HHS awarded $26.4M to Chestnut Health Systems for adolescent and family treatment services

Contract Overview

Contract Amount: $26,434,384 ($26.4M)

Contractor: Chestnut Health Systems Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2007-08-31

End Date: 2013-02-15

Contract Duration: 1,995 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: TITLE: ASSERTIVE ADOLESCENT AND FAMILY TREATMENT (AAFT) GRANT PROGRAMREFERENCE NO. 270-07-0191

Place of Performance

Location: BLOOMINGTON, MCLEAN County, ILLINOIS, 61701

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.4 million to CHESTNUT HEALTH SYSTEMS INC for work described as: TITLE: ASSERTIVE ADOLESCENT AND FAMILY TREATMENT (AAFT) GRANT PROGRAMREFERENCE NO. 270-07-0191 Key points: 1. The contract focused on professional, scientific, and technical services related to substance abuse and mental health. 2. Awarded under full and open competition, suggesting a broad market search. 3. The contract duration was substantial, spanning nearly six years. 4. The contract type was Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 5. The geographic focus was Illinois, indicating a regional service delivery. 6. The absence of small business set-aside suggests the primary contractor was not a small business, or the scope did not lend itself to set-asides.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Fixed Fee structure means the government pays actual costs plus a predetermined fee, which can lead to cost overruns if not managed tightly. The total award amount of $26.4 million over nearly six years averages to approximately $4.4 million annually, which appears reasonable for a specialized grant program of this nature, but a detailed cost breakdown would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Substance Abuse and Mental Health Services Administration (SAMHSA) sought proposals from all responsible sources. This approach generally promotes a competitive environment, allowing multiple vendors to bid and potentially leading to better pricing and service offerings. The fact that it was competed broadly suggests that there were likely several qualified entities capable of providing the required services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value for its investment.

Public Impact

Adolescents and their families in Illinois likely benefited from specialized treatment services for substance abuse and mental health issues. The program aimed to provide professional, scientific, and technical support in the mental health sector. The geographic impact was concentrated within Illinois, serving residents of the state. The contract supported a workforce involved in delivering these specialized treatment and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if the contractor's costs escalate beyond initial projections.
The long duration of the contract could present challenges in adapting to evolving treatment methodologies or regulatory changes without contract modifications.
Without specific performance data, it's difficult to assess the true effectiveness and value delivered by the contractor.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract addressed a critical public health need related to adolescent and family mental health.
The substantial funding indicates a significant commitment to addressing these issues in the targeted region.

Sector Analysis

This contract falls within the 'All Other Professional, Scientific, and Technical Services' category, which is broad but encompasses specialized support functions. Within the healthcare sector, particularly mental and behavioral health, such contracts are crucial for delivering targeted programs. The market for these services is often driven by government grants and specific public health initiatives, with significant competition among non-profit organizations and specialized service providers. Comparable spending benchmarks would depend heavily on the specific nature of the 'adolescent and family treatment' services provided.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false. This indicates that the primary contract was likely awarded to a larger entity or that the scope of work did not lend itself to being broken down into smaller, set-aside portions. There is no explicit information on subcontracting requirements for small businesses within the provided data, which could represent missed opportunities for small business participation.

Oversight & Accountability

Oversight for this grant program would typically fall under the Substance Abuse and Mental Health Services Administration (SAMHSA), a division of HHS. Mechanisms likely included regular reporting requirements from Chestnut Health Systems, performance reviews, and financial audits to ensure funds were used appropriately and services were delivered as intended. The Inspector General's office within HHS would have jurisdiction for investigating fraud, waste, or abuse related to this contract.

Related Government Programs

Substance Abuse and Mental Health Services Administration Grants
Adolescent Behavioral Health Programs
Family Support Services
Healthcare Service Contracts
Professional and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to ensure cost efficiency.
Long contract duration may require adaptability to changing needs and best practices.
Lack of specific performance metrics in summary data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.4 million to CHESTNUT HEALTH SYSTEMS INC. TITLE: ASSERTIVE ADOLESCENT AND FAMILY TREATMENT (AAFT) GRANT PROGRAMREFERENCE NO. 270-07-0191

Who is the contractor on this award?

The obligated recipient is CHESTNUT HEALTH SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2007-08-31. End: 2013-02-15.

What was the specific nature of the 'Assertive Adolescent and Family Treatment' services provided under this grant?

The provided data indicates the contract was for 'All Other Professional, Scientific, and Technical Services' under the 'ASSERTIVE ADOLESCENT AND FAMILY TREATMENT (AAFT) GRANT PROGRAM'. While the exact modalities of treatment are not detailed, such programs typically involve evidence-based interventions aimed at addressing substance use disorders and co-occurring mental health conditions in adolescents. This could include individual therapy, family counseling, case management, crisis intervention, and potentially outreach services to engage hard-to-reach youth and families. The 'assertive' nature suggests a proactive approach, possibly involving home visits or intensive community-based support to ensure engagement and adherence to treatment plans.

How did the Cost Plus Fixed Fee (CPFF) structure influence the contractor's performance and cost management?

The Cost Plus Fixed Fee (CPFF) contract structure meant that Chestnut Health Systems was reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee representing profit. This structure can be beneficial when the scope of work is not precisely defined or is subject to change, as it allows flexibility. However, it can also reduce the contractor's incentive to control costs, as they are guaranteed their costs will be covered. The fixed fee, however, provides a ceiling on the profit. Effective oversight by SAMHSA would have been crucial to monitor costs, ensure efficiency, and prevent unnecessary expenditures to maximize value for the taxpayer.

What were the key performance indicators (KPIs) used to measure the success of the AAFT grant program?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of the Assertive Adolescent and Family Treatment (AAFT) grant program. Typically, for such programs, KPIs would focus on outcomes related to adolescent substance use reduction, improvements in mental health status, family functioning, treatment adherence rates, recidivism rates (e.g., arrests, hospitalizations), and client satisfaction. The Substance Abuse and Mental Health Services Administration (SAMHSA) would have established these metrics in the grant's statement of work or objectives to ensure accountability and assess the program's impact on the target population.

Were there any significant challenges or issues encountered during the contract period (2007-2013)?

The provided data does not contain information regarding specific challenges or issues encountered during the contract period for the Assertive Adolescent and Family Treatment (AAFT) grant program. Contract performance issues, budget challenges, or changes in program requirements are typically documented in contract modification histories, performance reports, or agency oversight records. Without access to these detailed records, it is impossible to ascertain if any significant hurdles were faced by Chestnut Health Systems or SAMHSA during the execution of this nearly six-year contract.

How does the $26.4 million award compare to other federal grants for similar adolescent mental health services?

Comparing the $26.4 million award for the Assertive Adolescent and Family Treatment (AAFT) grant program requires context regarding the program's scope, duration, and specific services. The award spans nearly six years (2007-2013), averaging approximately $4.4 million annually. This figure appears substantial and suggests a significant, potentially statewide or large-scale regional initiative within Illinois. Federal grants for adolescent mental health services vary widely based on the target population size, intensity of services, and geographic reach. Without knowing the exact number of individuals served or the specific treatment intensity, a direct comparison to other federal grants is difficult, but the funding level indicates a considerable investment in addressing these critical needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1003 MARTIN LUTHER KING DR, BLOOMINGTON, IL, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,832,564

Exercised Options: $26,434,384

Current Obligation: $26,434,384

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline