CTA

New Property Management Contract Awarded for Red Line Extension Project

January 13, 2023

Contract executed with a 60 percent Disadvantaged Business Enterprises (DBE) participation commitment; the first of more to come under historic rail project and as part the agency’s mission to provide equitable opportunities

The Chicago Transit Authority (CTA) today is taking another important step as part of the transformational Red Line Extension (RLE) project with the awarding of a new, four-year property maintenance contract not to exceed $23.5M.

The property management contract was awarded to East Lake Management Group, Inc. by the Chicago Transit Board following a competitive bid process. The initial DBE goal for the contract was 30 percent, however the vendor surpassed that and has committed to a 60 percent DBE participation goal, which translates into more than $14M of the overall contract value being made available to disadvantaged business enterprises. 

“We have always talked about how the Red Line Extension is more than just a transit project, but truly an investment that will provide much needed economic opportunities for the community,” said CTA President Dorval R. Carter, Jr. “This is just the start and CTA will continue to seek out and promote additional contracting opportunities to disadvantaged local businesses throughout the life of this project—all as part of our vision and commitment to provide jobs and equitable opportunities under this historic investment.”

The RLE project has several parcels that will need to be acquired in anticipation of a design build contract being awarded at a future date. CTA will own the parcels before the design builder takes control of them, during this time the contracted property manager will secure and maintain the properties. The outside services from the property manager is necessary due to the effort and timeline obligations that are needed to protect these properties.

In alignment with CTA’s goals, the RLE project is seen as a tool to help strengthen economic prospects for members of the surrounding communities – both through career and business/contracting opportunities. This new contract speaks to that mission, especially since the vendor was able to provide more DBE participation than what was originally planned.

The planned $3.6 billion RLE project will extend the Red Line from the existing southern terminal at 95th Street to 130th Street. As part of this project, four new accessible rail stations will be added, plus a new a modern, efficient railcar storage yard and maintenance facility that will benefit users of the entire Red Line. The 5.6-mile rail line extension will provide long-awaited and much needed connection to jobs, education, commerce, and opportunity, while also serving as a catalyst for economic development that benefits the entire City of Chicago.

CTA will be hosting numerous outreach events leading up to the start of project work to encourage participation by DBE-certified firms and other minority owned firms that wish to participate in the project to meet the DBE goals that will be assessed.

There is an upcoming outreach event in which interested firms can learn more about potential work opportunities on infrastructure projects including the RLE project and many others. The event will take place on Thursday, January 19 from 10 a.m. – 12 p.m. Those interested can learn more here: www.transitchicago.com/diversity-programs/

For more information on this project, visit transitchicago.com/rle.

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