DOJ's $952K Naphcare Contract for Federal Prison Medical Services Awarded to Naphcare LLC

Contract Overview

Contract Amount: $952,679 ($952.7K)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2025-07-01

End Date: 2025-07-31

Contract Duration: 30 days

Daily Burn Rate: $31.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 B2 NAPHCARE OUTSIDE MEDICAL JUL25

Place of Performance

Location: TERRE HAUTE, VIGO County, INDIANA, 47804

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $952,679.12 to NAPHCARE LLC for work described as: FY25 B2 NAPHCARE OUTSIDE MEDICAL JUL25 Key points: 1. Contract awarded to Naphcare LLC for medical services in federal prisons. 2. The contract is for a 30-day period in July 2025. 3. The total award is $952,679.12. 4. This is a firm fixed-price contract. 5. The contract was not competed.

Value Assessment

Rating: fair

The award of $952,679.12 for a 30-day period suggests a high per-diem cost. Benchmarking against similar correctional healthcare contracts is needed to assess value.

Cost Per Unit: $31,756 per day (approximate)

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential medical services.

Public Impact

Ensures medical care for inmates within the Federal Prison System. Potential for higher costs due to non-competitive award. Service delivery in Indiana facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-day cost
Short contract duration may indicate a stop-gap measure

Positive Signals

Essential service provision
Firm fixed-price contract provides cost certainty

Sector Analysis

This contract falls under healthcare services, specifically for correctional facilities. Spending in this sector is critical for inmate welfare but requires careful oversight to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as it was awarded directly to Naphcare LLC.

Oversight & Accountability

The non-competitive nature of this award warrants close oversight to ensure fair pricing and effective service delivery. A review of justification for sole-source award is recommended.

Related Government Programs

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

Risk Flags

Sole-source award
High per-day cost
Lack of transparency in pricing
Potential for cost overruns
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $952,679.12 to NAPHCARE LLC. FY25 B2 NAPHCARE OUTSIDE MEDICAL JUL25

Who is the contractor on this award?

The obligated recipient is NAPHCARE LLC.

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 $952,679.12.

What is the period of performance?

Start: 2025-07-01. End: 2025-07-31.

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

The justification for a sole-source award is crucial for understanding why competition was bypassed. Typically, this involves a demonstration of unique capabilities, urgent need, or lack of available alternatives. Without this justification, it's difficult to assess if the government received the best possible value and if taxpayer funds were used efficiently.

How does the per-unit cost compare to industry benchmarks for correctional healthcare?

The approximate per-day cost of $31,756 is significantly high and requires immediate comparison with industry benchmarks for correctional healthcare services. If this rate is substantially above average, it indicates potential overspending and a need to renegotiate terms or explore competitive options for future contracts to ensure fiscal responsibility.

What is the long-term strategy for providing medical services to the Federal Prison System?

The short 30-day duration of this contract raises questions about the long-term strategy for medical services. Is this a temporary measure, or is a more comprehensive, competitively procured contract planned? Understanding the long-term approach is vital for ensuring consistent, cost-effective, and high-quality healthcare delivery to inmates.

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: 2090 COLUMBIANA RD, VESTAVIA HILLS, AL, 35216

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

Financial Breakdown

Contract Ceiling: $952,679

Exercised Options: $952,679

Current Obligation: $952,679

Actual Outlays: $948,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline