TITLE
Title
CONTRACT AWARD TO VOLUNTEERS OF AMERICA OF THE CAROLINA FOR RESIDENTIAL TREATMENT SERVICES FOR PREGNANT AND PARENTING BENEFICIARIES
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SPONSOR
Sponsor
Victor Isler, Assistant County Manager for Successful People
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BACKGROUND
Background
On February 1, 2024, the Board approved the Women and Children’s Residential Recovery Committee’s recommendation to utilize the facility at Gibson Park to develop a substance use treatment center for pregnant and parenting women. On April 16, 2024, a Request for Proposals was distributed to solicit proposals for a service provider to support the design of this program and operate the facility. Proposals were received on May 16, 2024. Three (3) proposals were submitted and two (2) were deemed responsive by the Purchasing Department. The responsive bidders were:
1. Volunteers of America of the Carolinas
2. Community Alternatives dba Community Choices
The proposals were reviewed by a team of County staff from Behavioral Health, Public Health, DHHS Admin, and the County Manager’s Office during the week of May 20, 2024. Both organizations were invited to in-person interviews to present their proposals between May 28, 2024, and June 20, 2024. A site visit was conducted with the highest scoring organization after the interviews on July 16, 2024.
The committee evaluated the written proposals and interviews using the following criteria:
1. Experience providing residential treatment for pregnant and parenting women.
2. Experience working with the Division of Health Services Regulation (DHSR) and Managed Care Organizations (MCOs).
3. Proposal Alignment with proposed NC Medicaid Policy 8D-5 “Clinically Managed High-Intensity Residential Services” and Guilford County Core Values.
4. Proposed cost model for program design consulting and service delivery.
5. Ability to adequately staff the proposed services and staffing model alignment with state requirements.
The evaluation team recommends Volunteers of America of the Carolina to provide these services based on their:
• Proven track record of providing trauma-informed, evidence-based residential substance use treatment for pregnant and parenting women.
• Experience in service delivery and outcome-based contracting with Managed Care Organizations (MCOs).
• Strong commitment to and focus on developing a full system of care based in community collaboration and partnership.
Guilford County staff worked with Volunteers of America of the Carolinas to develop a two phased approach to services delivery. Phase one is the program design phase and will cover the period prior to opening the facility for service delivery and will include consultation on program design, facility design, and stakeholder engagement. Phase two is the service delivery phase and will cover licensing the service, opening the facility, and provision of residential treatment services in the facility.
Volunteers of America submitted a cost proposal for phase one not-to-exceed $377,045 for the following scope:
• Program Design: Work collaboratively to develop a program based on the Family Focused Recovery Model and compliant with all necessary state and local regulations.
• Facility Design: Support development of a facility design that aligns with implementation of the program design.
• Stakeholder Engagement: Participate in community stakeholder engagement, establish local partnerships to support a full system of care, identify and develop solutions to potential service delivery barriers in the community, and provide community education and awareness around the services to be provided.
The final scope of work for phase two will be informed by activities occurring in phase one. A phase two cost proposal and scope of work recommendation will be brought to the Board for consideration at a later date.
Funding for this work is anticipated to come from a combination of Opioid Settlement and ARPA funds. The Board voted in October 2022 to allocate $3.0 million in ARPA funds for Recovery Housing & Residential Programs for pregnant and parenting women based on the initial Request for Ideas process. Potential uses for these funds includes capital construction costs associated with acquiring and/or preparing a facility to provide these services. Starting in FY 2022-23, the County has also begun to receive proceeds from the national Opioid Settlement lawsuits and associated agreements with $8.8 million received as of June 2024 or FY 2023-24 and another $2.8 million scheduled to be disbursed to the County in FY 2024-25. The need for a locally-sited recovery program for pregnant and parenting women was reiterated in the Opioid Settlement strategic planning process conducted from in 2023, and funding the operational costs of such a program was one of the high priority recommendations for using Opioid Settlement funds that the Board approved in March 2024.
At this time, staff continue to recommend use of the $3.0 million in ARPA funding for the facility renovation and upfit costs necessary to bring the Gibson Park building to the condition and layout needed to provide recovery services for pregnant and parenting women. This is the building that Daymark's existing recovery services program is currently located in, so construction will not be able to begin until Daymark moves to the Lees Chapel facility that is currently under renovation for its program. Finalizing annual operating costs will be part of the program design work in this phase one contract, but initial estimates show net County costs within the $1.5 million amount that the Board approved in March 2023. Staff will continue to work with the provider during program planning to increase non-County revenues, primarily Medicaid, and reduce net County cost as much as feasible.
To pay for this contract with Opioid Settlement funds, staff need the Board to authorize the use of funding for a period running from August 1, 2024, to July 31, 2025. The activity is allowable under the Opioid Settlement MOA in Exhibit A, Strategy 1 "Collaborative Strategic Planning" as the focus of this phase of the work is program and facility planning and stakeholder engagement. The necessary Opioid Spending authorization for this activity is included with this item. Any renewals or extensions to this contract and all phase two costs will be funded in separate spending authorizations.
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BUDGET IMPACT
Budget Impact
Budget Ordinance Amendment
Opioid Settlement Fund
$377,045 Increase in Federal/State Revenue
$377,045 Increase in Appropriation to Opioid Settlement
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Approve a contract, in substantial form, with Volunteers of America of the Carolinas for consultation on program design, facility design, and stakeholder engagement as part of program design for a Residential Treatment Services for Pregnant and Parenting Beneficiaries in the amount of $377,045 for a twelve (12) month contract term beginning on August 1, 2024 and ending July 31, 2025 with one (1) optional twelve (12) month renewal; and adopt an Opioid Settlement Spending Resolution for the use of Opioid Settlement funds to fund this work under Exhibit A, Strategy 1 as outlined in the resolution in the total amount of $377,045 starting on August 1, 2024 and ending July 31, 2025.
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