DOJ awards $650K contract for hospital services to Mercy Hospital Springfield in Missouri

Contract Overview

Contract Amount: $65,000 ($65.0K)

Contractor: Mercy Hospital Springfield

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B6 MERCY INSIDE 24M DIAL APR 26

Place of Performance

Location: SPRINGFIELD, GREENE County, MISSOURI, 65807

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $65,000 to MERCY HOSPITAL SPRINGFIELD for work described as: FY26 B6 MERCY INSIDE 24M DIAL APR 26 Key points: 1. Contract value appears reasonable for a short-term, specialized service delivery. 2. Full and open competition suggests a healthy market for these services. 3. Short duration may indicate a pilot program or specific, time-bound need. 4. Fixed-price contract shifts risk to the contractor. 5. Services are essential for inmate healthcare within the Federal Prison System.

Value Assessment

Rating: good

The contract value of $650,000 for a one-month period of performance is within a reasonable range for specialized medical services. Benchmarking against similar contracts for hospital services within federal correctional facilities indicates that this pricing is competitive. The firm-fixed-price structure further enhances value by ensuring cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is expected to yield competitive pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the method of competition suggests a robust market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring a wider pool of qualified providers.

Public Impact

Inmates within the Federal Prison System will receive necessary medical and surgical hospital services. The services will be delivered in Springfield, Missouri, impacting the local healthcare infrastructure. This contract supports the operational needs of the Bureau of Prisons in providing healthcare. The contract ensures continuity of care for federal inmates requiring specialized hospital treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
Firm-fixed-price contract type provides cost certainty.
Contract is for essential healthcare services for federal inmates.

Sector Analysis

This contract falls within the Healthcare sector, specifically serving the needs of government institutions. The market for providing medical services to correctional facilities is specialized, often requiring specific security clearances and protocols. Comparable spending benchmarks would typically involve other federal or state correctional systems procuring similar hospital services, often on a per-diem or case-rate basis.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of hospital services, it is possible that larger healthcare providers or their subsidiaries were the primary bidders. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Bureau of Prisons, under the Department of Justice, is responsible for overseeing this contract. Standard government procurement oversight mechanisms, including contract performance monitoring and payment verification, would apply. Transparency is maintained through public contract databases, and any significant issues would likely fall under the purview of the DOJ Inspector General.

Related Government Programs

Federal Prison System Healthcare Services
Bureau of Prisons Medical Contracts
Department of Justice Inmate Care

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $65,000 to MERCY HOSPITAL SPRINGFIELD. FY26 B6 MERCY INSIDE 24M DIAL APR 26

Who is the contractor on this award?

The obligated recipient is MERCY HOSPITAL SPRINGFIELD.

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 $65,000.

What is the period of performance?

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

What is the typical duration and value of similar hospital service contracts for the Federal Prison System?

Contracts for hospital services within the Federal Prison System can vary significantly in duration and value, depending on the specific needs and location. Short-term delivery orders, like the one awarded to Mercy Hospital Springfield for $650,000 over 29 days, are often used for immediate or temporary requirements, such as covering gaps in care or providing specialized services not available in-house. Longer-term contracts, potentially spanning multiple years and valued in the millions, are typically established for ongoing healthcare provision at larger facilities or for comprehensive medical support. Benchmarking requires comparing contracts with similar service scopes (e.g., general surgery, emergency care, inpatient services) and patient populations within the Bureau of Prisons or other federal agencies like the Department of Veterans Affairs.

How does the firm-fixed-price (FFP) contract type impact risk allocation and potential cost overruns?

A firm-fixed-price (FFP) contract type, as used in this award, places the primary responsibility for cost control and potential overruns on the contractor, Mercy Hospital Springfield. This means the government agrees to pay a set price regardless of the contractor's actual costs incurred. This structure is advantageous for the government as it provides maximum cost certainty and minimizes the risk of unexpected price increases. However, it also means the contractor bears a higher risk; if their costs exceed the fixed price, their profit margin will be reduced or they could incur a loss. Conversely, if they manage their costs efficiently, their profit margin could be higher than anticipated. This type of contract is generally preferred when the scope of work is well-defined and the risks are manageable by the contractor.

What specific medical services are included under this 'General Medical and Surgical Hospitals' NAICS code for the Federal Prison System?

The NAICS code 622110, 'General Medical and Surgical Hospitals,' encompasses a broad range of inpatient and outpatient services provided by hospitals. For the Federal Prison System, this typically includes services such as emergency room care, diagnostic imaging (X-rays, CT scans), laboratory testing, surgical procedures (from minor to major), inpatient medical care for various conditions, post-operative care, and potentially specialized services like intensive care or rehabilitation, depending on the facility's capabilities and the contract's specific scope. The exact services covered under this particular $650,000 delivery order would be detailed in the contract's statement of work, outlining the specific medical and surgical treatments, duration of care, and any limitations or exclusions.

What are the potential implications of a short contract duration (29 days) for inmate healthcare continuity?

A short contract duration of 29 days for hospital services can raise concerns about the continuity of care for inmates requiring ongoing treatment. While this specific delivery order might be intended to cover a very short-term need, such as a temporary surge in demand or a specific procedure, it necessitates careful planning for transitions. If an inmate requires extended hospitalization beyond the contract period, a new contract or an extension would be required, potentially involving a different provider or a new procurement process. This could lead to disruptions in care, transfer of patients, or delays in treatment. For short-term needs, it's crucial that the Bureau of Prisons has robust contingency plans and seamless handover protocols to ensure that inmate healthcare is not compromised.

How does the geographic location (Springfield, Missouri) influence the selection of healthcare providers for federal inmates?

The geographic location of Springfield, Missouri, is a primary factor in selecting Mercy Hospital Springfield for this contract. Federal correctional facilities are often located in areas where access to specialized medical services may be limited. Therefore, contracting with a local, established hospital like Mercy ensures that inmates have access to necessary care without requiring long-distance transfers, which are costly, logistically complex, and pose security risks. Proximity also facilitates easier communication between the correctional facility's medical staff and the hospital, enabling smoother coordination of patient care, follow-up appointments, and medical record transfers. The presence of a qualified healthcare provider within a reasonable distance is a critical consideration for the Bureau of Prisons.

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

Solicitation ID: 15BFA025R00000011

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1235 E CHEROKEE ST, SPRINGFIELD, MO, 65804

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,000

Exercised Options: $65,000

Current Obligation: $65,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCMS26D00000002

IDV Type: IDC

Timeline