DOJ's $282K medical services contract awarded to American Correctional Health, Inc. without competition

Contract Overview

Contract Amount: $282,000 ($282.0K)

Contractor: American Correctional Healthcare, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-11-01

End Date: 2026-04-09

Contract Duration: 159 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMPREHENSIVE MEDICAL ACH - NOV 25 OUTSIDE MEDICAL TRIPS

Place of Performance

Location: CUMBERLAND, ALLEGANY County, MARYLAND, 21502

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $282,000 to AMERICAN CORRECTIONAL HEALTHCARE, INC. for work described as: COMPREHENSIVE MEDICAL ACH - NOV 25 OUTSIDE MEDICAL TRIPS Key points: 1. Value for money is difficult to assess due to lack of competition and limited performance data. 2. Competition dynamics show a sole-source award, raising concerns about price discovery. 3. Risk indicators include the absence of a competitive process and potential for cost overruns. 4. Performance context is limited to a 159-day duration for outside medical trips. 5. Sector positioning is within the healthcare services for correctional facilities.

Value Assessment

Rating: questionable

Assessing the value for money is challenging as this contract was not competed. Without benchmark data from competing bids or comparable contracts, it's difficult to determine if the $282,000 price is reasonable. The fixed-price nature offers some cost certainty, but the lack of competitive pressure could lead to inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The data indicates a 'NOT COMPETED' status. This approach bypasses the standard procurement process designed to solicit multiple bids and ensure the best possible price and value for the government.

Taxpayer Impact: Sole-source awards limit taxpayer benefit by foregoing the potential for cost savings that typically arise from a competitive bidding environment.

Public Impact

Inmates within the Federal Prison System will receive necessary outside medical trip services. The services are delivered within the Bureau of Prisons facilities. The geographic impact is localized to the facility where the services are required. The contract supports the operational needs of the correctional healthcare system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competed contract.
Limited duration of the contract may indicate a need for ongoing, potentially uncompeted, services.
Sole-source awards can reduce transparency in government spending.

Positive Signals

The contract addresses a specific need for outside medical services for inmates.
The firm fixed-price contract provides some cost predictability for the government.

Sector Analysis

The healthcare services sector for correctional facilities is a specialized niche within the broader healthcare industry. This contract falls under general medical and surgical hospitals (NAICS 622110). Spending in this area is driven by the need to provide essential medical care to incarcerated populations, often requiring specialized arrangements for off-site treatments.

Small Business Impact

There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a specific provider, it is unlikely to directly benefit the small business ecosystem unless American Correctional Healthcare, Inc. utilizes small businesses in its own supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons' contracting and program management offices. Accountability measures are inherent in the contract terms, but the lack of competition limits the ability to externally benchmark performance and cost. Transparency is reduced due to the sole-source nature of the award.

Related Government Programs

Federal Bureau of Prisons Medical Services
Department of Justice Healthcare Contracts
Inmate Medical Care Services

Risk Flags

Sole-source award lacks competitive justification.
Limited contract duration may indicate recurring, uncompeted needs.
Absence of performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $282,000 to AMERICAN CORRECTIONAL HEALTHCARE, INC.. COMPREHENSIVE MEDICAL ACH - NOV 25 OUTSIDE MEDICAL TRIPS

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 $282,000.

What is the period of performance?

Start: 2025-11-01. End: 2026-04-09.

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

Information regarding the specific track record of American Correctional Health, Inc. in providing outside medical trip services to federal correctional facilities is not detailed in the provided data. However, as a company specializing in correctional healthcare, it is presumed to have experience in this domain. Further investigation into past performance reviews, contract history with the Bureau of Prisons, and any reported issues or successes would be necessary for a comprehensive assessment. The nature of sole-source awards often implies a pre-existing relationship or a perceived unique capability, but without competitive data, it's difficult to definitively gauge their performance relative to potential alternatives.

How does the $282,000 contract value compare to similar outside medical trip services for inmates?

Direct comparison of the $282,000 contract value for outside medical trips is challenging due to the sole-source nature of this award and the limited duration (159 days). Without data from competing bids or a broader market analysis of similar services across different federal correctional facilities, it's difficult to establish a benchmark. Factors such as the specific medical needs of the inmate population, the geographic location of the facility, and the availability of local medical providers would influence pricing. A competitive bidding process would typically yield more transparent pricing data for comparison.

What are the primary risks associated with awarding a contract for medical services on a sole-source basis?

The primary risks associated with awarding a contract for medical services on a sole-source basis include potential for inflated pricing 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 not receive the best value for their money. Furthermore, it can limit the government's ability to explore alternative providers or service models that might be more cost-effective or better suited to specific needs. This approach can also raise concerns about fairness and equal opportunity for other qualified vendors.

What is the expected effectiveness of these outside medical trip services for the inmate population?

The expected effectiveness of these outside medical trip services hinges on the contractor's ability to provide timely, appropriate, and quality medical care to inmates requiring specialized treatment not available within the correctional facility. The contract's effectiveness will be measured by the health outcomes of the inmates served and the seamless coordination of these external medical appointments. Given the limited duration and the nature of 'outside medical trips,' the focus is likely on episodic care rather than comprehensive health management. Success depends on efficient scheduling, transportation, and communication between the correctional facility, the contracted medical provider, and external healthcare specialists.

What are the historical spending patterns for outside medical trips within the Federal Prison System?

Historical spending patterns for outside medical trips within the Federal Prison System are not detailed in the provided data. However, it is reasonable to infer that such services are a recurring necessity to address inmate health needs that exceed the capabilities of on-site medical staff. Understanding the historical volume, cost trends, and the prevalence of sole-source versus competed awards for these services would provide valuable context. Analyzing past expenditures could reveal patterns of increasing costs, reliance on specific contractors, or opportunities for greater competition and cost savings.

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $282,000

Exercised Options: $282,000

Current Obligation: $282,000

Actual Outlays: $126,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline