DOJ awards $131,720 contract for substance use and mental health services in Memphis, TN

Contract Overview

Contract Amount: $131,720 ($131.7K)

Contractor: AIM Counseling LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $362/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUBSTANCE USE, MENTAL HEALTH AND SEX OFFENDER TREATMENT SERVICES IN MEMPHIS, TN. FIRM FIXED PRICE

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $131,720 to AIM COUNSELING LLC for work described as: SUBSTANCE USE, MENTAL HEALTH AND SEX OFFENDER TREATMENT SERVICES IN MEMPHIS, TN. FIRM FIXED PRICE Key points: 1. Contract aims to provide essential treatment services for individuals within the Federal Prison System. 2. The contract is a Firm Fixed Price award, offering cost certainty for the government. 3. Competition details are limited, but the award was made under SAP (Simplified Acquisition Procedures). 4. The duration of the contract is one year, aligning with immediate service needs. 5. The contractor, AIM COUNSELING LLC, will deliver services in Memphis, Tennessee. 6. This award falls under the Outpatient Mental Health and Substance Abuse Centers industry code.

Value Assessment

Rating: good

The contract value of $131,720 for a one-year period for substance use and mental health services appears reasonable given the specialized nature of the services and the target population within the Federal Prison System. Benchmarking against similar contracts for mental health services within correctional facilities is challenging without more specific data on service intensity and patient volume. However, the firm fixed-price structure provides a degree of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is generally used for acquisitions below the simplified acquisition threshold, suggesting a potentially smaller pool of interested parties. This approach aims for efficiency in smaller procurements.

Taxpayer Impact: Using SAP for this contract likely streamlines the acquisition process, potentially leading to faster service delivery. However, the limited competition inherent in SAP may mean that taxpayers do not benefit from the most aggressive pricing achievable through broader market engagement.

Public Impact

Individuals within the Federal Prison System in Memphis, TN, will benefit from access to substance use and mental health treatment. The services delivered are crucial for rehabilitation and successful reintegration into society. The geographic impact is focused on Memphis, Tennessee, serving the local federal correctional facilities. This contract supports a specialized workforce of counselors and mental health professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP might not yield the best possible pricing for taxpayers.
Lack of detailed performance metrics in the provided data makes assessing service effectiveness difficult.
Dependence on a single contractor for critical services could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Focus on essential mental health and substance use services addresses critical inmate needs.
Contract duration of one year allows for flexibility in future service procurement.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on outpatient mental health and substance abuse treatment centers (NAICS code 621420). The market for these services is substantial, driven by both public and private sector demand for behavioral health support. Federal agencies, particularly those managing correctional facilities, are significant purchasers of such services to meet inmate care requirements. Comparable spending benchmarks would typically involve analyzing per-patient costs or per-service rates for similar government contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, AIM COUNSELING LLC, is likely a small business itself, but this contract does not appear to have been awarded through a small business set-aside program.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program officials within the Department of Justice's Federal Prison System. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract databases, although detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

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
Potential performance variability
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $131,720 to AIM COUNSELING LLC. SUBSTANCE USE, MENTAL HEALTH AND SEX OFFENDER TREATMENT SERVICES IN MEMPHIS, TN. FIRM FIXED PRICE

Who is the contractor on this award?

The obligated recipient is AIM COUNSELING LLC.

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 $131,720.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of AIM COUNSELING LLC in providing similar services to federal agencies?

Information regarding AIM COUNSELING LLC's specific track record with federal agencies is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes in delivering substance use, mental health, or offender treatment services. Without this data, it's difficult to definitively assess their experience and reliability for this specific contract. Further investigation into federal procurement databases like SAM.gov or agency-specific performance records would be necessary to establish their history.

How does the contract value compare to market rates for similar outpatient mental health services in Memphis, TN?

Directly comparing the contract value of $131,720 for one year to market rates for outpatient mental health services in Memphis, TN, is challenging without specific details on the volume and type of services to be provided (e.g., number of sessions, patient caseload, specific therapies). However, the NAICS code 621420 (Outpatient Mental Health and Substance Abuse Centers) suggests a standard industry classification. To benchmark effectively, one would need to analyze average hourly rates, per-session costs, or capitated rates for similar populations and service levels within the Memphis area, considering both commercial and government payer rates. The firm fixed-price nature suggests the government has negotiated a set cost for the defined scope.

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

Primary risks include potential underperformance by the contractor in delivering quality care, which could impact inmate well-being and rehabilitation efforts. Another risk is the potential for cost overruns if the scope of services is not precisely defined or if unforeseen circumstances arise, although the firm fixed-price structure aims to mitigate this. Mitigation strategies likely involve clear performance standards outlined in the contract, regular monitoring by the Bureau of Prisons, and established procedures for addressing deficiencies. The limited competition might also pose a risk if the chosen contractor is not the most capable or cost-effective option available.

How effective are these types of services in improving outcomes for individuals within the Federal Prison System?

Substance use and mental health treatment services are widely recognized as critical components of rehabilitation within correctional systems. Studies generally indicate that providing such services can lead to reduced recidivism rates, improved inmate behavior, better mental health outcomes, and a smoother transition back into the community. The effectiveness of this specific contract will depend on the quality of care provided by AIM COUNSELING LLC, the engagement of the inmate population, and the integration of these services with other aspects of the correctional and reentry process. Measuring effectiveness would require tracking specific metrics related to treatment completion, relapse rates, and post-release outcomes.

What has been the historical spending pattern for substance use and mental health services by the Federal Prison System in the Memphis area?

The provided data does not include historical spending patterns for these specific services in the Memphis area. To analyze this, one would need to query federal procurement databases for contracts awarded by the Bureau of Prisons (or other relevant agencies) in the geographic region over previous fiscal years. This would involve looking for contracts with similar service descriptions (e.g., mental health, substance abuse treatment, offender services) and NAICS codes. Understanding historical spending can reveal trends, identify potential increases or decreases in demand, and provide context for the current contract's value.

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: 15BCTS24Q00000007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 190 GLENWOOD LN, FAYETTEVILLE, GA, 30215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $1,007,650

Exercised Options: $1,007,650

Current Obligation: $131,720

Actual Outlays: $78,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCTS24D00000013

IDV Type: IDC

Timeline