SLED Market Research Recap: Student Mental Health Services

An insight into procurement trends for Student Mental Health Services. Deltek’s Education team recently researched Student Mental Health Services procured across K-12 Independent School Districts and Higher Education institutions.

Mental Health Services was among the ten government contracting trends highlighted in Deltek’s 10 Hotspots in State & Local Government Contracting for 2022 report. It has become apparent that students have not been immune to the recent mental health crisis that has swept the nation. Student rates of depression, anxiety, and suicidal thoughts have spiked as students grapple with returning to school after two years of uncertainty and isolation caused by school disruptions. According to a recent study by the National Center for Education Statistics, “Seventy percent of public schools reported an increase in the percentage of their students seeking mental health services at school since the start of the COVID-19 pandemic.” Likewise, a recent survey of high school students by the Centers for Disease Control and Prevention found that 2 in 5 teens have reported persistent feelings of hopelessness. 

The FY2022 Bipartisan Omnibus Agreement has secured $300 million to expand access to mental health services in schools. Notably, The School-Based Mental Health (SBMH) Services Grant Program will provide over $140 million in competitive grants to states and school districts to increase the number of qualified mental health services providers delivering school-based mental health services to students in local educational agencies with demonstrated need. This uptick in funding for student mental health services has been noticeable in the State, Local, and Education (SLED) marketplace.

Regarding student mental health contracts, it is important to differentiate between K-12 and Higher Education contracts, as there are distinguishable variations. Mental health contracts for K-12 independent school districts typically offer prevention, early intervention, and clinical services for students. School districts may implement this by hiring social workers and therapists or by partnering with community-based mental health organizations. The scope of these contracts may vary from school district to school district due to differing needs. Mental health services may be procured under broader contracts such as “Behavioral Health Services” or “Psychiatric Health Services.” In addition, these solicitations tend to be awarded to smaller localized vendors. It is also not uncommon for these contracts to be awarded to multiple vendors. Depending on the size of the school district, Deltek has found that these contracts range from one to three million dollars and the duration is typically 3-5 years.  

Mental Health Services for Higher Education institutions are predominantly geared towards therapists and psychiatrists to help students cope with depression and anxiety. Tele-mental health and Tele-therapy are common methods for universities to provide mental health services to students, especially as higher education becomes increasingly hybrid. These vendors are generally larger and often specialize in student mental health services. Contracts may be procured individually by the university or by a university system on behalf of public universities within the respective state. If procured by a state department, mental health service contracts will usually be worth four to eight million dollars and the contract will commonly serve as a cooperative contract. The duration of these contracts often lasts 3-5 years. 

Below are some examples of pre-RFP Student Mental Health Services currently being tracked in GovWin. 

TELE MENTAL HEALTH FOR STUDENTS PREK 12 – Fairfax County Public Schools, Virginia

SCHOOL BASED BEHAVIORAL HEALTH SERVICES –  Wake County Public Schools, North Carolina 

STUDENT MENTAL HEALTH SERVICES – University System of Georgia

STUDENT PSYCHIATRIC SERVICES – School Board of Broward County, Florida