DOJ's $300K Medical Services Contract for Wisconsin Prison Lacks Competition, Raises Value Concerns

Contract Overview

Contract Amount: $300,000 ($300.0K)

Contractor: American Correctional Healthcare, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 ACH COMPREHENSIVE MEDICAL APR 26 MISSION ESSENTIAL

Place of Performance

Location: PORTAGE, COLUMBIA County, WISCONSIN, 53901

State: Wisconsin Government Spending

Plain-Language Summary

Department of Justice obligated $300,000 to AMERICAN CORRECTIONAL HEALTHCARE, INC. for work described as: FY26 B2 ACH COMPREHENSIVE MEDICAL APR 26 MISSION ESSENTIAL Key points: 1. The $300,000 contract for comprehensive medical services in Wisconsin is awarded to American Correctional Healthcare, Inc. 2. Lack of competition for this mission-essential service raises questions about price discovery and potential overspending. 3. The contract duration is short (29 days), suggesting a potential gap-filling or short-term need. 4. The sector is healthcare services within the Federal Prison System, a critical but often scrutinized area.

Value Assessment

Rating: questionable

The contract value of $300,000 for a single month of services appears high, especially without competitive bidding. Benchmarking against similar correctional healthcare contracts would be necessary to determine fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to offer competitive rates.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for essential medical services, impacting taxpayer funds.

Public Impact

Prisoners' access to essential medical care is directly impacted by this contract. The cost of correctional healthcare is a significant expenditure for the Bureau of Prisons. Oversight is needed to ensure the quality and necessity of services provided under this sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potentially high unit cost
Short contract duration raises questions about planning

Positive Signals

Mission essential service
Specific location (Wisconsin)

Sector Analysis

This contract falls within the healthcare services sector, specifically for correctional facilities. Spending benchmarks for correctional healthcare can vary widely based on inmate population, security levels, and service scope. The $300,000 for one month suggests a high per-diem cost.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement. The award went to a specific, likely larger, provider, potentially missing opportunities for smaller, specialized healthcare firms.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Bureau of Prisons to ensure the contractor is delivering necessary services at a reasonable cost and that proper justification for non-competition is documented.

Related Government Programs

General Medical and Surgical Hospitals
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency
Short contract duration raises planning questions
No small business consideration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $300,000 to AMERICAN CORRECTIONAL HEALTHCARE, INC.. FY26 B2 ACH COMPREHENSIVE MEDICAL APR 26 MISSION ESSENTIAL

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 $300,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the justification for awarding this contract sole-source, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves specific circumstances like urgent need or unique capabilities. Without competitive bidding, the agency must independently verify the reasonableness of the price through market research or cost analysis. The lack of competition here necessitates a thorough review of the contractor's proposed costs against industry standards and historical data to prevent overpayment.

How does the per-unit cost of this contract compare to similar medical service contracts in other federal or state correctional facilities?

Benchmarking is crucial. If this contract's per-unit cost (e.g., per inmate per day) significantly exceeds averages for comparable facilities, it indicates potential overpricing. Factors like geographic location, specific medical needs of the inmate population, and the scope of services (e.g., primary care vs. specialized services) must be considered in the comparison to ensure fairness.

What is the long-term strategy for providing comprehensive medical services to this facility, and why was a short-term, sole-source contract chosen?

A 29-day contract suggests a temporary solution or a gap-filler. Understanding the long-term plan is vital. If the agency intends to continue using this provider, a competitive process should be initiated. If it's a stopgap, the reasons for the sudden need and the timeline for a permanent solution should be clear to ensure continuity of care and responsible spending.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $300,000

Exercised Options: $300,000

Current Obligation: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline