DOJ Awards $4.6M for Residential Care Facilities to Cherry Street Services Inc
Contract Overview
Contract Amount: $4,643,400 ($4.6M)
Contractor: Cherry Street Services Inc
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-06-30
Contract Duration: 272 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
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 $4.6 million to CHERRY STREET SERVICES INC for work described as: FUNDING ONLY ACTION. Key points: 1. Contract awarded for residential care facilities services. 2. Cherry Street Services Inc. is the contractor. 3. The contract is a Delivery Order under an existing contract. 4. The total award amount is $4,643,400. 5. The period of performance is 272 days.
Value Assessment
Rating: fair
The award amount of $4.64 million for a 272-day period suggests a significant per-diem cost. Benchmarking against similar contracts for residential care facilities is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: Taxpayer funds are being used for residential care services, with the value assessed based on competitive pricing and service delivery effectiveness.
Public Impact
Provides essential residential care services, likely for individuals in the justice system. Supports the Federal Prison System / Bureau of Prisons' operational needs. The contract duration is less than a year, suggesting a specific, short-term need or a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service scope.
- No specific performance metrics provided.
- Limited information on contractor's past performance.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can control costs.
- Clear period of performance and award amount.
Sector Analysis
The contract falls under 'Other Residential Care Facilities' (NAICS 623990), a sector providing non-medical residential care. Spending in this sector can vary widely based on the level of care and facility type.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business set-asides were considered or if larger firms dominated the bidding.
Oversight & Accountability
As a Delivery Order, oversight is likely managed by the contracting officer for the parent contract. The Bureau of Prisons would oversee the service delivery and contractor performance.
Related Government Programs
- Other Residential Care Facilities
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Lack of detailed service description.
- No mention of performance metrics or evaluation criteria.
- Contractor's past performance data not available.
- Potential for cost overruns if scope is not tightly managed.
Tags
other-residential-care-facilities, department-of-justice, mi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $4.6 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 $4.6 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-06-30.
What is the specific nature of the residential care services being provided, and how do they align with the Bureau of Prisons' mission?
The specific nature of the residential care services is not detailed in the provided data. However, given the awarding agency (Department of Justice) and the sector (Other Residential Care Facilities), these services likely pertain to post-incarceration transitional housing, halfway house programs, or specialized care for individuals under correctional supervision. The alignment with the Bureau of Prisons' mission would focus on facilitating rehabilitation, reducing recidivism, and ensuring public safety by providing a structured and supportive environment.
What are the key performance indicators (KPIs) for this contract, and how will Cherry Street Services Inc.'s performance be measured?
The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for residential care facilities, KPIs might include resident compliance rates, successful reintegration into the community, incident reporting frequency, staff-to-resident ratios, and facility safety and sanitation standards. Performance measurement would likely involve regular reporting from the contractor, site visits, and potentially resident feedback mechanisms managed by the Bureau of Prisons.
How does the per-unit cost of this contract compare to industry benchmarks for similar residential care services?
Without specific details on the number of individuals served or the exact services provided per individual, a precise per-unit cost comparison is not possible. However, the total award of $4.64 million over approximately 9 months suggests a substantial cost. A thorough benchmark analysis would require comparing the average daily rate per resident against similar contracts awarded by federal, state, or local agencies for comparable residential care and support services.
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: RFP-200-1359-CS
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: $4,643,400
Exercised Options: $4,643,400
Current Obligation: $4,643,400
Actual Outlays: $1,108,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: 15BRRC19D00000203
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-09
More Contracts from Cherry Street Services Inc
- Funding for FY25 - OY 5 (10/1/24-9/30/25) — $2.1M (Department of Justice)
- Funding Only Action — $1.7M (Department of Justice)
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)