DOJ's Bureau of Prisons awards $2.1M for August medical services to University of Kentucky

Contract Overview

Contract Amount: $2,115,294 ($2.1M)

Contractor: University of Kentucky

Awarding Agency: Department of Justice

Start Date: 2024-08-01

End Date: 2024-08-31

Contract Duration: 30 days

Daily Burn Rate: $70.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UK COMPREHENSIVE MEDICAL FOR AUGUST 2024 (PARTIAL FUNDING)

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40517

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $2.1 million to UNIVERSITY OF KENTUCKY for work described as: UK COMPREHENSIVE MEDICAL FOR AUGUST 2024 (PARTIAL FUNDING) Key points: 1. Spending is concentrated on a single provider for a short duration. 2. Limited competition raises questions about price reasonableness. 3. The contract is for essential healthcare services within a federal facility. 4. Sector benchmarks for hospital services are needed for full comparison.

Value Assessment

Rating: questionable

The award of $2,115,293.50 for a 30-day period represents a significant per diem cost. Without comparable contract data for similar facilities or services, it is difficult to definitively assess if this pricing is competitive.

Cost Per Unit: $34,007.62

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have prevented the government from obtaining the best possible price.

Taxpayer Impact: The absence of competitive bidding could lead to higher costs for taxpayers than if multiple vendors had vied for the contract.

Public Impact

Ensures continuity of essential medical care for inmates. Supports a key federal agency's operational needs. Impacts the local economy through services provided by the University of Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost
Limited duration may indicate a stop-gap measure

Positive Signals

Essential service provision
Established provider

Sector Analysis

The healthcare sector, particularly for institutional settings like federal prisons, requires specialized services. Benchmarks for per diem rates in correctional healthcare can vary significantly based on location, patient needs, and service scope.

Small Business Impact

This award does not appear to involve small businesses, as the provider is the University of Kentucky. Further analysis would be needed to confirm if any subcontracting opportunities were extended to small businesses.

Oversight & Accountability

The 'NOT COMPETED' status warrants further review to ensure justification for the lack of competition was adequately documented and approved by the agency.

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
Potentially high per-unit cost
Limited contract duration
Absence of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.1 million to UNIVERSITY OF KENTUCKY. UK COMPREHENSIVE MEDICAL FOR AUGUST 2024 (PARTIAL FUNDING)

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 $2.1 million.

What is the period of performance?

Start: 2024-08-01. End: 2024-08-31.

What is the justification for not competing this contract, and were alternative solutions explored?

The justification for not competing this contract is not provided in the data. Agencies typically sole-source contracts when only one responsible source can satisfy agency requirements. This could be due to unique capabilities, urgent needs, or specific partnerships. Exploring alternative solutions, such as breaking down the requirement or seeking other qualified providers, is a standard part of the procurement process, even for sole-source awards, to ensure best value.

How does the per-unit cost compare to similar medical service contracts for federal correctional facilities?

The per-unit cost of approximately $34,007.62 per day is high and requires comparison with benchmarks for similar services in federal correctional facilities. Factors such as the specific medical services provided, inmate population health status, and geographic location influence these costs. Without access to a database of comparable contracts, a definitive assessment of cost-effectiveness is challenging, but this figure warrants scrutiny.

What is the long-term strategy for providing medical services to this facility, and is this contract a temporary solution?

The short, one-month duration of this contract (August 2024) suggests it may be a temporary or stop-gap measure. The long-term strategy for providing comprehensive medical services to the federal prison system is unclear from this data alone. Agencies typically aim for more stable, longer-term contracts for essential services to ensure consistent care and potentially achieve better pricing through economies of scale.

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: $2,115,294

Exercised Options: $2,115,294

Current Obligation: $2,115,294

Actual Outlays: $2,113,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline