DO for $552K for hospital services at USP Lee, AL, awarded to NAPHCARE LLC

Contract Overview

Contract Amount: $552,218 ($552.2K)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2025-08-01

End Date: 2025-08-31

Contract Duration: 30 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DELIVERY ORDER AGAINST CONTRACT # 15B21620D00000006 FOR ESTIMATED OUTSIDE HOSPITAL SERVICES (B2) FOR THE PERIOD OF AUGUST 1, 2025 THROUGH AUGUST 31, 2025

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $552,218.19 to NAPHCARE LLC for work described as: DELIVERY ORDER AGAINST CONTRACT # 15B21620D00000006 FOR ESTIMATED OUTSIDE HOSPITAL SERVICES (B2) FOR THE PERIOD OF AUGUST 1, 2025 THROUGH AUGUST 31, 2025 Key points: 1. This delivery order represents a short-term, high-value need for essential medical services. 2. The contract type is Firm Fixed Price, indicating a defined cost for the services. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The services are for a specific facility, USP Lee, in Alabama. 5. The duration of the order is 30 days, highlighting an immediate or temporary requirement. 6. The contractor, NAPHCARE LLC, is providing general medical and surgical hospital services.

Value Assessment

Rating: fair

The estimated cost of $552,218.19 for 30 days of hospital services at USP Lee appears high, averaging over $18,000 per day. Benchmarking against typical hospital per diem rates is difficult without more specific service details. However, given the context of correctional facility healthcare, specialized services and security considerations may contribute to higher costs. Further analysis would require comparing this rate to similar contracts for correctional healthcare or specialized medical services within federal prisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The competitive nature suggests that NAPHCARE LLC's pricing was deemed favorable among the offers received.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price, preventing potential overcharges that could arise from less competitive or sole-source awards.

Public Impact

Inmates at USP Lee, Alabama, will benefit from access to necessary hospital services. The services provided are general medical and surgical hospital care. The geographic impact is localized to the area surrounding USP Lee, Alabama. The contract supports the operational needs of the Federal Prison System by ensuring inmate healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the daily service needs exceed the estimated daily average.
Dependence on a single contractor for a critical 30-day period could pose a risk if performance issues arise.
The high per-diem cost warrants scrutiny to ensure value for taxpayer money.

Positive Signals

Awarded through full and open competition, suggesting a competitive price was secured.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor is providing essential medical services, fulfilling a critical government need.

Sector Analysis

The healthcare sector, particularly within correctional facilities, presents unique challenges and demands. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. The market for correctional healthcare services is specialized, often involving contracts with specific providers experienced in managing patient care within secure environments. Benchmarking this contract's value is complex due to the unique operational context of federal prisons, which may necessitate higher costs compared to civilian hospitals due to security, staffing, and logistical requirements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided for this specific delivery order. As it was awarded under full and open competition, it is unlikely to have been specifically set aside for small businesses. Further analysis would be needed to determine if NAPHCARE LLC itself is a small business or if any subcontracting opportunities were mandated or utilized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) within the Department of Justice. The BOP is responsible for monitoring contractor performance to ensure compliance with the terms of the delivery order and the overarching contract. Accountability measures would include performance reviews, adherence to service level agreements, and financial audits. Transparency is facilitated through contract databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available.

Related Government Programs

Federal Prison System Healthcare Contracts
Bureau of Prisons Medical Services
Correctional Facility Hospital Services
Inmate Healthcare Delivery

Risk Flags

High per-diem cost
Short contract duration
Critical service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $552,218.19 to NAPHCARE LLC. DELIVERY ORDER AGAINST CONTRACT # 15B21620D00000006 FOR ESTIMATED OUTSIDE HOSPITAL SERVICES (B2) FOR THE PERIOD OF AUGUST 1, 2025 THROUGH AUGUST 31, 2025

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 $552,218.19.

What is the period of performance?

Start: 2025-08-01. End: 2025-08-31.

What is the track record of NAPHCARE LLC in providing services to federal correctional facilities?

NAPHCARE LLC has a significant history of providing healthcare services within correctional facilities across the United States. They are a known entity in this specialized market, often contracting with federal, state, and local correctional agencies. Their experience typically includes managing medical, dental, and mental health services within secure environments. While specific performance data for every contract is not always public, their continued presence and awards in this sector suggest a level of established capability and client satisfaction. However, like any large contractor, they may have faced scrutiny or performance reviews on specific contracts, which would require a deeper dive into contract performance reports or Inspector General findings if available.

How does the per-day cost of this contract compare to similar correctional healthcare contracts?

The estimated daily cost for this 30-day delivery order is approximately $18,407 ($552,218.19 / 30 days). Directly comparing this to other correctional healthcare contracts is challenging without knowing the exact scope of services, patient acuity, and geographic location. However, this figure appears to be on the higher end for daily operational costs. Correctional healthcare contracts often have unique cost drivers, including security personnel, specialized medical equipment for a confined setting, and the need for 24/7 availability. To provide a precise benchmark, one would need to analyze contracts for similar-sized facilities, with comparable medical needs, and in similar regions, factoring in any specific security or logistical premiums.

What are the primary risks associated with this short-term hospital services contract?

The primary risks associated with this short-term (30-day) contract include potential service disruptions if the contractor fails to perform adequately, leading to gaps in essential inmate healthcare. There's also a risk of cost overruns if the actual service utilization significantly exceeds the estimate, although the Firm Fixed Price nature of the award aims to mitigate this. Another risk is the potential for inadequate quality of care, which could have serious consequences for inmate health and facility operations. Given the short duration, there's limited time to rectify performance issues, making contractor selection and initial oversight critical.

How effective is the Bureau of Prisons in overseeing healthcare contracts of this nature?

The Bureau of Prisons (BOP) employs various oversight mechanisms for healthcare contracts, including contract officers' representatives (CORs), performance monitoring, and regular reporting requirements. The effectiveness can vary depending on the specific contract, the resources allocated for oversight, and the experience of the CORs. For short-term, high-value contracts like this delivery order, diligent monitoring is crucial to ensure services are delivered as specified and costs remain within the fixed price. While the BOP has established procedures, challenges can arise from staffing levels, complex medical needs, and the inherent difficulties of managing healthcare in a correctional environment. Inspector General reports sometimes highlight areas for improvement in contract oversight.

What is the historical spending trend for hospital services at USP Lee?

Analyzing historical spending trends for hospital services specifically at USP Lee requires access to historical contract data for that facility. This particular delivery order is for August 2025, suggesting a future need. Without prior contract awards linked directly to USP Lee for similar hospital services, it's impossible to establish a spending trend. However, one could investigate broader spending patterns by the Bureau of Prisons for correctional healthcare services across its facilities to understand general cost drivers and contract durations. If this is a recurring need, previous delivery orders or contracts under the parent contract (15B21620D00000006) would provide the most relevant historical context.

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: 15B21619R00000001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2090 COLUMBIANA RD, SUITE 4000, BIRMINGHAM, 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: $552,218

Exercised Options: $552,218

Current Obligation: $552,218

Actual Outlays: $356,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B21620D00000006

IDV Type: IDC

Timeline