DOJ's $126.8M medical services contract with American Correctional Healthcare, Inc. awarded via purchase order

Contract Overview

Contract Amount: $126,804 ($126.8K)

Contractor: American Correctional Healthcare, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-03-01

End Date: 2026-04-09

Contract Duration: 404 days

Daily Burn Rate: $314/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMPREHENSIVE MEDICAL ACH - MAR 25 MED TRIPS AVAILABILITY OF CLAUSES 52.232-18

Place of Performance

Location: BURLESON, JOHNSON County, TEXAS, 76028

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $126,803.71 to AMERICAN CORRECTIONAL HEALTHCARE, INC. for work described as: COMPREHENSIVE MEDICAL ACH - MAR 25 MED TRIPS AVAILABILITY OF CLAUSES 52.232-18 Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the firm-fixed-price structure. 4. Performance context is within the Federal Prison System, requiring specialized healthcare delivery. 5. Sector positioning is within healthcare services for correctional facilities.

Value Assessment

Rating: fair

The contract value of $126.8 million over approximately 13 months presents a significant expenditure. Benchmarking this against similar federal contracts for correctional healthcare services is crucial to determine if the pricing is competitive. Without specific per-unit cost data or comparisons to market rates for similar services in comparable correctional settings, a definitive value-for-money assessment is challenging. The firm-fixed-price structure offers budget certainty but may limit flexibility if service needs change.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The data indicates it was not competed, suggesting that only one vendor was considered capable of meeting the requirement. This lack of competition limits the opportunity for price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from competitive bidding, which typically drives down prices. This could lead to a less efficient use of taxpayer funds.

Public Impact

Inmates within the Federal Prison System will receive medical services. The contract ensures the availability of general medical and surgical hospital services. Services are geographically focused within Texas (TX). The contract supports the operational needs of the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can reduce transparency and accountability.
Potential for vendor lock-in if alternatives are not explored.

Positive Signals

Ensures continuity of essential medical services for inmates.
Firm-fixed-price contract provides budget predictability.
Award to a single, potentially specialized provider.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized niche. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. The market for correctional healthcare is often characterized by a limited number of providers capable of meeting the unique security and operational requirements of prisons. Federal spending in this area is substantial, driven by the need to provide constitutionally mandated healthcare to the incarcerated population.

Small Business Impact

The contract data indicates that small business participation was not a stated factor in this award (sb: false). As a sole-source award, there is no explicit small business set-aside. Subcontracting opportunities for small businesses are not detailed in the provided information, and the impact on the small business ecosystem is likely minimal unless the prime contractor actively engages them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons. Accountability measures would be defined in the purchase order terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Correctional Facility Healthcare Provision
Inmate Medical Care Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher costs due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $126,803.71 to AMERICAN CORRECTIONAL HEALTHCARE, INC.. COMPREHENSIVE MEDICAL ACH - MAR 25 MED TRIPS AVAILABILITY OF CLAUSES 52.232-18

Who is the contractor on this award?

The obligated recipient is AMERICAN CORRECTIONAL HEALTHCARE, INC..

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 $126,803.71.

What is the period of performance?

Start: 2025-03-01. End: 2026-04-09.

What is the historical spending pattern for medical services within the Federal Prison System, and how does this contract compare?

Historical spending on medical services within the Federal Prison System (FPS) has been substantial, reflecting the complex healthcare needs of the incarcerated population. The Bureau of Prisons (BOP) consistently allocates significant funds to ensure adequate medical care, which is a constitutional requirement. While specific historical dollar amounts for comparable contracts are not provided in this data snippet, the $126.8 million awarded to American Correctional Healthcare, Inc. over approximately 13 months represents a significant investment. To provide a full comparison, one would need to analyze multi-year spending trends for similar medical service contracts within the BOP, looking at average contract values, duration, and the scope of services provided. This would help determine if this particular award is in line with historical spending or represents an outlier, potentially due to increased service scope, inflation, or market dynamics.

What is the track record of American Correctional Healthcare, Inc. in providing services to federal correctional facilities?

American Correctional Healthcare, Inc. (ACH) has a history of providing healthcare services within correctional settings. To assess their track record specifically for federal facilities, a review of their past federal contracts, performance evaluations, and any reported issues or successes would be necessary. Information regarding their experience with the Bureau of Prisons (BOP) or other federal agencies would be key. Factors to consider include their ability to meet contract requirements, manage costs, ensure quality of care, and comply with federal regulations and security protocols. A thorough assessment would involve examining contract completion rates, any penalties or disputes, and client feedback from government agencies.

How does the pricing of this contract benchmark against similar services provided in state or local correctional facilities?

Benchmarking the pricing of this $126.8 million federal contract against services in state or local correctional facilities is complex but essential for value assessment. State and local contracts may offer comparable data points, but differences in scale, service scope, regulatory environments, and geographic cost variations can significantly impact pricing. Federal contracts often involve higher administrative overhead and stricter compliance requirements, which can influence costs. To perform a robust comparison, one would need to identify contracts with similar patient populations, service levels (e.g., primary care, specialty care, mental health), and contract durations. Analyzing per-diem costs or cost per inmate for healthcare services across different jurisdictions would provide a clearer picture of whether the federal pricing is competitive or potentially inflated due to the sole-source award and specialized nature of federal correctional healthcare.

What are the primary risks associated with a sole-source award for essential correctional healthcare services?

The primary risks associated with a sole-source award for essential correctional healthcare services include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than necessary. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences financial difficulties, operational issues, or fails to meet performance standards. The government has limited leverage to negotiate better terms or pricing. Ensuring robust contract management, performance monitoring, and clear termination clauses becomes even more critical in sole-source situations to mitigate these risks and ensure the continuity and quality of essential services.

What is the expected impact of this contract on the overall healthcare delivery within the Federal Prison System?

This contract is expected to ensure the continuity and provision of comprehensive medical services for inmates within the Federal Prison System, specifically in Texas. By awarding this significant contract, the Bureau of Prisons aims to meet its constitutional obligation to provide healthcare to the incarcerated population. The impact includes maintaining access to general medical and surgical care, potentially improving health outcomes for inmates, and supporting the operational stability of the facilities served. The specific provider, American Correctional Healthcare, Inc., will be responsible for delivering these services according to the terms of the purchase order. The success of this contract will be measured by the quality of care provided, patient satisfaction (within the correctional context), and adherence to budget and performance metrics.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 120 MCKINLEY DR, BURLESON, TX, 76028

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $126,804

Exercised Options: $126,804

Current Obligation: $126,804

Actual Outlays: $126,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline