Agenda Item AGENDA STAFF REPORT ASR Control 24-000551
MEETING DATE:	03/25/25
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	Health Care Agency (Approved)
Department contact person(s):	Veronica Kelley (714) 834-7024
	Ian Kemmer (714) 834-2160

Subject: Approve Contract for In-Custody Substance Use Disorder Treatment Services

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: FY 2025-26 $1,195,139
FY 2026-27 $1,195,139
FY 2027-28 $1,195,139

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: GF: 30%, State: 70% (Opioid Abatement Settlement Fund)	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 3/14/2023 #19, 5/5/2020 #31

RECOMMENDED ACTION(S):

Approve the Contract with Phoenix House Orange County, Inc. for provision of In-Custody Substance Use Disorder Treatment Services, for the term of July 1, 2025, through June 30, 2028, for a total amount not to exceed $3,585,417, renewable for one additional two-year term.

Pursuant to Contract Policy Manual Section 3.3-113, authorize the County Procurement Officer or Deputized designee, to exercise a contingency contract cost increase in an amount not to exceed 10 percent of the first year of funding for the contract, for the entire term of the contract, including renewals, and within the scope of work set forth in the contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

Authorize the County Procurement Officer or Deputized designee to execute the Contract as referenced in the Recommended Actions above.

SUMMARY:

Approval of the contract with Phoenix House Orange County, Inc. for provision of In-Custody Substance Use Disorder Treatment Services will provide Orange County adult male and female inmates with substance abuse disorder treatment.

BACKGROUND INFORMATION:

On May 5, 2020, your Honorable Board of Supervisors (Board) approved the Contract for In-Custody Substance Use Disorder Treatment Services with Phoenix House Orange County, Inc. (Phoenix House) for the term July 1, 2020, through June 30, 2023. On March 14, 2023, the Board approved Amendment No. 1 to renew the Contract with Phoenix House through June 30, 2025.

Request for Proposals (RFP)

On October 9, 2024, the Health Care Agency (HCA) released a Request for Proposals (RFP) in the County’s online bidding system to solicit proposals from qualified providers to provide In-Custody Substance Use Disorder Treatment Services. The RFP included the County’s intent to award one contract to the qualified proponent whose proposal was determined to be the most responsive to the requirements of the RFP. HCA received two proposals by the deadline of November 6, 2024. One proposal received was deemed non-responsive. HCA received one responsive proposal from Phoenix House. With one responsive proposal received, the project manager, in collaboration with the Deputy Purchasing Agent (DPA), reviewed the proposal against the solicitation evaluation criteria. Based on the review against the evaluation criteria, Phoenix House was recommended for award. The Orange County Preference Policy is not applicable to this Contract.

HCA staff have conducted due diligence on the proponent. Reference checks were satisfactory and completed with Los Angeles County Department of Mental Health (LACDMH), Los Angeles County of Public Health, Substance Abuse Prevention and Control (SAPC) and San Bernardino County Department of Behavioral Health (DBH) Substance Use Disorder and Recovery Services (SUDRS), regarding service contracts related to In-Custody Substance Use Disorder Treatment Services. HCA verified there are no concerns that must be addressed with respect to the Respondent’s ownership/name, litigation status or conflicts with County interests.

Scope of Services

The goal of this program is to provide treatment to Orange County adult inmates with a substance use disorder. These services will contain two components: (1) an In-Custody Substance Use Disorder Treatment component and (2) a Post-Release Continuing Care component that includes Case Management to help link clients to ongoing care after their release from custody. The In-Custody program will be housed within Theo Lacy Jail Facility and Orange County Men’s & Women’s Central Jail (also known as Central Jail Complex) and clients enrolled in the program will be located at these facilities. The program has capacity to serve up to 64 total clients in custody. At this time, 32 male and 32 female clients are being served in both locations combined. Clients will receive intensive substance use treatment services while in custody including evaluation and assessment, program orientation, individual and group counseling, psychoeducation groups, self-help meetings, discharge planning and care coordination.

Prior to release from the jail, clients will be linked to a Post-Release Continuing Care Case Management team. Transportation will be provided for all clients to Post-Release Continuing Care services immediately upon release from jail. This team will provide interim services to clients while they are attempting to link to ongoing treatment. The Continuing Care Location that Phoenix House has proposed is in Santa Ana. HCA works collaboratively with providers to develop a good neighbor policy as required by their contract.

Additionally, this program supports the County’s OC Cares strategy by providing a resource for formally incarcerated individuals who are now re-entering the community.

Performance Outcomes:

Performance Outcomes have been developed to measure the Phoenix House’s success with providing treatment. The goals are as follows:

1.	On an annual basis, a minimum of 75 percent of participants enrolled will remain in treatment and demonstrate progress towards their treatment goals until discharge.
2.	On an annual basis, a minimum of 60 percent of participants discharged will link to ongoing services within ten (10) calendar days of release.
3.	On an annual basis, a minimum of 50 percent of participants will be contacted for follow-up communication at ninety (90) calendar days post-discharge, at which time, they will gather information on current participants needs, as well as track post treatment recidivism and abstinence rates.

The proposed Contract does not include subcontractors or pass through to other providers. See Attachment B for Contract Summary Form.

HCA requests the Board approve the Contract with Phoenix House for the provision of In-Custody Substance Use Disorder Treatment Services, as referenced in the Recommended Actions above.

HCA requests the Board, pursuant to Contract Policy Manual Section 3.3-113, authorize County Procurement Officer or Deputized designee to exercise a contingency contract cost increase not to exceed 10 percent of the contract amount for the first year of the contract, for the entire term of the contract, including renewals, and within the scope of work set forth in the contract. The use of the contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

FINANCIAL IMPACT:

Appropriations for this Contract will be included in Budget Control 042 FY 2025-26 Budget and will be included in the budgeting process for future years.

The Contract includes provisions allowing HCA to terminate the Contract, reduce the level of services, and/or renegotiate the levels of services provided, as necessary. This includes a notice that allows HCA adequate time to transition or terminate service to clients, if necessary.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Contract MA-042-25010525 for Provision of In-Custody Substance Use Disorder Treatment Services
Attachment B - Contract Summary Form