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

Contract Overview

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

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2026-06-01

End Date: 2026-06-30

Contract Duration: 29 days

Daily Burn Rate: $75.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WELLPATH OFF-SITE COMPREHENSIVE MEDICAL JUNE 2026 - FISCAL YEAR 2026 RP#: 0195-26 * 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 JUNE 2026 - FISCAL YEAR 2026 RP#: 0195-26 * LARGE BUSINESS * Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. The contract value of $2.2 million is for a 29-day period, suggesting a high daily rate. 3. No small business set-aside was applied to this procurement. 4. The contract is for comprehensive medical services, a critical function for correctional facilities. 5. The contractor, Wellpath LLC, is a large business. 6. The contract is a firm-fixed-price purchase order, providing cost certainty.

Value Assessment

Rating: questionable

The contract value of $2.2 million for a 29-day period equates to approximately $75,862 per day. This daily rate appears high when compared to general benchmarks for comprehensive medical services, especially within a correctional setting. Without more specific details on the scope of services and patient volume, it is difficult to definitively assess value for money, but the high daily cost warrants scrutiny.

Cost Per Unit: Approximately $75,862 per day (based on $2.2M / 29 days).

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 goods or services. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most cost-effective pricing available in the market, as there was no competitive pressure to drive down costs.

Public Impact

Inmates at the Federal Prison System facility in Tennessee will receive comprehensive medical services. The services provided are essential for maintaining the health and well-being of the incarcerated population. The contract directly supports the operational mission of the Bureau of Prisons. The primary beneficiaries are the inmates requiring medical attention.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about potential overpayment.
Sole-source award limits transparency and competitive pricing.
Short duration of the contract may indicate a temporary or emergency need, requiring further investigation into the circumstances.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract awarded to a large business, potentially indicating capacity to handle complex requirements.
Contract ensures continuity of critical medical services for inmates.

Sector Analysis

The healthcare services sector within the federal government is substantial, encompassing a wide range of medical support for various agencies. This contract falls under the General Medical and Surgical Hospitals subsector. Federal spending in this area is driven by the need to provide healthcare to specific populations, such as military personnel, veterans, and federal inmates. Benchmarking this specific contract is challenging due to its short duration and specialized context, but overall federal spending on healthcare services is in the billions annually.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large business suggests that the primary contractor will be responsible for delivering the services. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to Wellpath LLC.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Office of the Inspector General, as well as internal Bureau of Prisons contracting and program management officials. Transparency is limited due to the sole-source nature of the award. Accountability will be measured by the contractor's adherence to the terms of the firm-fixed-price purchase order and the quality of medical services delivered.

Related Government Programs

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

Risk Flags

Sole-source award
High daily cost
Lack of competition

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 JUNE 2026 - FISCAL YEAR 2026 RP#: 0195-26 * 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: 2026-06-01. End: 2026-06-30.

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

The provided data indicates the contract was 'NOT COMPETED'. A sole-source justification is typically required when only one responsible source is available or capable of meeting the agency's needs. For federal prison systems, this could be due to unique security requirements, existing infrastructure, or specialized medical expertise that only a particular contractor possesses. Without the official justification document, the precise reason remains unknown, but it is a critical piece of information for understanding the procurement decision and assessing potential fairness.

How does the daily cost of $75,862 compare to similar correctional healthcare contracts?

The daily cost of approximately $75,862 for comprehensive medical services at a federal prison facility is notably high. Benchmarking against similar contracts is complex as costs vary significantly based on location, inmate population size, acuity of care required, and specific services included. However, general estimates for correctional healthcare can range from a few hundred to a few thousand dollars per inmate per day. A daily rate of over $75,000 suggests either an exceptionally high patient volume, a very high level of specialized care, or potentially an inflated price, especially given the contract's short 29-day duration. Further analysis would require access to comparable contract data and details on the scope of services.

What is Wellpath LLC's track record with the Federal Prison System or similar agencies?

Wellpath LLC is a significant provider of correctional healthcare services across the United States, holding numerous contracts with federal, state, and local correctional facilities. They have a substantial presence and experience in managing medical operations within prisons. While their extensive experience suggests capability, it is also important to review their performance history, including any past issues, patient outcomes, or contract disputes with agencies like the Bureau of Prisons or other government entities to fully assess their reliability and value for this specific contract.

What are the potential risks associated with a sole-source, firm-fixed-price contract for medical services?

A sole-source award for medical services carries the risk of the government paying a premium due to the lack of competition. While firm-fixed-price provides cost certainty, it can also lead to the contractor having less incentive to control costs if the price is already set high. If the scope of services is not precisely defined, there's a risk of the contractor not delivering the full expected value or, conversely, the government paying for services not fully utilized. The absence of competitive pressure might also reduce the impetus for innovation or efficiency improvements.

What is the historical spending pattern for medical services at this specific Federal Prison System facility?

The provided data only includes information for a single, short-term contract ending in June 2026. To understand historical spending patterns for medical services at this specific facility, one would need to access historical contract databases and procurement records for the Bureau of Prisons, specifically looking for contracts associated with the Tennessee facility (ST: TN, SN: TENNESSEE) over previous fiscal years. Analyzing this data would reveal trends in contract values, types of services procured, and the contractors utilized, providing context for the current award's value and duration.

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