DOJ awards $1.55M for substance use and mental health services in Tucson, AZ

Contract Overview

Contract Amount: $155,150 ($155.2K)

Contractor: Western Alternative Corrections, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-11-01

End Date: 2026-09-30

Contract Duration: 333 days

Daily Burn Rate: $466/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUBSTANCE USE, MENTAL HEALTH, SEX OFFENDER AND MEDICATION ASSISTED TREATMENT SERVICES IN TUCSON, AZ.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of Justice obligated $155,150 to WESTERN ALTERNATIVE CORRECTIONS, INC. for work described as: SUBSTANCE USE, MENTAL HEALTH, SEX OFFENDER AND MEDICATION ASSISTED TREATMENT SERVICES IN TUCSON, AZ. Key points: 1. Contract awarded to Western Alternative Corrections, Inc. for outpatient mental health and substance abuse services. 2. The contract duration is 333 days, with a firm fixed price. 3. This contract falls under the 'Outpatient Mental Health and Substance Abuse Centers' NAICS code. 4. The award was made under the Simplified Acquisition Procedures (SAP) category. 5. The contract is a delivery order, indicating it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The contract value of $1.55 million for a 333-day period for substance use and mental health services in Tucson, AZ, appears to be within a reasonable range for specialized correctional healthcare services. Benchmarking against similar contracts for correctional mental health services in similar geographic areas would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source or limited solicitations, though it may not involve the same level of extensive documentation as full and open competition for larger contracts. The number of bidders is not specified, but SAP is designed to encourage competition among qualified sources. The use of SAP suggests an effort to balance efficiency with competitive sourcing.

Taxpayer Impact: The use of SAP for this contract aims to ensure fair pricing by allowing multiple vendors to bid, while also streamlining the acquisition process for a contract of this size.

Public Impact

Provides essential substance use and mental health treatment to individuals within the correctional system in Tucson, Arizona. Supports the Bureau of Prisons' mission to provide healthcare services to federal inmates. Contributes to public safety by facilitating rehabilitation and reducing recidivism. Creates employment opportunities for healthcare professionals and support staff in the Tucson area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if contractor performance is suboptimal.
Reliance on a single contractor for critical health services.
Ensuring continuity of care upon contract expiration.

Positive Signals

Focus on specialized mental health and substance abuse treatment.
Firm fixed-price contract shifts cost risk to the contractor.
Awarded under a competitive procedure, suggesting potential for good value.

Sector Analysis

The healthcare services sector, particularly within the correctional system, is a significant area of federal spending. This contract for outpatient mental health and substance abuse treatment aligns with the government's responsibility to provide comprehensive care to incarcerated individuals. The market for these services involves specialized providers with expertise in both clinical treatment and the unique demands of a correctional environment. Comparable spending benchmarks would typically be found within the Bureau of Prisons' historical contract data for similar services.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Analysis of small business participation would require further investigation into the specific solicitation and award details. Without this information, it's difficult to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. Accountability measures would include performance monitoring, adherence to service level agreements, and financial audits. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Substance Abuse and Mental Health Services Administration (SAMHSA) Grants
Department of Veterans Affairs Mental Health Services

Risk Flags

Contract performance risk
Staffing and retention challenges
Continuity of care concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $155,150 to WESTERN ALTERNATIVE CORRECTIONS, INC.. SUBSTANCE USE, MENTAL HEALTH, SEX OFFENDER AND MEDICATION ASSISTED TREATMENT SERVICES IN TUCSON, AZ.

Who is the contractor on this award?

The obligated recipient is WESTERN ALTERNATIVE CORRECTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $155,150.

What is the period of performance?

Start: 2025-11-01. End: 2026-09-30.

What is the track record of Western Alternative Corrections, Inc. in providing similar services to federal agencies?

A review of federal contract databases indicates that Western Alternative Corrections, Inc. has a history of providing correctional healthcare services, including mental health and substance abuse treatment, to various federal and state correctional facilities. Their past performance on similar contracts would be a key factor in the Bureau of Prisons' decision-making process. Assessing the quality of their past performance, including any documented issues or commendations, is crucial for understanding the risk associated with this award. Specific details on past performance metrics, such as client satisfaction, adherence to schedules, and budget management on previous contracts, would provide a more robust assessment of their capabilities and reliability for this Tucson-based service.

How does the pricing of this contract compare to similar services in the region or for similar populations?

Benchmarking the pricing of this $1.55 million contract against similar substance use and mental health services for correctional populations in the Tucson, Arizona region, or comparable metropolitan areas, is essential for a value-for-money assessment. Without specific per-patient or per-service cost data, a direct comparison is challenging. However, the firm fixed-price nature of the contract suggests that the contractor has factored in anticipated costs and risks. If the Bureau of Prisons utilized a competitive bidding process under SAP, it implies that multiple proposals were evaluated, and this award was deemed the most advantageous. Further analysis would involve examining the proposed service delivery model and staffing ratios to understand the cost drivers.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks for this contract include potential contractor underperformance leading to service gaps, challenges in recruiting and retaining qualified clinical staff in a correctional setting, and ensuring continuity of care for inmates. The firm fixed-price structure mitigates financial risk for the government by capping costs. The Bureau of Prisons likely mitigates performance risk through contract monitoring, performance standards, and potential penalties for non-compliance. The selection of Western Alternative Corrections, Inc. suggests they were assessed as having the capability and experience to manage these risks. However, ongoing vigilance and proactive contract management by the agency are critical to addressing any emergent issues.

What is the expected effectiveness of the services to be delivered under this contract?

The expected effectiveness of the services hinges on the quality of care provided by Western Alternative Corrections, Inc. and the specific needs of the inmate population in Tucson. The contract aims to provide outpatient mental health and substance abuse treatment, which are critical components of rehabilitation and reducing recidivism. Effectiveness can be measured through various metrics, such as improvements in patient mental health status, reduction in substance use incidents, successful reintegration into the community post-release, and decreased disciplinary infractions within the facility related to these issues. The Bureau of Prisons will likely monitor these outcomes through performance reports and potentially clinical assessments.

How does this contract's value and scope compare to historical spending on similar services by the Bureau of Prisons?

The $1.55 million award for approximately one year of substance use and mental health services in Tucson represents a specific investment within the Bureau of Prisons' broader healthcare budget. To assess its historical context, one would need to compare this value against previous contracts awarded for similar services in other Bureau of Prisons facilities, adjusting for inflation and geographic cost variations. The Bureau of Prisons consistently spends significant amounts on inmate healthcare, including mental health and substance abuse treatment, as these are mandated services. This contract's value should be viewed as part of that larger, ongoing expenditure aimed at meeting the healthcare needs of the federal inmate population.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15BCTS23Q00000004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 S HASTINGS AVE, HASTINGS, NE, 68901

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $980,059

Exercised Options: $980,059

Current Obligation: $155,150

Actual Outlays: $38,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCTS23D00000001

IDV Type: IDC

Timeline