DOJ Awards $1.64M Purchase Order to University of Kentucky for Medical Services

Contract Overview

Contract Amount: $1,641,548 ($1.6M)

Contractor: University of Kentucky

Awarding Agency: Department of Justice

Start Date: 2024-06-01

End Date: 2026-04-02

Contract Duration: 670 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UK COMPREHENSIVE MEDICAL FOR JUNE 2024

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40517

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $1.6 million to UNIVERSITY OF KENTUCKY for work described as: UK COMPREHENSIVE MEDICAL FOR JUNE 2024 Key points: 1. Significant contract value for specialized medical services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long duration (670 days) suggests a critical, ongoing need. 4. Focus on Federal Prison System indicates a specific, high-need population.

Value Assessment

Rating: questionable

The contract is a purchase order with a firm fixed price, which provides cost certainty. However, without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar medical service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no opportunity for vendors to bid and offer competitive pricing.

Taxpayer Impact: The lack of competition for this substantial contract may lead to suboptimal pricing, potentially increasing taxpayer burden.

Public Impact

Ensures essential medical services for inmates within the Federal Prison System. Potential for higher costs due to the absence of competitive bidding. University of Kentucky secures a significant contract for its medical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Long contract duration

Positive Signals

Essential service provision
Fixed price contract

Sector Analysis

This contract falls under healthcare services, specifically for institutional medical care. Spending in this sector is consistently high due to the critical nature of health services, especially within correctional facilities.

Small Business Impact

The contract was awarded to the University of Kentucky, a large institution, and there is no indication that small businesses were involved or considered in this sole-source procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Justice adequately justified the lack of competition and obtained the best possible value for taxpayer funds.

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 inflated pricing
Limited transparency in award justification
Long-term reliance on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.6 million to UNIVERSITY OF KENTUCKY. UK COMPREHENSIVE MEDICAL FOR JUNE 2024

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF KENTUCKY.

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 $1.6 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-04-02.

What was the justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?

The justification for a sole-source award typically involves situations where only one vendor can provide the required goods or services due to unique capabilities, proprietary technology, or urgent needs. For this medical services contract, the Department of Justice would need to demonstrate why the University of Kentucky was the only viable option, potentially citing specialized expertise or existing infrastructure critical for inmate care.

What is the benchmarked per-unit cost for similar medical services provided to correctional facilities in the region?

Benchmarking the per-unit cost for similar medical services is crucial for assessing value. Without competitive bids, it's challenging to establish this benchmark. However, comparing the total contract value against the inmate population served and the duration of care could provide a rough estimate. Further analysis would require access to pricing data from comparable contracts, if available.

How will the effectiveness of the medical services provided by the University of Kentucky be monitored and evaluated throughout the contract period?

Effectiveness will likely be monitored through performance metrics outlined in the purchase order, such as patient outcomes, response times for medical emergencies, and adherence to healthcare standards. Regular reviews by the Bureau of Prisons contracting officers will be essential to ensure the University of Kentucky meets its obligations and provides quality care, with potential penalties for non-performance.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 ROSE ST, LEXINGTON, KY, 40536

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: $1,641,548

Exercised Options: $1,641,548

Current Obligation: $1,641,548

Actual Outlays: $1,609,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline