Secured Behavioral Health Residential Facility YH26-0005

The Arizona Health Care Cost Containment System (AHCCCS) is soliciting proposals through a Request for Proposal (Solicitation No. BPM007546/YH26-0005) for the development and operation of Secured Behavioral Health Residential Facilities (S-BHRFs) in Maricopa County. This procurement seeks one or more single-agency contracts to establish secure, 24-hour residential treatment facilities limited to 16 beds each that will serve individuals with serious mental illness who are chronically resistant to treatment and placed by court order, pursuant to Arizona Revised Statutes 41-2534. Qualified offerors must be both the owner and operator of existing properties that will be retrofitted to meet facility requirements—new construction is not permitted—and must obtain Arizona Department of Health Services licensure and AHCCCS provider enrollment prior to operations. Key deliverables and objectives include facility retrofit and development activities encompassing security upgrades, fire/life-safety improvements, ADA compliance, environmental review, design, and permitting, with the facility becoming fully operational and demonstrating readiness to serve clients. Required qualifications include demonstrated experience operating behavioral health residential services, particularly with individuals with serious mental illness and co-occurring conditions, valid organizational licensure and certifications, financial stability evidenced by audited financial statements, adequate insurance capacity, and documented key personnel with relevant expertise in behavioral health service delivery and facility operations. The evaluation criteria, presented in order of importance, are: Method of Approach, Experience and Capacity of Offeror, and Cost. Proposals must be submitted online through the Arizona Procurement Portal by January 1, 2027, at 3:00 p.m. Arizona Time; inquiries regarding technical issues must be submitted at least three business days before the due date, while substantive solicitation questions must be submitted seven days prior to the deadline. No pre-offer conference has been scheduled, and the State reserves the right to conduct negotiations, request Best and Final Offers, and conduct interviews or oral presentations as part of the evaluation process.

This procurement does not identify any specific set-asides for disadvantaged enterprises, minority-owned businesses, or other designated categories, though offerors must certify compliance with Arizona anti-discrimination laws and prohibitions on participation in boycotts of Israel and forced labor practices; limited exemptions from boycott and forced labor certifications are available for sole proprietorships, entities with fewer than ten employees, and nonprofit organizations. No incumbent contractor or current service provider has been identified in the solicitation documents. Approximately $5 million in appropriated funding from the State Fiscal Year 2025-2026 General Appropriations Act is available for facility development, retrofit costs, and associated improvements, with AHCCCS disbursing funds on a cost-reimbursement basis upon completion of approved development milestones. The offeror is responsible for all project costs exceeding the awarded amount, and pricing must be submitted as all-inclusive and firm-fixed, with state transaction privilege taxes identified separately and excluded from cost evaluation. The contract term is 12 months with discretionary extensions available up to a maximum aggregate term of five years. The State reserves the right to award one or more contracts or no contracts at all and makes no guarantee of actual spending, providing flexibility in final award decisions based on proposal quality and strategic fit with agency objectives.