DOJ's $650K contract for USP Atwater medical services awarded to Seven Corners Inc. without competition

Contract Overview

Contract Amount: $649,743 ($649.7K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2026-04-08

Contract Duration: 219 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUTSIDE MEDICAL SERVICES FOR USP ATWATER FOR FY25, SEPT

Place of Performance

Location: ATWATER, MERCED County, CALIFORNIA, 95301

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $649,743.44 to SEVEN CORNERS INC for work described as: OUTSIDE MEDICAL SERVICES FOR USP ATWATER FOR FY25, SEPT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 219 days suggests a short-term need for these services. 3. The 'NOT COMPETED' status raises questions about potential cost savings and market exploration. 4. This purchase order falls under General Medical and Surgical Hospitals (NAICS 622110). 5. The contract is for outside medical services, implying a gap in on-site capabilities. 6. Awarded to a single vendor, Seven Corners Inc., without a competitive bidding process.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive data. Without competing offers, it's difficult to assess if the $649,743.44 price represents fair market value. The government may have paid a premium by not exploring the market. However, the firm-fixed-price structure provides cost certainty for the specified period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' procedure, indicating a sole-source or limited competition scenario. The specific justification for not competing is not provided in the data. This approach bypasses the standard competitive process, potentially limiting price discovery and vendor options.

Taxpayer Impact: Awarding contracts without competition can lead to higher prices for taxpayers as the government may not benefit from the cost efficiencies driven by market forces and multiple bids.

Public Impact

Inmates at USP Atwater will receive necessary outside medical services, ensuring continuity of care. The Bureau of Prisons benefits by fulfilling its obligation to provide healthcare to the inmate population. The contract supports the operational needs of the Federal Prison System in California. This contract does not appear to have direct workforce implications beyond the service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing for taxpayers.
Absence of competitive bidding limits the government's ability to explore innovative solutions from a wider vendor pool.
The sole-source nature raises concerns about the thoroughness of market research conducted prior to award.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract addresses a critical need for inmate healthcare services.
Awarding to a single vendor can streamline administrative processes for urgent needs.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on medical services for correctional facilities. The market for correctional healthcare is substantial, with government agencies often contracting out specialized services. Benchmarking against similar contracts is difficult without knowing the specific medical needs and local market rates, but the non-competitive award warrants scrutiny.

Small Business Impact

The data indicates that this contract was not competed and does not appear to have a small business set-aside. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this specific award. The focus was likely on fulfilling the service requirement rather than small business utilization.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services within the agreed scope. Transparency is limited due to the non-competitive nature of the award, with further details on justification and oversight residing within agency records.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Contracts
Inmate Healthcare Services
Outside Medical Services Contracts

Risk Flags

Non-competitive award
Lack of detailed justification for sole-source
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $649,743.44 to SEVEN CORNERS INC. OUTSIDE MEDICAL SERVICES FOR USP ATWATER FOR FY25, SEPT

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 $649,743.44.

What is the period of performance?

Start: 2025-09-01. End: 2026-04-08.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. However, the specific justification for this approach is not detailed. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without further information from the Department of Justice or the Bureau of Prisons, the exact rationale remains unclear. This lack of transparency can hinder a full assessment of the award's necessity and potential cost implications for taxpayers.

How does the pricing of this contract compare to similar outside medical service contracts for federal correctional facilities?

Direct comparison of pricing is difficult without access to detailed service scopes and regional market data for similar contracts. The total award amount is $649,743.44 for a period of 219 days. To benchmark effectively, one would need to analyze contracts for comparable medical services (e.g., specialist consultations, diagnostic procedures) provided to other Bureau of Prisons facilities or similar correctional institutions. Factors such as the complexity of services, geographic location, and the specific medical needs of the inmate population at USP Atwater would influence pricing. The non-competitive nature of this award makes it harder to ascertain if the price reflects optimal value.

What are the potential risks associated with awarding a medical services contract without competition?

Awarding a contract without competition carries several potential risks. Primarily, it can lead to higher costs for the government, as the absence of multiple bids removes the downward pressure on pricing that competition provides. There's also a risk of reduced quality or innovation, as contractors may have less incentive to offer superior services or novel solutions when they are the only option. Furthermore, it can create a perception of impropriety or favoritism, even if the award is justified, potentially undermining public trust. Finally, it limits the government's ability to identify and engage with a broader range of capable vendors for future needs.

What is the track record of Seven Corners Inc. in providing services to the federal government, particularly within correctional healthcare?

Information regarding Seven Corners Inc.'s specific track record in providing outside medical services to federal correctional facilities is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on federal contracts, including client satisfaction, adherence to contract terms, and any history of disputes or performance issues. Their experience with the unique demands of correctional healthcare, such as security protocols and specific inmate health needs, would also be a critical factor. Further investigation into federal procurement databases and agency performance records would be necessary to fully evaluate their suitability and past performance.

What historical spending patterns exist for outside medical services at USP Atwater or similar facilities?

The provided data focuses on a single contract for FY25. To understand historical spending patterns for outside medical services at USP Atwater or similar facilities, one would need to analyze procurement data over multiple fiscal years. This would involve identifying all contracts awarded for these services, their values, durations, and the contractors involved. Examining trends in spending, the frequency of non-competitive awards, and the average cost per service or per inmate could reveal patterns. Such an analysis would help determine if current spending is consistent with past expenditures or if there are significant deviations that warrant further investigation.

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

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: $649,743

Exercised Options: $649,743

Current Obligation: $649,743

Actual Outlays: $111,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline