DOJ awards $1.1M for outside medical services at FCC Allenwood, with a 29-day duration

Contract Overview

Contract Amount: $1,128,151 ($1.1M)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2025-09-30

Contract Duration: 29 days

Daily Burn Rate: $38.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUTSIDE MEDICAL SERVICES AT FCC ALLENWOOD.

Place of Performance

Location: CARMEL, HAMILTON County, INDIANA, 46032

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $1.1 million to SEVEN CORNERS INC for work described as: OUTSIDE MEDICAL SERVICES AT FCC ALLENWOOD. Key points: 1. The contract value of $1.13M for a 29-day service period suggests a high daily rate, warranting scrutiny of value for money. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could drive favorable pricing. 3. The contract is a delivery order under a larger contract, which may limit transparency into the original competition and pricing structure. 4. The service category (General Medical and Surgical Hospitals) is essential for correctional facilities, but the short duration raises questions about the scope and necessity of this specific award. 5. The contractor, Seven Corners Inc., has a track record that needs to be assessed for performance and reliability in similar healthcare service contracts. 6. The contract's focus on 'OUTSIDE MEDICAL SERVICES' implies a need for specialized care not available within the facility, highlighting potential gaps in internal medical capabilities.

Value Assessment

Rating: fair

The contract value of approximately $1.13 million for a 29-day period translates to a daily rate of roughly $38,900. This rate appears high when compared to typical per diem costs for medical services, even specialized ones. While outside medical services can be more expensive than in-house care, this daily burn rate warrants further investigation into the specific services rendered and the necessity for such a high cost over a short period. Benchmarking against similar contracts for correctional facility medical support would be crucial to determine if this represents a fair price.

Cost Per Unit: Approximately $38,900 per day.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method is generally preferred as it allows for the widest possible pool of potential contractors and can lead to more competitive pricing. However, as this is a delivery order, the initial competition for the parent contract is not detailed here, and the specific number of bidders for this particular order is unknown. The level of competition for the parent contract would provide a clearer picture of the overall price discovery environment.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and better value for the government's money.

Public Impact

Inmates at FCC Allenwood will receive necessary outside medical services, ensuring continuity of care for specialized treatments. The primary beneficiaries are the incarcerated individuals requiring medical attention beyond the scope of the facility's internal resources. The services are geographically concentrated at FCC Allenwood in Indiana. The contract supports the operational function of the Federal Bureau of Prisons by ensuring inmate health and safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about potential overspending for a short-term need.
The short duration of the contract could indicate a reactive or emergency need, potentially leading to higher costs.
Reliance on 'outside' medical services might point to underinvestment in internal medical infrastructure at the facility.

Positive Signals

Awarded through full and open competition, suggesting a potentially robust bidding process.
The contract ensures critical medical services are provided to inmates, fulfilling a core correctional responsibility.
The contractor, Seven Corners Inc., is likely experienced in providing such services, potentially leading to efficient delivery.

Sector Analysis

The healthcare services sector within the federal government is vast, encompassing a wide range of medical support for various agencies, including correctional facilities. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. Spending in this area is driven by the need to maintain the health and well-being of federal beneficiaries, including inmates. Comparable spending benchmarks would typically involve analyzing per diem rates for similar medical services provided to correctional populations or other government entities, considering factors like location, specialization, and contract duration.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor, Seven Corners Inc., voluntarily engages small businesses for subcontracting opportunities. Further analysis of the parent contract or the contractor's subcontracting plan would be needed to assess any indirect effects.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice and the Federal Bureau of Prisons. As a delivery order, it is subject to the terms and conditions of the parent contract. Accountability measures would include performance monitoring, adherence to service level agreements, and financial audits. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are not provided. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

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

Risk Flags

High Daily Cost
Short Contract Duration
Reliance on External Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.1 million to SEVEN CORNERS INC. OUTSIDE MEDICAL SERVICES AT FCC ALLENWOOD.

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 $1.1 million.

What is the period of performance?

Start: 2025-09-01. End: 2025-09-30.

What is the track record of Seven Corners Inc. in providing medical services to federal correctional facilities?

Seven Corners Inc. is a company that provides travel insurance and assistance services, including medical support. While they may have experience in managing medical claims and coordinating care, their specific track record in directly providing medical services within federal correctional facilities is not immediately clear from the provided data. A deeper dive into their past performance on similar government contracts, particularly those involving correctional institutions, would be necessary to assess their reliability, quality of service, and ability to meet the unique demands of this environment. This would involve reviewing past performance evaluations, any reported issues or successes, and their experience with the specific types of medical services required.

How does the daily cost of $38,900 compare to market rates for similar outside medical services for correctional facilities?

The daily cost of approximately $38,900 for outside medical services at FCC Allenwood appears exceptionally high when benchmarked against typical market rates for correctional healthcare. While specialized medical services outside a facility are inherently more expensive than in-house care, this rate suggests a significant premium. Standard per diem costs for inmate medical care, even for specialized services, rarely reach this level. Factors contributing to such high costs could include the urgency of the need, the specific nature of the medical services required (e.g., complex surgeries, intensive care), and potentially limited availability of providers willing to contract with correctional facilities. A thorough comparison with historical data for similar contracts awarded by the Bureau of Prisons or other federal agencies would be essential to determine if this rate is justified or indicative of potential overpricing.

What are the specific medical services being procured under this delivery order, and why are they considered 'outside' services?

The contract specifies 'OUTSIDE MEDICAL SERVICES AT FCC ALLENWOOD' without detailing the exact procedures or treatments. The term 'outside services' typically implies medical care that cannot be provided by the facility's internal medical staff or resources. This could range from specialized diagnostic imaging, complex surgical procedures, intensive care unit stays, or consultations with specialists not available on-site. The high daily cost suggests these are likely high-acuity or specialized services. Understanding the specific medical needs driving this procurement is crucial for assessing the necessity and appropriateness of the contract's value. Without this detail, it's difficult to fully evaluate the justification for the expenditure.

What is the significance of this being a 'delivery order' under a larger contract, and how does it affect transparency and competition analysis?

A delivery order is a task order issued under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. This means that the initial competition and contract award likely occurred at an earlier stage for a broader scope of services. The current award is for a specific quantity or duration of services under that pre-established contract. This structure can impact transparency because the detailed justifications, pricing negotiations, and competitive landscape of the original IDIQ contract may not be as readily available as for a standalone, newly competed contract. While this specific delivery order was awarded under full and open competition (as stated), the overall value and competitive dynamics of the parent contract are critical for a complete assessment. It also means the contractor has already been vetted and selected, potentially limiting the scope of competition for this particular task.

What are the potential risks associated with a short-duration contract for essential medical services in a correctional setting?

A short-duration contract (29 days) for essential medical services in a correctional setting presents several potential risks. Firstly, it may indicate an emergency or unforeseen need, which can often lead to higher costs due to urgency and limited provider availability. Secondly, it raises questions about the long-term planning and adequacy of the facility's internal medical capabilities if such services are frequently outsourced on short notice. Thirdly, it could lead to fragmented patient care if different providers are engaged for short periods, potentially impacting continuity of treatment. Finally, the administrative overhead of repeatedly soliciting and managing short-term contracts for essential services can be inefficient and costly for the agency.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15B20118R00000001

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: $1,128,151

Exercised Options: $1,128,151

Current Obligation: $1,128,151

Actual Outlays: $540,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B20120D00000001

IDV Type: IDC

Timeline