DOJ's $1.05M sole-source medical services contract for Federal Prison System raises value questions

Contract Overview

Contract Amount: $1,050,000 ($1.1M)

Contractor: Mercy Hospital Springfield

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-04-09

Contract Duration: 67 days

Daily Burn Rate: $15.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 MERCY OUTSIDE MEDICAL FEB 26

Place of Performance

Location: SPRINGFIELD, GREENE County, MISSOURI, 65804

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $1.1 million to MERCY HOSPITAL SPRINGFIELD for work described as: FY26 B2 MERCY OUTSIDE MEDICAL FEB 26 Key points: 1. The contract's sole-source nature limits price discovery and potentially increases costs for taxpayers. 2. A short performance period of 67 days suggests a need for immediate medical services, but the lack of competition is a concern. 3. The fixed-price contract type offers some cost certainty, but the absence of competitive bidding prevents benchmarking against market rates. 4. The awarding agency, Department of Justice, and its Federal Prison System are responsible for ensuring adequate healthcare for inmates. 5. The specific medical services provided are not detailed, making it difficult to assess performance metrics or value for money. 6. The contract's value, while not exceptionally large, warrants scrutiny due to the procurement method.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $1.05 million price represents fair market value for the medical services provided. The contract is for a short duration (67 days), suggesting a potentially high daily rate. Comparing this to similar contracts for inmate medical care, especially those procured competitively, would be necessary to establish a benchmark. The lack of transparency in the pricing structure due to the sole-source award makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Mercy Hospital Springfield, was solicited. This procurement method bypasses the standard competitive process, which typically involves soliciting bids from multiple qualified vendors. The justification for a sole-source award is not provided, but it often stems from unique capabilities, urgent needs, or a lack of other sources. The absence of competition means potential savings from a bidding war are lost.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the benefits of competitive pricing. Without multiple bids, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

Inmates within the Federal Prison System in Missouri will benefit from the provision of medical services. The contract ensures continuity of care for a specific period, addressing immediate healthcare needs. The geographic impact is localized to the facility served by Mercy Hospital Springfield in Missouri. The contract supports healthcare professionals employed by Mercy Hospital Springfield.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Absence of a competitive process hinders transparency and accountability.
Short contract duration could indicate a reactive procurement rather than strategic planning.
Limited information on specific services makes performance evaluation difficult.

Positive Signals

Ensures immediate medical services are available to inmates.
Fixed-price contract provides some budget predictability.
Awarded to a known healthcare provider, potentially ensuring quality of care.

Sector Analysis

The healthcare sector, particularly within government and correctional facilities, is a significant market. Contracts for medical services are essential for maintaining the health and well-being of incarcerated individuals. The Federal Bureau of Prisons (BOP) regularly contracts for a wide range of medical services, from primary care to specialized treatments. Benchmarking this contract's value would require comparing it to other BOP contracts for similar services, considering factors like patient population size, acuity, and geographic location.

Small Business Impact

This contract was awarded to Mercy Hospital Springfield, a large healthcare provider, and does not appear to involve small business set-asides or subcontracting opportunities. The sole-source nature of the award further limits the potential for small business participation. Analysis of subcontracting plans is not applicable in this scenario.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System. Accountability measures would be tied to the terms and conditions of the purchase order, including service delivery standards and reporting requirements. Transparency is limited due to the sole-source award and the lack of publicly available justification. The Inspector General for the Department of Justice may have jurisdiction for audits and investigations if concerns arise regarding waste, fraud, or abuse.

Related Government Programs

Federal Bureau of Prisons Medical Services Contracts
Department of Justice Healthcare Procurement
Inmate Healthcare Services

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing due to lack of competition.
Limited performance metrics available for assessment.
Short contract duration may indicate reactive procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.1 million to MERCY HOSPITAL SPRINGFIELD. FY26 B2 MERCY OUTSIDE MEDICAL FEB 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 $1.1 million.

What is the period of performance?

Start: 2026-02-01. End: 2026-04-09.

What is the specific justification for awarding this contract on a sole-source basis to Mercy Hospital Springfield?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required service, or in cases of urgent and compelling need. Without this justification, it is impossible to fully assess the necessity of bypassing the competitive bidding process. This information is crucial for understanding whether the government received the best possible value and if taxpayer funds were used efficiently. Further investigation into the contract file or agency procurement records would be required to obtain the specific rationale.

How does the per-diem cost of medical services under this contract compare to similar contracts within the Federal Prison System?

Calculating a precise per-diem cost requires dividing the total contract value ($1,050,000) by the number of days the contract is active (67 days), resulting in approximately $15,672 per day. However, this figure represents the total cost of services, not necessarily a per-inmate per-day cost, as the number of inmates served or the scope of services provided per day is not specified. To compare this to similar contracts, one would need to identify contracts for medical services at other federal correctional facilities, ascertain their total value and duration, and ideally, understand the patient population's health needs and the specific services rendered. Given the sole-source nature and lack of detailed service scope, a direct, meaningful comparison is challenging without additional data.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. For a medical services contract, typical KPIs might include response times for medical emergencies, patient satisfaction rates, adherence to treatment protocols, and infection control measures. SLAs would define the expected quality and timeliness of care. Without these details, it is difficult to objectively measure the contractor's performance and ensure that the Federal Prison System is receiving the contracted services effectively and efficiently. These details are usually found within the contract's statement of work or performance work statement.

What is Mercy Hospital Springfield's track record in providing medical services to correctional facilities?

The provided data does not contain information on Mercy Hospital Springfield's specific track record in providing medical services to correctional facilities. While Mercy Hospital Springfield is a known healthcare provider, its experience with the unique demands and environment of correctional healthcare is not detailed here. Assessing their past performance in similar settings, including any history of compliance issues, patient care quality, or contract management successes or failures, would be crucial for evaluating the risk associated with this award. This information would typically be part of the due diligence conducted during a competitive procurement or a critical factor in justifying a sole-source award.

Are there any alternative providers in the Springfield, Missouri area capable of offering similar medical services to the Federal Prison System?

The data provided does not indicate whether alternative providers in the Springfield, Missouri area are capable of offering similar medical services to the Federal Prison System. The justification for the sole-source award would typically address this by explaining why other potential sources were not considered or deemed unsuitable. If other hospitals or healthcare networks in the region possess the necessary infrastructure, expertise, and security clearances to serve a federal correctional facility, then awarding the contract on a sole-source basis might be questionable. Investigating local healthcare providers and their capabilities would be necessary to answer this question definitively.

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: 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: $1,050,000

Exercised Options: $1,050,000

Current Obligation: $1,050,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline