DOJ awards $1.7M contract for residential care facilities, with full and open competition

Contract Overview

Contract Amount: $1,716,775 ($1.7M)

Contractor: Cherry Street Services Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FUNDING ONLY ACTION.

Place of Performance

Location: GRAND RAPIDS, KENT County, MICHIGAN, 49503

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $1.7 million to CHERRY STREET SERVICES INC for work described as: FUNDING ONLY ACTION. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for residential care facilities, a critical service for the Federal Prison System. 3. The duration of the contract is one year, with a potential for extension. 4. The contract type is Firm Fixed Price, which provides cost certainty for the government. 5. The award amount is $1.7 million, representing a significant investment in inmate support services. 6. The contractor, Cherry Street Services Inc., will provide services in Michigan.

Value Assessment

Rating: good

The contract value of $1.7 million for a one-year period for residential care facilities appears reasonable given the nature of the services. Benchmarking against similar contracts for correctional support services would provide a more precise assessment. The firm fixed-price structure helps manage cost risks for the government. Further analysis would involve comparing the per-unit cost of care or specific service components to industry standards and historical government pricing for similar facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service quality. The open competition suggests that the Bureau of Prisons sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives competitive pricing for essential services.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of residential care facilities. The services delivered will support the rehabilitation and management of individuals in correctional facilities. The geographic impact is focused on Michigan, where the services will be physically provided. The contract supports the operational needs of the Bureau of Prisons, contributing to its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Limited insight into the contractor's past performance with similar federal contracts.
Geographic concentration in Michigan may limit broader applicability or scalability insights.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type offers cost predictability.
Contract duration of one year with potential for extension allows for flexibility.

Sector Analysis

The contract falls within the 'Other Residential Care Facilities' category, which is part of the broader healthcare and social assistance sector. This sector is vital for government operations, particularly within correctional systems. Spending in this area is often driven by inmate population needs and rehabilitation programs. Comparable spending benchmarks would typically involve analyzing per-diem rates for similar facilities or the total cost of inmate support services across different federal agencies.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. Therefore, the direct impact on the small business ecosystem through set-asides is nil. However, the prime contractor, Cherry Street Services Inc., may engage small businesses as subcontractors, which would be a positive indirect impact, though this information is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Federal Prison System Operations
Inmate Support Services
Residential Treatment Facilities
Correctional Healthcare Services

Risk Flags

Lack of detailed performance metrics.
Limited information on contractor's past performance.
Specific services provided are not detailed.
Number of bidders not specified for competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.7 million to CHERRY STREET SERVICES INC. FUNDING ONLY ACTION.

Who is the contractor on this award?

The obligated recipient is CHERRY STREET 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 $1.7 million.

What is the period of performance?

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

What is the track record of Cherry Street Services Inc. with federal contracts, particularly within the Department of Justice or Bureau of Prisons?

Information regarding the specific track record of Cherry Street Services Inc. with federal contracts, especially within the Department of Justice or Bureau of Prisons, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes from federal procurement databases. Understanding their experience with similar residential care services and their ability to meet federal standards is crucial for evaluating future performance. Without this historical data, it is difficult to definitively assess their reliability and capability for this specific award.

How does the awarded amount of $1.7 million compare to the average cost of similar residential care facilities for federal inmates?

The awarded amount of $1.7 million for a one-year contract for residential care facilities needs to be benchmarked against industry standards and historical government spending for similar services. Without specific details on the number of beds, the level of care provided, or the geographic location's cost of living, a precise comparison is challenging. However, this figure represents a significant investment. To assess value for money, one would typically look at the per-inmate, per-day cost and compare it to national averages for correctional facility services or specialized residential treatment programs. If this amount falls within or below typical ranges for comparable services, it suggests good value; if it is substantially higher, it may warrant further scrutiny.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, contracts for residential care facilities would include detailed metrics related to inmate well-being, safety, program participation, staff qualifications, facility maintenance, and adherence to regulatory standards. These KPIs and SLAs are essential for the Bureau of Prisons to monitor the contractor's performance and ensure the quality and effectiveness of the services provided. Without them, assessing the contractor's accountability and the overall success of the service delivery is limited.

What is the historical spending pattern for residential care facilities by the Federal Prison System or the Department of Justice?

Analyzing historical spending patterns for residential care facilities by the Federal Prison System (FPS) or the Department of Justice (DOJ) is crucial for contextualizing the current $1.7 million award. This involves examining past contract values, durations, and the number of facilities or services procured over several fiscal years. Trends in spending can reveal whether the FPS/DOJ is increasing or decreasing its reliance on external providers for these services, and whether costs are rising or falling. Understanding these patterns helps in assessing if the current award is consistent with historical investment levels or represents a significant shift in strategy or budget allocation.

What specific types of residential care are being provided under this contract (e.g., substance abuse treatment, halfway house services, mental health support)?

The provided data categorizes the contract under NAICS code 623990, 'Other Residential Care Facilities,' and the description mentions 'Residential Care Facilities.' This broad classification does not specify the exact nature of the care. It could encompass a range of services, such as substance abuse treatment, mental health support, halfway house services, or general housing for individuals transitioning within the correctional system. To understand the precise services, one would need to consult the detailed contract statement of work (SOW), which outlines the specific requirements, therapeutic interventions, and support structures mandated for the inmates.

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: 15BRRC18R00000005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 CHERRY ST SE, GRAND RAPIDS, MI, 49503

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: $1,716,775

Exercised Options: $1,716,775

Current Obligation: $1,716,775

Actual Outlays: $182,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15BRRC19D00000005

IDV Type: IDC

Timeline