DOJ awards $1.2M sole-source contract for inmate medical services to NaphCare LLC

Contract Overview

Contract Amount: $1,216,539 ($1.2M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-01-31

Contract Duration: 30 days

Daily Burn Rate: $40.6K/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 JANUARY 1, 2026 - JANUARY 31, 2026

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $1.2 million to NAPHCARE LLC for work described as: NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES JANUARY 1, 2026 - JANUARY 31, 2026 Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. Short contract duration of 30 days suggests a potential gap-filling or interim solution. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. NaphCare LLC is the sole contractor, indicating a single point of failure. 5. Services are for US Marshals inmates, a specific and critical population. 6. The contract is for comprehensive medical services, a high-demand area.

Value Assessment

Rating: fair

The contract value of $1.2M for a 30-day period appears high for a single facility's medical services, averaging over $40,000 per day. Benchmarking against similar short-term contracts for inmate healthcare is difficult due to the limited data. The fixed-price nature provides cost certainty, but the overall value proposition requires further scrutiny given the high daily rate and sole-source award.

Cost Per Unit: Approximately $40,551 per day (based on total award and duration).

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 when urgency precludes full and open competition. The lack of competition means that pricing and service levels were not tested against the market, potentially leading to less favorable terms for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no market pressure to drive down costs.

Public Impact

US Marshals inmates will receive comprehensive medical services. The primary beneficiaries are the incarcerated individuals requiring medical attention. Services will be delivered in Alabama, impacting the local inmate population. The contract supports essential healthcare infrastructure within the correctional system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about potential lack of competition and higher costs.
Short contract duration may indicate a reactive procurement rather than strategic planning.
High daily cost warrants further investigation into service scope and necessity.

Positive Signals

Contract ensures continuity of essential medical services for a vulnerable population.
Fixed-price contract provides budget predictability for the specified period.
NaphCare LLC's specialization in correctional healthcare may ensure adequate service delivery.

Sector Analysis

The correctional healthcare sector is a specialized niche within the broader healthcare industry. It involves providing medical and mental health services to incarcerated individuals. This contract fits within the government's responsibility to provide healthcare to federal inmates. The market for correctional healthcare is often characterized by long-term contracts and a limited number of specialized providers, which can influence competition dynamics.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of correctional healthcare and the sole-source award, it is unlikely that small businesses were significantly involved in this specific procurement. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses, though the short duration and specific nature of the service may limit such possibilities.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of Justice and the Federal Prison System. Given it is a purchase order, standard procurement regulations and contract administration processes would apply. Transparency is limited due to the sole-source nature. The Inspector General for the Department of Justice may have jurisdiction for audits or investigations if concerns arise regarding performance or financial impropriety.

Related Government Programs

Federal Bureau of Prisons Medical Services
US Marshals Service Detention Operations
Inmate Healthcare Contracts
Correctional Facility Medical Support

Risk Flags

Sole-source award
High daily cost
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.2 million to NAPHCARE LLC. NAPHCARE 60Q USMS OUTSIDE MEDICAL COMPREHENSIVE MEDICAL FOR US MARSHALL INMATES JANUARY 1, 2026 - JANUARY 31, 2026

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 $1.2 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-31.

What is NaphCare LLC's track record with federal correctional healthcare contracts?

NaphCare LLC is a significant provider of correctional healthcare services across the United States, holding numerous contracts with federal, state, and local correctional facilities. They specialize in comprehensive medical and mental health care for inmate populations. While specific details on past federal contracts are not provided in this data, their extensive experience suggests a capacity to manage such services. However, a deeper dive into their performance history, including any past disputes, contract terminations, or audit findings with federal agencies, would be necessary for a complete assessment of their track record in this specific context.

How does the daily cost of this contract compare to similar federal inmate medical service contracts?

The daily cost of this contract is approximately $40,551. Benchmarking this against similar federal inmate medical service contracts is challenging without access to a broader dataset of comparable awards. However, this daily rate appears high, especially considering the contract is for a 30-day period and awarded on a sole-source basis. Typical correctional healthcare contracts, especially those for comprehensive services, can vary widely based on inmate population size, acuity, and geographic location. A more thorough analysis would require comparing this rate to contracts for similar populations and service scopes, ideally those awarded competitively.

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

The primary risks associated with a sole-source award for critical inmate medical services include a lack of price competition, potentially leading to inflated costs for taxpayers. It also reduces the government's leverage in negotiating terms and service levels. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences operational issues, staffing shortages, or financial instability, potentially disrupting essential healthcare delivery. Without competitive pressure, there may also be less incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements.

What is the expected effectiveness of NaphCare LLC in delivering these services given the contract terms?

The expected effectiveness of NaphCare LLC in delivering these services hinges on several factors. Their specialization in correctional healthcare is a positive indicator. The contract is firm-fixed-price, which provides cost certainty but requires careful scope definition to ensure all necessary services are covered. The short duration (30 days) suggests this might be an interim solution or to cover a specific, limited need. The effectiveness will ultimately depend on NaphCare's operational capacity, staffing levels, adherence to quality standards, and the clarity of the service requirements outlined in the contract. Without performance metrics or historical data specific to this type of short-term federal award, a definitive assessment of effectiveness is premature.

What are historical spending patterns for inmate medical services by the Department of Justice or US Marshals Service?

Historical spending patterns for inmate medical services by the Department of Justice (DOJ) and the US Marshals Service (USMS) indicate a significant and consistent investment in healthcare for detainees and inmates. The USMS, in particular, is responsible for a large transient detainee population, requiring substantial resources for medical care. Spending in this area is driven by the need to comply with constitutional requirements for adequate medical treatment. While specific annual figures fluctuate based on population size, contract awards, and service providers, the overall trend shows a sustained need for comprehensive medical services within federal detention facilities, often involving multi-year contracts with specialized healthcare providers.

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: $1,219,960

Exercised Options: $1,219,960

Current Obligation: $1,216,539

Actual Outlays: $113,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline