Justice Department awards $2.2M sole-source contract for medical services at Federal Prison System facility in Tennessee

Contract Overview

Contract Amount: $2,200,000 ($2.2M)

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2026-05-01

End Date: 2026-05-31

Contract Duration: 30 days

Daily Burn Rate: $73.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WELLPATH OFF-SITE COMPREHENSIVE MEDICAL MAY 2026 - FISCAL YEAR 2026 RP#: 0192-26 * LARGE BUSINESS *

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $2.2 million to WELLPATH LLC for work described as: WELLPATH OFF-SITE COMPREHENSIVE MEDICAL MAY 2026 - FISCAL YEAR 2026 RP#: 0192-26 * LARGE BUSINESS * Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Firm fixed-price structure provides cost certainty but may not capture all efficiencies. 3. The contract duration is short (30 days), suggesting a potential for follow-on or interim support. 4. The awarded amount is $2.2 million for a one-month period, indicating a high daily service cost. 5. The contractor, Wellpath LLC, is a large business, suggesting established capacity. 6. The specific need for off-site comprehensive medical services warrants further examination of in-house capabilities.

Value Assessment

Rating: questionable

The awarded amount of $2.2 million for a single month of off-site medical services appears exceptionally high. Benchmarking against similar contracts for comprehensive medical services within correctional facilities is difficult without more detailed service scope. However, the per-day cost implied by this contract is substantial, raising questions about value for money, especially given the lack of competition. Further analysis would be needed to determine if this pricing is aligned with market rates for comparable services.

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, often due to unique capabilities or urgent needs. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided. It is unclear from the provided data why this contract was deemed sole-source.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

Inmates at the Federal Prison System facility in Tennessee will receive comprehensive medical services. The services are delivered off-site, potentially indicating a need for specialized care not available within the facility. The primary beneficiaries are the incarcerated individuals requiring medical attention. The contract supports the operational continuity of healthcare services for the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
High daily service cost raises concerns about overall value for money.
Short contract duration may indicate an interim solution or a need for further justification of long-term strategy.
Lack of transparency regarding the justification for a sole-source award.

Positive Signals

Contract ensures continuity of essential medical services for inmates.
Firm fixed-price contract provides budget certainty for the awarded period.
Contractor is a large business, suggesting capacity to deliver services.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a critical component of public safety and inmate welfare. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. The market for correctional healthcare is specialized, often involving unique logistical and security considerations. While large healthcare providers operate in this space, the specific requirements of federal prisons can lead to limited competition or sole-source awards when specialized capabilities are needed or when existing contracts are being managed.

Small Business Impact

This contract was awarded to a large business and does not indicate any small business set-aside provisions. There is no information provided regarding subcontracting plans. The absence of small business participation in this specific award means no direct benefit to the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight of this contract would typically fall under the Federal Prison System's contracting and program management offices within the Department of Justice. As a sole-source award, the justification and necessity for this procurement method would be subject to internal review and potentially oversight by the Government Accountability Office (GAO) if challenged. Transparency regarding the sole-source justification is crucial for accountability.

Related Government Programs

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

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
High daily service cost requires justification and benchmarking.
Short contract duration may indicate instability or lack of long-term planning.
Lack of transparency regarding the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.2 million to WELLPATH LLC. WELLPATH OFF-SITE COMPREHENSIVE MEDICAL MAY 2026 - FISCAL YEAR 2026 RP#: 0192-26 * LARGE BUSINESS *

Who is the contractor on this award?

The obligated recipient is WELLPATH 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 $2.2 million.

What is the period of performance?

Start: 2026-05-01. End: 2026-05-31.

What is the specific justification for awarding this comprehensive medical services contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or a lack of adequate competition. For this contract, the Bureau of Prisons would have had to document why other qualified vendors could not provide the required off-site comprehensive medical services for the Federal Prison System facility in Tennessee within the specified timeframe. Without this documentation, it is difficult to fully assess the necessity of the sole-source approach.

How does the awarded amount of $2.2 million for a 30-day period compare to market rates for similar off-site medical services in correctional settings?

The awarded amount of $2.2 million for a 30-day period translates to approximately $73,333 per day ($2.2M / 30 days). This figure represents a very high daily cost for medical services. Benchmarking this against the broader market for off-site comprehensive medical services is challenging without specific details on the scope of services, patient volume, and acuity levels. However, in the context of correctional facilities, such a high daily rate, especially when awarded sole-source, warrants scrutiny. It suggests either an exceptionally high level of service complexity, a significant number of individuals requiring care, or potentially an inflated price due to the lack of competition. A thorough comparison would require access to detailed service level agreements and pricing structures from other correctional healthcare providers.

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

Wellpath LLC is a significant provider of correctional healthcare services across the United States, serving numerous state, local, and federal correctional facilities. They have a substantial presence and experience in managing medical operations within secure environments. Their track record includes providing a wide range of services, from primary care to specialized medical and mental health services. However, like many large contractors in this sector, they have also faced scrutiny and legal challenges related to the quality of care and cost-effectiveness of their services in various jurisdictions. A detailed assessment of their performance specifically with the Federal Bureau of Prisons would require reviewing past performance evaluations, any contract disputes, and patient outcome data.

What are the potential risks associated with a short-duration, sole-source contract for essential medical services?

A short-duration, sole-source contract for essential medical services presents several risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as the contractor faces less pressure to offer competitive pricing. Secondly, a short duration (30 days in this case) may indicate an interim solution, which could lead to service disruptions or a lack of continuity if a longer-term solution is not secured promptly. It also limits the government's ability to thoroughly evaluate the contractor's performance over an extended period before committing to a larger, longer-term contract. Furthermore, sole-source awards can raise concerns about transparency and fairness in the procurement process, potentially leading to perceptions of favoritism or missed opportunities for other capable providers.

How does this contract fit into the broader spending patterns for Federal Prison System healthcare?

This $2.2 million contract for a single month represents a significant expenditure, even if it is for a specific, potentially urgent, need. The Federal Prison System (FPS) consistently allocates substantial funds towards healthcare services for its inmate population, which is a statutory requirement. Spending in this area is influenced by factors such as the inmate population size, health status, the complexity of medical needs, and the chosen service delivery model (in-house vs. contracted services). A single month's expenditure of this magnitude, especially if it's a sole-source award, suggests it might be addressing a gap, an emergency, or a transition period. To understand its place in broader spending patterns, one would need to compare it against historical FPS healthcare expenditures, the average cost per inmate for medical care, and the proportion of healthcare services outsourced versus provided internally.

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

Parent Company: Boosted Commerce Inc.

Address: 3340 PERIMETER HILL DR, NASHVILLE, TN, 37211

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,200,000

Exercised Options: $2,200,000

Current Obligation: $2,200,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline