Interior's $364K Behavioral Health Contract Awarded to Chestnut Health Systems Inc

Contract Overview

Contract Amount: $364,394 ($364.4K)

Contractor: Chestnut Health Systems Inc

Awarding Agency: Department of the Interior

Start Date: 2025-05-23

End Date: 2026-01-22

Contract Duration: 244 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BEHAVIORAL HEALTH REHABILITATION SERVICES FOR OJS

Place of Performance

Location: BLOOMINGTON, MCLEAN County, ILLINOIS, 61701

State: Illinois Government Spending

Plain-Language Summary

Department of the Interior obligated $364,394.35 to CHESTNUT HEALTH SYSTEMS INC for work described as: BEHAVIORAL HEALTH REHABILITATION SERVICES FOR OJS Key points: 1. Contract focuses on behavioral health rehabilitation services for OJS. 2. Awarded via full and open competition, suggesting market availability. 3. Firm fixed price contract type aims to control costs. 4. Duration of 244 days indicates a short-term service need.

Value Assessment

Rating: fair

The contract value of $364,394.35 for 244 days is difficult to benchmark without specific service details. However, it appears to be a moderate investment for specialized rehabilitation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: Taxpayer funds are being used for essential behavioral health services, with competition expected to ensure reasonable pricing.

Public Impact

Provides critical behavioral health services to a specific population (OJS). Supports the Bureau of Indian Affairs and Bureau of Indian Education's mission. Ensures access to rehabilitation services, potentially improving well-being and outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed service scope makes cost-effectiveness assessment challenging.
  • Potential for service gaps if Chestnut Health Systems Inc. underperforms.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under Research and Development in Social Sciences and Humanities (NAICS 541720), though the service is behavioral health rehabilitation. Spending in this broad category varies, but specialized health services often represent a smaller, targeted portion.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were solicited or participated in the competition.

Oversight & Accountability

Oversight will be crucial to ensure Chestnut Health Systems Inc. delivers the contracted behavioral health services effectively and meets the needs of the OJS population.

Related Government Programs

  • Research and Development in the Social Sciences and Humanities
  • Department of the Interior Contracting
  • Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

  • Lack of detailed service description.
  • No small business participation noted.
  • Potential for performance issues if not closely monitored.
  • Geographic concentration of services (IL) may limit reach if OJS are elsewhere.

Tags

research-and-development-in-the-social-s, department-of-the-interior, il, delivery-order, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $364,394.35 to CHESTNUT HEALTH SYSTEMS INC. BEHAVIORAL HEALTH REHABILITATION SERVICES FOR OJS

Who is the contractor on this award?

The obligated recipient is CHESTNUT HEALTH SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $364,394.35.

What is the period of performance?

Start: 2025-05-23. End: 2026-01-22.

What specific behavioral health rehabilitation services are included in this contract, and how do they align with the needs of the OJS population?

The contract specifies 'BEHAVIORAL HEALTH REHABILITATION SERVICES FOR OJS.' To fully assess value, a detailed breakdown of these services is needed. This could include therapy, counseling, case management, and support programs tailored to the unique challenges faced by the OJS demographic. Understanding the scope is key to determining if the $364,394.35 award is sufficient and appropriate for the intended outcomes.

What are the potential risks associated with awarding this contract to Chestnut Health Systems Inc. for behavioral health services?

Potential risks include service quality issues, provider burnout, or failure to meet the specific needs of the OJS population, leading to suboptimal outcomes. There's also a risk of Chestnut Health Systems Inc. not fully understanding the nuances of the OJS demographic. Effective monitoring and performance metrics are essential to mitigate these risks and ensure the services provided are impactful and appropriate.

How effective is the full and open competition method in ensuring the best value for these specialized behavioral health services?

Full and open competition is generally effective in driving down prices and encouraging innovation. For specialized services like behavioral health rehabilitation, it allows agencies to solicit bids from a wide range of qualified providers, potentially leading to better service quality and cost-effectiveness. However, the agency must ensure the solicitation clearly defines the required services and evaluation criteria to select the vendor that offers the best overall value, not just the lowest price.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Social Sciences and Humanities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFQ

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1003 MARTIN LUTHER KING DR, BLOOMINGTON, IL, 61701

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: $364,394

Exercised Options: $364,394

Current Obligation: $364,394

Actual Outlays: $237,483

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1623D0001

IDV Type: IDC

Timeline

Start Date: 2025-05-23

Current End Date: 2026-01-22

Potential End Date: 2026-01-22 00:00:00

Last Modified: 2026-04-01

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