DOJ awards $306,819 contract for substance use and mental health services in Knoxville, TN
Contract Overview
Contract Amount: $306,819 ($306.8K)
Contractor: Alcoholism Services of Knoxville, Inc.
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $843/day
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: SUBSTANCE USE, MENTAL HEALTH, AND SEX OFFENDER TREATMENT SERVICES IN KNOXVILLE, TN.
Place of Performance
Location: KNOXVILLE, KNOX County, TENNESSEE, 37917
Plain-Language Summary
Department of Justice obligated $306,819 to ALCOHOLISM SERVICES OF KNOXVILLE, INC. for work described as: SUBSTANCE USE, MENTAL HEALTH, AND SEX OFFENDER TREATMENT SERVICES IN KNOXVILLE, TN. Key points: 1. The contract value of $306,819 is modest, suggesting a localized service need. 2. Competition under SAP indicates a streamlined process, potentially impacting price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Services are crucial for rehabilitation and reintegration within the Federal Prison System.
Value Assessment
Rating: good
The contract value appears reasonable for specialized treatment services in a specific geographic area. Benchmarking against similar contracts for outpatient mental health and substance abuse centers would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. While this can expedite the process, it may limit the pool of potential offerors and the extent of price negotiation.
Taxpayer Impact: The modest contract value and competitive process suggest a reasonable use of taxpayer funds for essential services.
Public Impact
Provides critical mental health and substance abuse treatment to individuals in Knoxville. Supports the Federal Prison System's mission to rehabilitate and reintegrate offenders. Ensures access to specialized care, potentially reducing recidivism rates. Benefits the local community by addressing public health needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP could lead to suboptimal pricing.
- Contract duration of 364 days is standard but requires timely renewal planning.
Positive Signals
- Firm Fixed Price contract type protects against cost increases.
- Services directly address critical needs within the Federal Prison System.
- Award to a single vendor simplifies administration.
Sector Analysis
The contract falls under healthcare services, specifically outpatient mental health and substance abuse treatment. Spending in this sector is consistently high due to ongoing public health needs and government mandates for offender rehabilitation.
Small Business Impact
Information on whether this award benefited small businesses is not provided. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Standard performance monitoring and quality assurance processes should be in place to ensure service delivery meets requirements.
Related Government Programs
- Outpatient Mental Health and Substance Abuse Centers
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for higher costs due to limited competition.
- Dependence on a single provider for critical services.
- Need for robust performance monitoring to ensure quality.
- Risk of service disruption if contract is not renewed timely.
Tags
outpatient-mental-health-and-substance-a, department-of-justice, tn, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $306,819 to ALCOHOLISM SERVICES OF KNOXVILLE, INC.. SUBSTANCE USE, MENTAL HEALTH, AND SEX OFFENDER TREATMENT SERVICES IN KNOXVILLE, TN.
Who is the contractor on this award?
The obligated recipient is ALCOHOLISM SERVICES OF KNOXVILLE, 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 $306,819.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the typical cost range for similar outpatient substance use and mental health services provided to federal inmates in other regions?
The typical cost range for similar services can vary significantly based on geographic location, the specific intensity of treatment required, and the provider's overhead. Benchmarking against contracts in comparable regions or for similar populations would be essential to determine if the $306,819 award represents a fair and reasonable price. Factors like staffing ratios, therapeutic modalities offered, and administrative costs all influence per-unit pricing.
What are the specific performance metrics and quality assurance measures in place to ensure the effectiveness of the treatment services?
Effective oversight requires clearly defined performance metrics and robust quality assurance measures. These should include tracking client progress, treatment adherence, patient satisfaction, and outcomes such as recidivism rates. Regular performance reviews by the Bureau of Prisons, potentially including site visits and data analysis, are crucial to ensure the contractor is meeting all contractual obligations and delivering high-quality, impactful care.
How does the limited competition under SAP potentially impact the long-term cost-effectiveness of these essential services?
While SAP can expedite the procurement of services valued under the simplified acquisition threshold, it may limit the number of potential bidders. This reduced competition could potentially lead to higher prices than if a broader, more competitive process were used. Over the long term, agencies should periodically reassess the procurement strategy to ensure they are achieving the best value and cost-effectiveness for essential services like these.
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: RFQ-CTS-041-16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1715 E MAGNOLIA AVE, KNOXVILLE, TN, 37917
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: $1,018,779
Exercised Options: $1,018,779
Current Obligation: $306,819
Actual Outlays: $196,129
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJBCTS473
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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