DOJ's $417K Physician Services Contract Awarded to Seven Corners Inc. for Federal Prisons
Contract Overview
Contract Amount: $416,697 ($416.7K)
Contractor: Seven Corners Inc
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $1.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY26(B2) SEVEN CORNERS OUTSIDE OCT 2025
Place of Performance
Location: CARMEL, HAMILTON County, INDIANA, 46032
State: Indiana Government Spending
Plain-Language Summary
Department of Justice obligated $416,697.22 to SEVEN CORNERS INC for work described as: FY26(B2) SEVEN CORNERS OUTSIDE OCT 2025 Key points: 1. Contract awarded for physician services to support the Federal Prison System. 2. The contract is a firm-fixed-price purchase order, indicating clear cost expectations. 3. Lack of competition raises concerns about potential overpricing and limited market engagement. 4. The healthcare sector is critical for government operations, especially within correctional facilities.
Value Assessment
Rating: questionable
The contract value of $417,697.22 for 364 days of physician services appears high for a single provider without competitive bidding. Benchmarking against similar contracts for physician services in correctional settings is difficult without more data, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers as market forces are not leveraged to secure the best value.
Taxpayer Impact: The lack of competition for this contract may result in higher taxpayer costs compared to a competitively awarded agreement.
Public Impact
Ensures essential healthcare services for inmates within the Federal Prison System. Potential for increased healthcare costs due to non-competitive award. Limited transparency in pricing due to lack of competitive bidding. Impacts the operational capacity of the Bureau of Prisons by securing necessary medical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Ensures critical healthcare services
- Firm-fixed-price contract provides cost certainty
Sector Analysis
This contract falls within the healthcare services sector, specifically for physician services. Government spending in this area is substantial, particularly for supporting federal institutions like prisons. Benchmarks for physician services can vary widely based on specialty, location, and contract structure.
Small Business Impact
The data indicates this contract was awarded to Seven Corners Inc., a single entity. There is no information provided to suggest whether small businesses were involved as subcontractors or if this award specifically supported small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the services meet the government's needs effectively. Accountability for the justification of a sole-source award should be clearly documented.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Sole-source award justification unclear
Tags
offices-of-physicians-except-mental-heal, department-of-justice, in, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $416,697.22 to SEVEN CORNERS INC. FY26(B2) SEVEN CORNERS OUTSIDE OCT 2025
Who is the contractor on this award?
The obligated recipient is SEVEN CORNERS 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 $416,697.22.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific program requirements. Without further documentation from the Department of Justice, the precise reason remains unclear, but it is crucial for ensuring fair pricing and taxpayer value.
How does the per-unit cost of these physician services compare to industry benchmarks for similar correctional healthcare contracts?
Benchmarking the per-unit cost is challenging without specific details on the services provided (e.g., physician specialty, hours of service, patient volume). However, the absence of competition suggests a risk that the pricing may be higher than what could be achieved through a competitive process. A thorough review of the contract's pricing structure against established benchmarks for correctional healthcare is recommended.
What mechanisms are in place to ensure the quality and effectiveness of the physician services provided under this contract?
While the contract is firm-fixed-price, ensuring quality and effectiveness relies on the Bureau of Prisons' contract management and oversight. This includes performance monitoring, adherence to service level agreements, and patient feedback mechanisms. The government should have defined metrics and processes to evaluate the provider's performance and ensure the health needs of the inmate population are met satisfactorily.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL 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: 303 CONGRESSIONAL BLVD, CARMEL, IN, 46032
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $416,697
Exercised Options: $416,697
Current Obligation: $416,697
Actual Outlays: $409,432
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-02
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