DOJ awards $500K contract for outside medical services to NAPHCARE LLC in Alabama

Contract Overview

Contract Amount: $544,516 ($544.5K)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2025-03-01

End Date: 2025-03-01

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUTSIDE MEDICAL SERVICES $499,998.00

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $544,516.24 to NAPHCARE LLC for work described as: OUTSIDE MEDICAL SERVICES $499,998.00 Key points: 1. Contract awarded to NAPHCARE LLC for general medical and surgical hospital services. 2. The contract is a firm-fixed-price purchase order, indicating predictable costs. 3. Awarded under the Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 4. The contract duration is one day, implying a specific, short-term need. 5. Geographic location of service delivery is Alabama. 6. The contract value is approximately $500,000.

Value Assessment

Rating: fair

The contract value of approximately $500,000 for a single day of outside medical services appears high when considered on a per-day basis. However, without specific details on the scope of services or patient volume, a direct comparison to similar contracts is difficult. The firm-fixed-price nature provides cost certainty, but the overall value proposition hinges on the necessity and efficiency of these services for the Federal Prison System.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but is less formal than full and open competition for larger contracts. The number of bidders is not specified, but SAP is designed to encourage competition among qualified vendors. The level of competition under SAP can lead to competitive pricing, though potentially not as aggressively as with larger, more complex solicitations.

Taxpayer Impact: Competition under SAP aims to secure fair market prices for the government, ensuring taxpayer funds are used efficiently for necessary services.

Public Impact

Inmates within the Federal Prison System in Alabama will benefit from access to outside medical services. The contract ensures the provision of general medical and surgical hospital services. Services are geographically focused within Alabama. The contract supports the operational needs of the Bureau of Prisons by supplementing internal medical capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of services expands beyond the initial one-day requirement.
Limited duration raises questions about the long-term strategy for medical service provision.
Dependence on external providers for critical medical needs.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Awarded through a competitive process under SAP, indicating an effort to obtain value.
Addresses a specific, likely urgent, medical service need for inmates.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, often relies on a mix of in-house and contracted services. General Medical and Surgical Hospitals (NAICS 622110) represent a significant portion of the healthcare industry. Contracts for these services within federal agencies are common, aiming to ensure inmate health and well-being. Benchmarking this specific contract is challenging due to its short duration and specialized context within a federal prison system.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As it was competed under SAP, it's possible that small businesses were eligible and participated, but specific set-aside goals are not indicated. The impact on the small business ecosystem would depend on whether small businesses were awarded subcontracts or if the primary awardee is a large business.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Federal Prison System / Bureau of Prisons. Accountability measures are inherent in the firm-fixed-price contract structure, requiring NAPHCARE LLC to deliver specified services within the agreed-upon cost. Transparency is facilitated by the contract award itself, though detailed performance metrics and oversight reports are not publicly available through this data.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Department of Justice Healthcare Procurement

Risk Flags

High per-day cost potential
Short contract duration raises questions about long-term planning
Dependence on external providers for critical care

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $544,516.24 to NAPHCARE LLC. OUTSIDE MEDICAL SERVICES $499,998.00

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 $544,516.24.

What is the period of performance?

Start: 2025-03-01. End: 2025-03-01.

What is the specific medical need being addressed by this one-day contract?

The provided data indicates the contract is for 'OUTSIDE MEDICAL SERVICES' under the NAICS code 'General Medical and Surgical Hospitals'. Given the context of the Federal Prison System, this likely pertains to specialized medical procedures, emergency care, or diagnostic services that cannot be adequately provided by the facility's internal medical staff. The one-day duration suggests a discrete event or a very specific, short-term requirement rather than ongoing care. Further details on the specific medical necessity would be required to fully understand the scope.

How does the $500,000 cost compare to typical per-day costs for similar contracted medical services in correctional settings?

Benchmarking the $500,000 cost for a single day of outside medical services is challenging without more granular data. Per-day costs for specialized medical services can vary dramatically based on the type of procedure, the number of patients, the level of care required (e.g., surgical, diagnostic, emergency), and the geographic location. For correctional facilities, costs can be influenced by security protocols and logistical requirements. A direct comparison would necessitate understanding the exact services rendered and comparing them to industry benchmarks for similar contracted services, potentially adjusted for the unique environment of a federal prison.

What is NAPHCARE LLC's track record with federal contracts, particularly within the Bureau of Prisons?

NAPHCARE LLC is a known provider of correctional healthcare services. While this specific contract is for outside medical services, the company's broader experience in managing healthcare within correctional facilities suggests a familiarity with the operational environment. A comprehensive review of their federal contract history, including past performance evaluations, any disputes, or contract terminations, would provide a clearer picture of their reliability and effectiveness in fulfilling government requirements. Accessing contract award databases and performance reports would be necessary for a thorough assessment.

What are the potential risks associated with relying on external providers for critical medical services in a federal prison?

Key risks include potential delays in accessing care, which could be critical in emergencies. There's also the risk of inconsistent quality of care if external providers are not adequately vetted or monitored. Financial risks include unpredictable costs if the scope expands or if unforeseen complications arise, despite the firm-fixed-price structure. Logistical challenges related to inmate transport, security, and coordination between facility staff and external medical teams can also pose risks. Furthermore, over-reliance on external services might indicate gaps in the facility's internal medical capabilities.

How does this contract fit into the Bureau of Prisons' overall strategy for inmate healthcare?

This contract appears to address a specific, short-term need for medical services that exceed the Bureau of Prisons' (BOP) internal capacity or capabilities at a particular facility. It suggests a strategy that utilizes external partnerships to supplement in-house healthcare, ensuring inmates receive necessary treatments. The BOP generally aims to provide healthcare comparable to that available in the community. Contracts like this are likely part of a broader approach that includes in-house clinics, partnerships with local hospitals, and specialized service agreements to manage the diverse health needs of the inmate population.

What historical spending patterns exist for outside medical services within the Federal Prison System?

Historical spending on outside medical services within the Federal Prison System (FPS) is likely substantial and varies year over year based on inmate population health trends, facility needs, and the availability of internal resources. The FPS, managed by the Bureau of Prisons (BOP), contracts for a wide range of medical services, including specialized procedures, emergency care, and diagnostic imaging that cannot be performed on-site. Analyzing past contract awards for similar services, their values, and durations would reveal trends in spending, common service providers, and the geographic distribution of these expenditures.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $544,516

Exercised Options: $544,516

Current Obligation: $544,516

Actual Outlays: $522,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline