Houston – KPRC 2 Investigates’ deep dive into questionable contracts at the Houston Housing Authority revealed the agency paid some small businesses millions with no significant work history millions of dollars.
The $5.4 million question: Who got paid?
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Elite Project Managers, LLC and Lemontre Woods received most of the money, more than $1.3 million dollars, to install window air conditioning units at three Houston housing projects beginning last fall.
22 other businesses received smaller pieces of the pie that cost taxpayer a total of $5.4 million.
One of those businesses is a Chicago-based design and fashion company called Bragger Company, LLC. We told you that HHA President & CEO David Northern told me that he knew the owner of Bragger Company, Jonathan Stephens- prior to the AC project. When I asked Stephens by phone why he would even want to install window AC units thousands of miles away in Houston, he hung up on me. Like most investigations, there is much more to this story.
Kevin Calvin is the owner of TPMG (The Project Manager Group). Calvin told us he went to the pre-bid meeting at the Houston Housing Authority because he was interested in getting work installing the window units. At that initial meeting, Calvin said HHA construction manager Marquis Barnes invited him to have a drink. That’s when Calvin says Barnes asked him if he would also do some of the window unit installations for the Bragger Company out of Chicago.
How small businesses scored big contracts
Calvin said the way Barnes explained it was that the company needed someone in Texas with the laborers and know-how to do the work. Calvin said Barnes introduced him to Stephens. Calvin says he spoke with Stephens by phone and email, negotiating how much money Stephens would get for each unit that Calvin installed for Bragger Company.
Before Calvin agreed, he said he received an email from HHA Procurement Manager Austin Crotts on October 4th letting him know that Bragger was not eligible for a contract because the business was not registered in the state of Texas.
Calvin said Barnes called him and told him to keep and install the AC units he had planned to install on behalf of Bragger for his own company. Calvin said he did those installations; but he was blindsided when he learned the HHA paid Jonathan Stephens and Bragger Company for the work. Copies of checks KPRC 2 News received show the HHA paid Jonathan Stephens $28,152.00.
While Barnes, Northern and Stephens are refusing to answer our questions, Calvin has provided documents that seem to back up his story.
Sept. 15: Public records show that Jonathan Stephens, owner of Bragger Company, signed the contract with HHA on Sept.15.
On the same day, Stephens sent a letter to the HHA asking them to release his work materials and checks to Kevin Calvin.
Oct. 4: HHA procurement manager Austin Crotts sent a letter to Stephens letting him know since Bragger was not a registered business in Texas, Stephens needed to provide proof of registration, or his contract would be terminated.
Oct. 9: Stephens registered his company with the Texas Secretary of State, explicitly stating the purpose was “contract business with the Houston Housing Authority.” On this same government filing, Stephens listed Kevin Calvin as the “registered agent” for Bragger Company.
It wasn’t until later in October that Calvin says he discovered HHA paid the Bragger Company for the AC units his company installed. Calvin complained and wrote an email to HHA’s Northern and VP of General Counsel explaining what happened, demanding the money for the work he did. Instead of a response from either, Calvin received this letter from a third party attorney who told him HHA hired him to handle the matter.
Calvin showed up at a Houston Housing Authority Board meeting in February to explain what happened to the newly appointed board of commissioners. As soon as he started speaking during the public comment portion of the meeting, a security guard escorted him out of the building.
We are still working on the Houston Housing Authority investigation. You can catch the latest news here.
If you have any questions or tips, email Amy Davis at ADavis@kprc.com.
