VA awards $22.4M for Residential Rehab Treatment Program, serving up to 18 beds

Contract Overview

Contract Amount: $22,436,881 ($22.4M)

Contractor: Continuum of Care Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-02-01

End Date: 2025-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RESIDENTIAL REHABILITATION TREATMENT PROGRAM(RRTP)UP TO 18 BEDS

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06519

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.4 million to CONTINUUM OF CARE INC for work described as: RESIDENTIAL REHABILITATION TREATMENT PROGRAM(RRTP)UP TO 18 BEDS Key points: 1. Contract awarded to Continuum of Care Inc. for residential rehabilitation services. 2. The contract is for a Firm Fixed Price (FFP) definitive contract. 3. No competition was utilized for this award. 4. The program focuses on mental health and substance abuse treatment.

Value Assessment

Rating: fair

The contract value of $22.4M over approximately 4 years for up to 18 beds suggests a per-bed cost that warrants scrutiny. Benchmarking against similar residential treatment programs is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without competition, it's difficult to ascertain if the pricing reflects the best possible value or if alternative providers could offer similar services at a lower cost.

Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Provides critical residential treatment for veterans facing mental health and substance abuse challenges. Supports the Department of Veterans Affairs' mission to care for service members and veterans. Ensures continuity of care for up to 18 individuals at a time.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award

Positive Signals

Addresses critical veteran needs
Long-term contract provides stability

Sector Analysis

The healthcare sector, particularly specialized services like residential mental health and substance abuse treatment, often involves unique provider networks. Benchmarking against similar programs is crucial for ensuring cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities for small business participation were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is essential to ensure the quality of care provided and the appropriate use of funds, especially given the sole-source nature of the award.

Related Government Programs

Residential Mental Health and Substance Abuse Facilities
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns if pricing is not benchmarked.
Limited transparency into provider selection process.
Need for robust performance monitoring to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.4 million to CONTINUUM OF CARE INC. RESIDENTIAL REHABILITATION TREATMENT PROGRAM(RRTP)UP TO 18 BEDS

Who is the contractor on this award?

The obligated recipient is CONTINUUM OF CARE INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2021-02-01. End: 2025-01-31.

What is the benchmark cost per bed per day for similar residential rehabilitation treatment programs in the region or nationally?

Determining the benchmark cost per bed per day requires access to detailed pricing data from comparable contracts and facilities. Factors such as geographic location, level of care provided, and specific services offered (e.g., therapy types, staffing ratios) significantly influence these costs. Without this comparative data, assessing the value for money in this $22.4M contract is challenging.

What justification was provided for not competing this contract, and were any market research efforts conducted to identify potential competitors?

The justification for not competing this contract is critical for understanding the procurement strategy. Agencies typically sole-source when only one responsible source can satisfy agency requirements. However, documentation of thorough market research is essential to confirm that no other qualified providers could have been identified or that competition would have been detrimental to the government's interests.

How will the VA ensure the effectiveness and quality of care provided by Continuum of Care Inc. under this sole-source contract?

The VA must implement stringent performance monitoring and quality assurance measures. This includes regular site visits, review of patient outcomes data, adherence to treatment protocols, and beneficiary satisfaction surveys. Clear performance standards and remedies for non-compliance should be outlined in the contract to ensure accountability and the delivery of effective care.

Industry Classification

NAICS: Health Care and Social Assistance › Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities › Residential Mental Health and Substance Abuse Facilities

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24121R0070

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 LEGION AVE, NEW HAVEN, CT, 06519

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: $22,436,881

Exercised Options: $22,436,881

Current Obligation: $22,436,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline