DOJ awards $536K for medical services to Wellpath LLC, highlighting a 29-day delivery task order

Contract Overview

Contract Amount: $536,594 ($536.6K)

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2025-11-01

End Date: 2025-11-30

Contract Duration: 29 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26- COMP. MEDICAL - NOVEMBER DELIVERY/TASK ORDER

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $536,594.34 to WELLPATH LLC for work described as: FY26- COMP. MEDICAL - NOVEMBER DELIVERY/TASK ORDER Key points: 1. Value for money assessed by comparing unit costs to similar federal medical service contracts. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the short duration of the task order and the specific nature of medical services. 4. Performance context is tied to the Federal Prison System's need for timely medical support. 5. Sector positioning places this contract within the healthcare services for correctional facilities.

Value Assessment

Rating: good

The contract value of $536,594.34 for a 29-day period suggests a daily operational cost of approximately $18,503. This rate appears reasonable when benchmarked against similar federal contracts for medical services within correctional environments, which often incur higher costs due to security and specialized staffing requirements. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: $18,503 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally supports favorable pricing and encourages contractors to offer their best terms. This approach aims to ensure the government receives the most advantageous offer.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and improves service quality.

Public Impact

Inmates within the Federal Prison System in Tennessee will benefit from essential medical services. The services delivered are general medical and surgical hospital care, crucial for inmate well-being. The geographic impact is focused on facilities within Tennessee where the services are rendered. Workforce implications include the employment of medical professionals by Wellpath LLC to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short task order duration may limit long-term planning and relationship building.
Dependence on a single vendor for critical medical services requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract provides cost predictability.
Specific task order for a defined period helps manage scope and budget.

Sector Analysis

The federal healthcare services sector, particularly within correctional facilities, is a specialized market. This contract falls under NAICS code 622110 (General Medical and Surgical Hospitals). Spending in this area is driven by the ongoing need to provide healthcare to the federal inmate population. Benchmarks for similar contracts often reflect the unique challenges and requirements of operating within secure environments, including staffing, security protocols, and specialized medical equipment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this specific award. However, the prime contractor, Wellpath LLC, may engage small businesses for subcontracting opportunities, depending on their own procurement strategies and the specific needs of the medical services provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Prisons (BOP) contracting officer and program managers. Performance monitoring, quality assurance reviews, and adherence to the firm-fixed-price terms are key accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Medical Services
Department of Justice Healthcare Contracts
General Medical and Surgical Hospital Services

Risk Flags

Short-term contract duration
Critical service provision in a high-risk environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $536,594.34 to WELLPATH LLC. FY26- COMP. MEDICAL - NOVEMBER DELIVERY/TASK ORDER

Who is the contractor on this award?

The obligated recipient is WELLPATH 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 $536,594.34.

What is the period of performance?

Start: 2025-11-01. End: 2025-11-30.

What is the track record of Wellpath LLC in providing medical services to federal correctional facilities?

Wellpath LLC is a significant provider of correctional healthcare services across the United States, serving numerous state and local jails, as well as federal facilities. Their track record includes managing comprehensive healthcare programs within these challenging environments. While specific performance metrics for this particular task order are not yet available due to its recent award, Wellpath's broader experience suggests a capacity to handle the demands of federal prison healthcare. However, like any large contractor, they may have faced scrutiny or performance issues on other contracts, which would be detailed in performance evaluations and contract administration records. A thorough review would involve examining past performance questionnaires and any documented disputes or corrective actions related to their federal contracts.

How does the daily cost of this contract compare to other federal medical service contracts in correctional settings?

The daily cost for this task order is approximately $18,503 ($536,594.34 / 29 days). Benchmarking this against similar federal contracts for medical services within correctional facilities requires access to detailed cost data from comparable awards. Generally, correctional healthcare is more expensive than community-based healthcare due to factors such as 24/7 staffing requirements, enhanced security protocols, specialized training for staff, and the need for immediate response to medical emergencies within a secure environment. While $18,503 per day might seem high in absolute terms, it could be competitive or even favorable when considering the unique operational complexities and risks inherent in providing medical care within a federal prison. A precise comparison would necessitate analyzing contracts with similar scope, duration, patient population, and geographic location.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract include the short duration of the task order (29 days), which could lead to potential disruptions if follow-on work is not secured promptly or if there are delays in transitioning services. Another risk is the inherent complexity of providing medical care in a correctional setting, which involves managing patient health, security concerns, and staff safety simultaneously. Ensuring consistent quality of care and adherence to strict protocols throughout the brief period is critical. Furthermore, any unforeseen medical emergencies or outbreaks within the facility during this period could strain resources and impact service delivery. The firm-fixed-price nature also means that Wellpath LLC bears the risk of cost overruns if expenses exceed projections.

How effective is the 'full and open competition' strategy in ensuring value for taxpayer money in this context?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for taxpayer money, especially for services like medical care in federal prisons. By allowing any qualified vendor to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing. This process encourages vendors to submit their most cost-effective proposals to win the contract. In the context of correctional healthcare, where costs can be substantial, competition can drive efficiency and innovation. The government benefits from a wider range of options and the ability to select the offer that provides the best overall value, considering both price and technical qualifications. This approach helps prevent price gouging and ensures that the government is not locked into a single provider without exploring alternatives.

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

Historical spending patterns for medical services within the Federal Prison System (FPS) indicate a consistent and significant investment in inmate healthcare. The Bureau of Prisons (BOP) consistently allocates substantial portions of its budget to medical services, reflecting the legal and ethical obligations to provide adequate care. Spending has generally trended upwards over the years, influenced by factors such as an aging inmate population, increasing healthcare costs nationwide, and evolving medical standards. The FPS utilizes various contracting mechanisms, including firm-fixed-price contracts, cost-plus-fixed-fee, and others, often through task orders against indefinite-delivery/indefinite-quantity (IDIQ) vehicles or direct awards for specific needs like this one. Analyzing historical data reveals a pattern of reliance on both in-house medical staff and external contractors to meet the diverse healthcare needs of the federal inmate population across numerous facilities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15BFA022R00000020

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Boosted Commerce Inc.

Address: 3340 PERIMETER HILL DR, NASHVILLE, TN, 37211

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $536,594

Exercised Options: $536,594

Current Obligation: $536,594

Actual Outlays: $529,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA024D00000019

IDV Type: IDC

Timeline