DOJ awards $1.7M for outpatient substance use and mental health services in Little Rock, AR

Contract Overview

Contract Amount: $17,000 ($17.0K)

Contractor: Western Alternative Corrections, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-09-30

Contract Duration: 241 days

Daily Burn Rate: $71/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUTPATIENT SUBSTANCE USE DISORDER (SU) AND MENTAL HEALTH (MH) SERVICES IN LITTLE ROCK, AR.

Place of Performance

Location: HASTINGS, ADAMS County, NEBRASKA, 68901

State: Nebraska Government Spending

Plain-Language Summary

Department of Justice obligated $17,000 to WESTERN ALTERNATIVE CORRECTIONS, INC. for work described as: OUTPATIENT SUBSTANCE USE DISORDER (SU) AND MENTAL HEALTH (MH) SERVICES IN LITTLE ROCK, AR. Key points: 1. The contract value of $1.7 million for a 7-month period suggests a focus on specialized, localized services. 2. Competition dynamics for this contract are not fully detailed, but the award type indicates a competitive process. 3. Risk indicators appear low given the firm fixed-price structure and defined service period. 4. Performance context is tied to the Federal Prison System's need for community-based care for individuals in Little Rock. 5. Sector positioning is within healthcare services, specifically mental health and substance abuse treatment centers.

Value Assessment

Rating: good

The contract value of $1.7 million for a 7-month period averages approximately $243,000 per month. Benchmarking this against similar contracts for outpatient substance use and mental health services requires detailed analysis of service scope and patient volume. However, the firm fixed-price structure suggests a predictable cost for the government. Without specific per-patient cost data or comparison to regional benchmarks, a precise value-for-money assessment is challenging, but the fixed price offers cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process for awards below certain thresholds. While the exact number of bidders is not specified, SAP generally encourages multiple offers, leading to price discovery and potentially better value. The use of SAP suggests the agency sought competitive bids within the simplified acquisition framework.

Taxpayer Impact: The competitive nature of the award, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source procurement. This process helps ensure that federal funds are used efficiently.

Public Impact

Individuals within the Federal Prison System in the Little Rock area will benefit from access to essential outpatient substance use and mental health services. The services delivered include outpatient treatment for substance use disorders and mental health conditions. The geographic impact is focused on Little Rock, Arkansas, providing critical local support. Workforce implications include the creation or maintenance of jobs for mental health professionals and support staff employed by Western Alternative Corrections, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if contractor performance falters, impacting inmate rehabilitation and community reintegration.
Ensuring continuity of care during the transition between contract periods or if service delivery is interrupted.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Defined service period (7 months) allows for focused delivery and evaluation.
Award to a specific contractor suggests they met the requirements for providing these specialized services.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on mental health and substance abuse treatment. The market for these services is substantial, driven by both public health needs and government mandates. Comparable spending benchmarks would involve analyzing other federal and state contracts for similar outpatient services, considering factors like patient population, service intensity, and geographic location. The Bureau of Prisons often contracts for such services to support inmate rehabilitation and reentry programs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. As the award was made to Western Alternative Corrections, Inc., further analysis would be needed to determine if they are a small business or if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice, specifically the Bureau of Prisons, which is responsible for ensuring the contractor meets the terms and conditions of the agreement. Accountability measures are typically embedded in the contract through performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Healthcare Services
Community Mental Health Services
Substance Abuse Treatment Programs
Department of Justice Reentry Initiatives

Risk Flags

Contract duration is relatively short (7 months), potentially requiring follow-on actions.
Simplified Acquisition Procedures may limit the depth of competition compared to larger contract vehicles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17,000 to WESTERN ALTERNATIVE CORRECTIONS, INC.. OUTPATIENT SUBSTANCE USE DISORDER (SU) AND MENTAL HEALTH (MH) SERVICES IN LITTLE ROCK, AR.

Who is the contractor on this award?

The obligated recipient is WESTERN ALTERNATIVE CORRECTIONS, 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 $17,000.

What is the period of performance?

Start: 2026-02-01. End: 2026-09-30.

What is the historical spending pattern of the Federal Prison System for outpatient substance use and mental health services in the Little Rock area?

Historical spending data for outpatient substance use and mental health services specifically in the Little Rock area by the Federal Prison System is not readily available in public databases. However, the Bureau of Prisons (BOP) consistently allocates significant funds towards healthcare, including mental health and substance abuse treatment, for its inmate population nationwide. This contract represents a specific instance of such spending for a defined period and location. To understand historical patterns, one would need to analyze past BOP contracts in the same geographic region or for similar services, looking at award amounts, contract durations, and the number of providers engaged over time. The current award of $1.7 million for approximately 7 months suggests a substantial need for these services in the Little Rock catchment area.

How does the per-patient cost of these services compare to national averages for similar federal contracts?

Determining the precise per-patient cost requires knowing the number of individuals served and the specific services provided under this contract. The total award is $1.7 million over approximately 7 months. If, for example, the contract served 100 individuals consistently throughout the period, the average monthly cost per individual would be $1.7M / (7 months * 100 individuals) = $2,428. National averages for federal contracts for outpatient substance use and mental health services can vary widely based on the intensity of treatment, duration, and specific diagnoses. However, costs can range from several hundred to several thousand dollars per patient per month. Without the patient volume and detailed service breakdown, a direct comparison is difficult, but the estimated monthly cost per patient appears to be within a plausible range for intensive outpatient care.

What is the track record of Western Alternative Corrections, Inc. in providing similar services to federal agencies?

Western Alternative Corrections, Inc. has a history of providing correctional and related services. Publicly available contract data indicates past awards to this company from federal agencies, including the Department of Justice. To assess their track record specifically for outpatient substance use and mental health services, a deeper dive into contract performance reports, past performance evaluations, and any documented issues or successes would be necessary. Examining previous contracts with the Bureau of Prisons or other correctional entities for similar healthcare services would provide the most relevant context for their capability and reliability in fulfilling this current award.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for this contract would likely focus on the effective delivery of outpatient substance use and mental health services to the target population. Specific KPIs could include: patient engagement rates (e.g., attendance at therapy sessions), treatment adherence, reduction in substance use relapse rates, improvement in mental health symptom scores (e.g., using standardized assessment tools), successful completion of treatment plans, and timely reporting of patient progress to the Bureau of Prisons. Additionally, KPIs related to operational aspects such as client satisfaction, adherence to privacy regulations (HIPAA), and timely submission of administrative reports would also be crucial for evaluating the contractor's overall performance.

Are there any known risks associated with the geographic location or the specific population being served in Little Rock, AR?

The geographic location of Little Rock, Arkansas, and the specific population served (individuals within the Federal Prison System) present certain considerations. Access to specialized mental health and substance abuse treatment providers can sometimes be a challenge in certain regions, potentially impacting service availability or requiring robust outreach efforts. For the target population, challenges may include high rates of co-occurring disorders, complex trauma histories, and the need for continuity of care upon release or reintegration into the community. Ensuring the contractor has the capacity and expertise to address these specific needs within the Little Rock context is critical for successful outcomes. The contract's focus on outpatient services suggests an effort to provide community-based support, which can be effective but requires strong coordination with correctional facilities and community resources.

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: 15BCTS25Q00000018

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 S HASTINGS AVE, HASTINGS, NE, 68901

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $970,975

Exercised Options: $970,975

Current Obligation: $17,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCTS26D00000008

IDV Type: IDC

Timeline