DOJ awards $350K for 1-month correctional healthcare services in Colorado

Contract Overview

Contract Amount: $350,000 ($350.0K)

Contractor: American Correctional Healthcare, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-02-28

Contract Duration: 27 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 ACH COMP MED SVCS FEB 26

Place of Performance

Location: FLORENCE, FREMONT County, COLORADO, 81226

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $350,000 to AMERICAN CORRECTIONAL HEALTHCARE, INC. for work described as: FY26 B2 ACH COMP MED SVCS FEB 26 Key points: 1. Value for money appears reasonable given the short duration and specialized nature of the services. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are low due to the short performance period and established contractor. 4. Performance context is a single delivery order for immediate medical services. 5. Sector positioning is within the healthcare services for correctional facilities.

Value Assessment

Rating: good

This delivery order for $350,000 covers one month of medical services. Benchmarking against similar short-term correctional healthcare contracts is challenging due to the specific nature and limited duration. However, the firm-fixed-price structure provides cost certainty. The awarded amount seems aligned with the scope of providing essential medical care within a federal prison setting for a defined period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This process typically leads to a more competitive pricing structure as contractors vie for the award. The specific number of bidders is not provided, but the method suggests a robust market response.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives competitive pricing for essential services.

Public Impact

Inmates at the specified federal correctional facility in Colorado will receive essential medical services. The services delivered include general medical and surgical care. The geographic impact is localized to the Federal Prison System facility in Colorado. The contract supports the operational needs of the Bureau of Prisons by ensuring healthcare continuity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the one-month period proves insufficient for ongoing critical care needs.
Dependence on a single contractor for a critical service like healthcare carries inherent operational risk.

Positive Signals

The contract is for a short, defined period, limiting long-term financial exposure.
Awarded to a contractor with an existing presence, suggesting familiarity with the environment.
Firm-fixed-price contract provides budget predictability.

Sector Analysis

The correctional healthcare sector is a specialized segment of the broader healthcare industry, focusing on providing medical services within detention and correctional facilities. This market requires providers to navigate unique regulatory environments and patient populations. Spending in this area is driven by the federal government's responsibility to ensure adequate healthcare for inmates. Comparable spending benchmarks are difficult to establish without more granular data on facility size and service intensity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The primary contractor, AMERICAN CORRECTIONAL HEALTHCARE, INC., is likely a larger entity. Further analysis would be needed to determine if any small business participation was mandated or occurred organically.

Oversight & Accountability

Oversight for this contract would fall under the Bureau of Prisons' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is facilitated by the contract award notice, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Short contract duration may not address long-term needs.
Potential for service gaps if contractor performance is suboptimal.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $350,000 to AMERICAN CORRECTIONAL HEALTHCARE, INC.. FY26 B2 ACH COMP MED SVCS FEB 26

Who is the contractor on this award?

The obligated recipient is AMERICAN CORRECTIONAL HEALTHCARE, 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 $350,000.

What is the period of performance?

Start: 2026-02-01. End: 2026-02-28.

What is the track record of AMERICAN CORRECTIONAL HEALTHCARE, INC. with the Federal Prison System?

AMERICAN CORRECTIONAL HEALTHCARE, INC. has a history of serving federal correctional facilities. While this specific award is a short-term delivery order, the company's broader engagement with the Bureau of Prisons suggests experience in meeting the healthcare needs of inmate populations. Analyzing past performance evaluations, contract modifications, and any past disputes or corrective actions associated with their previous contracts with the FPS would provide a more comprehensive understanding of their reliability and effectiveness in this specific environment. Their ability to consistently deliver services within budget and meet quality standards in similar settings is a key indicator of future performance.

How does the $350,000 cost for one month of services compare to similar correctional healthcare contracts?

Benchmarking this $350,000, one-month contract against similar correctional healthcare services is challenging due to the limited duration and the specific needs of the facility it serves. General Medical and Surgical Hospitals (NAICS 622110) can vary significantly in cost based on bed count, acuity of patient population, and the scope of services offered (e.g., emergency care, chronic disease management, mental health). For a short-term, single-month engagement, this figure suggests a focus on essential medical support rather than comprehensive, long-term care. A more robust comparison would require data on contracts for similar-sized facilities or specific service packages over comparable short periods.

What are the primary risks associated with this short-term contract for medical services?

The primary risks associated with this short-term, one-month contract are related to service continuity and potential gaps in care if the situation requires longer-term intervention. If the medical needs of the inmate population are more complex or persistent than anticipated for this period, a simple one-month contract might not suffice, potentially leading to disruptions or the need for emergency, higher-cost procurements. Another risk is the contractor's ability to rapidly mobilize and provide adequate staffing and resources for the specified duration. Given the firm-fixed-price nature, there's also a risk that the contractor might cut corners on less critical services to maintain profitability, although quality of care is paramount and subject to oversight.

What is the expected effectiveness of these medical services given the contract's scope and duration?

The expected effectiveness of these medical services hinges on the contract's specific objectives, which appear to be providing essential general medical and surgical care for a defined, short period. If the goal is to cover a temporary staffing shortage, manage a specific medical event, or bridge a gap until a longer-term solution is in place, the contract can be highly effective. However, if the intent was to establish comprehensive, ongoing healthcare for the facility, a one-month contract would be insufficient. Effectiveness will be measured by the contractor's ability to meet the terms of the delivery order, maintain patient health, and comply with all relevant healthcare standards and correctional facility protocols during the service period.

How does this contract fit into the Bureau of Prisons' overall healthcare spending patterns?

This $350,000 delivery order represents a small fraction of the Bureau of Prisons' overall healthcare spending. The BOP manages healthcare for a large inmate population across numerous facilities, necessitating substantial and ongoing investments in medical services, staffing, and infrastructure. Such short-term delivery orders are often used for specific, immediate needs, such as covering temporary vacancies, specialized consultations, or emergency support. They are distinct from the larger, multi-year contracts that typically cover the day-to-day, comprehensive healthcare operations within facilities. Analyzing this award in isolation provides limited insight into overall spending trends, but it highlights the flexibility the BOP employs to address immediate healthcare requirements.

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: 120 MCKINLEY DR, BURLESON, TX, 76028

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $350,000

Exercised Options: $350,000

Current Obligation: $350,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA022D00000016

IDV Type: IDC

Timeline