Halfway Houses and Recovery Kentucky Centers

The Commonwealth of Kentucky Finance and Administration Cabinet, on behalf of the Department of Corrections, is soliciting proposals for fully operational Halfway Houses and Recovery Kentucky Centers to provide reentry and substance use disorder treatment services, with proposals due October 14, 2026, at 3:30 p.m. ET. The Commonwealth intends to award multiple contracts on a rolling basis and explicitly states no minimum bed quantity guarantee applies to any resulting master agreement.

Halfway Houses (formerly Reentry Service Centers) must serve felons, probationers, parolees, and pre-release offenders and offer at least two evidence-based reentry programs. Recovery Kentucky Centers must provide substance use disorder treatment services. All facilities must comply with the Prison Rape Elimination Act, maintain 24-hour supervision, provide adequate medical and mental health services, and comply with all applicable federal, state, and local laws and Department of Corrections policies. Recovery centers must also comply with federal Housing and Urban Development requirements regarding sex offenders. Facilities may be new, renovated, or existing structures located on a single property; the Commonwealth clarifies that vendors need not have facilities currently developed prior to award and must be prepared to accept clients immediately upon contract execution.

Compensation is structured as fixed daily per diem rates ranging from $27.62 to $40.37 per day depending on offender classification and facility type, paid monthly within 30 days of invoice approval. Vendors may collect up to 25 percent of participant gross pay upon employment as the only permissible additional charge to residents. The Commonwealth covers hospital admissions of at least one overnight stay and one hundred percent of outpatient surgery costs when general anesthesia is used. Vendors must maintain commercial liability, professional liability, and automobile liability insurance and are prohibited from contracting with other units for housing residents without prior written Commonwealth consent.

Facilities are subject to announced and unannounced inspections at least four times annually for Halfway Houses and at least two times yearly for Recovery Kentucky Centers. Vendors must register in the Commonwealth eProcurement System and submit sealed proposals with technical and cost components electronically. A Vendor Statement of Agreement requiring acceptance of fixed per diem rates with no allowance for rate increases is mandatory; vendors attempting to negotiate higher rates are in material breach. Required statutory affidavits address campaign finance compliance, qualified bidder or nonprofit status, and resident bidder claims. Personal information security and breach investigation procedures under KRS 61.931 et seq. apply; vendors must report breaches to the contracting agency, Office of Procurement Services, Commonwealth Office of Technology, and NG-KIH Program Office within seventy-two hours. Written vendor questions are accepted through September 1, 2026, with monthly Commonwealth responses. The Commonwealth Buyer is Keith Srutowski at 502-564-7007 or keith.srutowski@ky.gov.