VA awards $4.65M contract for residential mental health and substance abuse facilities to Continuum of Care Inc

Contract Overview

Contract Amount: $4,653,700 ($4.7M)

Contractor: Continuum of Care Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2026-10-31

Contract Duration: 272 days

Daily Burn Rate: $17.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RRTP/PTSD BEDS

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06519

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.7 million to CONTINUUM OF CARE INC for work described as: RRTP/PTSD BEDS Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of 272 days is relatively short, suggesting a need for ongoing or future procurements. 3. The fixed-price contract type shifts risk to the contractor, which can be beneficial if costs are well-managed. 4. The service category, Residential Mental Health and Substance Abuse Facilities, addresses critical healthcare needs for veterans. 5. The contract is managed by the Department of Veterans Affairs, indicating a focus on veteran healthcare services. 6. No small business set-aside was utilized, which may limit opportunities for smaller providers in this sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and limited public data on per-unit costs for similar residential mental health services. The fixed price nature provides some cost certainty, but without comparison to other bids or market rates, it's difficult to definitively assess if the $4.65 million represents excellent value. The short duration also makes long-term value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in specific circumstances where competition is not feasible or advantageous. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to drive down prices. The government did not benefit from a range of offers that could have potentially secured a more favorable rate.

Public Impact

Veterans in Connecticut requiring residential mental health and substance abuse treatment will benefit from these services. The contract ensures the provision of essential residential care, supporting recovery and well-being for a vulnerable population. The geographic impact is focused on Connecticut, where the services will be delivered. The contract supports the operational capacity of Continuum of Care Inc. to deliver these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in pricing due to non-competitive nature.
Short contract duration may indicate a need for repeated, potentially costly, procurements.
No small business participation noted, potentially excluding smaller, specialized providers.

Positive Signals

Addresses critical healthcare needs for veterans in residential mental health and substance abuse treatment.
Fixed-price contract shifts some financial risk to the contractor.
Contract managed by the VA, indicating a commitment to veteran services.

Sector Analysis

The healthcare sector, particularly specialized services like residential mental health and substance abuse treatment, is a significant area of federal spending. This contract falls under the broader category of healthcare facilities and services, which often involve complex operational requirements and specialized staffing. Benchmarking this specific contract is difficult without more granular data on per-bed costs or service intensity, but the overall market for such facilities is substantial, driven by ongoing demand for mental health and addiction services.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to participate in delivering these critical services were likely limited. The absence of a small business focus in this sole-source award could mean that larger, established providers are the primary recipients of such contracts, potentially impacting the broader small business ecosystem in this specialized healthcare sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). As a sole-source award, the VA would be responsible for ensuring that Continuum of Care Inc. meets all contractual obligations, quality standards, and reporting requirements. Transparency may be limited due to the non-competitive nature, but internal VA oversight mechanisms, including contract officers and program managers, would be in place. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Mental Health Services
Substance Abuse Treatment Programs
Residential Healthcare Facilities
Veteran Support Services

Risk Flags

Sole-source award may lead to higher costs.
Lack of competitive bidding limits price discovery.
Limited transparency on specific service costs and outcomes.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.7 million to CONTINUUM OF CARE INC. RRTP/PTSD BEDS

Who is the contractor on this award?

The obligated recipient is CONTINUUM OF CARE INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2026-02-01. End: 2026-10-31.

What is the historical spending pattern for Continuum of Care Inc. with the Department of Veterans Affairs?

Analyzing the historical spending patterns for Continuum of Care Inc. with the Department of Veterans Affairs is crucial for understanding their track record and the VA's reliance on their services. Without specific historical data for this contractor, it's difficult to provide exact figures. However, the VA generally awards numerous contracts for healthcare services, including residential treatment. A sole-source award like this might suggest a long-standing relationship or a unique capability that the VA has previously relied upon. Further investigation would involve querying federal procurement databases for all contracts awarded to Continuum of Care Inc. by the VA to identify trends in contract values, types, and durations, and to assess if this $4.65 million award is consistent with past awards or represents a significant increase.

How does the per-unit cost of this contract compare to similar VA contracts for residential mental health services?

Directly comparing the per-unit cost of this contract is challenging because the provided data does not include specific metrics like cost per patient per day or cost per bed. The total award is $4.65 million over approximately 272 days. To perform a meaningful comparison, we would need to know the number of beds or patient slots this contract provides and the expected occupancy rate. Without these details, we cannot calculate a reliable per-unit cost to benchmark against other VA contracts for similar residential mental health and substance abuse facilities. Furthermore, the sole-source nature of this award means there was no competitive bidding process to establish a market-driven price point, making external validation of value more difficult.

What are the specific risks associated with a sole-source award for essential veteran healthcare services?

Sole-source awards for essential veteran healthcare services, such as this contract for residential mental health and substance abuse facilities, carry several risks. The primary risk is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the contractor may not be incentivized to offer the lowest possible price. Another risk is reduced innovation; a competitive environment often spurs contractors to propose more efficient or effective service delivery methods. Furthermore, a sole-source award can limit the government's options if the contractor's performance deteriorates, as transitioning to a new provider may be complex and costly, especially for specialized services. Finally, it raises questions about the thoroughness of market research conducted to ensure no other capable vendors could have been considered.

What is the expected effectiveness of the services provided under this contract in addressing veteran PTSD and substance abuse?

The effectiveness of the services provided under this contract in addressing veteran PTSD and substance abuse hinges on several factors beyond the contract's existence itself. The contract specifies 'Residential Mental Health and Substance Abuse Facilities,' which are critical components of comprehensive care. The effectiveness will depend on the quality of care delivered by Continuum of Care Inc., including evidence-based therapeutic interventions, qualified staffing, patient-to-staff ratios, and the overall treatment environment. The VA's oversight and performance monitoring will also play a significant role in ensuring quality. While the contract provides the funding and framework for these services, the actual clinical outcomes for veterans will be determined by the specific program design and execution by the contractor, aligned with VA clinical guidelines and best practices for PTSD and substance abuse treatment.

Are there any indications of contractor performance issues or past performance concerns with Continuum of Care Inc. from the VA?

The provided data does not contain specific information regarding past performance issues or concerns with Continuum of Care Inc. from the Department of Veterans Affairs. A sole-source award, while limiting competition, does not inherently indicate poor past performance by the contractor; it could be due to unique qualifications or specific circumstances. However, a thorough risk assessment would typically involve reviewing the contractor's performance history on previous VA contracts, including any documented issues, corrective actions, or positive performance metrics. Without access to the VA's contractor performance evaluation system or specific contract files, it is impossible to definitively assess Continuum of Care Inc.'s track record. The fact that it is a sole-source award might suggest the VA has confidence in their ability to perform, but this confidence should ideally be backed by documented performance data.

Industry Classification

NAICS: Health Care and Social Assistance › Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities › Residential Mental Health and Substance Abuse Facilities

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24126R0046

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 LEGION AVE, NEW HAVEN, CT, 06519

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: $4,653,700

Exercised Options: $4,653,700

Current Obligation: $4,653,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline