DOJ's Salvation Army Contract for Residential Care Totals $4.1M for FY26

Contract Overview

Contract Amount: $4,096,315 ($4.1M)

Contractor: THE Salvation Army

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POP 10/01/25 - 09/30/26

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60651

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $4.1 million to THE SALVATION ARMY for work described as: POP 10/01/25 - 09/30/26 Key points: 1. Contract awarded to The Salvation Army for residential care services. 2. Full and open competition was utilized for this award. 3. The contract value is $4.1 million for a one-year period. 4. Services are for the Federal Prison System / Bureau of Prisons. 5. The North American Industry Classification System (NAICS) code is 623990.

Value Assessment

Rating: good

The contract value of $4.1 million for a one-year period appears reasonable for residential care services. Benchmarking against similar contracts for correctional facility support or community-based residential programs would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes market efficiency and can lead to cost savings.

Public Impact

Provides essential residential care services for individuals within the federal prison system. Supports the Bureau of Prisons' mission to manage and care for federal inmates. The Salvation Army's involvement suggests a focus on rehabilitation and community reintegration services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or service expansion beyond initial contract terms.
Reliance on a single provider for critical residential services.
Ensuring consistent quality of care across all service delivery points.

Positive Signals

Award to a well-established and reputable organization (The Salvation Army).
Utilizes full and open competition, promoting fairness and potential cost savings.
Clear contract period and defined services.

Sector Analysis

The contract falls under the 'Other Residential Care Facilities' sector (NAICS 623990). Spending in this sector often relates to social services, rehabilitation, and correctional support. Benchmarks would typically be assessed against similar government contracts for inmate support or community-based residential programs.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight will be crucial to ensure The Salvation Army meets all contractual obligations and service quality standards. The Department of Justice and the Bureau of Prisons should have established mechanisms for monitoring performance and addressing any issues.

Related Government Programs

Other Residential Care Facilities
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for service quality variations.
Dependence on a single contractor for critical services.
Ensuring adequate oversight for a firm fixed-price contract.
Risk of contractor performance issues impacting inmate rehabilitation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.1 million to THE SALVATION ARMY. POP 10/01/25 - 09/30/26

Who is the contractor on this award?

The obligated recipient is THE SALVATION ARMY.

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 $4.1 million.

What is the period of performance?

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

What specific residential care services are included in this contract, and how do they align with the Bureau of Prisons' inmate needs?

The contract specifies 'Other Residential Care Facilities' (NAICS 623990), implying services beyond basic housing. This could encompass transitional housing, halfway house programs, or specialized care. A detailed review of the Statement of Work (SOW) is necessary to understand the exact services, such as counseling, job training, and substance abuse support, and to confirm their alignment with the Bureau of Prisons' inmate rehabilitation and reintegration objectives.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective service delivery?

Effective service delivery hinges on clearly defined KPIs and robust measurement. For residential care, KPIs might include recidivism rates of participants, successful completion of programs, participant satisfaction surveys, and adherence to safety and security protocols. The Bureau of Prisons should have a structured performance monitoring plan, including regular reporting, site visits, and feedback mechanisms, to ensure the contractor consistently meets or exceeds these performance standards.

How does the firm fixed price structure impact the government's ability to manage costs and ensure value for money, especially if unforeseen circumstances arise?

A firm fixed price (FFP) contract establishes a ceiling price, making costs predictable for the government. However, it places the risk of cost overruns on the contractor. For this contract, FFP ensures the $4.1 million budget is adhered to unless contract modifications occur. Value for money is achieved if the contractor delivers the specified services within budget. The government must ensure the SOW is comprehensive to avoid change orders that could increase costs.

Industry Classification

NAICS: Health Care and Social Assistance › Other Residential Care Facilities › Other Residential Care Facilities

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15BRRC22R00000008

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 825 N CHRISTIANA AVE, CHICAGO, IL, 60651

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

Financial Breakdown

Contract Ceiling: $4,096,315

Exercised Options: $4,096,315

Current Obligation: $4,096,315

Actual Outlays: $1,374,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BRRC23D00000021

IDV Type: IDC

Timeline