DOJ's Bureau of Prisons awards $297,665 for out-of-network medical services to Wellpath LLC

Contract Overview

Contract Amount: $297,665 ($297.7K)

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: $11.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 WELLPATH - OUT OF NETWORK MEDICAL SERVICES ST MARYS MEDICAL FEBRUARY

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $297,665.37 to WELLPATH LLC for work described as: FY26 WELLPATH - OUT OF NETWORK MEDICAL SERVICES ST MARYS MEDICAL FEBRUARY Key points: 1. Contract awarded to Wellpath LLC for specialized medical services. 2. Spending is for out-of-network care, potentially indicating limited local options. 3. The contract value is relatively small for federal healthcare spending. 4. Risk of higher costs due to out-of-network status and limited competition.

Value Assessment

Rating: fair

The $297,665 award for a one-month service period appears high for out-of-network care. Benchmarking is difficult without specific service details, but the cost per day is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting limited or no other providers were considered. This lack of competition likely resulted in a higher price than a competitive process would yield.

Taxpayer Impact: Taxpayers may be paying a premium for services due to the non-competitive award and out-of-network status.

Public Impact

Ensures access to medical care for federal inmates when local facilities are unavailable. Potential for increased costs impacting the Bureau of Prisons' budget. Highlights the challenges of providing specialized healthcare within correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Out-of-network services
Potential for price gouging

Positive Signals

Ensures necessary medical care is provided
Firm fixed price contract limits cost overruns

Sector Analysis

This contract falls under the Healthcare sector, specifically medical services for correctional facilities. Federal spending in this area is significant, with a focus on providing comprehensive care to inmates.

Small Business Impact

There is no indication that small businesses were involved in this contract award.

Oversight & Accountability

The Bureau of Prisons is responsible for overseeing this contract to ensure the quality and necessity of the out-of-network medical services provided.

Related Government Programs

General Medical and Surgical Hospitals
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in service delivery
Dependence on a single provider for critical care

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $297,665.37 to WELLPATH LLC. FY26 WELLPATH - OUT OF NETWORK MEDICAL SERVICES ST MARYS MEDICAL FEBRUARY

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 $297,665.37.

What is the period of performance?

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

What is the justification for using out-of-network services instead of developing in-house or local competitive contracts?

The justification likely stems from a lack of available in-house specialists or local network providers capable of meeting the specific medical needs of the inmate population at St. Marys Medical. This situation often arises in remote locations or for highly specialized care, necessitating the use of out-of-network providers to ensure patient well-being, albeit at a potentially higher cost.

How does the pricing compare to similar out-of-network medical service contracts within the federal prison system?

Direct comparison is challenging without detailed service breakdowns and location-specific cost data. However, the daily cost implied by this contract appears high. A thorough review would involve analyzing the specific procedures and duration of care against established benchmarks for out-of-network medical services in similar correctional environments to identify potential overpricing.

What measures are in place to ensure the effectiveness and necessity of these out-of-network services?

Oversight by the Bureau of Prisons is crucial. This includes verifying the medical necessity of the services rendered, reviewing patient outcomes, and ensuring that the provider adheres to agreed-upon treatment plans and quality standards. Regular reporting from the provider and potential site visits would be part of ensuring effectiveness and accountability.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $297,665

Exercised Options: $297,665

Current Obligation: $297,665

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline