DOJ awards $710K for medical services to Wellpath LLC, with a short performance period

Contract Overview

Contract Amount: $710,516 ($710.5K)

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-02-28

Contract Duration: 27 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $710,516.09 to WELLPATH LLC for work described as: FY26- COMP. MEDICAL - FEBRUARY DELIVERY/TASK ORDER Key points: 1. The contract value of $710,516.09 appears reasonable for a one-month delivery order of medical services. 2. Competition dynamics for this specific delivery order are not detailed, but the contract was awarded under full and open competition. 3. The short duration (27 days) suggests a focused need, potentially mitigating long-term performance risks. 4. Performance is contextually situated within the Federal Prison System, indicating a critical need for reliable healthcare delivery. 5. The healthcare sector, particularly for correctional facilities, demands specialized medical providers with proven track records.

Value Assessment

Rating: good

The contract value of $710,516.09 for a single month of medical services is within a reasonable range for specialized healthcare provision in a correctional setting. Benchmarking against similar delivery orders for medical services within federal prisons suggests this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, indicating good value for money given the defined scope of services.

Cost Per Unit: N/A

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. While the specific number of bidders for this delivery order is not provided, the competitive nature of the award process suggests that the government sought the best value. This approach generally leads to more favorable pricing and service offerings compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and higher quality services, as vendors are incentivized to offer their best terms to win the contract.

Public Impact

Inmates within the Federal Prison System in Tennessee will benefit from the provision of general medical and surgical hospital services. The services delivered are critical for maintaining the health and well-being of the incarcerated population. The geographic impact is localized to the facility or facilities served by this delivery order within Tennessee. This contract supports the healthcare workforce within the correctional system, ensuring continuity of care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period could indicate a temporary need or a gap in longer-term contracting, requiring future procurement efforts.
Lack of specific details on the number of bidders for this delivery order limits a precise assessment of competitive intensity.
The nature of correctional healthcare can present unique challenges in service delivery and patient management.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract provides cost predictability for the government.
The contractor, Wellpath LLC, is likely experienced in providing medical services within correctional environments.

Sector Analysis

The healthcare services sector, particularly within the federal government, is a significant market. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. Federal spending in this area is driven by the need to provide comprehensive healthcare to specific populations, such as federal inmates. Comparable spending benchmarks would involve analyzing other contracts for medical services within correctional facilities or similar government institutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, as the primary contract was not designated for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System's contracting and medical administration departments. Accountability measures are inherent in the firm-fixed-price contract type, requiring Wellpath LLC to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Short contract duration may indicate a temporary need or potential for future contract instability.
Lack of detailed competition metrics for this specific delivery order limits assessment of price discovery.
Correctional healthcare is a high-risk, high-demand sector requiring specialized management and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $710,516.09 to WELLPATH LLC. FY26- COMP. MEDICAL - FEBRUARY 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 $710,516.09.

What is the period of performance?

Start: 2026-02-01. End: 2026-02-28.

What is Wellpath LLC's track record 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, local, and federal correctional facilities. Their track record includes managing comprehensive medical, mental health, and dental services for incarcerated populations. While specific performance data for this particular delivery order is not publicly available, the company's extensive experience suggests a capacity to meet the demands of federal prison healthcare. Analyzing past performance reviews, contract compliance records, and any reported incidents or deficiencies from previous federal contracts would provide a more detailed assessment of their track record. Their ability to secure multiple federal contracts indicates a level of trust and demonstrated capability within the correctional healthcare sector.

How does the $710,516.09 value for this one-month contract compare to similar federal medical service contracts?

The value of $710,516.09 for a single month of medical services, while substantial, needs to be contextualized by the specific scope of services and the patient population size within the Federal Prison System facility it serves. Benchmarking against similar one-month delivery orders for correctional healthcare reveals that this amount is within a plausible range, especially if it includes comprehensive medical, surgical, and potentially emergency services for a significant inmate population. Contracts for correctional healthcare can vary widely based on the number of inmates, the level of medical care required (e.g., chronic disease management, specialized treatments), and the geographic location. Without knowing the exact number of inmates and the specific service requirements, a precise comparison is difficult, but the value appears aligned with the specialized and demanding nature of this sector.

What are the primary risks associated with this contract, given its short duration and service type?

The primary risks associated with this contract stem from its short, 27-day duration and the critical nature of correctional healthcare. A key risk is the potential for service disruption if the contractor fails to meet performance standards, which could impact inmate health and facility operations. The short timeframe might also indicate a stop-gap measure, potentially leading to recurring, short-term contracts that lack long-term stability and efficiency. Furthermore, managing patient care continuity during transitions between contractors or task orders can be challenging. Ensuring adequate staffing, timely access to specialized care, and adherence to strict security protocols within the correctional environment are ongoing risks that require diligent oversight.

How effective is the 'full and open competition' approach for ensuring value in federal correctional healthcare contracts?

The 'full and open competition' approach is generally effective in ensuring value for federal correctional healthcare contracts by fostering a competitive environment. This method allows multiple qualified vendors to submit proposals, driving innovation and potentially lowering costs as companies vie for the contract. It provides the government with a wider range of options and increases the likelihood of selecting a contractor that offers the best combination of price, quality, and service. However, the effectiveness can be moderated by the complexity of correctional healthcare requirements, which may limit the number of truly capable bidders. Ensuring that the solicitation clearly defines all necessary services, performance standards, and security protocols is crucial for competition to yield optimal value.

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) show a consistent and significant investment in healthcare for the incarcerated population. The FPS budget allocates substantial funds annually to ensure inmates receive necessary medical and mental health care, in line with constitutional requirements. Spending has generally trended upwards over the years, influenced by factors such as an aging inmate population, the increasing prevalence of chronic diseases, and the rising cost of healthcare services nationwide. The FPS utilizes various contracting mechanisms, including indefinite-delivery/indefinite-quantity (IDIQ) contracts and individual delivery orders like this one, to procure a wide range of medical services. Analyzing aggregated spending data over multiple fiscal years would reveal trends in specific service categories, contractor utilization, and overall cost drivers.

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: $710,516

Exercised Options: $710,516

Current Obligation: $710,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA024D00000019

IDV Type: IDC

Timeline