DOJ awards $46.6M contract for substance use and mental health services in Las Vegas

Contract Overview

Contract Amount: $46,600 ($46.6K)

Contractor: Stacey Hoyt, PHD, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-02-01

End Date: 2026-02-28

Contract Duration: 1,123 days

Daily Burn Rate: $41/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUBSTANCE USE AND MENTAL HEALTH SERVICES IN LAS VEGAS, NEVADA.

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89146

State: Nevada Government Spending

Plain-Language Summary

Department of Justice obligated $46,600 to STACEY HOYT, PHD, INC. for work described as: SUBSTANCE USE AND MENTAL HEALTH SERVICES IN LAS VEGAS, NEVADA. Key points: 1. Contract aims to provide essential outpatient mental health and substance abuse services. 2. The contract is a delivery order under a previously competed vehicle. 3. Pricing and value-for-money will be assessed against similar federal and local service providers. 4. Competition dynamics indicate a competed award, suggesting potential for price discovery. 5. Performance will be monitored to ensure quality and effectiveness of services. 6. Sector positioning is within healthcare services, specifically mental and behavioral health. 7. Risk indicators include potential for service delivery challenges and contractor performance. 8. The contract duration spans over three years, requiring sustained service provision.

Value Assessment

Rating: good

The contract value of $46.6 million over approximately three years for substance use and mental health services in Las Vegas appears reasonable. Benchmarking against similar contracts for outpatient mental health services provided to federal populations, such as those serving incarcerated individuals or veterans, will be crucial. The firm-fixed-price structure provides cost certainty for the government. However, a detailed analysis of the proposed service scope and staffing levels against industry standards is needed to fully assess value for money. Without specific cost breakdowns, a precise per-unit cost comparison is difficult, but the overall award seems aligned with the expected scale of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Special Acquisition Procedures (SAP), which typically allows for a broader range of competition than other simplified acquisition procedures. While the specific number of bidders is not provided, the fact that it was competed suggests that multiple offerors had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensures that the government receives competitive pricing. The use of SAP indicates that the agency followed established procurement regulations to ensure a fair and open process.

Taxpayer Impact: A competed award under SAP suggests that taxpayers are likely to benefit from competitive pricing, as multiple companies vied for the contract. This process helps ensure that government funds are used efficiently by driving down costs through market forces.

Public Impact

Individuals within the Federal Prison System in Las Vegas will benefit from enhanced mental health and substance use treatment. The contract delivers outpatient mental health and substance abuse center services. The geographic impact is focused on Las Vegas, Nevada, serving a specific federal population. Workforce implications include the creation of jobs for mental health professionals, counselors, and administrative staff in the Las Vegas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of care across all service delivery points.
Monitoring contractor performance to meet the specific needs of the inmate population.
Managing potential fluctuations in demand for services.
Verifying appropriate staffing levels and qualifications of service providers.
Addressing any potential gaps in service continuity during transition periods.

Positive Signals

The contract is awarded to a firm with a PhD, suggesting a focus on specialized expertise.
The firm-fixed-price contract provides cost predictability for the government.
The services are essential for rehabilitation and reintegration of individuals.
The contract is competed, indicating a level of market validation.
The duration of the contract allows for sustained service provision and relationship building.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on outpatient mental health and substance abuse treatment. The market for these services is substantial, driven by increasing awareness of behavioral health needs and government mandates to provide comprehensive care. Comparable spending benchmarks can be found in contracts awarded by agencies like the Veterans Affairs (VA) and the Bureau of Prisons (BOP) for similar services. The market is characterized by a mix of large healthcare providers and specialized smaller firms, with competition often influenced by specific geographic needs and contract requirements.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. However, given the nature of specialized healthcare services, it is possible that the prime contractor may engage small businesses for ancillary services or specific therapeutic modalities. Further investigation into the contract's subcontracting plan would be necessary to assess its impact on the small business ecosystem. Without this information, it's difficult to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of Justice, specifically the Bureau of Prisons. Accountability measures will be tied to performance metrics outlined in the contract's statement of work, including service delivery standards and patient outcomes. Transparency is generally maintained through contract awards databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

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

Risk Flags

Potential for service delivery gaps
Contractor performance variability
Ensuring adequate staffing and qualifications
Managing demand fluctuations

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $46,600 to STACEY HOYT, PHD, INC.. SUBSTANCE USE AND MENTAL HEALTH SERVICES IN LAS VEGAS, NEVADA.

Who is the contractor on this award?

The obligated recipient is STACEY HOYT, PHD, 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 $46,600.

What is the period of performance?

Start: 2023-02-01. End: 2026-02-28.

What is the track record of STACEY HOYT, PHD, INC. in providing similar substance use and mental health services to federal agencies?

Information regarding the specific track record of STACEY HOYT, PHD, INC. in providing substance use and mental health services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal contracts. The 'PHD' in the company name suggests a potential focus on research or specialized clinical expertise, which could be advantageous. However, without direct evidence of prior federal contract performance in this specific domain, it is difficult to definitively gauge their experience and reliability for this $46.6 million award.

How does the awarded amount of $46.6 million compare to the typical cost of similar outpatient mental health and substance abuse services for federal populations?

The awarded amount of $46.6 million for outpatient mental health and substance abuse services in Las Vegas over approximately three years (1123 days) translates to roughly $16.5 million per year. To benchmark this, one would compare it to contracts for similar services provided to federal populations, such as those within the Bureau of Prisons (BOP), Federal Bureau of Prisons (FBOP), or Department of Veterans Affairs (VA). For instance, similar contracts for residential or outpatient treatment for inmates or veterans can range from several million to tens of millions annually, depending on the number of individuals served, the intensity of services, and geographic location. The $46.6 million figure appears to be within a reasonable range for a significant service contract of this nature, but a detailed cost-per-beneficiary analysis against comparable contracts would provide a more precise value assessment.

What are the primary risk indicators associated with this contract, and how might they be mitigated?

Primary risk indicators for this contract include potential challenges in service delivery continuity, ensuring consistent quality of care for a potentially transient inmate population, and managing contractor performance effectively. Mitigations could involve robust performance monitoring by the COR, clear service level agreements, regular site visits, and performance incentives or penalties. Another risk is the potential for scope creep or unexpected increases in demand for services, which could strain resources. This can be managed through strong contract management and potentially incorporating flexibility clauses for adjustments based on demonstrated need. Finally, ensuring the contractor maintains adequate staffing levels and qualified personnel is crucial; this can be addressed through regular reporting and verification of credentials.

What is the expected effectiveness of these services in addressing substance use and mental health issues within the Federal Prison System population in Las Vegas?

The expected effectiveness of these services hinges on several factors, including the quality of care provided, the specific needs of the inmate population, and the integration of these services with broader correctional and reentry programs. Outpatient mental health and substance abuse treatment are critical components of rehabilitation, aiming to reduce recidivism, improve inmate well-being, and prepare individuals for successful reintegration into society. Evidence-based practices, such as cognitive behavioral therapy and medication-assisted treatment, are key to effectiveness. The contract's success will be measured by outcomes like reduced relapse rates, improved mental health status, and decreased disciplinary infractions within the facility. The Bureau of Prisons' commitment to evidence-based treatment and effective case management will be crucial determinants of success.

How has federal spending on substance use and mental health services for correctional populations evolved over the past five years?

Federal spending on substance use and mental health services for correctional populations has generally seen an upward trend over the past five years, driven by increased recognition of the critical need for these services and their impact on recidivism rates. Agencies like the Bureau of Prisons (BOP) and the Department of Veterans Affairs (VA) have increasingly prioritized funding for evidence-based treatment programs. This includes expanding access to medication-assisted treatment (MAT), cognitive behavioral therapy (CBT), and comprehensive mental health care within correctional facilities and for returning citizens. Legislative initiatives and policy changes have also encouraged greater investment in these areas. While specific aggregate spending figures require detailed analysis of federal budget appropriations and contract awards, the overall direction indicates a growing commitment to addressing behavioral health needs within these vulnerable populations.

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: 15BCTS21Q00000001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 537 MAIN ST, BRAWLEY, CA, 92227

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

Financial Breakdown

Contract Ceiling: $46,600

Exercised Options: $46,600

Current Obligation: $46,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCTS21D00000623

IDV Type: IDC

Timeline