DOJ awards $1M+ contract for inmate medical services to Naphcare LLC, a sole-source purchase order

Contract Overview

Contract Amount: $1,043,633 ($1.0M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2025-12-12

End Date: 2026-04-06

Contract Duration: 115 days

Daily Burn Rate: $9.1K/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 OCTOBER 1, 2025 - OCTOBER 31, 2025

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $1.0 million to NAPHCARE LLC for work described as: NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES OCTOBER 1, 2025 - OCTOBER 31, 2025 Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration is approximately 4 months, suggesting a short-term need. 3. The base contract value is over $1 million for comprehensive medical services. 4. This award falls under the Direct Health and Medical Insurance Carriers NAICS code. 5. The contract is a firm-fixed-price purchase order, providing cost certainty. 6. The award was made by the Department of Justice, specifically the Federal Prison System.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and short duration. Without competitive bids, it's difficult to assess if the $1.04 million price represents optimal value for the services provided to US Marshals' inmates. The fixed-price structure offers some cost predictability, but the absence of competition raises questions about potential overpricing compared to what a more open bidding process might yield. Further analysis would require comparing the per-diem medical cost to similar facilities or historical contracts for inmate healthcare.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means there were no other bidders to compare against, and the government did not benefit from a competitive bidding process to drive down prices or encourage innovation.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential medical services due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is reduced when only one provider is considered.

Public Impact

The primary beneficiaries are US Marshals' inmates requiring comprehensive medical care. Services delivered include direct health and medical insurance carrier functions. The geographic impact is limited to facilities within Alabama, where the contract is registered. The contract supports the operational needs of the Federal Prison System within the Department of Justice.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayer dollars.
Short contract duration may indicate a stop-gap measure or a need for re-evaluation of long-term requirements.
Lack of transparency in the procurement process due to sole-source justification.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Award to an established provider (Naphcare LLC) may ensure continuity of essential services.
Contract addresses a critical need for inmate healthcare within the justice system.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on correctional facility medical care. The Direct Health and Medical Insurance Carriers NAICS code (524114) encompasses businesses primarily engaged in providing health and medical coverage and services. The market for correctional healthcare is specialized, often involving contracts with government agencies to provide comprehensive medical, dental, and mental health services to incarcerated populations. Benchmarking requires comparison with other government contracts for inmate healthcare, which can vary significantly based on facility size, inmate population health needs, and geographic location.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. As a sole-source award to Naphcare LLC, it does not appear to directly benefit the small business ecosystem through set-aside provisions. Further investigation would be needed to determine if Naphcare LLC utilizes small businesses as subcontractors for any portion of the services rendered.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System. As a purchase order, it is subject to internal agency review and audit processes. Transparency is limited due to the sole-source nature of the award. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Bureau of Prisons Medical Services Contracts
US Marshals Service Inmate Support Services
Department of Justice Healthcare Procurement
State and Local Correctional Healthcare Contracts

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Short contract duration may indicate a temporary solution or potential for future contract modifications/re-competes.
Lack of publicly available performance metrics for this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.0 million to NAPHCARE LLC. NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES OCTOBER 1, 2025 - OCTOBER 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 $1.0 million.

What is the period of performance?

Start: 2025-12-12. End: 2026-04-06.

What is Naphcare LLC's track record with federal inmate healthcare contracts?

Naphcare LLC has a history of providing correctional healthcare services to various government entities. While specific details on their federal contracts require deeper database searches, their presence in the market suggests experience in managing medical care within detention facilities. A thorough review would involve examining past performance evaluations, any contract disputes or terminations, and the scale and scope of services previously provided to federal agencies. Understanding their performance history is crucial for assessing the reliability and effectiveness of their service delivery under this new award.

How does the per-diem cost of this contract compare to similar federal inmate healthcare contracts?

Direct comparison of the per-diem cost is difficult without knowing the exact inmate population served and their specific health needs under this contract. However, the total award of $1,043,632.70 over approximately 115 days (October 1, 2025 - October 31, 2025, with an estimated end date of April 6, 2026, suggesting a longer period than initially stated or a misunderstanding of the dates provided) implies a daily rate. If we consider the stated duration of 115 days, the daily cost is approximately $9,075. This figure needs to be divided by the number of inmates served to get a per-diem inmate cost. Without the inmate count, benchmarking is impossible. Generally, per-diem costs for inmate healthcare can range significantly, from under $100 to several hundred dollars per inmate per day, depending on the level of care required and the contract structure.

What are the primary risks associated with a sole-source award for essential inmate medical services?

The primary risks associated with a sole-source award for essential inmate medical services include a lack of competitive pricing, potentially leading to higher costs for taxpayers. Without competition, there is less incentive for the contractor to optimize efficiency or offer innovative solutions. Furthermore, the government has reduced leverage in negotiations. There's also a risk if the sole-source provider experiences operational issues, as there are no immediate alternative providers readily available. This can lead to service disruptions and potential negative impacts on inmate health and safety, as well as facility operations.

What is the expected effectiveness of Naphcare LLC in delivering comprehensive medical services to US Marshals' inmates?

The expected effectiveness hinges on Naphcare LLC's past performance, resources, and the specific terms of the contract. As a company specializing in correctional healthcare, they are presumed to have the necessary expertise and infrastructure. However, the effectiveness will be measured by their ability to provide timely, appropriate, and comprehensive medical, dental, and mental health services, manage chronic conditions, handle emergencies, and comply with all contractual obligations and healthcare standards within the correctional environment. The sole-source nature means effectiveness is less about competitive advantage and more about meeting the defined service level agreements.

How does this contract's value compare to historical spending on inmate medical services by the Department of Justice?

Comparing this $1.04 million contract to historical spending requires access to detailed historical data for similar services provided by the Department of Justice or the Federal Bureau of Prisons. Without specific historical figures for comparable inmate populations and service scopes, a direct comparison is difficult. However, the value should be assessed in the context of the contract duration (approximately 4 months) and the scope of services. If similar services were previously procured through competitive bids, this sole-source award's value might be higher than what could have been achieved through competition. A trend analysis of DOJ's spending on inmate healthcare over several years would provide better context.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers

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: $1,043,633

Exercised Options: $1,043,633

Current Obligation: $1,043,633

Actual Outlays: $1,033,829

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline