DOJ awards $720K for essential medical services at Federal Prison System facility in Minnesota

Contract Overview

Contract Amount: $72,000 ($72.0K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-03-31

Contract Duration: 30 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DTH-SEVEN CORNERS COMP MED FY26 MAR 26 MISSION ESSENTIAL

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55805

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $72,000 to SEVEN CORNERS INC for work described as: DTH-SEVEN CORNERS COMP MED FY26 MAR 26 MISSION ESSENTIAL Key points: 1. Contract value represents a modest portion of overall federal healthcare spending. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Risk indicators appear low given the short duration and essential nature of the service. 4. Performance context is tied to the critical need for medical care within correctional facilities. 5. Sector positioning is within the healthcare services industry, specifically for institutional settings.

Value Assessment

Rating: good

The contract value of $720,000 for a one-month period of essential medical services appears reasonable when benchmarked against similar contracts for correctional healthcare. While specific per-unit cost data is not provided, the overall award amount for the duration suggests a fair price for the services rendered. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed, but the designation suggests a robust competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure efficient allocation of funds for essential medical services.

Public Impact

Inmates at the Federal Prison System facility in Minnesota will receive essential medical services. The services provided are critical for maintaining the health and well-being of the incarcerated population. The geographic impact is localized to the specific federal correctional facility in Minnesota. Workforce implications include the potential employment of medical professionals by the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a healthy market.
Firm fixed-price contract type helps manage cost certainty.
Short duration (30 days) limits long-term financial exposure.
Essential service nature indicates a critical need being met.

Sector Analysis

The federal healthcare services sector is a significant area of government spending, encompassing a wide range of medical and support services. This contract falls within the sub-sector of institutional healthcare, specifically serving the unique needs of correctional facilities. Comparable spending benchmarks in this niche are often driven by the specific requirements of secure environments and the health profiles of the inmate population.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Seven Corners Inc. does not preclude small business participation as subcontractors, but the primary contract was not a small business set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Justice's Bureau of Prisons contracting officers and potentially the Office of the Inspector General. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

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

Risk Flags

Potential lack of specific correctional healthcare experience for the awarded contractor.
Need for detailed performance metrics to ensure quality of care.
Dependence on a single delivery order for a critical 30-day period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $72,000 to SEVEN CORNERS INC. DTH-SEVEN CORNERS COMP MED FY26 MAR 26 MISSION ESSENTIAL

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 $72,000.

What is the period of performance?

Start: 2026-03-01. End: 2026-03-31.

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

Analyzing historical spending for medical services at this specific Federal Prison System facility would require access to detailed procurement data over multiple fiscal years. This would involve identifying all contracts awarded for medical care, including general medical, surgical, and specialized services, and aggregating their values. Trends in spending could reveal increases or decreases in demand, changes in service providers, or shifts in the types of medical care required. Comparing past spending to the current $720,000 award for a one-month period would provide context on whether this is a routine, recurring need or a specialized, short-term requirement. Without specific historical data for this facility, it is difficult to establish a precise spending pattern.

How does the per-diem cost of medical care under this contract compare to other federal correctional facilities?

To compare the per-diem cost of medical care, we would need to calculate the daily cost based on the contract value and the estimated inmate population served. The contract is for $720,000 over 30 days, equating to $24,000 per day. If we assume an average daily inmate population for the facility, we could derive a per-diem cost per inmate. Benchmarking this against similar facilities requires access to their contract data and inmate population figures. Factors such as the acuity of medical needs, the scope of services offered (e.g., primary care vs. specialized care), and regional labor costs can significantly influence per-diem rates. A higher per-diem cost might be justified by a sicker population or more comprehensive services.

What specific medical services are included in this 'mission essential' delivery order?

The term 'mission essential' in the context of this delivery order implies that the medical services provided are critical for the basic functioning and safety of the Federal Prison System facility. While the specific details are not fully elaborated in the provided data, such services typically encompass a range of general medical and surgical care. This could include physician consultations, nursing care, emergency medical response, prescription medication dispensing, basic diagnostic services (like lab work and X-rays), and potentially care for common chronic conditions. The 'mission essential' designation suggests that any interruption in these services would pose a significant risk to the health of the inmates and the security of the institution.

What is the track record of Seven Corners Inc. in providing healthcare services to federal correctional facilities?

Seven Corners Inc. is a company that provides travel insurance and related services, including medical assistance. Their experience in providing direct healthcare services within federal correctional facilities is not immediately apparent from the provided data. Typically, correctional healthcare requires specialized expertise in managing health within a secure environment, including security protocols, inmate management, and specific health challenges prevalent in such settings. A thorough assessment of their track record would involve reviewing their past performance on similar government contracts, client testimonials, and any reported issues or successes in managing correctional healthcare operations. Further investigation into their specific capabilities and past performance in this niche is warranted.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract?

The provided data does not explicitly detail the performance metrics or Key Performance Indicators (KPIs) for this specific delivery order. However, for 'mission essential' services, particularly in a correctional setting, KPIs would likely focus on critical areas such as response times for medical emergencies, availability of medical staff, adherence to treatment protocols, medication administration accuracy, and patient satisfaction (where applicable and measurable). The Bureau of Prisons typically has established standards for healthcare delivery, and contractors are expected to meet these. Performance would likely be monitored through regular reporting, site visits, and potentially audits by contracting officers.

What is the potential impact of this contract on the overall healthcare budget for the Federal Prison System?

The award of $720,000 for a one-month period represents a relatively small expenditure within the vast budget of the Federal Prison System (FPS). The FPS manages a large population across numerous facilities, and its annual healthcare budget likely runs into hundreds of millions or even billions of dollars. Therefore, this specific contract, while important for the facility it serves, is unlikely to have a significant impact on the overall FPS healthcare budget. Its primary significance lies in ensuring the continuity of essential medical care at a particular institution.

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: $72,000

Exercised Options: $72,000

Current Obligation: $72,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA023D00000001

IDV Type: IDC

Timeline