DOJ's $258K rental of ScriptPro system for Leavenworth Prison over 7 months

Contract Overview

Contract Amount: $25,825 ($25.8K)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-09-30

Contract Duration: 213 days

Daily Burn Rate: $121/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 FCI LEAVENWORTH SCRIPTPRO SYSTEM RENTAL MAR-SEPT

Place of Performance

Location: MISSION, JOHNSON County, KANSAS, 66202

State: Kansas Government Spending

Plain-Language Summary

Department of Justice obligated $25,825.17 to SCRIPTPRO USA INC for work described as: FY26 FCI LEAVENWORTH SCRIPTPRO SYSTEM RENTAL MAR-SEPT Key points: 1. Rental agreement for specialized pharmaceutical dispensing technology. 2. Contract duration is 213 days, covering a specific operational period. 3. Procured via Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 4. The contract is a firm-fixed-price purchase order, providing cost certainty. 5. The vendor, ScriptPro USA Inc., is the sole provider of this specific system. 6. This procurement falls under the 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this specific rental is challenging without comparable contracts for the ScriptPro system. The firm-fixed-price nature of the purchase order provides cost certainty for the 7-month rental period. However, the total cost of $258,251.17 for a 213-day rental suggests a significant per-day cost, which warrants further investigation into the system's capabilities and market alternatives for similar pharmaceutical dispensing solutions.

Cost Per Unit: Approximately $1,212 per day ($258,251.17 / 213 days). This figure should be compared against the operational value and potential cost savings the system provides to the Federal Prison System.

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP). While SAP aims for efficiency, it does not always guarantee the same level of broad competition as full and open procedures. The specific competition details, such as the number of solicitations or bidders, are not provided, making it difficult to assess the extent of market engagement.

Taxpayer Impact: The use of SAP suggests an effort to streamline procurement, but the limited information on competition raises questions about whether taxpayers received the best possible pricing through a fully competitive process.

Public Impact

Benefits the Federal Prison System / Bureau of Prisons by providing essential pharmaceutical dispensing technology. Ensures efficient and accurate medication management for inmates at the Leavenworth facility. Supports the operational needs of the correctional healthcare system. Impacts the healthcare workforce within the prison by providing advanced dispensing tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information under SAP could lead to suboptimal pricing.
Rental cost per day appears high, requiring justification based on system necessity and benefits.
Potential for long-term reliance on a single vendor for specialized equipment.

Positive Signals

Firm-fixed-price purchase order provides budget certainty.
Procurement under SAP indicates an attempt at efficient acquisition.
Addresses a specific operational need for pharmaceutical dispensing.

Sector Analysis

This contract falls within the 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' sector, characterized by the provision of specialized equipment for various industrial and commercial applications. The market for such equipment rental is often niche, driven by specific operational requirements. Benchmarking this rental against broader machinery leasing would be less relevant than comparing it to similar pharmaceutical dispensing systems used in institutional settings.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As it was competed under SAP, it's possible that small businesses were solicited, but their participation or the contract's impact on the small business ecosystem is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement regulations and the Federal Prison System's administrative oversight. Transparency is limited by the lack of detailed competition data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Healthcare Procurement
Bureau of Prisons Equipment Leasing
Pharmaceutical Dispensing Technology Contracts
Department of Justice IT and Equipment Leases

Risk Flags

Limited competition transparency under SAP
Potentially high daily rental cost
Dependence on a single vendor for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25,825.17 to SCRIPTPRO USA INC. FY26 FCI LEAVENWORTH SCRIPTPRO SYSTEM RENTAL MAR-SEPT

Who is the contractor on this award?

The obligated recipient is SCRIPTPRO USA 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 $25,825.17.

What is the period of performance?

Start: 2026-03-01. End: 2026-09-30.

What is the track record of ScriptPro USA Inc. in providing similar pharmaceutical dispensing systems to federal correctional facilities?

Assessing ScriptPro USA Inc.'s track record requires a review of their past performance on federal contracts, particularly within correctional or institutional healthcare settings. Information on contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or issues would be crucial. Without this specific data, it's difficult to gauge their reliability and experience in meeting the unique demands of a federal prison environment. A history of successful, on-time, and within-budget deliveries would be a positive indicator, while any documented performance issues would raise concerns about future performance.

How does the daily rental cost of $1,212 compare to market rates for comparable pharmaceutical dispensing systems?

The daily rental cost of approximately $1,212 for the ScriptPro system is a significant figure that necessitates comparison with market rates for similar pharmaceutical dispensing technologies. This comparison should ideally include systems used in other institutional settings, such as hospitals or large clinics, which may have comparable complexity and functionality. Factors influencing this rate include the system's specific capabilities (e.g., automation, inventory management, security features), the vendor's pricing strategy, and the duration of the rental. If market research indicates that similar systems can be rented for substantially less, or if the high cost is not justified by unique features or benefits, it could indicate a potential value-for-money concern.

What are the specific risks associated with relying on a rental agreement for critical pharmaceutical dispensing equipment?

Relying on a rental agreement for critical pharmaceutical dispensing equipment like the ScriptPro system introduces several risks. Firstly, there's the risk of service interruption if the vendor fails to maintain or repair the equipment promptly, which could severely impact inmate healthcare. Secondly, rental agreements are typically for a fixed term, meaning the facility must re-compete or renegotiate the contract upon expiration, potentially leading to disruption or increased costs if market conditions change. Thirdly, long-term rental payments do not build equity, unlike a purchase, which might be more cost-effective over an extended period. Finally, dependence on a single vendor for a critical system can create leverage for the vendor during negotiations.

What is the expected impact of this ScriptPro system rental on the operational efficiency and medication error rates within the Leavenworth Federal Prison?

The expected impact of the ScriptPro system rental on operational efficiency and medication error rates is a key performance indicator for this contract. Pharmaceutical dispensing systems are designed to automate and streamline the process of filling prescriptions, which should theoretically reduce manual handling, minimize transcription errors, and improve turnaround times for medications. For a federal prison, where accuracy and efficiency are paramount due to security and health considerations, such a system could significantly enhance the pharmacy's workflow. Quantifiable improvements in reduced dispensing errors, faster prescription fulfillment, and better inventory control would demonstrate the system's value and justify the rental cost.

How does the $258,251.17 spending on this 7-month rental compare to historical spending on pharmaceutical dispensing equipment or services by the Federal Prison System?

Comparing the $258,251.17 spent on this 7-month rental to historical spending patterns by the Federal Prison System (FPS) is essential for context. This analysis should look at previous expenditures on similar pharmaceutical dispensing technologies, whether through rental, lease, or outright purchase. Understanding whether this represents an increase or decrease in spending, and whether it aligns with trends in adopting automated dispensing systems, provides insight into the FPS's procurement strategy and budget allocation for pharmacy operations. If historical data shows significantly lower costs for similar solutions or a shift towards purchasing over renting, it could prompt a review of the current rental approach's long-term financial viability.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5828 REEDS RD, MISSION, KS, 66202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,825

Exercised Options: $25,825

Current Obligation: $25,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline