DOJ's $154M Contract for Pharmacist Services Awarded to NITELINES USA INC for FY26

Contract Overview

Contract Amount: $154,440 ($154.4K)

Contractor: Nitelines USA Inc

Awarding Agency: Department of Justice

Start Date: 2026-09-30

End Date: 2026-09-30

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B1 NITELINES CONTRACT PHARMACIST OCT 25

Place of Performance

Location: MILAN, WASHTENAW County, MICHIGAN, 48160

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $154,440 to NITELINES USA INC for work described as: FY26 B1 NITELINES CONTRACT PHARMACIST OCT 25 Key points: 1. The contract is for temporary pharmacist services, a critical support function for federal correctional facilities. 2. NITELINES USA INC, the sole awardee, will provide these services across multiple locations. 3. The contract's fixed-price nature aims to control costs, but the need for temporary staff suggests potential staffing challenges within the Bureau of Prisons. 4. The sector is primarily healthcare support services within the federal government's administrative functions.

Value Assessment

Rating: fair

The contract value of $154.44 million over one year appears substantial for temporary pharmacist services. Benchmarking against similar contracts for temporary medical staffing would be necessary to fully assess pricing, but the fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was considered a smaller procurement. While competed, the limited scope and potential for specialized needs might restrict the number of viable bidders, impacting price discovery.

Taxpayer Impact: Taxpayers are impacted by the cost of these services, which are essential for inmate healthcare. The fixed-price contract aims to ensure value for money, but the overall efficiency depends on the actual need and utilization of these temporary staff.

Public Impact

Ensures essential pharmacy services are available within federal prisons, supporting inmate health and well-being. Potential for inconsistent service quality if temporary staff turnover is high. Supports the operational needs of the Bureau of Prisons by filling staffing gaps. The use of temporary services may indicate underlying challenges in recruiting and retaining permanent pharmacy staff within the federal system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on temporary staff can lead to inconsistent service and higher turnover.
Potential for increased costs if the need for temporary staff is chronic.
Limited competition under SAP may not yield the best possible pricing.
Geographic distribution of services across Michigan could present logistical challenges.

Positive Signals

Fixed-price contract provides cost certainty.
Addresses a critical need for healthcare services in federal facilities.
Competition under SAP, though limited, indicates an attempt at market engagement.

Sector Analysis

This contract falls within the healthcare support services sector, specifically focusing on temporary staffing for pharmacies within federal correctional facilities. Spending benchmarks for temporary medical staffing can vary widely based on specialty and location, but a $154 million contract for a single year suggests a significant operational requirement.

Small Business Impact

The data indicates this contract was competed under SAP and awarded as a purchase order. There is no explicit information on small business participation or set-asides. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or if any were subcontracted.

Oversight & Accountability

The Department of Justice, through the Bureau of Prisons, is responsible for overseeing this contract. Standard procurement regulations and contract management practices would apply. Oversight would focus on service delivery, quality, and adherence to the fixed-price terms.

Related Government Programs

Temporary Help Services
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for inconsistent service quality due to reliance on temporary staff.
Risk of higher long-term costs if temporary staffing becomes a chronic solution.
Limited competition under SAP may not guarantee the best market price.
Geographic scope across Michigan could present logistical and oversight challenges.
Lack of transparency regarding small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $154,440 to NITELINES USA INC. FY26 B1 NITELINES CONTRACT PHARMACIST OCT 25

Who is the contractor on this award?

The obligated recipient is NITELINES USA 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 $154,440.

What is the period of performance?

Start: 2026-09-30. End: 2026-09-30.

What is the typical cost per pharmacist hour or day for temporary services in similar federal or state correctional facilities to benchmark this contract's value?

Benchmarking the per-unit cost for temporary pharmacist services requires access to detailed market data for correctional healthcare staffing. Factors like geographic location, required qualifications, and the specific duties performed significantly influence hourly or daily rates. Without this granular data, it's difficult to definitively assess if $154.44 million represents optimal value, though the fixed-price nature provides a degree of cost control.

What are the primary drivers necessitating the use of temporary pharmacist services rather than permanent hires within the Bureau of Prisons?

The reliance on temporary pharmacist services could stem from several factors, including difficulties in recruiting and retaining qualified permanent staff due to demanding work environments or compensation issues, fluctuating patient loads, or specific project-based needs. Understanding these drivers is crucial for assessing the long-term sustainability and cost-effectiveness of this staffing strategy.

How effectively does NITELINES USA INC manage its temporary workforce to ensure consistent quality of care across multiple federal prison locations?

The effectiveness of NITELINES USA INC in managing its temporary workforce is critical to ensuring consistent quality of care. Key performance indicators related to pharmacist availability, adherence to protocols, patient satisfaction, and error rates would need to be monitored. The Bureau of Prisons' oversight mechanisms should focus on these metrics to ensure the contract's objectives are met.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2180 SATELLITE BLVD, DULUTH, GA, 30097

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $154,440

Exercised Options: $154,440

Current Obligation: $154,440

Actual Outlays: $52,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline