DOJ awards $3.36M for substance use and mental health treatment in Syracuse, NY

Contract Overview

Contract Amount: $33,640 ($33.6K)

Contractor: Helio Health, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-02-28

Contract Duration: 150 days

Daily Burn Rate: $224/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUBSTANCE USE AND MENTAL HEALTH TREATMENT SERVICES IN SYRACUSE, NY FIRM FIXED PRICE

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13203

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $33,640 to HELIO HEALTH, INC. for work described as: SUBSTANCE USE AND MENTAL HEALTH TREATMENT SERVICES IN SYRACUSE, NY FIRM FIXED PRICE Key points: 1. Contract awarded to Helio Health, Inc. for outpatient mental health and substance abuse services. 2. The contract is a Firm Fixed Price delivery order with a 150-day duration. 3. Services will be provided in Syracuse, NY, supporting the Federal Prison System. 4. The contract was competed under Simplified Acquisition Procedures (SAP). 5. No small business set-aside or subcontracting was indicated. 6. This award represents a specific need for localized treatment services within the federal correctional system.

Value Assessment

Rating: fair

The contract value of $3.36 million for a 150-day period suggests a significant per diem cost for services. Benchmarking against similar contracts for correctional facility support or community-based mental health services would be necessary to fully assess value for money. Given the specialized nature of the services and the specific location, direct comparisons may be limited, but the price should be evaluated against the scope and intensity of treatment provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is generally used for procurements valued below a certain threshold, allowing for more streamlined competition. This suggests that while competition was sought, it may have been limited to a smaller pool of pre-qualified or readily available vendors.

Taxpayer Impact: Limited competition under SAP may result in less aggressive pricing compared to full and open competition, potentially leading to higher costs for taxpayers. However, it can also ensure timely delivery of essential services when specialized capabilities are needed.

Public Impact

Inmates within the Federal Prison System in Syracuse, NY, will benefit from critical substance use and mental health treatment. The services delivered are outpatient mental health and substance abuse counseling. The geographic impact is focused on Syracuse, New York, addressing a localized need. The contract supports the operational mission of the Bureau of Prisons by providing essential care to the inmate population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Lack of transparency regarding the number of bidders and the evaluation process.
Short contract duration (150 days) may indicate a temporary or urgent need, requiring further investigation into long-term solutions.

Positive Signals

Award to a single, specialized provider (Helio Health, Inc.) suggests a focus on quality and expertise.
Firm Fixed Price contract structure provides cost certainty for the government.
Services directly address critical inmate needs for mental health and substance abuse treatment.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on outpatient mental health and substance abuse treatment centers. The market for such services is often driven by government contracts, particularly for correctional facilities, as well as private insurance and direct patient payments. Benchmarking would involve comparing this contract's pricing and scope to other federal or state contracts for similar services, considering the specific patient population (inmates) and geographic location.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus appears to be on securing specialized services from a capable provider, rather than utilizing small business participation as a primary contracting objective.

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, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency could be enhanced by publicly disclosing the number of bidders and the basis for award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Healthcare Services
Substance Abuse and Mental Health Services Administration (SAMHSA) Grants
Department of Veterans Affairs Mental Health Services
Community Mental Health Center Funding

Risk Flags

Limited Competition
Short Contract Duration
Potential for High Per-Unit Cost

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $33,640 to HELIO HEALTH, INC.. SUBSTANCE USE AND MENTAL HEALTH TREATMENT SERVICES IN SYRACUSE, NY FIRM FIXED PRICE

Who is the contractor on this award?

The obligated recipient is HELIO HEALTH, 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 $33,640.

What is the period of performance?

Start: 2025-10-01. End: 2026-02-28.

What is the track record of Helio Health, Inc. in providing similar services to federal correctional facilities?

Information regarding Helio Health, Inc.'s specific track record with federal correctional facilities is not detailed in the provided data. However, as an established entity in substance use and mental health treatment, their experience likely extends to serving vulnerable populations. A deeper dive would involve reviewing past performance evaluations, any prior federal contracts, and their capacity to meet the rigorous demands of correctional healthcare. Understanding their history with similar patient demographics and regulatory environments is crucial for assessing reliability and effectiveness in this context.

How does the per-diem cost of these services compare to national averages for correctional mental health treatment?

Calculating a precise per-diem cost requires dividing the total contract value ($3.36 million) by the number of days (150) and then by the estimated number of inmates served. Without the inmate census, a direct per-diem comparison is impossible. However, the total value for a 150-day contract suggests a substantial investment. National averages for correctional mental health treatment can vary widely based on security levels, geographic location, and the intensity of services. A preliminary assessment would involve estimating a plausible inmate population and comparing the resulting per-diem to available benchmarks for similar facilities, acknowledging that specialized treatment may command higher rates.

What are the primary risk indicators associated with this contract award?

Key risk indicators include the limited competition under Simplified Acquisition Procedures (SAP), which could potentially lead to suboptimal pricing and reduced vendor innovation. The short duration of the contract (150 days) might signal an urgent or temporary need, raising questions about long-term service stability and potential future contract disruptions. Furthermore, the lack of explicit detail on performance metrics or specific outcomes within the provided data necessitates careful monitoring to ensure service quality and effectiveness align with the government's objectives.

What is the expected effectiveness of these services in addressing inmate substance use and mental health issues?

The effectiveness of these services hinges on the quality of care provided by Helio Health, Inc., the specific treatment modalities employed, and the engagement of the inmate population. Outpatient mental health and substance abuse treatment are recognized as vital components of rehabilitation within correctional settings. Success will be measured by improvements in inmate well-being, reductions in recidivism related to addiction and mental health crises, and the overall contribution to a safer and more stable institutional environment. Formal performance metrics and regular evaluations will be essential to gauge actual effectiveness.

How does this contract's value compare to historical federal spending on similar services in the region?

Comparing this $3.36 million contract for a 150-day period to historical spending requires access to detailed historical data for federal correctional facilities in the Syracuse, NY region. Without such data, a direct comparison is difficult. However, the award indicates a significant, albeit short-term, investment in specialized treatment. If similar needs have been met previously through larger, longer-term contracts or multiple smaller ones, this award might represent a shift in procurement strategy or a response to a specific, immediate requirement. Analyzing trends in federal spending on inmate healthcare and rehabilitation in the area would provide necessary context.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15BCTS24Q00000016

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 518 JAMES ST STE 200, SYRACUSE, NY, 13203

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: $33,640

Exercised Options: $33,640

Current Obligation: $33,640

Actual Outlays: $21,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCTS25D00000005

IDV Type: IDC

Timeline