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HomeBrowseNAICS623220
NAICS623220Sector 62

Residential Mental Health and Substance Abuse Facilities

Residential treatment for mental health and substance abuse disorders under government contracts. Find active federal and state residential mental health and substance abuse facilities contracts — AI-scored against your profile across SAM.gov and 200+ portals.

623220
NAICS Code
$2.2M
Avg Contract Value
$19 million in average annual receipts
Size Standard
Health Care
Sector

Market Overview — NAICS 623220

Annual federal spend under NAICS 623220 exceeds $500 million, driven primarily by the VA (residential PTSD and substance abuse programs), SAMHSA (block grants for treatment facilities), and the Bureau of Prisons (residential reentry and treatment centers). Contracts are typically awarded as multi-year IDIQs or task orders via GSA Schedule 621I (Health & Allied Services) or agency-specific BPAs. Competition is moderate, with 20-30 offers per solicitation on average. Demand is fueled by opioid epidemic response, veteran mental health initiatives, and criminal justice reentry programs.

Top Federal Buyers for NAICS 623220

These agencies are the largest buyers of residential mental health and substance abuse facilities services and products in the federal government. Each awards contracts under NAICS 623220 regularly — build relationships with their small business offices first.

VA
SAMHSA
State Mental Health Agencies
DoD
Bureau of Prisons

How to Win NAICS 623220 Contracts

To win, target VA VISN-level IDIQs and SAMHSA grant-funded state procurements. The most common set-aside for this code is Service-Disabled Veteran-Owned Small Business (SDVOSB) via VA’s VETS GWAC or 8(a) for non-VA agencies. The highest-leverage move is obtaining Joint Commission accreditation for behavioral health and securing state-level licenses in multiple jurisdictions—this instantly qualifies you for most solicitations and reduces bid protest risk.

Contract Vehicles & Buying Pattern

Contracts are awarded LPTA for routine services and best-value for complex clinical requirements. Common vehicles include GSA Schedule 621I, VA VETS GWAC (SDVOSB), 8(a) STARS III, and agency-specific IDIQs (e.g., BOP’s Residential Reentry Centers IDIQ). Evaluations emphasize staff qualifications, accreditation, and past performance in similar settings.

Related Search Terms

VA residential substance abuse treatment contract opportunitiesSAMHSA block grant-funded residential mental health facilities RFPBureau of Prisons residential reentry center IDIQ awardsSDVOSB set-aside for inpatient psychiatric care federal contractsstate-licensed residential treatment facility federal RFPJoint Commission accredited behavioral health IDIQ opportunities8(a) residential substance abuse treatment center contractDoD residential mental health services task order

Frequently Asked Questions

What licenses or certifications are required to bid on federal residential mental health contracts?

You need a state license for residential treatment (e.g., inpatient psychiatric or substance abuse facility license) and Joint Commission or CARF accreditation. For VA contracts, you must also meet VHA Handbook 1160.01 standards.

Are there bonding requirements for NAICS 623220 contracts?

Most task orders under $150K do not require bonds, but larger IDIQ base contracts or construction-related components may require performance and payment bonds. Check individual solicitations.

What is the typical award size for a residential treatment contract?

Task orders range from $500K to $5M annually, with some multi-year IDIQs totaling $20M+. The average single award is around $2M per year.

Can I subcontract with a larger prime if I am a small business?

Yes, but many agencies require the small business to perform at least 50% of the work. Subcontracting as a specialty provider (e.g., detox services) is common under larger IDIQs.

How competitive are these contracts?

Moderately competitive. Each solicitation receives 15-30 offers. SDVOSB and 8(a) set-asides have fewer bidders (5-10), while unrestricted competitions are more crowded.

Related NAICS Codes