Halfway Houses and Recovery Kentucky Centers

The Commonwealth of Kentucky Department of Corrections seeks qualified vendors through RFP 758 2500000122 to establish and operate fully operational Reentry Service Centers (halfway houses) and Recovery Kentucky Centers throughout the state on a rolling basis from November 1, 2024, through October 14, 2026, at 3:30 PM ET. The procuring agency is the Finance and Administration Cabinet, Office of Procurement Services, acting on behalf of the Department of Corrections. Reentry Service Centers are residential community facilities providing services to felons, probationers, parolees, and pre-release offenders, while Recovery Kentucky Centers are residential treatment facilities providing substance use disorder treatment to the same populations. Both facility types must offer at least two evidence-based treatment programs and may be new, renovated, or existing structures that comply with all applicable federal, state, and local laws, building codes, and Department of Corrections policies. Facilities must be fully operational and ready to accept clients immediately upon contract award, with no post-award development period permitted. Compensation is structured on a fixed per diem basis with no negotiation permitted, ranging from $27.62 to $40.37 per day depending on offender classification level (Level 1 Parolee beds at $27.62–$29.62 per day; Level 1(A) Male Parolee and Probationer beds at $40.36–$40.37; Level 1(B) Recovery Kentucky beds at $33.61–$34.64; Level 2 Standard Inmate beds at $33.61–$34.64; Level 3 Substance Abuse Program beds at $33.61; and Level 4 Sex Offender Parolee beds at $38.87). Additional compensation includes collection of twenty-five percent of parolees' weekly gross salary upon employment. The Commonwealth provides payment monthly within thirty days of receipt of approved invoices, with no minimum bed guarantee, and will not pay for residents absent for medical leave exceeding three consecutive days, overnight court stays, or extended overnight furloughs. Vendors must submit proposals electronically through the Kentucky eProcurement system in three parts—Technical Proposal, Cost Proposal, and Proprietary Information—and must comply with all terms outlined in Attachment A and subsequent addenda (six addenda issued as of the posting date). Evaluation criteria include compliance with facility requirements, evidence-based programming offerings, operational readiness, insurance coverage, and adherence to Prison Rape Elimination Act standards and Department of Corrections policies. Required qualifications include maintaining Commercial General Liability Insurance ($1,000,000 per occurrence/$2,000,000 aggregate), Professional Liability Insurance ($1,000,000 per occurrence/$3,000,000 aggregate), and Automobile Liability Insurance ($1,000,000 per occurrence), conducting background checks on all employees, maintaining 24-hour awake supervision, submitting monthly operational reports, and allowing announced and unannounced facility inspections at least four times annually for Reentry Service Centers and twice annually for Recovery Kentucky Centers.

The solicitation does not specify set-asides for disadvantaged enterprises, minority-owned businesses, or women-owned businesses, and any vendor type—including nonprofit organizations, small businesses, corporations, or collaborative entities utilizing subcontractors—may respond provided they meet qualification requirements. The solicitation documents do not identify any incumbent vendors or current contractors operating under existing agreements, though the Commonwealth has indicated that multiple contractors currently provide similar services at the same per diem rates referenced in the current solicitation. Vendors seeking funding opportunities beyond the state per diem must obtain prior approval from the Department of Corrections before executing such arrangements. All bidders are required to submit the Commonwealth's Required Affidavit for Bidders, Offerors and Contractors (Attachment B), affirming they have not violated Kentucky campaign finance laws, meet qualified bidder status if claiming nonprofit or disability-focused organization status, and qualify as resident bidders authorized to transact business in Kentucky with maintained corporate filings and insurance for one year prior to the advertisement date. Additionally, vendors must comply with Kentucky's Personal Information Security and Breach Investigation Act (KRS 61.931, et seq.) by securing personal information according to state standards and notifying the Commonwealth within seventy-two hours of any data breach. The initial contract term is two years from the effective date of award, with options to renew for two additional two-year periods upon mutual agreement of both parties, with the Commonwealth reserving the right not to exercise renewal options or renegotiate terms for extended periods. No specific total contract budget or award value is identified in the solicitation documents; compensation is determined solely by the daily per diem rates multiplied by the number of occupied beds determined by Department of Corrections placement decisions, with no guaranteed minimum bed quantities.