DOJ's $2.34M medical services contract for July 2024 awarded to University of Kentucky without competition

Contract Overview

Contract Amount: $2,341,179 ($2.3M)

Contractor: University of Kentucky

Awarding Agency: Department of Justice

Start Date: 2024-07-01

End Date: 2024-07-31

Contract Duration: 30 days

Daily Burn Rate: $78.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UK COMPREHENSIVE MEDICAL FOR JULY 2024

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40517

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $2.3 million to UNIVERSITY OF KENTUCKY for work described as: UK COMPREHENSIVE MEDICAL FOR JULY 2024 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined costs for services. 2. The sole awardee, University of Kentucky, suggests a potential lack of broad market engagement. 3. A short 30-day duration for a comprehensive medical service contract raises questions about continuity and planning. 4. The contract's value of over $2.3M for a single month warrants scrutiny for cost-effectiveness. 5. This contract falls under the General Medical and Surgical Hospitals NAICS code, indicating a focus on direct patient care. 6. The absence of competition may limit opportunities for price discovery and potentially lead to higher costs.

Value Assessment

Rating: questionable

The contract's value of $2.34 million for a single month of comprehensive medical services appears high, especially when compared to typical monthly operational costs for such facilities. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides cost certainty but does not inherently guarantee value for money in the absence of competition. Further analysis would be needed to determine if this price reflects fair market value for the services rendered.

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 'NOT COMPETED' and 'PURCHASE ORDER' with only one offer. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from various qualified contractors. The lack of competition means that the government did not explore alternative providers or negotiate pricing with multiple entities, potentially missing out on better value or innovative solutions.

Taxpayer Impact: The absence of competition for this significant medical services contract means taxpayers may not have received the best possible price. Without a competitive process, there is less pressure on the contractor to offer cost-effective solutions, potentially leading to overspending.

Public Impact

Inmates within the Federal Prison System / Bureau of Prisons in Kentucky will benefit from comprehensive medical services. The contract ensures the provision of general medical and surgical hospital services. The geographic impact is localized to Kentucky, serving the specific needs of federal correctional facilities in the state. The contract supports the healthcare workforce employed by the University of Kentucky to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and lack of value for taxpayer dollars.
The short 30-day duration for comprehensive medical services could indicate reactive procurement or insufficient long-term planning.
Sole-source awards can limit opportunities for small businesses to participate in federal contracting.
The high dollar amount for a single month necessitates a thorough review to ensure cost-effectiveness.

Positive Signals

The award to a known entity, University of Kentucky, may suggest a reliance on established capabilities for critical services.
Firm-fixed-price contracts offer budget certainty for the government.
The contract directly addresses essential healthcare needs for a specific federal population.

Sector Analysis

This contract falls within the Healthcare sector, specifically under the General Medical and Surgical Hospitals (NAICS 622110) category. The federal government is a significant purchaser of healthcare services, both for active duty personnel and for incarcerated populations. Spending in this sector is driven by the need for continuous, high-quality medical care. Benchmarking this contract's value would ideally involve comparing its per diem rates or service costs to other federal correctional healthcare contracts or similar hospital service agreements, though the sole-source nature complicates direct comparison.

Small Business Impact

The contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large institution, it does not appear to directly benefit the small business ecosystem. Opportunities for small businesses to participate would likely arise only if the prime contractor, the University of Kentucky, were to subcontract portions of the work, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Prison System / Bureau of Prisons within the Department of Justice. Accountability measures would include performance monitoring against the terms of the purchase order and adherence to the firm-fixed-price agreement. Transparency is limited due to the sole-source nature of the award, as competitive proposals and justifications are not publicly available. The Inspector General for the Department of Justice may have jurisdiction for audits and investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Department of Justice Medical Services
General Medical and Surgical Hospital Services
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award
High monthly cost
Short contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.3 million to UNIVERSITY OF KENTUCKY. UK COMPREHENSIVE MEDICAL FOR JULY 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 $2.3 million.

What is the period of performance?

Start: 2024-07-01. End: 2024-07-31.

What is the track record of the University of Kentucky in providing medical services to federal correctional facilities?

The provided data does not offer specific details on the University of Kentucky's prior track record with federal correctional facilities. However, as a major academic medical center, it possesses extensive experience in providing a wide range of medical and surgical services. To assess its suitability for this specific contract, a review of its past performance on similar government contracts, including any performance evaluations or past performance questionnaires, would be necessary. Without this information, it's difficult to definitively gauge their specific experience in the unique environment of correctional healthcare.

How does the $2.34 million monthly cost compare to similar federal correctional healthcare contracts?

Direct comparison of the $2.34 million monthly cost is challenging without more specific contract details and a competitive benchmark. Federal correctional healthcare costs can vary significantly based on the facility's population, security level, geographic location, and the scope of services required. Typically, contracts are structured with per diem rates or comprehensive service packages. Given this is a sole-source award for a single month, it's difficult to ascertain if this represents a competitive rate. A thorough analysis would involve comparing the cost per inmate per day or the cost of specific services against historical data for similar facilities or against benchmark data from competitively awarded contracts, which is not available here.

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

The primary risks associated with sole-source awards for comprehensive medical services include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or optimize service delivery, and a missed opportunity to leverage market competition for better value. There's also a risk that the chosen contractor may not be the most capable or cost-effective provider available. Furthermore, the lack of transparency inherent in sole-source procurements can raise concerns about fairness and the efficient use of taxpayer funds. For critical services like healthcare, ensuring the best possible quality and value is paramount, and sole-sourcing can hinder this.

What is the expected effectiveness of the services provided under this contract for the federal inmate population?

The effectiveness of the services hinges on the University of Kentucky's ability to deliver comprehensive general medical and surgical care as outlined in the contract. Assuming the university has the necessary medical expertise, facilities, and staffing, the services should adequately address the healthcare needs of the inmate population in the specified Kentucky facilities. Effectiveness will be measured by patient outcomes, adherence to medical standards, and the continuity of care provided. The short 30-day duration, however, might limit the assessment of long-term effectiveness or the management of chronic conditions, suggesting this may be a short-term or interim solution.

What are the historical spending patterns for medical services within the Federal Prison System / Bureau of Prisons in Kentucky?

The provided data does not include historical spending patterns for medical services within the Federal Prison System / Bureau of Prisons specifically in Kentucky. To analyze historical trends, one would need access to past contract awards, their values, durations, and the types of services procured for facilities in that region. Understanding these patterns would help contextualize the current $2.34 million expenditure for July 2024, indicating whether this amount is typical, an increase, or a decrease compared to previous periods. Without this historical data, it's difficult to assess if current spending aligns with established trends or represents a deviation.

What is the justification for awarding this contract as a sole-source purchase order?

The provided data does not include the specific justification for awarding this contract as a sole-source purchase order. Typically, sole-source procurements require a documented justification, often citing reasons such as urgency, unique capabilities of the sole provider, or the unavailability of other sources. For a medical services contract, potential justifications could include an immediate need for services where a competitive process would cause unacceptable delays, or if the University of Kentucky possesses unique qualifications or facilities essential for the specific requirements of the correctional institution. Without the official justification, the rationale remains unclear.

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: $2,341,179

Exercised Options: $2,341,179

Current Obligation: $2,341,179

Actual Outlays: $2,331,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline