanent Supportive Housing. The continued collection of data and addition to the existing informational database is vital.

The list of specific activities below is not exhaustive and more details on deliverables can be found in "Attachment A".

Co-convene Housing Forum;

Ongoing development and implementation of consumer assessment process;

Maintain and manage DBHR Bridge Online Data System;

Support Housing Location Team;

Ensure consumer satisfaction;

Ongoing development of DBHR and mental health agency understanding of PSH models, financing and best practices;

Engage additional developers and property managers in PSH creation for class members;

Foster partnerships and creative financing strategies; and Support statewide housing coordination activities.

Q3Answer: The State (DBHR) needs these services to be provided by the vendor with a high level of professional and subject matter expertise to assist and guide the processes for expansion or development of housing model options. Failure to achieve the court-mandated benchmarks toward the mandated access and supply of housing will result in a finding of non-compliance with the Williams and Colbert Consent Decrees which may subject the State into federal court receivership.

CSH is a key contributor to assisting DHS/DBHR in streamlining service provision and access to housing resources in order to more effectively and efficiently serve Class Members in their transition from SMHRF or Nursing Facility to Community-Based settings.

CSH has the unique access, qualifications, relationships, and experience necessary to provide additional personnel for referral management in lieu of adding additional DHS staff reporting to the Statewide Housing Coordinator and Waitlist Manager for this purpose.

Q4Answer: The CSH is highly visible and recognized at the federal level as the national expert in Permanent Supportive Housing pursuits, financing strategies, operational designs and management. The Corporation of Supportive Housing is locally based in Chicago where the majority of the residents of the Williams & Colbert vs. Pritzker settlement choose to reside. As such, they have a comprehensive understanding and fully appreciate the rental housing stock market and the diversity of community areas; as well as established working relationships with a broad spectrum of developers and property management entities, including local Housing Authorities.

The Corporation for Supportive Housing (CSH) has worked extensively with DBHR for the past several years to develop this model and create an infrastructure data collection system, and has a comprehensive understanding of the needs, the system barriers and obstacles faced in Illinois. More so, the CSH has developed relationships and partnerships fostered to help promote this model. CSH has staff and resources dedicated to this model and system and has assisted DBHR in designing and managing its Permanent Supportive Housing model's expansion.

CSH also manages the DBHR Bridge Online Data System - for which they alone have access to the data system and hold the contract with the software vendor. Selecting another vendor would require archiving the historical data into a different format which would drastically limit the potential access and use of this data.

CSH also has the only non-state employee staff members with approved administrative access to the PAIR system of the Statewide Referral Network for matching available IHDA financed units and works with providers to provide ongoing development of their internal processes for managing their PAIR applications effectively, along with all other aspects of housing location services.

The housing policy and process development is ongoing – at the very least until the state is able to come into full compliance with the Consent Decrees. It is also cumulative - meaning that policy changes are made every year to improve the service delivery system. As other changes/improvements are made to the Comprehensive Class Member Transition Program, Medicaid waivers, Statewide Referral Network, Capacity Development Plans, etc., the housing policies, practices, processes, and trainings have to be responsive to those changes. CSH has collected and analyzed housing data based on what they learned through working with the providers on their internal processes in order to recommend system-wide changes/improvements to the programs to help improve housing and transition outcomes. Housing/transition outcomes for the Consent Decrees have improved over the last year as a result – though more improvement is needed before we reach full compliance status and can exit the Consent Decrees.

To reinvent this relationship at this stage in the implementation planning for the Consent Decrees would further delay the most pressing needs which are to meet the intent of this active settlement. It would take a new vendor multiple years to orient themselves to the current and historical policies and processes, as well as to develop the staffing and capacity needed to fulfill the requirements of this contract.

CSH is the only potential vendor that possesses a consistent work history with multiple states that demonstrates housing development strategies and systems, is nationally published and utilized as national experts and consultants by other states in addressing a wide variety of housing development, has executive management staff with as substantial work experience in housing development, has a history of sponsoring/hosting national learning institutes and/or conferences, has a training curriculum that is the preeminent go-to resource nationally for all topics related to supportive housing, has an established national recognition of housing and housing related expertise that allows the vendor to immediately provide technical assistance and consultation to DHS/DBHR staff as requested, has a substantial local presence/office with staff currently working with housing systems in Illinois, and has the intimate and comprehensive institutional knowledge of and experience working with the state programs and systems of care in Illinois charged with providing/developing supportive housing and coming into compliance with the Williams and Colbert Consent Decrees.

CSH is also the IHDA selected vendor for the Illinois Supportive Housing Institute funded through the Illinois Affordable Housing Trust Fund to provide targeted training and technical assistance that will result in viable supportive housing project development proposals to IHDA’s Permanent Supportive Housing development financing round and other available funding sources, offer post-institute technical assistance, and offer participants the opportunity to apply for early pre-development financing through CSH’s Project Initiation Loan Fund – a unique resource that CSH brings to the table. Furthermore, CSH also has the only non-state employee staff members with approved administrative access to and significant training for the PAIR system of the Statewide Referral Network, established through an intergovernmental agreement between DHS, IHDA, HFS, and the Department of Aging.

We have found no other potential vendor that could meet the selection criteria or match the qualifications/expertise of CSH. Transitioning to a new vendor would require substantial onboarding, re-creation of institutional knowledge, and renegotiation of operational protocols, creating an unacceptable risk of disruption to compliance-critical housing activities.

An increase in funding was issued in FY23 due to additional staff that worked with IDHS' Waitlist Manager, under the direction of the Statewide Housing Coordinator, to facilitate the application, matching, referral, and placement of eligible persons to units made available through the Statewide Referral Network and PAIR system to increase utilization of IHDA financed units set aside for this purpose. The Statewide Referral Network has grown in the number of units, partner properties, and applicants over the past several years - up until FY22 there has been no investment in additional personnel dedicated to the increased need for facilitating the referral process by working with care managers, property managers, the PAIR system software vendor, and state staff at DHS and IHDA.

The increase requested in FY27 reflects a 4% cost of living adjustment for the full-time staff at CSH. They have reduced higher leadership time devoted to the project and added an intern to continue to complete the work at a more reasonable rate. Because of the unique consent decree work and depth of institutional knowledge, it is not possible to do a direct cost comparison with other contracts. However, the rates are similar in publicly available public housing authority contracts for support work.

Breakdown of hourly rates by title and any other pricing:

Managing Director - $265 per hour * 18 hrs. (Estimated # of Hours) = $2,650 Director - $189 per hour * 350 hrs. (Estimated # of Hours) = $68,250;

Associate Director - $165.00 per hour * 400 hrs. (Estimated # of Hours) = $66,000;

Senior Program Manager - $150 per hour * 2950 hrs. (Estimated # of Hours) = $442,500;

Program Manager - $115 per hour * 2900 hrs. (Estimated # of Hours) = $333,500;

Program Coordinator/Assistant Program Manager - $95 per hour * 0 hrs. (Estimated # of Hours) = $0;

Intern - $20 per hour * 600 hrs. = $12,000 annually;

Consulting/Subcontracts/Data Entry/Consumer Stipends - $30,000 annually;

Technology - $850 annually;

Travel - $1000 annually;

Overhead on Non-Personnel Costs - $6,370