DOJ awards $3.1M for inmate medical services to Naphcare LLC, a sole-source contract

Contract Overview

Contract Amount: $3,142,250 ($3.1M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2025-01-01

End Date: 2025-01-31

Contract Duration: 30 days

Daily Burn Rate: $104.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES JANUARY 1, 2025 - JANUARY 31, 2025

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $3.1 million to NAPHCARE LLC for work described as: NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES JANUARY 1, 2025 - JANUARY 31, 2025 Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Short contract duration of 30 days suggests an interim or emergency need. 3. High per-day cost indicates potential for overspending if not carefully managed. 4. Naphcare LLC has a history of providing correctional healthcare services. 5. The contract is for comprehensive medical services for US Marshals inmates. 6. Geographic focus is Alabama, where Naphcare operates facilities.

Value Assessment

Rating: questionable

The contract's value of $3.14 million for a single 30-day period is exceptionally high for inmate medical services. Without a competitive bidding process, it is difficult to benchmark against market rates or similar contracts. The per-day cost is approximately $104,742, which appears disproportionately high for a 30-day service period, raising concerns about value for money. This suggests a potential need for further justification of the pricing structure.

Cost Per Unit: $104,742 per day

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or in cases of urgent and compelling need. The lack of competition means that the government did not explore potential cost savings or service improvements that could have arisen from a bidding process. This limits the government's ability to ensure the most advantageous pricing and terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's negotiating power and potentially results in less efficient use of public funds.

Public Impact

US Marshals inmates in Alabama will receive comprehensive medical services. The contract ensures continuity of care for a vulnerable population. Naphcare LLC, the contractor, will provide these services. The primary beneficiaries are the inmates requiring medical attention. The contract supports healthcare jobs within the correctional system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for a short-term contract raises value-for-money concerns.
Sole-source award limits transparency and competitive pricing.
Lack of competition may lead to inflated costs for taxpayers.
Short duration could indicate an emergency or gap-filling measure, requiring scrutiny.

Positive Signals

Ensures essential medical services are provided to US Marshals inmates.
Naphcare LLC has experience in correctional healthcare.
Contract is for a defined, short period, limiting long-term financial exposure.

Sector Analysis

The healthcare services sector for correctional facilities is a specialized niche within the broader healthcare industry. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. While specific market size data for inmate healthcare contracts is not readily available, it represents a significant segment of government spending on essential services. Benchmarking this contract's value is challenging due to its sole-source nature and short duration, but the per-day cost is a key indicator for comparison.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to Naphcare LLC, a large entity, the direct impact on the small business ecosystem is likely minimal. There are no explicit provisions for small business participation noted in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal review processes and potentially the Bureau of Prisons' contracting oversight. Given it's a purchase order for a short duration, the oversight might focus on service delivery and adherence to the terms of the agreement. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Justice Medical Services Contracts
Bureau of Prisons Healthcare Contracts
US Marshals Service Inmate Support Services
Correctional Healthcare Services

Risk Flags

Sole-source award
High per-day cost
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.1 million to NAPHCARE LLC. NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES JANUARY 1, 2025 - JANUARY 31, 2025

Who is the contractor on this award?

The obligated recipient is NAPHCARE 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 $3.1 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-01-31.

What is Naphcare LLC's track record with federal contracts, particularly within the Department of Justice or Bureau of Prisons?

Naphcare LLC has a history of providing correctional healthcare services to various government entities. While specific details on all federal contracts are not provided here, their specialization in this area suggests experience. For federal contracts, particularly with the DOJ or BOP, a review of past performance, any past performance issues, and the value and duration of previous awards would be crucial for assessing their reliability and cost-effectiveness. Their ability to manage similar inmate populations and meet stringent healthcare standards in correctional settings is a key factor in evaluating their suitability for this contract.

How does the per-day cost of $104,742 compare to similar inmate medical service contracts, especially those that were competitively bid?

The per-day cost of approximately $104,742 for comprehensive medical services for US Marshals inmates is exceptionally high and warrants scrutiny. Without access to a database of comparable competitively bid contracts, a precise benchmark is difficult. However, typical per-diem costs for inmate healthcare, even for comprehensive services, are generally significantly lower. This high figure, especially for a sole-source award, suggests potential overpricing or a scope of services that is not fully transparent. Further analysis would require comparing this rate against historical DOJ/BOP contracts for similar services, adjusted for inflation and geographic cost variations, and critically examining the specific services included to justify such a premium.

What are the specific risks associated with awarding a sole-source contract for essential inmate medical services?

The primary risk of a sole-source award for essential inmate medical services is the lack of competitive pressure, which can lead to inflated prices and reduced value for taxpayer money. It limits the government's ability to explore alternative providers who might offer better services or lower costs. Furthermore, it can reduce transparency in the procurement process and potentially mask inefficiencies or inadequate performance by the sole provider, as there is no direct comparison to benchmark against. There's also a risk that the chosen provider may not be the most innovative or efficient, as they face no threat of losing the contract to a competitor.

Given the short 30-day duration, what is the likely purpose of this contract, and what are the implications for program effectiveness?

The short 30-day duration strongly suggests this contract is intended to cover an immediate, short-term need, possibly to bridge a gap between existing contracts, address an unforeseen surge in inmate population requiring medical care, or fulfill an urgent requirement that could not be met through a lengthy competitive process. The implications for program effectiveness are mixed. On one hand, it ensures immediate service continuity. On the other hand, such short-term arrangements often lack the stability and long-term planning necessary for optimal healthcare delivery within a correctional environment. It may also indicate a reactive rather than proactive approach to healthcare needs, potentially leading to less integrated or comprehensive care over time.

What is the historical spending pattern for inmate medical services by the Department of Justice or Bureau of Prisons, and how does this award fit?

Historical spending on inmate medical services by the DOJ and BOP represents a substantial portion of their operational budgets, reflecting the complex healthcare needs of incarcerated populations. These services are often provided through multi-year, competitively awarded contracts to specialized healthcare providers. This particular $3.14 million award for a single month stands out due to its high value and sole-source nature. It deviates from the typical pattern of longer-term, competed contracts. This suggests it might be an anomaly, an emergency procurement, or a placeholder until a more permanent solution can be secured through a competitive process. Understanding the context of this specific award within the broader historical spending trends is crucial for assessing its justification.

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: 2090 COLUMBIANA RD, VESTAVIA HILLS, AL, 35216

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,142,250

Exercised Options: $3,142,250

Current Obligation: $3,142,250

Actual Outlays: $2,870,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline