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Agenda Item
ASR
Control 25-000706 |
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MEETING
DATE: |
04/14/26 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
3 |
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SUBMITTING Agency/Department: |
Health
Care Agency (Approved) |
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Department contact person(s): |
Veronica
Kelley (714) 834-7024 |
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Ian
Kemmer (714) 834-2160 |
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Subject: Approve Contract for Substance Use
Disorder Services
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: FY 2026-27 $4,200,000 |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: N/A |
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RECOMMENDED
ACTION(S):
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1. |
Approve Contract with Clean Path
Recovery LLC for the provision of Substance Use Disorder Services, for the
term of July 1, 2026, through June 30, 2029, in an amount not to exceed
$12,600,000, renewable for two additional one-year terms. |
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2. |
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 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 this contingency contract cost
increase is subject to approval requirements established by the County
Procurement Officer. |
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3. |
Authorize County Procurement Officer or
Deputized designee to execute the Contract with Clean Path Recovery LLC, as
referenced in the Recommended Actions Above. |
SUMMARY:
Approval of the Contract with Clean
Path Recovery LLC, for Substance Use Disorder Services will address critical
gaps in Orange County’s behavioral health system and ensure that pregnant and
parenting individuals, as well as adolescents struggling with substance use
disorders, have local, specialized care that promotes recovery, family
stability, and long-term health outcomes.
BACKGROUND
INFORMATION:
The Health Care Agency (HCA) is
requesting the Honorable Board of Supervisors (Board) approve the contract with
Clean Path Recovery LLC (Clean Path) to provide Substance Use Disorder Services
at HCA’s Irvine campus. The programs will serve pregnant and parenting
individuals and adolescents who require structured, residential care.
Currently, Orange County has
limited residential substance use treatment options for pregnant and parenting
individuals and no residential treatment program for adolescent males within
county boundaries. This limited availability often results in delays in care or
placement outside the county, which can disrupt family involvement and
continuity of treatment. Approval of the contract will expand local treatment
capacity.
Request
for Proposal
On May 12, 2025, HCA released a
Request for Proposal (RFP) through the County’s online bidding system to
solicit providers for two substance use disorder programs:
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Program One: Perinatal and
Parenting Residential Treatment and Withdrawal Management Services |
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Program Two: Adolescent
Residential Treatment and Withdrawal Management Services |
The RFP anticipated awarding one
contract for each program. A total of five proposals were received: three for
Program One and two for Program Two. Proposals were submitted by Clean Path
Recovery LLC, Phoenix House Orange County, Inc., and The Teen Project, Inc.,
and no protests were received. HCA recommends awarding one contract to Clean
Path for both programs. The Orange County Preference Policy applied to this
solicitation.
Proposal
Evaluation Process
The evaluation panel was comprised of five
subject matter experts: two County staff with subject matter expertise, and
three members of the public with subject matter expertise. Evaluation panel
participants independently rated the proposals using established criteria and
possible maximum points of 1000.
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Respondent |
Average Score |
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Program One |
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Clean
Path Recovery LLC |
923.41 |
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Phoenix
House Orange County, Inc. |
855.00 |
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The
Teen Project, Inc. |
763.33 |
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Program Two |
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Clean
Path Recovery LLC |
924.75 |
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Phoenix
House Orange County, Inc. |
864.00 |
HCA staff have conducted due
diligence on Clean Path, and reference checks have been confirmed satisfactory
with Kroesche Schindler LLP, Orange County Sheriff's Department, and
Mitch Cherness, Behavior Health Consultant-and Housing Specialist.
Scope
of Services
Clean Path will operate two
specialized residential substance use treatment programs at HCA’s Irvine
campus. These programs are designed for individuals who require a structured,
supervised environment to safely begin recovery and stabilize their health.
Program
One
will serve pregnant and parenting individuals, a population with complex
medical, emotional, and family-related needs. Substance use during pregnancy
and early parenting can pose serious risks to both parent and child. This
program provides a safe and supportive setting where clients can focus on
recovery while receiving care that supports healthy pregnancies, parenting
stability, and family well-being. Children up to age twelve can live on
premises with their mothers while they receive treatment.
Program
Two
will serve adolescents ages 12 through 17, a group that requires
developmentally appropriate treatment delivered in a structured and secure
environment. Adolescents with substance use challenges often have co-occurring
behavioral, educational, and family needs. This program is designed to help
youth stabilize, develop healthy coping skills, and re-engage with school,
family, and community support.
Both programs will provide
medically appropriate, evidence-based residential treatment for individuals
whose needs cannot be safely met through outpatient services alone. Program One
will have 24 treatment beds for mothers along with cribs and additional beds
for children. Program Two will have 17 treatment beds for adolescent females
and 17 treatment beds for adolescent males. Length of stay for both programs
will be based on assessed medical necessity for residential treatment level of
care.
Withdrawal management services are
a core part of both programs. Clients who need help safely stopping substance
use will receive medically supervised withdrawal management, including
continuous monitoring and clinical oversight to protect health and safety. When
appropriate, clients may transition directly from withdrawal management into
residential treatment, allowing for uninterrupted care and reducing the risk of
relapse.
These services are designed to
stabilize individuals during a critical period, reduce the risk of harm, and
support long-term recovery by ensuring clients leave treatment connected to
ongoing care in the community.
Performance
Outcomes
The following performance outcomes
have been established to measure the effectiveness and continuity of care for
both programs. These outcomes will measure client engagement, treatment
completion, and successful linkage to appropriate levels of care following
discharge.
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At least 70
percent of all enrolled clients will complete residential treatment, making
satisfactory progress at the time of discharge. |
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At
least 50 percent of all clients who have been discharged will be linked to an
appropriate level of care within 30 calendar days of discharge. |
The scope of work and services outlined in
the Contract are in alignment with the Homeless Pillars' best practices,
guiding principles and commitments as detailed in the Homeless Service System
Pillar Report. The Housing and Outreach and Supportive Services Pillar will be
required for delivery of these services.
HCA verified there are no concerns that
must be addressed with respect to the Contractor’s ownership/name, litigation
status or conflicts with County interest. Existing litigation does not impede
the statement of work as outlined by the County under the contract nor
adversely impact the County.
This Contract does not include
subcontractors. See Attachment B for the Contract Summary Form.
HCA requests the Board approve the
Contract with Clean Path for Substance Use Disorder Services, as referenced in
the Recommended Actions above.
FINANCIAL
IMPACT:
Appropriations for this Contract
will be included in Budget Control 042 FY 2026-27 Budget and in the budgeting
process for future years.
The proposed 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
services to clients, if necessary.
Funding
Sources:
Fees & Other: 50% (Drug Medi-Cal
Federal Financial Participation)
Fed: 45% (Substance Use Prevention
Treatment, and Recovery Services Block Grant)
State: 5% (Opioid Abatement Settlement
Fund)
STAFFING
IMPACT:
An analysis was completed to verify
the contract provides the County with persons specially trained, experienced,
expert and competent to perform the special services in accordance with the
law.
REVIEWING
AGENCIES:
Office
of Care Coordination
ATTACHMENT(S):
Attachment
A - Contract MA-042-25011555 for Substance Use Disorder Services with Clean
Path Recovery LLC
Attachment B - Contract Summary Form
Attachment C - Scoring Sheets