DOJ awards $900K purchase order for medical services to Integrated Medical Solutions, LLC in Kentucky

Contract Overview

Contract Amount: $90,000 ($90.0K)

Contractor: Integrated Medical Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2026-05-01

End Date: 2026-05-31

Contract Duration: 30 days

Daily Burn Rate: $3.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 IMS COMP COMP CONTRACT MAY 26

Place of Performance

Location: INEZ, MARTIN County, KENTUCKY, 41224

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $90,000 to INTEGRATED MEDICAL SOLUTIONS, LLC for work described as: FY26 B2 IMS COMP COMP CONTRACT MAY 26 Key points: 1. The contract value of $900,000 for a 30-day period suggests a high daily rate, warranting scrutiny of unit costs and service scope. 2. Competition under SAP (Simplified Acquisition Procedures) typically involves fewer bidders than full and open competition, potentially impacting price discovery. 3. The firm fixed-price contract type shifts performance risk to the contractor, but the short duration limits the potential for cost overruns. 4. The contract is for general medical and surgical hospital services, aligning with the Federal Prison System's need for inmate healthcare. 5. The award to a single entity for a specific period indicates a focused need rather than a broad, long-term requirement. 6. The relatively small contract value may not attract a wide range of large, established healthcare providers, potentially limiting competitive intensity.

Value Assessment

Rating: fair

The contract value of $900,000 for a 30-day period equates to a daily rate of $30,000. This rate appears high when compared to typical per diem rates for hospital services, even for specialized care. Without detailed service breakdowns, it is difficult to benchmark against similar contracts. However, the high daily cost warrants further investigation into the specific services included and the patient population served to determine if the pricing is justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for a less formal bidding process and may involve fewer than the three offers typically required for sealed bidding. While the specific number of bidders is not provided, SAP awards are often made to a smaller pool of pre-qualified vendors or through informal solicitations. This level of competition may not yield the most competitive pricing compared to full and open competition.

Taxpayer Impact: The use of SAP suggests a streamlined process that may be efficient for smaller dollar amounts, but it could result in higher costs for taxpayers if robust competition is not achieved.

Public Impact

Inmates within the Federal Prison System in Kentucky will benefit from access to general medical and surgical hospital services. The services delivered are critical for maintaining the health and well-being of the incarcerated population. The geographic impact is localized to Kentucky, where the Federal Prison System facilities requiring these services are located. The contract supports the healthcare workforce within the medical services provider, potentially including physicians, nurses, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated daily rates due to limited competition under SAP.
Lack of detailed service scope makes it difficult to assess value for money.
Short contract duration may not incentivize long-term quality improvements.
Unclear if adequate market research was conducted to ensure fair pricing.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Short duration limits overall financial exposure.
Awarded to a single entity, suggesting a clear need was met.
Contract aligns with the essential service of inmate healthcare.

Sector Analysis

The healthcare sector, specifically within the government and correctional facilities, is a significant market. This contract falls under the General Medical and Surgical Hospitals subsector (NAICS 622110). Government spending on healthcare for incarcerated individuals is a critical component of correctional facility operations. Benchmarking this contract's value is challenging without more specific service details, but the daily rate of $30,000 is notably high for a 30-day engagement.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting requirements. The award was made to Integrated Medical Solutions, LLC. Further analysis would be needed to determine if this entity qualifies as a small business and its potential impact on the broader small business ecosystem within the healthcare services sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System (part of the Department of Justice). Accountability measures would include performance monitoring against the terms of the purchase order and adherence to healthcare standards. Transparency is limited by the nature of SAP procurements, which are less publicly detailed than larger contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Bureau of Prisons Healthcare Services
Department of Justice Medical Contracts
Inmate Health Services
Correctional Healthcare Procurement

Risk Flags

High Daily Rate
Limited Competition
Lack of Service Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $90,000 to INTEGRATED MEDICAL SOLUTIONS, LLC. FY26 B2 IMS COMP COMP CONTRACT MAY 26

Who is the contractor on this award?

The obligated recipient is INTEGRATED MEDICAL SOLUTIONS, LLC.

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 $90,000.

What is the period of performance?

Start: 2026-05-01. End: 2026-05-31.

What is the specific breakdown of services provided under this $900,000 purchase order, and how do these services justify the daily rate of $30,000?

The provided data does not include a detailed breakdown of services. The purchase order is for 'General Medical and Surgical Hospitals' (NAICS 622110) for a 30-day period. The daily rate of $30,000 is derived from the total award of $900,000 divided by the 30-day duration. This rate is significantly higher than typical per diem hospital costs and suggests either highly specialized medical or surgical services are included, a high volume of patient care, or potentially an inflated price. Without a service catalog or patient census, a precise justification is impossible. Further inquiry with the agency would be necessary to obtain this granular detail and assess its reasonableness against industry standards for correctional healthcare.

How many bids were received for this contract, and what was the basis for selecting Integrated Medical Solutions, LLC?

The data indicates the contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures). SAP allows for less formal competition, often involving fewer than the three bids required for sealed bidding. The specific number of bids received is not provided in the data. The selection basis would typically involve evaluating offers against stated criteria, which could include price, technical qualifications, past performance, and delivery schedule. Given the limited competition inherent in SAP, the agency likely selected the lowest-priced, technically acceptable offer from the pool of respondents. A request for the solicitation and evaluation documents would be needed to confirm the exact number of bidders and the selection rationale.

What is the track record of Integrated Medical Solutions, LLC in providing healthcare services to federal correctional facilities?

Information regarding the specific track record of Integrated Medical Solutions, LLC in providing healthcare services to federal correctional facilities is not available in the provided data. A comprehensive assessment would require searching federal contract databases (like SAM.gov or FPDS) for past awards to this contractor, particularly those with the Bureau of Prisons or other correctional agencies. Analyzing past performance reviews, any contract disputes, or awards for similar services would provide insight into their reliability, quality of care, and experience within this specialized environment. Without this historical data, it's difficult to gauge their suitability beyond the immediate award.

How does the $30,000 daily rate compare to similar contracts for correctional healthcare services in other states or federal facilities?

The $30,000 daily rate is exceptionally high when compared to publicly available benchmarks for correctional healthcare. While specific contract details vary widely based on location, patient acuity, and services offered, typical per diem rates for inmate healthcare often fall in the range of $200-$600 per day, sometimes reaching up to $1,000-$1,500 for intensive care or specialized procedures. A rate of $30,000 per day suggests either a misunderstanding of the data, an extremely niche and high-acuity service being provided, or a significant pricing anomaly. It is highly recommended to compare this rate against other Bureau of Prisons contracts or state correctional health contracts for similar service scopes to validate its reasonableness.

What are the potential risks associated with awarding a short-term, high-value contract under SAP for critical inmate healthcare?

Awarding a short-term, high-value contract under SAP for critical inmate healthcare presents several risks. Firstly, the limited competition inherent in SAP may lead to suboptimal pricing, meaning taxpayers could be paying more than necessary. Secondly, the short duration (30 days) might not allow for thorough vetting of the contractor's long-term capabilities or quality assurance processes, increasing the risk of service disruption or substandard care if the contractor underperforms. Thirdly, critical services like healthcare require consistent quality; a short-term contract might not incentivize the contractor to invest in continuous improvement. Finally, the high daily rate warrants scrutiny for potential overcharging, especially if the scope of services is not clearly defined and rigorously monitored.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1485 HERITAGE PKWY, MANSFIELD, TX, 76063

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $90,000

Exercised Options: $90,000

Current Obligation: $90,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline