CTA awards four-year property maintenance contract to East Lake Management Group

Jan. 19, 2023
The contract is not to exceed $23.5 million as part of the Red Line Extension project.

The Chicago Transit Authority (CTA) has awarded of a new, four-year property maintenance contract not to exceed $23.5 million as part of the Red Line Extension (RLE) project.

The property management contract was awarded to East Lake Management Group, Inc. by the Chicago Transit Board following a competitive bid process. The initial Disadvantaged Business Enterprise (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 $14 million 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 are 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 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 a 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.