DOJ's Bureau of Prisons to Spend $65M on Inmate Dialysis Services in FY26

Contract Overview

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

Contractor: Mercy Hospital Springfield

Awarding Agency: Department of Justice

Start Date: 2026-05-01

End Date: 2026-05-31

Contract Duration: 30 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 MAY 26 INSIDE DIALYSIS COMPREHENSIVE MEDICAL SERVICES FOR USMCFP SPRINGFIELD - ESTIMATED COST MAY FY26

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 MAY 26 INSIDE DIALYSIS COMPREHENSIVE MEDICAL SERVICES FOR USMCFP SPRINGFIELD - ESTIMATED COST MAY FY26 Key points: 1. The estimated cost of $65 million for comprehensive dialysis services highlights a significant investment in inmate healthcare. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing, but the short duration may limit robust bidding. 3. Risk of service disruption or quality issues exists if provider capacity is strained during the 30-day period. 4. The healthcare sector, particularly specialized medical services, often involves high costs due to equipment and skilled personnel.

Value Assessment

Rating: fair

The estimated cost of $65 million for a 30-day contract appears high when considering the benchmark of $2,167 per unit. This suggests a potential for overpricing or significant unstated service components.

Cost Per Unit: $2,167

Competition Analysis

Competition Level: full-and-open

The contract was awarded via full and open competition, which is generally positive for price discovery. However, the very short 30-day duration might have limited the number of serious bidders and the extent of price negotiation.

Taxpayer Impact: Taxpayers are funding essential but potentially high-cost medical services for federal inmates. Careful oversight is needed to ensure value for money given the estimated expenditure.

Public Impact

Ensures critical medical care for inmates requiring dialysis, upholding constitutional rights. Potential for high per-patient costs could strain BOP's healthcare budget. Highlights the ongoing need for specialized medical services within correctional facilities. Short contract duration may lead to less competitive pricing than a longer-term agreement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High estimated cost for a short duration
Potential for limited competition due to short performance period
Dependence on a single provider for critical care

Positive Signals

Full and open competition method
Addresses a critical inmate health need

Sector Analysis

The federal government, specifically the Bureau of Prisons, requires specialized healthcare services like dialysis. Costs in this sector are typically high due to advanced medical equipment, specialized staff, and regulatory compliance.

Small Business Impact

There is no specific indication of small business participation in this contract award. The nature of specialized medical services may favor larger, established healthcare providers.

Oversight & Accountability

The Bureau of Prisons is responsible for overseeing this contract. Robust monitoring of service delivery, quality of care, and cost-effectiveness will be crucial, especially given the high estimated cost and short timeframe.

Related Government Programs

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

Risk Flags

High estimated cost for a short duration
Potential for limited competition due to short performance period
Lack of detailed service breakdown for cost justification
Dependence on a single provider for critical care
Short contract duration may not incentivize long-term quality improvements

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 MAY 26 INSIDE DIALYSIS COMPREHENSIVE MEDICAL SERVICES FOR USMCFP SPRINGFIELD - ESTIMATED COST MAY FY26

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: 2026-05-01. End: 2026-05-31.

What specific services are included in the $65 million estimate to justify the high per-unit cost?

The $65 million estimate for a 30-day period, with a benchmark unit cost of $2,167, suggests a need for detailed justification. This could include the number of inmates requiring service, frequency of dialysis, specific medical procedures, staffing levels, equipment maintenance, and any associated pharmaceutical costs. Without further detail, the cost appears disproportionate.

What are the risks associated with a short 30-day contract for critical dialysis services?

A short 30-day contract poses risks such as potential provider reluctance to invest in necessary resources, limited time for thorough vetting of the chosen provider, and the possibility of service interruptions if a follow-on contract is delayed. It may also lead to higher pricing as providers factor in the uncertainty and short-term nature of the engagement.

How does this expenditure align with the Bureau of Prisons' overall healthcare budget and effectiveness goals?

This $65 million expenditure represents a significant allocation for a single month of service. Its alignment with budget and effectiveness goals depends on the actual number of inmates served and the quality of care provided. If this cost covers a large inmate population or particularly complex cases, it might be justified. However, it warrants scrutiny to ensure it doesn't detract from other essential healthcare needs or indicate inefficiencies.

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