DOJ's Bureau of Prisons awards $2.66M for FY26 medical transportation to Kalitta Charters, LLC
Contract Overview
Contract Amount: $26,600 ($26.6K)
Contractor: Kalitta Charters, LLC
Awarding Agency: Department of Justice
Start Date: 2026-04-02
End Date: 2026-04-02
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FCC HAZELTON FY26 MEDICAL TRANSPORTATION SERVICES- KALITTA CHARTERS
Place of Performance
Location: YPSILANTI, WASHTENAW County, MICHIGAN, 48198
State: Michigan Government Spending
Plain-Language Summary
Department of Justice obligated $26,600 to KALITTA CHARTERS, LLC for work described as: FCC HAZELTON FY26 MEDICAL TRANSPORTATION SERVICES- KALITTA CHARTERS Key points: 1. The contract is for medical transportation services, a critical need for correctional facilities. 2. Competition was limited, with the award going to a single provider. 3. The firm-fixed-price contract type helps manage cost certainty. 4. The service is geographically specific to Michigan.
Value Assessment
Rating: fair
The contract value of $2.66M for one year of medical transportation services appears to be within a reasonable range for specialized charter services. However, without specific details on the scope of services (e.g., number of transports, distance, patient acuity), a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting an expectation of limited competition. The award to a single entity, Kalitta Charters, LLC, indicates that either only one offer was received or the agency determined it was the best value under the simplified procedures.
Taxpayer Impact: The $2.66M expenditure represents taxpayer funds allocated for essential inmate healthcare logistics. The efficiency of this contract will directly impact the cost-effectiveness of providing this service.
Public Impact
Ensures timely medical transport for federal inmates, a crucial aspect of healthcare delivery. Supports the operational needs of the Federal Prison System by providing specialized transportation. Potential for increased costs if competition was not fully explored or if service needs were underestimated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher prices than a fully competed contract.
- Geographic concentration of service (Michigan) could limit options for other regions.
- Reliance on a single vendor for a critical service poses a risk if the vendor fails to perform.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- SAP can lead to faster award times for smaller value contracts.
- Specific contract for medical transportation addresses a specialized need.
Sector Analysis
Medical transportation services within the correctional sector are essential for inmate health and safety. Spending benchmarks are highly variable based on the volume, distance, and medical complexity of transports required. This contract falls under travel arrangement services.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The award to Kalitta Charters, LLC, a single entity, does not provide information on its size status or any subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight will be managed by the Department of Justice's Federal Prison System. Accountability for performance rests with Kalitta Charters, LLC, as outlined in the purchase order, with adherence to service level agreements and delivery timelines being key metrics.
Related Government Programs
- All Other Travel Arrangement and Reservation Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Potential for price escalation if demand exceeds expectations
- Vendor lock-in
- Dependence on a single provider for critical services
Tags
all-other-travel-arrangement-and-reserva, department-of-justice, mi, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $26,600 to KALITTA CHARTERS, LLC. FCC HAZELTON FY26 MEDICAL TRANSPORTATION SERVICES- KALITTA CHARTERS
Who is the contractor on this award?
The obligated recipient is KALITTA CHARTERS, 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 $26,600.
What is the period of performance?
Start: 2026-04-02. End: 2026-04-02.
What was the basis for limiting competition under SAP, and were alternative vendors considered?
The justification for limiting competition under SAP typically involves factors such as market research indicating a lack of available vendors, urgency of need, or specific technical requirements. Without further documentation, it's unclear if a thorough market analysis was conducted or if other qualified vendors were solicited but did not respond or meet the criteria.
How does the per-transport cost compare to industry averages for similar medical charter services, considering the firm-fixed-price structure?
A direct comparison of per-transport cost is challenging without detailed service scope. However, firm-fixed-price contracts aim to provide predictability. If the volume of transports is high, this contract could represent significant value, but if the volume is low, the fixed price might be less cost-effective compared to a cost-reimbursement or time-and-materials contract.
What performance metrics and contingency plans are in place to ensure reliable service delivery and mitigate risks associated with a sole provider?
Reliable service delivery is typically ensured through performance standards, delivery schedules, and potential penalties for non-compliance outlined in the purchase order. Contingency plans for a sole provider might include requirements for backup resources or pre-identified alternative vendors, though these are not explicitly stated in the provided data.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kalitta AIR LLC
Address: 843 WILLOW RUN AIRPORT, YPSILANTI, MI, 48198
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,600
Exercised Options: $26,600
Current Obligation: $26,600
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-04-02
Potential End Date: 2026-04-02 00:00:00
Last Modified: 2026-04-06
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