DOJ's $130K Medical Services Contract Awarded to American Correctional Health, Inc. for BOP Facility

Contract Overview

Contract Amount: $130,488 ($130.5K)

Contractor: American Correctional Healthcare, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMPREHENSIVE MEDICAL ACH - APR 26 OUTSIDE MEDICAL TRIPS

Place of Performance

Location: CUMBERLAND, ALLEGANY County, MARYLAND, 21502

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $130,487.5 to AMERICAN CORRECTIONAL HEALTHCARE, INC. for work described as: COMPREHENSIVE MEDICAL ACH - APR 26 OUTSIDE MEDICAL TRIPS Key points: 1. Value for money appears fair given the specialized nature of correctional healthcare services. 2. The contract was not competed, raising questions about potential price discovery and cost-effectiveness. 3. Risk indicators are moderate, primarily related to the lack of competitive bidding. 4. Performance context is within the Federal Prison System, requiring specific operational and security considerations. 5. Sector positioning is within healthcare services, specifically for correctional facilities. 6. The contract duration is short, suggesting a potential for re-evaluation or re-competition in the future.

Value Assessment

Rating: fair

The contract value of $130,487.50 for a one-month period of medical services appears within a reasonable range for specialized correctional healthcare. Benchmarking against similar contracts is challenging without more data on the specific services and patient volume. However, the absence of competition prevents a robust assessment of whether the price represents the best value achievable.

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. This approach is typically used when only one vendor can provide the required services, or in urgent situations. The lack of competition limits the government's ability to solicit multiple bids and potentially negotiate lower prices.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the absence of a bidding process. This could lead to higher costs than if multiple vendors had vied for the contract.

Public Impact

Inmates at the Federal Prison System facility in Maryland will receive essential medical services. The contract ensures continuity of care for the incarcerated population. The services provided fall under general medical and surgical hospital care. The geographic impact is localized to the specific Bureau of Prisons facility in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in spending.
Dependence on a single provider could create risks if performance issues arise.

Positive Signals

Ensures essential medical services are provided to a vulnerable population.
The contract is for a defined, short period, allowing for future reassessment.
The contractor, American Correctional Health, Inc., likely has specialized experience in this niche market.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized niche. This contract fits within the broader category of healthcare provision, but the unique environment of prisons requires specific expertise and security protocols. Comparable spending benchmarks are difficult to establish without detailed service scope and patient load data, but the overall federal spending on correctional healthcare is substantial.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no information available regarding subcontracting opportunities for small businesses within this award. The impact on the small business ecosystem is therefore minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Bureau of Prisons. Accountability measures would include performance monitoring and adherence to the terms of the purchase order. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Correctional Healthcare Services
Department of Justice Medical Support

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency in procurement process.
Potential for higher costs compared to a competed contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $130,487.5 to AMERICAN CORRECTIONAL HEALTHCARE, INC.. COMPREHENSIVE MEDICAL ACH - APR 26 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 $130,487.5.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

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

American Correctional Health, Inc. (ACH) is a known provider of healthcare services within correctional settings. While specific performance data for this particular contract is not yet available, ACH has a history of serving various correctional facilities across different jurisdictions. Their experience typically involves managing medical, dental, and mental health services for incarcerated populations. Evaluating their broader track record would involve reviewing past contract performance, any reported deficiencies or commendations, and their overall reputation within the correctional healthcare industry. This specific contract, being a short-term purchase order, might represent a new engagement or a continuation of services at a particular facility.

How does the cost of this contract compare to similar medical services provided in other federal correctional facilities?

Direct cost comparison for this $130,487.50, one-month contract is challenging without granular data on the specific services rendered, patient volume, and acuity levels at the Maryland facility. Federal correctional healthcare costs can vary significantly based on geographic location, facility size, and the complexity of medical needs. Typically, sole-source contracts, like this one, lack the competitive pressure that drives down prices, potentially making them more expensive than if they were competed. Benchmarking would ideally involve analyzing per-patient-day costs or cost-per-service metrics from comparable facilities, but such data is not readily available for this specific award.

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

The primary risks associated with sole-source awards for medical services, especially in correctional settings, include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. There's also a risk that the chosen contractor may not be the most qualified or cost-effective option available in the market. Furthermore, if the sole-source justification is weak or if there are underlying issues with the contractor's performance, it can lead to service disruptions or compromised patient care. The government relies heavily on the accuracy of the sole-source justification to mitigate these risks.

What is the expected effectiveness of American Correctional Health, Inc. in fulfilling the medical needs of the Federal Prison System facility?

The expected effectiveness hinges on American Correctional Health, Inc.'s demonstrated capabilities in correctional healthcare. Given their specialization, they are likely equipped to manage the unique demands of providing medical services within a secure environment, including handling emergencies, chronic care, and routine medical needs of the inmate population. Effectiveness will be measured by their adherence to the contract's terms, the quality of care provided, patient outcomes, and compliance with Bureau of Prisons regulations and standards. The short duration of this purchase order suggests it might be intended to bridge a gap or test services, implying that long-term effectiveness will be evaluated through subsequent contract actions.

What has been the historical spending pattern for medical services at this specific Federal Prison System facility?

Historical spending data for medical services at this specific Federal Prison System facility is not provided in the current data set. To assess historical patterns, one would need access to past contract awards, purchase orders, and associated expenditures for medical care at this location. Analyzing this data would reveal trends in spending, identify previous providers, and indicate whether the current award represents an increase or decrease in costs, or a change in service providers. Understanding historical spending is crucial for identifying potential cost efficiencies, evaluating the consistency of service provision, and justifying future procurement strategies.

Are there any specific performance metrics or Key Performance Indicators (KPIs) tied to this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this particular purchase order. Typically, government contracts, especially for essential services like healthcare, include defined KPIs to measure contractor performance. These might include response times for medical emergencies, patient satisfaction rates, adherence to treatment protocols, infection control measures, and timely completion of medical records. The absence of explicit KPIs in the summary data suggests they may be detailed within the full contract document or are managed through less formal performance monitoring channels for this short-term award.

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: $130,488

Exercised Options: $130,488

Current Obligation: $130,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline