DOJ awards $31M contract for substance abuse services in Tennessee, spanning over a year

Contract Overview

Contract Amount: $31,034 ($31.0K)

Contractor: Council for Alcohol and Drug Abuse Services, Inc

Awarding Agency: Department of Justice

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $85/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 OY8: 10/1/25 - 2/28/26

Place of Performance

Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37405

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $31,034 to COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, INC for work described as: FY26 OY8: 10/1/25 - 2/28/26 Key points: 1. Contract aims to provide essential outpatient mental health and substance abuse services. 2. Competition under SAP suggests a streamlined process, potentially impacting price discovery. 3. Fixed-price contract type offers cost certainty for the government. 4. Performance period aligns with FY26 operational year, ensuring continuity of services. 5. Geographic focus on Tennessee indicates targeted support for a specific region. 6. The award to COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, INC suggests a focus on established providers.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar service contracts within the Federal Prison System or other correctional facilities. The firm fixed-price structure provides predictability, but without insight into the specific services and quantities, assessing true value-for-money is challenging. The absence of a specific dollar amount for the base period and the presence of an 'OY8' designation suggest potential for future modifications or task orders that could alter the overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less extensive competition process than full and open competition. While the exact number of bidders is not specified, SAP is generally used for acquisitions below certain thresholds, suggesting a potentially smaller pool of interested parties. This can sometimes lead to less aggressive pricing compared to highly competitive bids.

Taxpayer Impact: Using SAP may result in slightly higher costs for taxpayers compared to a full and open competition, as the bidding pool is likely smaller.

Public Impact

Inmates within the Federal Prison System in Tennessee will benefit from enhanced mental health and substance abuse treatment. Outpatient services are delivered to address critical behavioral health needs. The geographic impact is concentrated within the state of Tennessee. This contract supports the provision of essential healthcare services within a federal correctional setting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
Lack of detailed service scope makes value assessment difficult.
Potential for scope creep or unpriced work if not managed carefully.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an established provider suggests a focus on reliable service delivery.
Contract duration aligns with operational needs for continuity of care.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically focusing on substance abuse and mental health treatment services. The market for these services within correctional facilities is specialized, often involving providers with experience in secure environments. Benchmarking would involve comparing this contract's value and scope to similar contracts awarded by the Bureau of Prisons or other federal agencies managing correctional populations.

Small Business Impact

The provided data indicates that small business set-aside was not utilized (ss: false) and there is no indication of subcontracting requirements (sb: false). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business participation through subcontracting may be limited unless initiated by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Prison System's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract databases, though detailed performance metrics and cost justifications may not always be publicly accessible.

Related Government Programs

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

Risk Flags

Limited competition may impact value for money.
Scope of services not fully detailed, hindering comprehensive value assessment.
Reliance on SAP may indicate a less robust competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31,034 to COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, INC. FY26 OY8: 10/1/25 - 2/28/26

Who is the contractor on this award?

The obligated recipient is COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, 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 $31,034.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the specific breakdown of services to be provided under this contract, and how does the $31M award reflect the anticipated volume and intensity of these services?

The provided data indicates the contract is for 'Outpatient Mental Health and Substance Abuse Centers' (NA: 621420). However, a specific breakdown of services, such as therapy sessions, medication management, counseling hours, or diagnostic assessments, is not detailed in the summary. The total award amount of $31,034,000 (a) for the period of performance (d: FY26 OY8: 10/1/25 - 2/28/26, with an award start date of 2025-03-01 and end date of 2026-02-28) suggests a significant operational scope. Without a detailed statement of work (SOW) or a breakdown of unit costs and quantities, it is difficult to precisely correlate the award amount to the volume and intensity of services. The 'OY8' designation might imply this is the eighth option year of a larger contract, potentially with established service levels and pricing from previous years.

How does the pricing of this contract compare to similar outpatient mental health and substance abuse services procured by the Federal Prison System or other federal agencies?

Direct price comparison is challenging without access to detailed pricing structures and service volumes for comparable contracts. However, the contract is firm fixed-price (pt: FIRM FIXED PRICE), which generally aims to provide cost certainty. The procurement method, 'COMPETED UNDER SAP' (ct: COMPETED UNDER SAP), suggests it was acquired through Simplified Acquisition Procedures, typically for amounts below full and open competition thresholds. This method might imply less aggressive price competition than a large-scale, full and open bid. To conduct a thorough benchmark, one would need to analyze the per-unit costs for specific services (e.g., per therapy hour, per patient assessment) against historical data for similar contracts awarded by the Bureau of Prisons or other agencies like the Department of Health and Human Services (HHS) or the Department of Veterans Affairs (VA) for their inmate or veteran populations.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance and ensure the quality of mental health and substance abuse services?

The provided summary data does not explicitly list the Key Performance Indicators (KPIs) or specific metrics for evaluating the contractor's performance. However, in federal contracts for healthcare services, particularly within correctional settings, performance is typically assessed against standards related to patient outcomes, adherence to treatment protocols, timely service delivery, patient satisfaction (where applicable and feasible), and compliance with all relevant federal regulations and accreditation standards. The contracting officer's representative (COR) would likely monitor these aspects, and formal performance evaluations would be conducted throughout the contract period. Failure to meet critical performance standards could lead to contract remedies, including termination.

What is the historical spending pattern for outpatient mental health and substance abuse services by the Federal Prison System in Tennessee or similar facilities?

Historical spending data for this specific contract or category within the Federal Prison System in Tennessee is not provided in the summary. To ascertain historical spending patterns, one would need to access federal procurement databases (like USASpending.gov or FPDS) and query for contracts awarded by the Bureau of Prisons (BOP) for 'Outpatient Mental Health and Substance Abuse Centers' or similar service codes (NAICS 621420) within the state of Tennessee over previous fiscal years. Analyzing this data would reveal trends in contract values, number of awards, and primary contractors, providing context for the current $31M award and its duration. Understanding these patterns can help identify fluctuations in demand, changes in service costs, or shifts in contracting strategies.

What is the track record of COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, INC in delivering similar government contracts, particularly within correctional or federal healthcare settings?

Information regarding the specific track record of COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, INC (co: COUNCIL FOR ALCOHOL AND DRUG ABUSE SERVICES, INC) in delivering government contracts is not detailed in the provided summary. To assess their track record, one would need to research their past performance on federal contracts, looking for awards from the Bureau of Prisons, other federal agencies, or state/local government entities for similar services. Key aspects to investigate would include contract values, duration, performance ratings (if available), any past performance issues or disputes, and their experience specifically within secure environments like prisons. A review of their contract history on platforms like USASpending.gov would be the primary method for gathering this information.

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: RFQ-CTS-017-17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 207 SPEARS AVE, CHATTANOOGA, TN, 37405

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $353,980

Exercised Options: $353,980

Current Obligation: $31,034

Actual Outlays: $11,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJBCTS490

IDV Type: IDC

Timeline