DOJ's Bureau of Prisons awards $336K sole-source purchase order for medical services in Indiana

Contract Overview

Contract Amount: $336,571 ($336.6K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-04-07

Contract Duration: 65 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMPREHENSIVE MEDICAL - FEBRUARY FY26 SEVEN CORNERS

Place of Performance

Location: CARMEL, HAMILTON County, INDIANA, 46032

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $336,571.36 to SEVEN CORNERS INC for work described as: COMPREHENSIVE MEDICAL - FEBRUARY FY26 SEVEN CORNERS Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The short duration of 65 days suggests a need for immediate medical support rather than a long-term strategic procurement. 3. The fixed-price contract type offers cost certainty but may limit flexibility if unforeseen medical needs arise. 4. The absence of small business participation indicates a focus on specialized medical providers for this specific requirement. 5. The contract's value is relatively small, suggesting it addresses a localized or short-term medical need within the Federal Prison System.

Value Assessment

Rating: fair

Benchmarking this specific $336,571 purchase order for comprehensive medical services is challenging due to its sole-source nature and short duration. Without competitive bids, it's difficult to assess if the price reflects fair market value. However, the Federal Prison System often procures medical services for inmate care, and pricing can vary significantly based on location, scope, and urgency. The fixed-price nature provides cost predictability for this limited period.

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. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means there was no opportunity to solicit bids from various providers, potentially limiting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. Sole-source awards can sometimes lead to higher costs compared to those secured through open competition.

Public Impact

Inmates within the Federal Prison System in Indiana will benefit from comprehensive medical services. The services delivered are general medical and surgical hospital care, crucial for maintaining inmate health and well-being. The geographic impact is localized to Indiana, specifically serving facilities managed by the Bureau of Prisons. The contract supports the operational needs of the Federal Prison System, ensuring continuity of care for a vulnerable population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Short contract duration could indicate an emergency or poorly planned procurement.
Sole-source awards can reduce transparency and accountability.

Positive Signals

Fixed-price contract provides cost certainty for the specified period.
Addresses a critical need for inmate healthcare within the Federal Prison System.
Specific NAICS code (622110) indicates a focus on specialized medical services.

Sector Analysis

The healthcare sector, particularly within government and correctional facilities, is a significant market. General Medical and Surgical Hospitals (NAICS 622110) represent a core segment of this market. Federal agencies like the Bureau of Prisons are consistent purchasers of healthcare services to meet the needs of their populations. While this specific contract is a small purchase order, it fits within the broader context of federal spending on healthcare, which is substantial across various agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The sole-source nature further suggests that the focus was on securing a specific provider rather than distributing work among smaller entities. This limits opportunities for small businesses to participate in this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of the Inspector General, which investigates waste, fraud, and abuse in federal programs. The Bureau of Prisons itself has internal oversight mechanisms for contract management and performance. Transparency is limited due to the sole-source nature, but contract award details are publicly available through federal procurement databases.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Department of Justice Medical Procurement
Inmate Healthcare Services

Risk Flags

Sole-source award may limit price competition.
Short contract duration could indicate reactive procurement.
Lack of transparency in vendor selection process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $336,571.36 to SEVEN CORNERS INC. COMPREHENSIVE MEDICAL - FEBRUARY FY26 SEVEN CORNERS

Who is the contractor on this award?

The obligated recipient is SEVEN CORNERS 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 $336,571.36.

What is the period of performance?

Start: 2026-02-01. End: 2026-04-07.

What is the track record of Seven Corners Inc. with federal contracts, particularly with the Department of Justice or Bureau of Prisons?

Seven Corners Inc. has a history of engaging with federal agencies, often providing travel insurance and related medical assistance services. While specific details on their track record with the Bureau of Prisons for direct medical services are not immediately apparent from this single award, their broader experience in managing medical claims and coordinating care suggests a capacity to fulfill such requirements. Further analysis would involve reviewing their past performance evaluations and contract history across different federal entities to ascertain their reliability and quality of service in similar contexts. The current award is a purchase order, indicating a specific, likely short-term need.

How does the pricing of this contract compare to similar medical service contracts awarded by the Bureau of Prisons or other federal agencies?

Direct price comparison for this $336,571 purchase order is difficult due to its sole-source nature and short 65-day duration. Competitive bids typically drive down costs, and without them, it's hard to benchmark. The Federal Prison System procures a wide range of medical services, from routine care to specialized treatments, with varying costs depending on location, scope, and urgency. This particular award might reflect the cost of immediate, localized medical support. A comprehensive comparison would require access to data on other sole-source or competitively bid contracts for similar services within the BOP, considering factors like patient volume, acuity, and service level agreements.

What are the primary risks associated with this sole-source award for medical services?

The primary risks associated with this sole-source award include potential overpayment due to the lack of competitive pricing, and the risk of inadequate service if the chosen vendor is not the most capable or efficient provider available. There's also a risk that the short duration might indicate a reactive procurement rather than proactive planning, potentially leading to service gaps or rushed execution. Furthermore, sole-source awards can sometimes be perceived as lacking transparency, potentially raising concerns about fairness and accountability in the procurement process. Ensuring robust performance monitoring will be crucial to mitigate these risks.

How effective is the Federal Prison System in managing its medical service contracts to ensure quality care and value for money?

The Federal Prison System (FPS) faces significant challenges in managing medical service contracts due to the unique healthcare needs of the inmate population and the complexities of correctional environments. While the FPS aims to provide adequate healthcare, effectiveness can vary. Oversight mechanisms, including contract performance monitoring and quality assurance reviews, are in place. However, issues such as staffing shortages, access to specialized care, and cost containment remain ongoing concerns. The success of individual contracts, like this one, depends heavily on specific vendor performance, contract terms, and the rigor of FPS oversight.

What is the historical spending pattern for comprehensive medical services by the Bureau of Prisons in Indiana?

Analyzing historical spending patterns for comprehensive medical services by the Bureau of Prisons (BOP) in Indiana requires access to detailed procurement data over multiple fiscal years. This specific $336,571 award for February FY26 is a single data point. General trends indicate that the BOP consistently spends significant amounts on inmate healthcare nationwide, often through a mix of in-house facilities and contracted services. Spending in specific regions like Indiana can fluctuate based on inmate population, facility needs, and the availability of local healthcare resources. Without a broader dataset, it's difficult to establish a precise historical pattern for this specific type of service in Indiana.

What are the implications of the 'NOT COMPETED' status for this contract on potential future procurements of similar services?

The 'NOT COMPETED' status signifies that this contract was awarded without seeking bids from multiple sources. This could be due to urgency, the unique capabilities of the sole provider, or other specific justifications outlined in federal acquisition regulations. For future procurements, this status might suggest that the agency has identified a preferred or necessary vendor for this specific need. However, it also means that the market was not fully explored for this instance, potentially limiting the agency's options or cost-saving opportunities in subsequent solicitations if the circumstances justifying the sole-source award are no longer applicable.

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: 303 CONGRESSIONAL BLVD, CARMEL, IN, 46032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $336,571

Exercised Options: $336,571

Current Obligation: $336,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline