27-BHR ASO Services Sole Source

The Illinois Department of Human Services, Division of Mental Health, awarded a sole source contract to Carelon Behavioral Health, Inc. for administrative services supporting the statewide community mental health system. The contract, valued at $3.23 million, commenced on July 1, 2026, and concludes on June 30, 2027. The procurement was approved by the State Purchasing Officer on May 27, 2026, and classified as a Sole Economically Feasible Source award based on system compatibility and critical federal reporting requirements.

Under this contract, Carelon Behavioral Health will provide integrated administrative services encompassing three primary functions: tracking and monitoring mental health service delivery with associated utilization and expenditure data for community-based provider contracts; quality enhancement, recovery, and resiliency activities designed to optimize consumer outcomes and system efficiency; and maintenance of an integrated data system including consumer registration and authorization capabilities. The cost structure allocates $2.49 million to data system maintenance and $734,520 to reporting requirements and service deliverables. The vendor's existing system infrastructure is essential to maintain federal Substance Abuse and Mental Health Services Administration Block Grant reporting capabilities, protecting approximately $29 million in annual federal funding and $80–$90 million in federal reimbursement claims. Carelon Behavioral Health has provided these services continuously since 2017 under successive annual contracts.