Halfway Houses and Recovery Kentucky Centers

The Commonwealth of Kentucky, Department of Corrections, is soliciting proposals through RFP 758 2500000122 for the establishment and operation of fully functional Halfway Houses and Recovery Kentucky Centers, with proposals accepted on a rolling basis from November 1, 2024, through October 14, 2026, at 3:30 PM Eastern Time. The procurement seeks qualified vendors to operate residential community-based facilities that provide reentry services and substance use disorder treatment to felons, probationers, parolees, and pre-release offenders throughout Kentucky. Vendors must offer at least two evidence-based treatment programs, with Recovery Kentucky Centers specifically required to provide substance abuse programming in compliance with federal Housing and Urban Development requirements and the Prison Rape Elimination Act. Facilities may be new, renovated, or existing structures and must be fully operational at the contract effective date with no execution period permitted. The Commonwealth intends to award multiple contracts and will determine facility locations and bed placements based on Department of Corrections operational needs; vendors are not guaranteed a minimum bed quantity. Vendors must comply with all applicable federal, state, and local laws, regulations, Department of Corrections policies and procedures, and Kentucky Parole Board requirements, and are subject to at least one announced and one unannounced annual inspection for Recovery Kentucky Centers or at least two announced and two unannounced inspections for Reentry Service Centers. Submission requirements include electronic responses through the Kentucky eProcurement System with one hardcopy and one thumb drive containing a technical proposal, cost proposal, transmittal letter, required affidavits, and Equal Employment Opportunity forms, with written vendor questions accepted through September 1, 2026.

Compensation is structured as firm fixed per diem rates with no price negotiations permitted, ranging from $27.62 to $40.36 per day depending on facility type and offender classification level, including Level 1 Parolee Reentry Service Center beds at $29.62 daily, Level 1(A) Male Parolee and Probationer beds at $40.37 daily, Level 1(B) Recovery Kentucky Treatment beds at $33.61 to $34.64 daily, Level 2 Standard Inmate beds at $33.61 to $34.64 daily, Level 3 Substance Abuse Program beds at $33.61 daily, and Level 4 Sex Offender Parolee beds at $38.87 daily. The initial contract term is two years from the effective award date, with options to renew for two additional two-year periods upon mutual agreement of the parties; no price increases are permitted during the first twelve months, with any subsequent increases requiring industry-wide justification and thirty days' notice prior to the proposed effective date. Monthly invoices are paid within thirty days of receipt of approved documentation, with payment made for the day of arrival but not the day of departure, and no reimbursement provided for residents absent on medical leave exceeding three consecutive days, court-ordered overnight stays, or extended furloughs. Vendors must maintain Commercial General Liability Insurance of $1,000,000 per occurrence and $2,000,000 aggregate, Professional Liability Insurance of $1,000,000 per occurrence and $3,000,000 aggregate, and Automobile Liability Insurance of $1,000,000 per occurrence, with the Commonwealth named as additional insured. All bidders must execute an Annual Affidavit for Bidders, Offerors and Contractors certifying compliance with Kentucky campaign finance laws, and the Commonwealth reserves the right to request updated affidavits at any time during the contract period. The RFP does not identify current contractors or provide a specific current contract budget amount; vendors may collect up to 25 percent of participant gross wages upon employment as the only additional permissible charges to participants beyond state-funded per diem rates.