DOJ's $2.07M contract for Knoxville residential reentry services awarded to Alcoholism Services of Knoxville, Inc

Contract Overview

Contract Amount: $2,067,928 ($2.1M)

Contractor: Alcoholism Services of Knoxville, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-04-30

Contract Duration: 211 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE RESIDENTIAL REENTRY CENTER (RRC) SERVICES LOCATED IN KNOXVILLE, TENNESSEE AND HOME CONFINEMENT SERVICES WITHIN 150 MILES OF THE RRC FACILITY IN ACCORDANCE WITH SOLICITATION 15BRRC22R00000001. FY26 FUNDING

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37927

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $2.1 million to ALCOHOLISM SERVICES OF KNOXVILLE, INC. for work described as: TO PROVIDE RESIDENTIAL REENTRY CENTER (RRC) SERVICES LOCATED IN KNOXVILLE, TENNESSEE AND HOME CONFINEMENT SERVICES WITHIN 150 MILES OF THE RRC FACILITY IN ACCORDANCE WITH SOLICITATION 15BRRC22R00000001. FY26 FUNDING Key points: 1. Contract focuses on essential residential reentry and home confinement services, addressing a critical need within the criminal justice system. 2. The award was made under full and open competition, suggesting a robust market for these specialized services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is approximately 7 months, indicating a short-term need or a phased approach to service delivery. 5. The contract is for FY26 funding, aligning with the government's fiscal planning cycle. 6. The geographic scope is limited to Knoxville, TN, and a 150-mile radius, ensuring localized service delivery.

Value Assessment

Rating: good

The contract value of $2.07 million for a 7-month period for residential reentry and home confinement services appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for residential reentry centers (RRCs) is challenging without more specific service level agreements and geographic comparisons. However, the fixed-price nature of the contract provides cost certainty. The absence of detailed performance metrics in the provided data makes a definitive value assessment difficult, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy competitive environment. This approach is designed to ensure the government receives the best value by leveraging market forces and encouraging a range of qualified providers to submit proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through vendor rivalry and ensuring that the most cost-effective and capable provider is selected.

Public Impact

Individuals re-entering society from correctional facilities will benefit from structured residential support and supervision. The services provided aim to reduce recidivism rates by offering a stable environment and resources for successful reintegration. The contract directly impacts the Knoxville, Tennessee area and surrounding communities within a 150-mile radius. Local workforce may see employment opportunities within the residential reentry center operations and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Dependence on a single contractor for critical reentry services in the specified region.
Ensuring consistent quality of care and adherence to program standards throughout the contract period.
Challenges in measuring the long-term effectiveness of reentry programs on recidivism rates.

Positive Signals

Award to an established organization (Alcoholism Services of Knoxville, Inc.) suggests potential for reliable service delivery.
Fixed-price contract structure provides budget predictability.
Full and open competition indicates a potentially competitive pricing environment.
Clear geographic focus ensures targeted service delivery.

Sector Analysis

The federal government contracts for residential reentry center (RRC) services to support the transition of individuals from incarceration back into the community. This sector is crucial for correctional system reform and recidivism reduction efforts. Spending in this area is driven by the needs of the Bureau of Prisons and other federal agencies. While specific market size data for RRC services is not readily available, it represents a significant component of the broader correctional services industry. This contract fits within the government's strategy to provide essential support services post-release.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Alcoholism Services of Knoxville, Inc., is likely not a small business, or if it is, the contract was not specifically designated as a small business set-aside. There is no information regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this contract are dependent on the prime contractor's voluntary subcontracting efforts, rather than a mandated requirement.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and contract specialists within the Department of Justice, specifically the Bureau of Prisons. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to service delivery. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Bureau of Prisons Reentry Services
Residential Reentry Centers (RRCs)
Home Confinement Programs
Community Corrections Programs

Risk Flags

Potential for service quality degradation if contractor faces cost overruns.
Need for robust performance monitoring to ensure contract compliance.
Limited duration may impact long-term program continuity for residents.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.1 million to ALCOHOLISM SERVICES OF KNOXVILLE, INC.. TO PROVIDE RESIDENTIAL REENTRY CENTER (RRC) SERVICES LOCATED IN KNOXVILLE, TENNESSEE AND HOME CONFINEMENT SERVICES WITHIN 150 MILES OF THE RRC FACILITY IN ACCORDANCE WITH SOLICITATION 15BRRC22R00000001. FY26 FUNDING

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 $2.1 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-04-30.

What is the historical spending pattern for residential reentry center services in the Knoxville, TN area by the Department of Justice?

Historical spending data for residential reentry center (RRC) services specifically in the Knoxville, TN area by the Department of Justice is not directly available in the provided contract details. To ascertain this, one would need to query federal procurement databases (like FPDS or USASpending.gov) for past awards to various RRC providers within the specified geographic region and for the Bureau of Prisons or related agencies. Analyzing this historical data would reveal trends in contract values, durations, and the number of contractors serving the area, providing context for the current $2.07 million award for FY26 funding. It would also help identify if Alcoholism Services of Knoxville, Inc. has been a previous recipient of such contracts in this region.

How does the per-diem cost of this contract compare to national averages for RRC services?

To compare the per-diem cost, we first need to calculate it. The contract value is $2,067,927.50, and the duration is 211 days (from October 1, 2025, to April 30, 2026). Assuming the contract covers services for a certain number of beds or individuals, a precise per-diem cost per resident cannot be calculated without knowing the capacity or average daily population served. However, if we were to estimate a hypothetical average daily population (e.g., 100 residents), the per-diem cost per resident would be approximately $2,067,927.50 / (211 days * 100 residents) = $98.01 per resident per day. National averages for RRC services can vary significantly based on security levels, services offered (e.g., medical, vocational), and geographic location, but often range from $70 to $150 per resident per day. Without the specific capacity, a definitive comparison is difficult, but the estimated range suggests this contract might be within the typical market rates, especially if it includes comprehensive services.

What are the specific performance metrics and service level agreements tied to this contract?

The provided contract data does not detail the specific performance metrics or service level agreements (SLAs) associated with this award. Typically, contracts for Residential Reentry Center (RRC) services include stringent requirements related to resident safety, security, program participation (e.g., employment, education, treatment), case management, and successful reintegration outcomes. Performance is often measured through audits, site visits, resident satisfaction surveys, and recidivism rates. Failure to meet these SLAs can result in financial penalties or contract termination. A thorough review of the full solicitation (15BRRC22R00000001) and the awarded delivery order would be necessary to identify the precise performance standards and KPIs.

What is the track record of Alcoholism Services of Knoxville, Inc. in managing federal contracts, particularly for RRC services?

Information regarding the specific track record of Alcoholism Services of Knoxville, Inc. in managing federal contracts, especially for Residential Reentry Center (RRC) services, is not included in the provided summary data. To assess their track record, one would need to consult federal procurement databases (such as FPDS or SAM.gov) to review their past performance history, including any previous federal awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of contract disputes or terminations. Their history with similar state or local government contracts could also provide insight into their capabilities in managing correctional support services.

What are the potential risks associated with the fixed-price contract type for these services?

While a fixed-price contract type (PT: FIRM FIXED PRICE) is generally advantageous for the government by providing cost certainty, it can introduce risks for the contractor. If the actual costs of providing the Residential Reentry Center (RRC) services exceed the fixed price due to unforeseen circumstances (e.g., increased utility costs, higher-than-expected resident needs, staffing shortages leading to premium pay), the contractor may incur losses. For the government, the primary risk with fixed-price contracts is that the contractor might cut corners on quality or service delivery to protect their profit margin if costs escalate unexpectedly. However, robust performance monitoring and clear SLAs are crucial to mitigate this risk and ensure service standards are maintained.

Industry Classification

NAICS: Health Care and Social Assistance › Other Residential Care Facilities › Other Residential Care Facilities

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $2,067,928

Exercised Options: $2,067,928

Current Obligation: $2,067,928

Actual Outlays: $1,203,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BRRC24D00000025

IDV Type: IDC

Timeline