DMVA Operation and Management of North Carolina State Veterans Homes

The North Carolina Department of Administration, on behalf of the North Carolina Department of Military and Veterans Affairs, is issuing a Request for Proposal to procure operation and management services for five North Carolina State Veterans Homes located in Black Mountain, Fayetteville, Kernersville, Kinston, and Salisbury, with a planned future facility in Raleigh. The selected vendor will manage, administer, and operate these skilled nursing facilities certified by Medicare, Medicaid, and the U.S. Department of Veterans Affairs, providing comprehensive healthcare services including clinical care, dietary services, facility maintenance, and administrative operations. Key deliverables and responsibilities include staffing operations with qualified personnel (facility administrators, regional support team members, and medical directors subject to State approval), establishing integrated computer and accounting systems compatible with MatrixCare (Smart Charting), maintaining specific insurance coverages including $3 million commercial general liability, $2-$3 million commercial automobile coverage, $3 million professional liability, and $3 million medical liability per occurrence, and ensuring compliance with all federal, state, and accrediting body standards. Vendors must demonstrate significant financial stability by providing audited financial statements for the past three years, maintaining $18 million in available cash flow for operational expenses, and acquiring $5 million performance bonds and $1 million fidelity bonds. The RFP timeline includes a written questions deadline of February 13, 2026, proposal due date of March 16, 2026, at 2:00 PM ET, evaluation period from March 17 through May 11, 2026, finalist negotiations from May 11 through July 1, 2026, and targeted contract award on July 1, 2026. The initial contract term spans three years and five months from July 1, 2026, through November 30, 2029, including a five-month transition period with full operations commencing December 1, 2026, with options for up to two additional one-year renewal terms upon 30-day notice.

Vendor compensation consists of 100 percent reimbursement of qualified operating expenses approved by the Contract Manager plus a management fee calculated as a percentage of net facility revenues, with the vendor required to quote the percentage management fee applied to net revenues. Sample facility daily rates range from $245 to $538.60 depending on payor source and facility type, generating sufficient revenue to support operations. Performance incentives of 0.05 percent of net revenue are available for deficiency-free surveys, while penalties of 0.05 percent of net revenue apply for Level J findings, creating financial incentives for quality performance. The RFP documentation indicates that United Veterans Services of North Carolina, Inc. (UVSNC) is the current incumbent contractor, as evidenced by sample invoicing templates and financial statements submitted with the solicitation materials. Prospective vendors must integrate with existing MatrixCare (Smart Charting) systems currently deployed across the facilities to ensure continuity of resident care and administrative operations. The State retains ownership of all facilities, equipment, and state vehicles, with the vendor responsible for all operating expenses and staffing requirements. While specific set-aside designations or restrictions on vendor types are not explicitly detailed in the available documentation, qualified entities with demonstrated experience in skilled nursing facility management, financial capacity, and ability to meet bonding and insurance requirements are eligible to respond.