Justice Department awards $2.2M sole-source contract for off-site medical services to Wellpath LLC

Contract Overview

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

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2026-07-01

End Date: 2026-07-31

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 JULY 2026 - FISCAL YEAR 2026 RP#: 0198-26 * 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 JULY 2026 - FISCAL YEAR 2026 RP#: 0198-26 * LARGE BUSINESS * Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. The contract value of $2.2 million for a 30-day period suggests a high daily rate. 3. Services are for comprehensive medical care, indicating a critical need. 4. The award to a large business may limit small business participation. 5. Fixed-price contract type aims to control costs, but the sole-source nature raises concerns about price reasonableness. 6. The contract duration is short, suggesting a potential for follow-on or interim support.

Value Assessment

Rating: questionable

The contract value of $2.2 million for a single 30-day period equates to approximately $73,333 per day. This daily rate appears high when compared to typical per diem costs for comprehensive medical services, especially in a correctional setting. Without more detailed service breakdowns or comparisons to similar sole-source awards for correctional healthcare, it is difficult to definitively benchmark value. However, the lack of competition inherently reduces the likelihood of achieving the best possible price.

Cost Per Unit: $73,333 per day (estimated)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT COMPETED' and 'PURCHASE ORDER' as the award type. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The absence of competition means that the government did not explore options from other qualified providers, potentially missing out on better pricing or service offerings.

Taxpayer Impact: Awarding contracts without competition can lead to higher costs for taxpayers as there is no market pressure to drive down prices. It also raises questions about whether the government obtained the best value available.

Public Impact

Inmates within the Federal Prison System in Tennessee will receive comprehensive medical services. The services provided are general medical and surgical care, addressing immediate health needs. The geographic impact is limited to Tennessee, specifically where the off-site facility is located. The contract supports the operational needs of the Bureau of Prisons by ensuring healthcare access for the inmate population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
High daily rate raises concerns about value for money.
Lack of transparency in the justification for sole-source award.
Short contract duration may indicate an interim solution or potential for future sole-source awards.

Positive Signals

Contract provides essential medical services to a vulnerable population.
Fixed-price contract type offers some cost certainty.
Award is to a known entity, potentially ensuring continuity of care.

Sector Analysis

The healthcare sector, particularly within government and correctional facilities, is a significant market. General Medical and Surgical Hospitals (NAICS 622110) represent a broad category of healthcare providers. Contracts for correctional healthcare are often substantial due to the unique demands and populations served. Benchmarking this specific contract's value is challenging without more context on the scope of services and patient volume, but the daily rate appears elevated.

Small Business Impact

The contract was awarded to a 'LARGE BUSINESS' and is not designated as a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. This suggests that small businesses are unlikely to benefit directly from this specific award, and opportunities for them may be limited unless they are part of the large business's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons. As a purchase order, it may be subject to standard procurement regulations and internal audits. However, the sole-source nature of the award warrants closer scrutiny to ensure the justification was sound and that the pricing is reasonable. Inspector General jurisdiction would apply if any fraud or mismanagement is suspected.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Department of Justice Healthcare Procurement
Correctional Facility Medical Support

Risk Flags

Sole-source award
High daily rate
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 JULY 2026 - FISCAL YEAR 2026 RP#: 0198-26 * 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: 2026-07-01. End: 2026-07-31.

What is the specific justification provided by the Department of Justice for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'PURCHASE ORDER'. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can satisfy agency requirements, or in cases of urgent and compelling need. Without the official justification document, it is impossible to determine the precise reason. However, the lack of competition suggests that the agency may have cited a unique capability of Wellpath LLC or an immediate, critical need that could not be met through a competitive process within the required timeframe. Further investigation into the contract file or agency justifications would be necessary to ascertain the exact rationale.

How does the daily cost of $73,333 compare to similar off-site medical services contracts for federal correctional facilities?

The estimated daily cost of $73,333 for comprehensive medical services is significantly higher than typical benchmarks for correctional healthcare, even for specialized off-site services. While exact comparisons are difficult without knowing the specific services rendered, patient acuity, and geographic location, standard per diem rates for inmate healthcare often range from a few hundred to a few thousand dollars per day, depending on the level of care. A rate of $73,333 per day suggests either an exceptionally high level of specialized care, a very small patient population with high fixed costs, or potentially an inflated price due to the sole-source nature of the award. Without detailed service level agreements and patient volume data, a precise comparison is challenging, but this rate warrants scrutiny.

What is Wellpath LLC's track record with the Federal Bureau of Prisons or other federal agencies?

Wellpath LLC is a known provider of correctional healthcare services and has a history of contracts with various federal, state, and local government entities, including the Federal Bureau of Prisons (BOP). They manage healthcare services in numerous correctional facilities across the country. While their extensive experience suggests operational capability, the specific performance history on contracts, including any past performance issues, quality of care metrics, or cost overruns, would need to be reviewed through sources like the Federal Awardee Performance and Integrity Information System (FAPIIS) or agency-specific performance evaluations to fully assess their track record for this particular award.

What are the potential risks associated with a sole-source award for essential medical services?

The primary risks associated with a sole-source award for essential medical services include lack of price competition, potentially leading to higher costs for taxpayers. There's also a reduced incentive for the contractor to innovate or improve efficiency, as they face no competitive pressure. Furthermore, it limits the government's ability to explore alternative solutions or providers that might offer better value, specialized services, or improved patient outcomes. Transparency can also be a concern, as the justification for bypassing competition may not always be fully transparent or robust, potentially masking inefficiencies or poor planning. Finally, reliance on a single provider can create vulnerability if that provider experiences operational issues.

What is the historical spending pattern for comprehensive medical services by the Federal Prison System in Tennessee?

Analyzing historical spending patterns for comprehensive medical services by the Federal Prison System (FPS) in Tennessee requires access to detailed procurement data over multiple fiscal years. The provided data is for a single, short-term contract. To understand historical trends, one would need to aggregate spending on similar services (e.g., NAICS code 622110, medical services contracts) awarded by the FPS within Tennessee or nationally. This would involve examining contract databases for recurring awards, contract values, competition levels, and contractor performance over time. Without this broader dataset, it's impossible to establish a baseline or identify significant deviations in spending patterns for this specific contract.

What is the expected impact of this contract on inmate health outcomes?

The expected impact of this contract on inmate health outcomes is positive, assuming Wellpath LLC delivers the contracted comprehensive medical and surgical services effectively. The contract aims to ensure that inmates receive necessary healthcare, which is crucial for their well-being and can help prevent the spread of illness within correctional facilities. High-quality medical care can lead to better management of chronic conditions, timely treatment of acute illnesses and injuries, and improved overall health status for the inmate population. The effectiveness will depend on the quality of care provided, the availability of resources, and the responsiveness of the healthcare staff to inmate needs.

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