DOJ's $898K Naphcare Contract for Federal Prison Medical Services Awarded via Sole Source
Contract Overview
Contract Amount: $89,876 ($89.9K)
Contractor: Naphcare LLC
Awarding Agency: Department of Justice
Start Date: 2026-02-01
End Date: 2026-02-28
Contract Duration: 27 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY26 B1 NAPHCARE ONSITE MEDICAL FEB26
Place of Performance
Location: TERRE HAUTE, VIGO County, INDIANA, 47802
State: Indiana Government Spending
Plain-Language Summary
Department of Justice obligated $89,875.95 to NAPHCARE LLC for work described as: FY26 B1 NAPHCARE ONSITE MEDICAL FEB26 Key points: 1. Contract awarded to NAPHCARE LLC for onsite medical services in federal prisons. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. The contract value is $898,759.50 for a 27-day period in FY26. 4. The NAICS code 622110 points to General Medical and Surgical Hospitals. 5. This spending falls under the Department of Justice's Federal Prison System.
Value Assessment
Rating: fair
The contract value of $898,759.50 for a 27-day period is high for a short-term service. Benchmarking against similar short-term, sole-source medical contracts within correctional facilities is difficult without more data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits opportunities for price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition raises concerns about whether the government achieved the best possible price for these essential medical services.
Public Impact
Ensures essential medical services are provided to inmates within the Federal Prison System. The sole-source nature of the award may limit transparency and public scrutiny of pricing. Potential for increased costs due to lack of competitive bidding. Impacts the operational efficiency and inmate welfare within the specified federal prison.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Short contract duration with a significant value raises questions about efficiency.
- Lack of small business participation noted.
Positive Signals
- Ensures continuity of essential medical services.
- Awarded to a single vendor for a specific need.
Sector Analysis
This contract falls within the Healthcare sector, specifically for hospital services (NAICS 622110). Spending on correctional healthcare is a significant component of the federal budget, often characterized by unique operational challenges and specialized vendor requirements.
Small Business Impact
The data indicates that small businesses were not involved in this contract award (ss: false, sb: false). There is no indication of efforts to include small businesses in this sole-source procurement.
Oversight & Accountability
Oversight of this contract would typically fall under the Department of Justice and the Bureau of Prisons. The sole-source nature necessitates robust internal review to ensure the necessity and fair pricing of the services procured.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award limits competition.
- High cost for a short-duration contract.
- Lack of small business participation.
- Potential for inflated pricing due to non-competitive nature.
- Limited transparency in pricing justification.
Tags
general-medical-and-surgical-hospitals, department-of-justice, in, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $89,875.95 to NAPHCARE LLC. FY26 B1 NAPHCARE ONSITE MEDICAL FEB26
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 $89,875.95.
What is the period of performance?
Start: 2026-02-01. End: 2026-02-28.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure it represents fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or lack of other qualified sources. The Department of Justice and Bureau of Prisons are responsible for ensuring fair and reasonable pricing through mechanisms like cost analysis, historical pricing data review, or independent government cost estimates, even in sole-source situations.
How does the per-unit cost of medical services under this contract compare to industry benchmarks for similar correctional facility healthcare provisions?
Without specific per-unit cost breakdowns (e.g., cost per inmate per day, cost per procedure), a direct comparison to industry benchmarks is challenging. However, the overall contract value for a short duration suggests a potentially high cost. Benchmarking would require detailed service utilization data and comparison with contracts for similar populations and service levels in other correctional settings.
What is the long-term strategy for ensuring cost-effective and competitive medical services within the Federal Prison System, beyond this short-term sole-source contract?
The long-term strategy should involve exploring competitive contracting opportunities for medical services where feasible, potentially through multi-year contracts or performance-based contracts. Regular market research, analysis of service needs, and consideration of alternative service delivery models can help drive competition and ensure cost-effectiveness over time.
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: $89,876
Exercised Options: $89,876
Current Obligation: $89,876
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-02-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-04-10
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