DOJ's $3.4M Purchase Order to American Correctional Health for Onsite Ultrasound Services in FY26
Contract Overview
Contract Amount: $3,400 ($3.4K)
Contractor: American Correctional Healthcare, Inc.
Awarding Agency: Department of Justice
Start Date: 2026-03-01
End Date: 2026-04-09
Contract Duration: 39 days
Daily Burn Rate: $87/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACH - FY26 MAR 26 ONSITE ULTRASOUND
Place of Performance
Location: CUMBERLAND, ALLEGANY County, MARYLAND, 21502
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $3,400 to AMERICAN CORRECTIONAL HEALTHCARE, INC. for work described as: ACH - FY26 MAR 26 ONSITE ULTRASOUND Key points: 1. The contract value is $3.4 million for a 39-day period. 2. The award was made via a 'NOT COMPETED UNDER SAP' method, indicating limited competition. 3. The primary risk lies in the lack of competitive bidding potentially leading to suboptimal pricing. 4. This falls under the Healthcare sector, specifically General Medical and Surgical Hospitals.
Value Assessment
Rating: questionable
The contract is a Firm Fixed Price purchase order for a short duration. Without competitive bids, it's difficult to assess if the $3.4 million price is reasonable compared to market rates for similar onsite ultrasound services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The award was not competed under Simplified Acquisition Procedures (SAP), suggesting a non-competitive or limited competition approach. This lack of open bidding raises concerns about price discovery and potentially higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these essential medical services.
Public Impact
Ensures critical medical diagnostic services are available to inmates. Supports the operational needs of the Federal Prison System. Potential for increased healthcare costs within correctional facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Short Performance Period
- Potential for Overpricing
Positive Signals
- Essential Service Provision
- Fixed Price Contract
Sector Analysis
This contract falls within the Healthcare sector, specifically for hospital services. Spending benchmarks for similar medical equipment and service contracts within federal correctional facilities are not readily available, but competitive bidding typically drives better value.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. The award method suggests it was not set aside for small business participation.
Oversight & Accountability
Oversight is crucial to ensure the quality of services provided and to review the justification for the non-competitive award. Future procurements should explore competitive options to ensure accountability.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in award justification
- Short contract duration may indicate urgency or a stop-gap measure
Tags
general-medical-and-surgical-hospitals, department-of-justice, md, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $3,400 to AMERICAN CORRECTIONAL HEALTHCARE, INC.. ACH - FY26 MAR 26 ONSITE ULTRASOUND
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 $3,400.
What is the period of performance?
Start: 2026-03-01. End: 2026-04-09.
What is the justification for not competing this contract under SAP, and what steps were taken to ensure fair and reasonable pricing?
The justification for not competing under SAP is not provided in the data. Typically, this requires specific circumstances like urgent need or sole-source availability. Without this information, it's impossible to assess the fairness of the pricing. Further review of the contract file would be necessary to understand the rationale and any price negotiation efforts.
What are the risks associated with a sole-source or limited competition award for essential medical services in a correctional setting?
The primary risk is inflated pricing due to the lack of competitive pressure, leading to inefficient use of taxpayer funds. Other risks include potential compromises in service quality if the provider faces no market incentive to excel, and a lack of transparency in the procurement process, which can erode public trust.
How does this contract contribute to the overall effectiveness of healthcare delivery within the Federal Prison System?
This contract provides essential diagnostic ultrasound services, which are vital for inmate healthcare. Ensuring timely and accessible diagnostic tools contributes to effective medical treatment and management of patient conditions within the correctional environment. However, the effectiveness is also tied to the value received, which is questionable due to the procurement method.
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 UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
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: $3,400
Exercised Options: $3,400
Current Obligation: $3,400
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-03-01
Current End Date: 2026-04-09
Potential End Date: 2026-04-09 00:00:00
Last Modified: 2026-04-09
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