Outwood ICF Management & Operations (C5859)

The Kentucky Cabinet for Health and Family Services, Department for Behavioral Health, Developmental and Intellectual Disabilities, is issuing Request for Proposal (RFP) 729 2500000349 for the management and operations of Outwood Intermediate Care Facility/Individuals with Intellectual Disability (ICF/IID), a state-owned residential care facility licensed for up to 80 residents located in Dawson Springs, Kentucky. The procurement is open to qualified contractors capable of providing comprehensive residential services including assessment, evaluation, and treatment of residents in accordance with regulatory standards, employment services, crisis prevention, behavioral support, and community integration initiatives. The contractor must manage the 185-acre campus facility consisting of five cottages with 16 individual apartments, a resident life center, sheltered workshop, and recreational facilities while maintaining compliance with the 2006 Federal Settlement Agreement with the U.S. Department of Justice and the state's Olmstead Plan requirements for community-based services and disability rights. Key deliverables include residential support services, person-centered and culturally normative programming, transportation coordination for community participation, and adherence to all federal and state regulatory standards for intermediate care facilities. The contractor is responsible for collecting available revenue sources including Medicaid and third-party payments, submitting annual independent audits, and maintaining medical malpractice and liability insurance of at least $1,000,000 per incident and $3,000,000 annually. Proposals will be evaluated on a maximum of 2,500 points: Technical Proposal (1,450 points), Cost Proposal (850 points), and oral demonstrations if required (200 points), with proposals scoring fewer than 1,015 points on technical evaluation eliminated from consideration. Critical deadlines include written questions due by March 4, 2026, with anticipated responses by March 31, 2026; an optional site visit scheduled for February 26, 2026, at 11:00 a.m.; and proposal submissions due electronically by April 9, 2026, at 2:00 p.m. Eastern Time.

The solicitation does not specify any set-aside designations or restrictions limiting participation based on enterprise classifications, and no incumbent vendor or current contractor information is identified in the available documentation. The initial contract term is anticipated to be from July 1, 2026, through June 30, 2028, with the Commonwealth reserving the right to renew for up to two additional two-year periods subject to approval by the Secretary of the Finance and Administration Cabinet and the Legislative Research Commission Government Contract Review Committee. The cost proposal evaluation is based on an operating budget excluding management fee for a twelve-month period with maximum funding limits to be established by the agency, though specific dollar amounts are not disclosed in the solicitation summary. The facility currently operates at an average daily census of 48 residents as of May 30, 2025, comprising 41 males and 7 females with diagnoses ranging from mild to profound intellectual disabilities, providing baseline operational parameters for budget and staffing projections. Contractors must integrate with existing facility infrastructure including utility systems managed by Christian County Water District, Kentucky Utilities, Atmos Energy, and the City of Dawson Springs, as well as coordinate with established Community Advisory Committees and collaborative relationships with local school districts and community mental health centers.