Outwood ICF Management & Operations (C2749)

The Commonwealth of Kentucky, Cabinet for Health and Family Services (CHFS), Department for Behavioral Health, Developmental and Intellectual Disabilities (DBHDID), issued Request for Proposal (RFP) 729 2100000136 to procure comprehensive management and operations services for Outwood Intermediate Care Facility/Individuals with Intellectual Disability (ICF/IID), a state-owned 80-bed residential facility located in Dawson Springs, Kentucky, in Christian County. The contractor shall provide complete residential services including clinical assessment and evaluation, behavioral support, employment services, community integration, quality improvement initiatives, and administrative operations in compliance with state regulations (902 KAR 20:086), federal regulations (42 CFR 483, Subpart I), the 2006 Department of Justice Settlement Agreement, and the Strategic Action Plan. The facility currently serves 32 residents ranging in age from 21 to 81 years old, the majority with severe to profound intellectual disabilities and comorbid diagnoses including Autism Spectrum Disorder, bipolar disorder, major depressive disorder, and behavioral health conditions requiring comprehensive medical and behavioral management. The RFP was released on April 15, 2021, with a mandatory virtual site visit scheduled for April 22, 2021, at 3:30 p.m., written questions due by April 29, 2021, and proposals due by 2:00 p.m. Eastern Time on May 28, 2021. Evaluation is based on technical proposals worth 1,250 points (qualifications at 250 points, administrative specifications at 400 points, operational specifications at 400 points, and personnel specifications at 200 points), cost proposals worth 500 points for overall budget and 350 points for management fee, and oral presentations worth an additional 300 points if applicable; proposals scoring below 850 points on technical evaluation are eliminated from consideration. The anticipated contract term is July 1, 2021, through June 30, 2022, with the Commonwealth reserving the right to renew for up to two additional two-year periods subject to Secretary of the Finance and Administration Cabinet and Legislative Research Commission approval.

The RFP does not specify any set-aside designations or restrictions limiting responses to specific types of organizations or disadvantaged enterprises. ResCare, Inc. has served as the incumbent contractor managing the facility since 1983 and would transition operations to the successful bidder. The contractor shall be reimbursed on a cost-plus fixed management fee basis for actual monthly expenditures not to exceed the approved facility budget, with all revenues from Medicare, Medicaid, Social Security, and third-party sources becoming sole property of the Cabinet. The contractor must maintain medical malpractice and liability insurance of at least $1,000,000 per incident and $3,000,000 per year, workers' compensation insurance as required, and all necessary licenses and certifications. The contractor is responsible for all operational costs including personnel, utilities, maintenance, transportation, and professional services, while the Cabinet retains ownership of all state-purchased property and provides fire, boiler, and certain equipment insurance. Although specific budget figures are not disclosed in the RFP materials, the detailed line-item budget structure and the facility's operational complexity suggest a substantial annual contract value reflective of comprehensive residential care services for a 40-licensed-bed facility with full staffing, clinical services, utilities, maintenance, and administrative operations.