5600 Fishers Lane • Rockville, MD 20857 

www.samhsa.gov • 1-877-SAMHSA-7 (1-877-726-4727) 

August 4, 2021 

Dear State Substance Abuse Director: 

On July 28, 2021, the Drug Enforcement Administration (DEA) published a final rule that 

permits DEA registrants who are authorized to dispense methadone for opioid use disorder to 

add a “mobile component” to their existing registration – eliminating the separate registration 

requirement for mobile medication units of Opioid Treatment Programs (OTPs). This is an 

important step as it will streamline the DEA registration process, making it easier for OTPs to 

provide needed services in remote or underserved areas. 

OTPs certified by the Substance Abuse and Mental Health Services Administration (SAMHSA) 

may establish medication units that are authorized to dispense opioid agonist treatment 

medication for observed ingestion under 42 CFR § 8.11(i). These facilities are established as part 

of, but geographically separate from, a primary OTP to dispense an opioid agonist treatment 

medication or collect samples for drug testing or analysis. 

Specifically, the DEA’s final rule permits an OTP to dispense opioid drugs in schedules II– V 

from a mobile component at location(s) remote from, but within the same State as, the OTP’s 

registered location, for the purpose of maintenance or detoxification treatment. The rule also 

outlines the reports and records that shall be maintained for OTPs that wish to expand the reach 

of their treatment programs by use of mobile components. 

SAMHSA encourages the expansion of OTPs through use of mobile medication units as a means 

of making treatment more readily available for people with Opioid Use Disorders. It is expected 

that these units will facilitate access to treatment for people in rural areas and for people who are 

incarcerated. 

SAMHSA supports the use of the Substance Abuse Prevention and Treatment (SAPT) Block 

Grant funds for mobile units for the purpose of providing substance use disorder outreach, 

screening, assessment, treatment and recovery support services. The SAPT Block Grant statutes 

restrict awards for “financial assistance to any entity other than a public or nonprofit private 

entity.” 42 U.S.C. § 300x-31(a)(1)(E) (section 1931(a)(1)(E) of the Public Health Service Act); 

45 C.F.R. §96.135(a)(5). However, the restriction does not apply in the context of contracts. 

Ordinarily, the term “financial assistance” is used to describe a grant relationship as 

distinguished from an acquisition (or procurement) relationship, typically funded by a contract. 

Therefore, while a state is precluded from providing grants to for-profit entities, states may enter 

into procurement contracts with for-profit entities. 

Similarly, SAMHSA supports use of Substance Abuse Prevention and Treatment Block Grant 

(SABG) funds to purchase vehicles. SABG provisions require that funds be used “only ... for 

Behavioral Health is Essential to Health • Prevention Works • Treatment is Effective • People Recover 
 

 

planning, carrying out, and evaluating activities to prevent and treat substance use disorders...” 

42 U.S.C. § 300x-21(b). As the stated purpose of the expenditure of funds for vehicles is to 

provide SUD-related services, the expenditure falls within the definition of an “authorized 

activity” under 42 U.S.C. § 300x-21(b). SABG funds are expended solely for authorized 

activities and in accordance with all statutory, regulatory and policy provisions applicable to the 

funds. States may enter into procurement contracts with for-profit entities, using SABG funds. 

The state agency and all subrecipients of Block Grant funds (subcontractors and subgrantees) 

must comply with all Block Grant laws, regulations, contracts, agreements, and other program 

requirements. As the federal grantee, States and Territories will be held responsible for ensuring 

that their subrecipients comply with Block Grant requirements. 

In summary, States/Territories and their subrecipients may award contracts, but not grants, to 

for-profit organizations, such as OTPs, to conduct SAPT Block Grant programs. The grantees 

and all subrecipients must adhere to all legal, regulatory and program requirements. 

If you have any questions about this guidance, please contact your State Project Officer. 

Sincerely, 

/Miriam E. Delphin-Rittmon/

Miriam E. Delphin-Rittmon, Ph.D. 

Assistant Secretary for Mental Health

 and Substance Use 

Substance Abuse and Mental Health Services Administration 

1-877-SAMHSA-7 (1-877-726-4727) • 1-800-487-4889 (TDD) • www.samhsa.gov