DOJ awards $2.38M for inpatient/outpatient medical services to UMass Medical School

Contract Overview

Contract Amount: $2,378,277 ($2.4M)

Contractor: University of Massachusetts Medical School

Awarding Agency: Department of Justice

Start Date: 2025-07-01

End Date: 2026-02-23

Contract Duration: 237 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UMASS COMPREHENSIVE MEDICAL INPATIENT & OUTPATIENT SERVICES JULY 1- JULY 31, 2025

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27704

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $2.4 million to UNIVERSITY OF MASSACHUSETTS MEDICAL SCHOOL for work described as: UMASS COMPREHENSIVE MEDICAL INPATIENT & OUTPATIENT SERVICES JULY 1- JULY 31, 2025 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating potential for future task orders. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract is 237 days, suggesting a short-term need. 5. The contract is for general medical and surgical hospital services. 6. The awardee is a well-established medical institution, potentially bringing significant expertise.

Value Assessment

Rating: good

The contract value of $2.38 million for a 237-day period for inpatient and outpatient medical services appears reasonable given the nature of healthcare provision. Benchmarking against similar contracts for federal correctional facilities or other government healthcare needs would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost predictability. Without specific details on the scope of services and patient volume, a definitive value assessment is challenging, but the award to a comprehensive medical school suggests a capable provider.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests the agency sought the best value from a wide range of potential providers.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a broader pool of qualified contractors to vie for government business.

Public Impact

Inmates within the Federal Prison System in North Carolina will benefit from comprehensive medical services. Services include inpatient and outpatient general medical and surgical care. The geographic impact is focused on facilities within the Bureau of Prisons' jurisdiction in North Carolina. The contract supports the healthcare workforce within the awarded medical institution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'inpatient and outpatient services' is not clearly delineated.
Dependence on a single awardee for critical medical services could pose a risk if performance issues arise.
Ensuring continuity of care beyond the contract period requires careful planning.

Positive Signals

Award to a reputable medical school suggests a high likelihood of quality service delivery.
Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition indicates a robust selection process, likely resulting in a qualified contractor.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on hospital and medical services. The General Medical and Surgical Hospitals subsector (NAICS 622110) is a critical component of the healthcare industry, providing essential patient care. Federal spending in this area often supports specific populations, such as military personnel, veterans, and inmates, ensuring access to necessary medical treatments. Benchmarking against other federal contracts for similar inmate healthcare services or general hospital services would provide context on the scale and pricing of this award.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted. However, the prime contractor, the University of Massachusetts Medical School, may engage small businesses as subcontractors for specialized services or supplies, though this is not explicitly detailed in the award information. The impact on the broader small business ecosystem would depend on any subcontracting opportunities that may arise.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Department of Justice's Federal Prison System. The Bureau of Prisons typically has established procedures for monitoring contractor performance, ensuring compliance with service level agreements, and managing payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Federal Prison System Healthcare Contracts
Department of Justice Medical Services
Inmate Healthcare Services
General Medical and Surgical Hospital Services

Risk Flags

Short contract duration may indicate a temporary need or a bridge to a longer-term solution.
Lack of specific bidder count limits assessment of competitive intensity.
Potential for cost overruns if fixed price does not account for unforeseen medical needs or cost increases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.4 million to UNIVERSITY OF MASSACHUSETTS MEDICAL SCHOOL. UMASS COMPREHENSIVE MEDICAL INPATIENT & OUTPATIENT SERVICES JULY 1- JULY 31, 2025

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MASSACHUSETTS MEDICAL SCHOOL.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-02-23.

What is the historical spending pattern for inpatient and outpatient medical services for the Federal Prison System in North Carolina?

Analyzing historical spending for similar services within the Federal Prison System in North Carolina is crucial for contextualizing the current $2.38 million award. This involves examining past contract awards for medical services, including inpatient and outpatient care, to the Bureau of Prisons facilities in that region. Key metrics to review would include the total annual spending, the number of contracts awarded, the types of services procured, and the average contract values over the past 3-5 fiscal years. Understanding trends in pricing, service scope, and contractor performance from previous awards can help determine if the current contract represents a fair price, an increase or decrease in service volume, or a shift in contracting strategy. For instance, a consistent increase in spending might indicate rising healthcare costs or an expanding inmate population requiring more services, while a stable or decreasing trend could suggest improved efficiency or a reduction in demand.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar medical facilities?

To assess the value for money, a comparison of per-unit costs is essential. This requires identifying specific services rendered under the contract (e.g., per diem inpatient rate, cost per outpatient visit, specific procedure costs) and benchmarking them against industry standards for comparable medical facilities. For example, if the contract specifies a per diem rate for inpatient care, this rate should be compared to average per diem rates charged by similar-sized hospitals or specialized medical facilities in the region or nationally. Data from healthcare cost aggregators, industry reports, or publicly available Medicare/Medicaid reimbursement rates can serve as benchmarks. A significant deviation from these benchmarks, whether higher or lower, warrants further investigation. Higher costs might indicate less competitive pricing or a more comprehensive service package, while lower costs could suggest exceptional efficiency or potentially a less robust scope of services. Without detailed service breakdowns, this comparison remains high-level.

What is the track record of the University of Massachusetts Medical School in performing federal healthcare contracts?

Evaluating the University of Massachusetts Medical School's (UMassMed) track record with federal healthcare contracts is vital for assessing performance risk. This involves reviewing their past performance on similar contracts, particularly those with government agencies like the Department of Justice, Department of Defense, or Department of Veterans Affairs. Key indicators include on-time delivery, adherence to contract requirements, quality of services provided, and any history of contract disputes, terminations, or performance deficiencies. Databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) can provide insights into past performance issues. A history of successful contract completion suggests a lower risk of performance failure, while past issues may signal potential challenges. Given UMassMed's status as a comprehensive medical school, it is likely to have a strong clinical and research background, but specific federal contract performance data is necessary for a complete assessment.

What are the potential risks associated with the firm fixed-price contract type for these medical services?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can introduce specific risks, particularly in dynamic service environments like healthcare. For this contract, the primary risk is that the fixed price may not adequately account for unforeseen fluctuations in patient volume, complexity of cases, or the cost of medical supplies and personnel. If the actual costs incurred by UMassMed significantly exceed the fixed price due to factors beyond their control (e.g., a sudden surge in complex medical needs among the inmate population), the contractor might face financial strain, potentially impacting service quality or leading to requests for contract modifications or equitable adjustments. Conversely, if the fixed price is set too high relative to the actual services delivered, it could represent a poor value for the government. Effective management requires clear scope definition and monitoring to ensure the price remains fair and reflects the services rendered.

How does the duration of this contract (237 days) align with the typical needs for inpatient and outpatient medical services in federal correctional facilities?

The contract duration of 237 days (approximately 8 months) suggests a short-term or interim need for inpatient and outpatient medical services. This could be for several reasons: it might be a bridge contract to cover a gap while a longer-term contract is being procured, it could be for a specific, time-limited project or event, or it might represent a pilot program. Typically, federal correctional facilities require ongoing, long-term medical support. If this is intended as a sole source of medical care for an extended period, a duration of less than a year raises questions about sustainability and continuity of care. Understanding the rationale behind this short duration is important. If it's a bridge contract, the efficiency of the subsequent procurement process becomes a key factor. If it's for a specific, short-term need, the scope of services should be narrowly defined to match the duration.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Massachusetts

Address: 55 LAKE AVE NORTH, WORCESTER, MA, 01655

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $2,378,277

Exercised Options: $2,378,277

Current Obligation: $2,378,277

Actual Outlays: $2,378,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B10619D00000001

IDV Type: IDC

Timeline