DOJ's $1.9M medical services contract for FCI Lewisburg awarded to NAPHCARE LLC

Contract Overview

Contract Amount: $1,913,122 ($1.9M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2025-11-01

End Date: 2025-11-30

Contract Duration: 29 days

Daily Burn Rate: $66.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FCI LEWISBURG ORDER FOR VARIOUS MEDICAL SERVICES FOR NOVEMBER DOCUMENT CREATED UNDER ADA GUIDELINES FUNDING ADDED AFTER CONCLUSION OF GOVERNMENT SHUTDOWN

Place of Performance

Location: LEWISBURG, UNION County, PENNSYLVANIA, 17837

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $1.9 million to NAPHCARE LLC for work described as: FCI LEWISBURG ORDER FOR VARIOUS MEDICAL SERVICES FOR NOVEMBER DOCUMENT CREATED UNDER ADA GUIDELINES FUNDING ADDED AFTER CONCLUSION OF GOVERNMENT SHUTDOWN Key points: 1. Contract value of $1.9M for a one-month period suggests a high per-diem cost for medical services. 2. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller value procurements. 3. The contract was competed, suggesting some level of market engagement for these services. 4. Funding was added after a government shutdown, highlighting potential budget uncertainties. 5. The short duration of the contract (29 days) may indicate an interim or emergency need. 6. NAPHCARE LLC is the sole awardee, requiring further analysis of their track record and pricing.

Value Assessment

Rating: fair

The contract value of $1.9M for a single month of medical services at FCI Lewisburg appears high when considering the typical per-diem costs for inmate healthcare. While the specific services rendered are not detailed, this figure warrants a closer look at the unit costs and the scope of work. Benchmarking against similar contracts for correctional facility medical services would be crucial to determine if this represents a fair market price or if there are indications of overpricing given the short duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders but still aims for fair competition for procurements below certain thresholds. While the specific number of bidders is not provided, the fact that it was competed suggests that multiple vendors had the opportunity to submit proposals. This process is designed to ensure some level of price discovery and to avoid sole-source awards where possible.

Taxpayer Impact: Competition under SAP generally leads to better pricing for taxpayers compared to sole-source awards, though the level of competition may not be as robust as in full and open competition for larger contracts.

Public Impact

Inmates at FCI Lewisburg will receive medical services during November 2025. The primary beneficiaries are the incarcerated individuals requiring general medical and surgical care. The services are geographically focused within Pennsylvania at the Federal Correctional Institution in Lewisburg. The contract supports the operational needs of the Federal Prison System by ensuring healthcare provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High monthly cost for a short-term contract raises questions about efficiency and potential for cost overruns.
Lack of detailed service scope makes it difficult to assess the value for money.
Funding added post-government shutdown could indicate rushed procurement or budget instability.
Reliance on a single awardee (NAPHCARE LLC) necessitates scrutiny of their performance and pricing.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing.
Awarding to a known entity (NAPHCARE LLC) may leverage existing expertise in correctional healthcare.
Ensuring medical services are available is critical for inmate welfare and facility operations.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized market. Contracts for inmate healthcare are often awarded to providers with specific experience in managing the unique challenges of this environment. The market size for correctional healthcare is substantial, driven by federal, state, and local correctional systems. This contract fits within the broader category of healthcare services, with specific benchmarks often tied to per-diem inmate costs and the scope of medical services provided.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The awardee, NAPHCARE LLC, is likely a larger entity specializing in correctional healthcare. Further investigation would be needed to determine if any small business subcontracting opportunities were mandated or utilized within this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons (BOP). The BOP has established procedures for contract management and performance monitoring. Transparency is generally maintained through contract award databases, but detailed performance metrics and financial audits are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Inmate Health Services
Correctional Facility Medical Support

Risk Flags

High Cost Per Diem
Short Contract Duration
Post-Shutdown Funding
Limited Competition Data
Sole Awardee Analysis Needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.9 million to NAPHCARE LLC. FCI LEWISBURG ORDER FOR VARIOUS MEDICAL SERVICES FOR NOVEMBER DOCUMENT CREATED UNDER ADA GUIDELINES FUNDING ADDED AFTER CONCLUSION OF GOVERNMENT SHUTDOWN

Who is the contractor on this award?

The obligated recipient is NAPHCARE 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 $1.9 million.

What is the period of performance?

Start: 2025-11-01. End: 2025-11-30.

What is NAPHCARE LLC's track record in providing medical services to federal correctional facilities?

NAPHCARE LLC is a well-established provider of correctional healthcare services, operating in numerous facilities across the United States. They have a history of contracting with various federal, state, and local government agencies to deliver comprehensive medical and mental health services to incarcerated populations. Their experience includes managing on-site clinics, providing physician and nursing services, and coordinating specialized care. While their extensive experience suggests a capacity to fulfill contract requirements, a detailed review of past performance evaluations, any significant contract disputes, or instances of non-compliance would be necessary for a complete assessment of their track record specifically related to federal prison systems.

How does the $1.9M monthly cost compare to similar contracts for correctional medical services?

The $1.9M cost for a single month of medical services at FCI Lewisburg, translating to approximately $65,518 per day, appears high when benchmarked against typical per-diem costs for inmate healthcare. While exact comparisons are difficult without knowing the specific services rendered and the inmate population size, other federal and state correctional facilities often contract for medical services at significantly lower daily rates. For instance, contracts might range from $100 to $300 per inmate per day, depending on the level of care. A $1.9M monthly expenditure for a 29-day period suggests a very high cost per day, potentially indicating a need for more comprehensive services, a higher acuity patient population, or less competitive pricing than typically seen in the market.

What are the primary risks associated with this contract, given its short duration and funding context?

The primary risks associated with this contract include potential cost inefficiencies due to the short, one-month duration, which might not allow for economies of scale or optimal resource allocation. The fact that funding was added after a government shutdown could indicate a rushed procurement process, increasing the risk of inadequate vetting of the contractor or oversight. There's also a risk that this represents an interim solution, potentially leading to continuity issues or higher costs if a longer-term contract is subsequently awarded. Furthermore, without detailed performance metrics, assessing the quality and effectiveness of the services provided during this period is challenging, posing a risk to inmate welfare and facility operations.

What does the 'COMPETED UNDER SAP' designation imply about the procurement process and potential value for taxpayers?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation implies that the contract was procured through a process designed for purchases below a certain dollar threshold (typically $250,000, though this can be higher for specific categories). While it indicates competition, it generally involves fewer vendors and less extensive documentation than full and open competition. For taxpayers, this usually means a reasonable effort was made to obtain competitive pricing, likely resulting in better value than a sole-source award. However, the level of competition might not be as robust as for larger contracts, potentially leaving some room for price optimization. The specific value for taxpayers depends on the number of bids received and the negotiation process.

What is the significance of the contract being a 'FIRM FIXED PRICE' type?

A 'FIRM FIXED PRICE' (FFP) contract type means that the contractor, NAPHCARE LLC, is obligated to perform the work for a stated price, regardless of the actual costs incurred. This contract type shifts the risk of cost overruns from the government to the contractor. For the government and taxpayers, FFP contracts offer price certainty and predictability, as the total cost is known upfront. This is generally considered advantageous for procurements where the scope of work is well-defined and the risks of unforeseen costs are manageable. It incentivizes the contractor to control costs efficiently to maximize their profit margin.

How does the contract's geographic location (Pennsylvania) and agency (Department of Justice) influence its context?

The contract's location in Pennsylvania is specific to the Federal Correctional Institution (FCI) Lewisburg, a facility operated by the Federal Bureau of Prisons (BOP), which falls under the Department of Justice (DOJ). This geographic specificity means the services are tailored to the needs of inmates within that particular institution. The agency, DOJ, and its sub-agency BOP, have a mandate to manage federal correctional facilities, including ensuring the health and well-being of the inmate population. This context highlights the critical nature of uninterrupted medical services for maintaining order, security, and fulfilling constitutional obligations within the federal prison system.

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: 2090 COLUMBIANA RD, VESTAVIA HILLS, AL, 35216

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

Financial Breakdown

Contract Ceiling: $1,913,122

Exercised Options: $1,913,122

Current Obligation: $1,913,122

Actual Outlays: $130,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline