DOJ awards $99K contract for medical services to Seven Corners Inc. for 29 days

Contract Overview

Contract Amount: $99,421 ($99.4K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2025-09-30

Contract Duration: 29 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CMS-DTH-FY25-B2 SEVEN CORNERS OUTSIDE MED SEP 25

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55805

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $99,421.06 to SEVEN CORNERS INC for work described as: CMS-DTH-FY25-B2 SEVEN CORNERS OUTSIDE MED SEP 25 Key points: 1. Contract value appears reasonable for a short-term, specialized medical service requirement. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Short duration of the contract may indicate a temporary or emergent need. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The specific medical services are not detailed, making a precise value assessment challenging. 6. Geographic location in Minnesota is noted, but specific facility not identified.

Value Assessment

Rating: fair

The contract value of $99,421.06 for a 29-day period equates to approximately $3,428 per day. This daily rate is difficult to benchmark without knowing the specific medical services provided. However, for specialized medical support, especially in a correctional setting, this daily rate might be within a reasonable range. Comparing it to similar short-term medical support contracts within federal agencies would provide a clearer picture of value for money.

Cost Per Unit: $3,428 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The use of full and open competition is a positive sign for achieving a competitive price.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service quality due to a competitive bidding environment.

Public Impact

Inmates within the Federal Prison System in Minnesota are the primary beneficiaries of these medical services. The contract ensures the provision of general medical and surgical hospital services. The geographic impact is limited to the specific federal correctional facility in Minnesota where the services are rendered. The contract supports the operational needs of the Bureau of Prisons by ensuring access to healthcare for its population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service description hinders comprehensive value assessment.
Short contract duration raises questions about the long-term medical support strategy.
Limited information on the number of bidders makes it hard to gauge the intensity of competition.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Firm fixed-price contract type provides cost certainty.
Contract supports essential healthcare services for a federal population.

Sector Analysis

This contract falls within the Healthcare sector, specifically for medical services. The North American Industry Classification System (NAICS) code 622110 represents General Medical and Surgical Hospitals. While this is a single delivery order, the federal government consistently spends billions annually on healthcare services for various populations, including military personnel, veterans, and federal inmates. This contract represents a small portion of that overall spending, likely addressing a specific, short-term need.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Seven Corners Inc. utilizes small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management officials. As a delivery order under a larger contract vehicle (implied by 'AW' - DELIVERY ORDER), oversight might also be influenced by the terms of the base contract. Transparency is facilitated by public contract databases, but detailed performance metrics and specific service delivery oversight are internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Department of Justice Medical Services
General Medical and Surgical Hospital Services
Short-Term Medical Support Contracts

Risk Flags

Short contract duration
Lack of detailed service description
Limited information on competition intensity

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $99,421.06 to SEVEN CORNERS INC. CMS-DTH-FY25-B2 SEVEN CORNERS OUTSIDE MED SEP 25

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 $99,421.06.

What is the period of performance?

Start: 2025-09-01. End: 2025-09-30.

What specific medical services are included under this contract?

The provided data identifies the NAICS code as 622110 (General Medical and Surgical Hospitals) and the contract description as 'SEVEN CORNERS OUTSIDE MED SEP 25'. However, it does not detail the specific medical procedures, treatments, or types of care to be provided. This lack of specificity makes it challenging to perform a granular analysis of the value for money or to compare the services to market benchmarks. Further details would be required from the contract award documents or agency solicitations to understand the full scope of services.

How does the daily rate of $3,428 compare to similar short-term medical support contracts?

Benchmarking the daily rate of approximately $3,428 requires comparison with similar contracts for short-term medical services, particularly those provided within correctional facilities or for government agencies. Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise comparison is difficult. However, daily rates for specialized medical support can vary significantly based on location, acuity of patients, and the specific services offered. This rate appears substantial, underscoring the need for detailed service scope to justify the cost.

What is the track record of Seven Corners Inc. with federal contracts?

Seven Corners Inc. is a known entity in providing travel insurance and related assistance services, often including medical support. While the provided data doesn't detail their federal contract history, a broader search would reveal their experience with government agencies. Assessing their track record would involve reviewing past performance evaluations, any past performance issues or awards, and the types of services they have previously delivered to the government. Their ability to secure this contract suggests they met the agency's requirements.

What are the potential risks associated with this contract?

Potential risks include the short duration, which might indicate an emergent need or a gap-filling measure, potentially leading to recurring short-term contracts rather than a stable solution. The lack of detailed service description poses a risk of scope creep or misinterpretation of requirements. Additionally, if the competition was limited in scope despite being 'full and open,' there's a risk that the government did not secure the most advantageous pricing or service. Ensuring adequate oversight for service delivery and quality within the short timeframe is also a consideration.

What does the 'FULL AND OPEN COMPETITION' designation imply for taxpayer value?

The 'FULL AND OPEN COMPETITION' designation is a strong positive indicator for taxpayer value. It signifies that the agency actively sought bids from all eligible sources, fostering a competitive environment. This process typically drives down prices as contractors vie for the award, and it allows the government to select the offer that provides the best combination of price and performance. While the number of bidders isn't specified, the process itself is designed to maximize competition and, consequently, achieve better value for taxpayer dollars compared to sole-source or limited competition awards.

How does this contract fit into the broader spending patterns for medical services within the Federal Prison System?

This contract represents a small, specific expenditure for medical services within the Federal Prison System (FPS). The FPS, managed by the Bureau of Prisons (BOP), has a substantial budget allocated to healthcare to serve its inmate population. Spending typically includes a mix of in-house medical staff and facilities, as well as contracted services for specialized care, pharmaceuticals, and emergency medical support. This particular contract appears to be for a short-term, potentially specialized, medical service, likely supplementing existing capabilities or addressing a temporary need, rather than representing a significant portion of the overall FPS healthcare budget.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $99,421

Exercised Options: $99,421

Current Obligation: $99,421

Actual Outlays: $97,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA023D00000001

IDV Type: IDC

Timeline