DOJ's $1.2M contract for medical services to SEVEN CORNERS INC. awarded for 91 days

Contract Overview

Contract Amount: $1,208,433 ($1.2M)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-05-01

End Date: 2025-07-31

Contract Duration: 91 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: JULY 2025 OUTSIDE MEDICAL SERVICES

Place of Performance

Location: CARMEL, HAMILTON County, INDIANA, 46032

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $1.2 million to SEVEN CORNERS INC for work described as: JULY 2025 OUTSIDE MEDICAL SERVICES Key points: 1. Value for money appears fair given the short duration and specialized nature of medical services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, primarily related to service delivery continuity and quality assurance. 4. Performance context is within the Federal Prison System, requiring specialized medical support. 5. Sector positioning is within healthcare services, specifically for correctional facilities.

Value Assessment

Rating: fair

The contract's value of approximately $1.2 million for a 91-day period suggests a daily rate of around $13,279. This rate needs to be benchmarked against similar short-term medical service contracts within federal correctional facilities. Without direct comparisons, it's difficult to definitively assess if this represents optimal value, but the firm fixed-price structure provides cost certainty. The urgency implied by the short duration might also influence pricing.

Cost Per Unit: Approximately $13,279 per day.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The number of bidders is not specified, but the method suggests a robust competitive environment was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces, leading to potentially lower costs compared to sole-source or limited competition awards.

Public Impact

Inmates within the Federal Prison System in Indiana will benefit from continuity of medical services. Essential medical and surgical hospital services will be delivered. The geographic impact is localized to the federal correctional facility in Indiana where services are rendered. The contract supports the healthcare workforce by engaging medical professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if contractor performance issues arise during the short contract term.
Ensuring consistent quality of care comparable to established facility staff.
Managing the transition of care if follow-on contracts are not secured promptly.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm fixed-price contract type provides cost predictability.
Short duration may indicate a specific, temporary need, potentially reducing long-term financial commitment.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical support for government institutions. The market for providing medical services to correctional facilities is specialized, often requiring vendors with specific experience and security clearances. Benchmarking would involve comparing rates for similar short-term, high-acuity medical support in secure environments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The primary contractor, SEVEN CORNERS INC., is likely a larger entity, and the focus remains on ensuring the delivery of services rather than small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Contracts
Correctional Healthcare Services
Emergency Medical Services Contracts

Risk Flags

Short-term contract duration may impact service continuity.
Need for robust quality assurance for medical services.
Potential for cost escalation if scope is not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.2 million to SEVEN CORNERS INC. JULY 2025 OUTSIDE MEDICAL SERVICES

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 $1.2 million.

What is the period of performance?

Start: 2025-05-01. End: 2025-07-31.

What is the track record of SEVEN CORNERS INC. in providing medical services to federal correctional facilities?

SEVEN CORNERS INC. has a history of providing various insurance and travel assistance services, including medical support. While specific details on their performance within federal correctional facilities are not immediately available in this data snippet, their ability to secure this contract suggests they meet the necessary qualifications. A deeper dive into their past performance reviews, any past performance issues or commendations, and their experience with similar government contracts would be necessary for a comprehensive assessment. Their track record in managing complex medical logistics and ensuring compliance with stringent government regulations is a key factor.

How does the daily rate of $13,279 compare to similar short-term medical contracts in federal prisons?

The daily rate of approximately $13,279 for medical services under this contract needs careful benchmarking. Short-term contracts for specialized medical support within federal correctional facilities can command higher rates due to the unique environment, security requirements, and the need for rapid deployment. To assess value, this rate should be compared against other recent delivery orders or contracts awarded to different providers for similar services (e.g., general medical/surgical support, emergency care) within Bureau of Prisons facilities or comparable agencies like the Department of Defense in secure settings. Factors such as the scope of services included (physicians, nurses, equipment, supplies) and the patient population's acuity will significantly influence the comparability of rates.

What are the primary risks associated with a short-duration (91-day) medical services contract?

The primary risks associated with a short-duration contract like this include potential disruptions in service continuity if a follow-on contract is not secured promptly, and challenges in ensuring consistent quality of care over a limited period. There's also a risk that the contractor might prioritize efficiency over comprehensive care due to the temporary nature. For the government, risks include the potential for higher per-diem costs compared to longer-term contracts, as contractors may factor in mobilization/demobilization costs and the uncertainty of future work. Ensuring adequate transition plans and performance monitoring is crucial.

What is the significance of the 'General Medical and Surgical Hospitals' NAICS code (622110) in this context?

The NAICS code 622110, 'General Medical and Surgical Hospitals,' indicates the primary industry classification for the services being procured. This suggests the contract is for a broad range of medical and surgical services typically offered by a hospital. In the context of a federal prison, this implies the need for comprehensive care beyond basic medical attention, potentially including diagnostic services, treatment for acute conditions, and post-operative care. It signals that the contractor is expected to provide a level of service akin to a community hospital, adapted to the secure environment of a correctional facility.

How does the firm fixed-price (FFP) contract type influence cost control and risk for this medical services award?

A Firm Fixed-Price (FFP) contract type is generally advantageous for cost control as it shifts the risk of cost overruns to the contractor. SEVEN CORNERS INC. is obligated to perform the specified services for the agreed-upon price, regardless of their actual costs. This provides the Federal Prison System with budget certainty. However, for the contractor, the risk is higher; if their costs exceed the fixed price, their profit margin shrinks or they incur a loss. This contract type incentivizes the contractor to manage their resources efficiently to maintain profitability, but it could also lead to potential disputes if the scope of work is unclear or if unforeseen circumstances significantly increase costs.

What are the implications of awarding this contract for the Bureau of Prisons' overall healthcare spending patterns?

This specific contract represents a small portion of the Bureau of Prisons' overall healthcare spending, given its $1.2 million value and short 91-day duration. However, it highlights a strategy of utilizing external providers for specialized or temporary medical support, potentially to supplement in-house capabilities or address specific needs like surges in demand or specialized procedures. Analyzing this award in conjunction with other similar contracts can reveal trends in the BOP's reliance on contracted medical services, the types of services being outsourced, and the associated costs. It may indicate a flexible approach to healthcare delivery, balancing in-house resources with external partnerships.

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

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: $1,208,433

Exercised Options: $1,208,433

Current Obligation: $1,208,433

Actual Outlays: $1,208,513

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B21320D00000001

IDV Type: IDC

Timeline