DOJ awards $757K contract for inmate medical services to Naphcare LLC, bypassing competition

Contract Overview

Contract Amount: $757,762 ($757.8K)

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: $6.6K/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 NOVEMBER 1, 2025 - NOVEMBER 30, 2025

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $757,761.71 to NAPHCARE LLC for work described as: NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES NOVEMBER 1, 2025 - NOVEMBER 30, 2025 Key points: 1. Contract value of $757,761.71 for 115 days of comprehensive medical services. 2. Naphcare LLC, the sole provider, was awarded the contract without competition. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Services fall under the General Medical and Surgical Hospitals sector.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without competitive benchmarks. Given the lack of competition, there's a risk that the price may not reflect the best value.

Cost Per Unit: $13,133.82 per day

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential medical services.

Public Impact

Ensures continuity of care for US Marshals Service inmates. Potential for higher costs due to non-competitive award. Impacts the healthcare sector's service provision to federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Ensures essential medical services
Firm fixed price contract

Sector Analysis

This contract falls within the Healthcare sector, specifically for general medical and surgical hospital services. Benchmarks for similar inmate medical services are not readily available due to the specialized nature and often non-competitive awards.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to perform this specialized service.

Oversight & Accountability

The Department of Justice, through the Federal Prison System/Bureau of Prisons, is responsible for this contract. Oversight should focus on ensuring service quality and cost-effectiveness despite the sole-source nature.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $757,761.71 to NAPHCARE LLC. NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES NOVEMBER 1, 2025 - NOVEMBER 30, 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 $757,761.71.

What is the period of performance?

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

What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without a competitive process, it is crucial for the agency to have conducted thorough market research and price analysis to ensure the awarded price is fair and reasonable. Documentation of this process is key to accountability.

What are the risks associated with providing comprehensive medical services to inmates via a sole-source contract?

The primary risk is the potential for inflated costs due to the absence of competitive pressure. Additionally, without clear performance metrics and competitive alternatives, there's a risk of service quality degradation over time. Ensuring robust contract management and oversight is critical to mitigate these risks.

How does the firm fixed price structure impact the effectiveness and cost of these inmate medical services?

A firm fixed price contract shifts most of the risk to the contractor, providing cost certainty for the government. This can be effective in controlling costs if the initial price is well-negotiated. However, it may disincentivize the contractor from seeking cost efficiencies if the price is too high, or lead to quality compromises if the price is too low.

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: $757,762

Exercised Options: $757,762

Current Obligation: $757,762

Actual Outlays: $619,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline