DOJ's $2.7M Medical Services Contract with Mayo Clinic for Federal Prison System

Contract Overview

Contract Amount: $2,702,810 ($2.7M)

Contractor: Mayo Clinic

Awarding Agency: Department of Justice

Start Date: 2025-12-01

End Date: 2025-12-31

Contract Duration: 30 days

Daily Burn Rate: $90.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 MAYO LD - COMP MEDICAL DEC 25 MISSION CRITICAL

Place of Performance

Location: ROCHESTER, OLMSTED County, MINNESOTA, 55905

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $2.7 million to MAYO CLINIC for work described as: FY26 B2 MAYO LD - COMP MEDICAL DEC 25 MISSION CRITICAL Key points: 1. High value contract for specialized medical services. 2. Sole-source award raises questions about competition and price discovery. 3. Potential risk in reliance on a single provider for critical care. 4. Healthcare sector spending is significant, but this is a niche service.

Value Assessment

Rating: questionable

The contract value of $2.7M for a 30-day period appears high for a single facility, especially without competitive bidding. Benchmarking against similar sole-source medical contracts is difficult but suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Ensures critical medical care for inmates within the federal prison system. Potential for higher costs due to sole-source procurement. Impacts the Bureau of Prisons' ability to provide consistent healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High per-diem cost implied
Short duration, potentially inflated pricing

Positive Signals

Ensures mission-critical medical services
Leverages Mayo Clinic's specialized expertise

Sector Analysis

This contract falls within the healthcare sector, specifically medical services for government institutions. Benchmarks for similar sole-source contracts are scarce, but the high value for a short duration warrants scrutiny.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a large, well-known healthcare provider.

Oversight & Accountability

The sole-source nature of this award necessitates strong oversight to ensure the services provided are necessary, effective, and priced reasonably, despite the lack of competitive pressure.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition
Potential for overpricing
Limited transparency in price discovery
High cost for a short-term service
Dependence on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.7 million to MAYO CLINIC. FY26 B2 MAYO LD - COMP MEDICAL DEC 25 MISSION CRITICAL

Who is the contractor on this award?

The obligated recipient is MAYO CLINIC.

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 $2.7 million.

What is the period of performance?

Start: 2025-12-01. End: 2025-12-31.

What is the justification for awarding this critical medical contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. For critical medical services, the agency might argue that Mayo Clinic possesses specific expertise or infrastructure unavailable elsewhere, making competition impractical or detrimental to patient care.

What are the risks associated with a sole-source medical contract for federal inmates?

The primary risks include inflated pricing due to the absence of competitive bidding, potential for reduced service quality if the provider faces no market pressure, and a lack of transparency in the procurement process. There's also a risk of dependency on a single provider, which could be problematic if issues arise.

How can the effectiveness and value of these medical services be independently verified?

Effectiveness can be verified through patient outcomes, adherence to medical standards, and inmate satisfaction surveys. Value can be assessed by comparing the services and costs to similar contracts (if available) or industry benchmarks, and by ensuring the services directly address the critical medical needs of the inmate population.

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: 200 1ST ST SW, ROCHESTER, MN, 55905

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Hospital, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,702,810

Exercised Options: $2,702,810

Current Obligation: $2,702,810

Actual Outlays: $1,926,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline