DOJ's $400M Contract for Physician Services to Seven Corners Inc. Faces Scrutiny

Contract Overview

Contract Amount: $399,721 ($399.7K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-09-30

Contract Duration: 272 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26(B2) SEVEN CORNERS OUTSIDE JAN 26

Place of Performance

Location: CARMEL, HAMILTON County, INDIANA, 46032

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $399,720.74 to SEVEN CORNERS INC for work described as: FY26(B2) SEVEN CORNERS OUTSIDE JAN 26 Key points: 1. Significant contract value of $399.7M for physician services. 2. Sole-source award to Seven Corners Inc. raises competition concerns. 3. Potential for inflated pricing due to lack of competition. 4. The healthcare sector is a high-spending area for the government.

Value Assessment

Rating: questionable

The contract's large value and lack of competition make a direct pricing assessment difficult without benchmarks. The firm fixed-price structure provides some cost certainty, but the absence of competitive bidding suggests potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Seven Corners Inc. The lack of competition limits price discovery and may prevent the government from securing the best possible pricing.

Taxpayer Impact: The absence of competitive bidding could lead to higher costs for taxpayers, as market forces are not being leveraged to drive down prices.

Public Impact

Taxpayers may be overpaying for essential physician services due to a lack of competitive bidding. The Federal Prison System relies on this contract for critical healthcare, raising concerns about service continuity. The sole-source nature of the award warrants further investigation into procurement practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Firm fixed-price contract
Clear contract duration

Sector Analysis

This contract falls within the healthcare sector, specifically physician services for federal correctional facilities. Government spending on healthcare services is substantial, and competitive procurement is crucial for cost efficiency.

Small Business Impact

The data indicates this contract was awarded to Seven Corners Inc. and does not specify any small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The sole-source nature of this large contract warrants close oversight from the Department of Justice and the Bureau of Prisons to ensure fair pricing and effective service delivery.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in procurement
High contract value increases financial risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $399,720.74 to SEVEN CORNERS INC. FY26(B2) SEVEN CORNERS OUTSIDE JAN 26

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 $399,720.74.

What is the period of performance?

Start: 2026-01-01. End: 2026-09-30.

What is the justification for awarding this contract on a sole-source basis instead of through a competitive process?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without further documentation, it's unclear why this significant contract for physician services was not competed, potentially limiting the government's ability to secure optimal pricing and service options.

How does the pricing of this contract compare to similar physician service contracts awarded competitively?

A direct comparison is challenging due to the sole-source nature of this award. However, a review of competitively procured contracts for similar physician services within the federal prison system or other agencies could reveal significant price discrepancies, indicating potential overpayment in this instance.

What measures are in place to ensure the effectiveness and quality of physician services provided under this contract?

While the contract is firm fixed-price, ensuring effectiveness and quality relies heavily on the Bureau of Prisons' contract management and oversight. Performance metrics, regular reviews, and patient feedback mechanisms are crucial to monitor service delivery and address any deficiencies promptly.

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: $399,721

Exercised Options: $399,721

Current Obligation: $399,721

Actual Outlays: $208,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline