DOJ's $591,941 medical services contract for FCI Schuylkill awarded via sole-source purchase order

Contract Overview

Contract Amount: $591,941 ($591.9K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-11-01

End Date: 2026-04-09

Contract Duration: 159 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FCI SCHUYLKILL - NOVEMBER 2026 COMPREHENSIVE MEDICAL SERVICES

Place of Performance

Location: CARMEL, HAMILTON County, INDIANA, 46032

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $591,940.75 to SEVEN CORNERS INC for work described as: FCI SCHUYLKILL - NOVEMBER 2026 COMPREHENSIVE MEDICAL SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 159 days suggests a short-term or interim service need. 3. The contract value is relatively modest for comprehensive medical services. 4. No indication of small business participation or set-asides. 5. The 'General Medical and Surgical Hospitals' NAICS code points to a standard healthcare service. 6. Award type is a Purchase Order, often used for simpler, smaller procurements.

Value Assessment

Rating: fair

The contract value of approximately $591,941 for 159 days of comprehensive medical services at FCI Schuylkill appears reasonable for a facility of its size. However, without comparable sole-source contracts or detailed service breakdowns, a precise value-for-money assessment is challenging. The pricing structure (Firm Fixed Price) provides cost certainty but may not reflect the most competitive rates achievable through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in urgent situations. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

Inmates at FCI Schuylkill will receive comprehensive medical services, ensuring their healthcare needs are met. The contract supports the operational requirements of the Federal Prison System by providing essential healthcare. The primary beneficiaries are the incarcerated individuals within the facility. Services are geographically concentrated at FCI Schuylkill in Indiana, Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises questions about market research and potential alternatives.
Short contract duration could indicate an interim solution, potentially leading to future contract instability or higher costs if a new sole-source award is made.

Positive Signals

Contract ensures continuity of essential medical services for inmates.
Firm Fixed Price contract provides budget certainty for the agency.
Awarding to a single vendor may expedite service delivery if they are uniquely qualified or already on-site.

Sector Analysis

The healthcare services sector for correctional facilities is a specialized niche within the broader healthcare industry. Contracts like this are crucial for maintaining the health and well-being of the incarcerated population, a responsibility of the Federal Prison System. While the specific contract value is modest, the overall federal spending on correctional healthcare is substantial, encompassing a range of services from primary care to specialized medical treatments.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the sole-source nature of the award, it is unlikely that small businesses were specifically targeted or had an opportunity to participate as prime contractors. Further investigation would be needed to determine if any subcontracting opportunities exist within the awarded vendor's scope of work.

Oversight & Accountability

Oversight for this contract would fall under the Federal Prison System (Bureau of Prisons), a component of the Department of Justice. Standard contract administration and performance monitoring processes would be in place. Transparency is limited due to the sole-source award and the nature of correctional facility operations. The Department of Justice's Office of the Inspector General may have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Department of Justice Inmate Care

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on performance metrics.
Contractor's specific experience in correctional healthcare requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $591,940.75 to SEVEN CORNERS INC. FCI SCHUYLKILL - NOVEMBER 2026 COMPREHENSIVE 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 $591,940.75.

What is the period of performance?

Start: 2025-11-01. End: 2026-04-09.

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 related assistance services. While they may have experience in managing medical claims and coordinating care, their direct experience in providing comprehensive medical services within a federal correctional facility setting is not immediately apparent from the provided data. Further research into their specific contracts with the Bureau of Prisons or other correctional agencies would be necessary to assess their suitability and past performance in this specialized environment. Understanding their capabilities in areas such as on-site medical staffing, pharmaceutical management, and emergency response within a secure facility is crucial.

How does the per-day cost of this contract compare to similar medical service contracts in federal prisons?

The contract value is approximately $591,941 over 159 days, equating to roughly $3,723 per day. Benchmarking this against similar contracts is challenging without more specific data on the scope of services, inmate population size, and geographic location of other facilities. However, this daily rate appears to be within a plausible range for comprehensive medical services in a correctional setting, though potentially on the higher side if the facility's medical needs are routine and the inmate population is not exceptionally large or complex. A detailed comparison would require access to a database of comparable federal prison medical service contracts, including their daily or per-inmate costs.

What are the specific risks associated with awarding a sole-source contract for essential medical services?

The primary risk of a sole-source award for essential medical services is the potential for inflated costs due to the absence of competitive bidding. Taxpayers may end up paying more than necessary. Another risk is a lack of innovation or service improvement, as the contractor faces no competitive pressure to enhance their offerings. Furthermore, it raises questions about whether adequate market research was conducted to ensure no other qualified vendors could provide the services, or if the sole-source justification is truly valid. This can also create a dependency on a single provider, which can be problematic if that provider experiences performance issues or decides to exit the market.

What is the expected effectiveness of the medical services provided under this contract?

The effectiveness of the medical services will depend on the contractor's ability to meet the specific healthcare needs of the inmate population at FCI Schuylkill. As this is a comprehensive medical services contract, it is expected to cover a range of services including primary care, emergency medical treatment, chronic disease management, and potentially mental health services. The effectiveness will be measured by factors such as inmate health outcomes, access to care, patient satisfaction (where applicable), and compliance with federal healthcare standards for correctional institutions. The short duration suggests it might be covering a gap or providing interim services, so long-term effectiveness is contingent on subsequent contract awards.

What has been the historical spending pattern for medical services at FCI Schuylkill?

Historical spending data for medical services specifically at FCI Schuylkill is not provided in the current dataset. To analyze historical spending patterns, one would need to examine past contracts awarded to this facility for similar medical services. This would involve looking at contract values, durations, and the nature of services provided over previous years. Understanding these patterns could reveal trends in cost escalation, changes in service providers, or shifts in the scope of medical care required by the inmate population. Without this historical context, it is difficult to assess whether the current $591,941 award represents an increase, decrease, or stable level of spending.

Are there any specific performance metrics or Key Performance Indicators (KPIs) outlined in the contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, contracts for comprehensive medical services would include KPIs related to response times for medical emergencies, availability of medical staff, patient wait times, medication adherence rates, infection control measures, and inmate health outcomes. The effectiveness of the contract hinges on the Bureau of Prisons' ability to monitor and enforce these metrics. Without explicit KPIs, assessing the contractor's performance and the overall value delivered becomes more subjective and reliant on general contract administration.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $591,941

Exercised Options: $591,941

Current Obligation: $591,941

Actual Outlays: $581,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline