DOJ Awards $6.8M for Nationwide MAT Services to Wellpath LLC

Contract Overview

Contract Amount: $6,839,435 ($6.8M)

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $18.8K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICATION ASSISTED TREATMENT SERVICES NATIONWIDE

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $6.8 million to WELLPATH LLC for work described as: MEDICATION ASSISTED TREATMENT SERVICES NATIONWIDE Key points: 1. Contract awarded to Wellpath LLC for Medication Assisted Treatment (MAT) services. 2. The contract is a delivery order under a previously competed vehicle. 3. Services are for the Federal Prison System / Bureau of Prisons. 4. The contract value is $6,839,435 with a duration of 364 days. 5. The NAICS code 621420 indicates Outpatient Mental Health and Substance Abuse Centers.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, suggesting a clear scope and predictable costs. The award amount of $6.8M for nationwide services over one year appears reasonable for specialized healthcare provision.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely awarded to a limited number of sources. This method can be efficient but may not always yield the lowest price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used to provide essential healthcare services to inmates, addressing substance abuse and promoting rehabilitation, which can have long-term societal benefits.

Public Impact

Provides critical substance abuse treatment to federal inmates nationwide. Supports rehabilitation and reintegration efforts within the correctional system. Addresses a significant public health issue within a vulnerable population. Ensures continuity of care for individuals with addiction disorders.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may impact price discovery.
Nationwide scope requires robust logistical and quality control oversight.

Positive Signals

Addresses a critical need for MAT services.
Firm-fixed-price contract provides cost certainty.
Supports rehabilitation and public health goals.

Sector Analysis

This contract falls within the healthcare services sector, specifically outpatient mental health and substance abuse treatment. Spending benchmarks for such services can vary widely based on patient volume, service intensity, and geographic location.

Small Business Impact

The data does not indicate if small businesses were involved in this specific delivery order, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the quality and effectiveness of MAT services delivered nationwide by Wellpath LLC. The Bureau of Prisons will need robust performance monitoring mechanisms to hold the contractor accountable.

Related Government Programs

Outpatient Mental Health and Substance Abuse Centers
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for cost overruns if service demands exceed estimates.
Risk of inconsistent service quality across diverse geographic locations.
Dependence on a single contractor for a critical health service.
Challenges in monitoring and enforcing performance standards nationwide.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $6.8 million to WELLPATH LLC. MEDICATION ASSISTED TREATMENT SERVICES NATIONWIDE

Who is the contractor on this award?

The obligated recipient is WELLPATH 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 $6.8 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical cost per patient for similar MAT services within the Bureau of Prisons or other federal agencies?

Determining the historical cost per patient for similar MAT services is essential for evaluating the value of this contract. Benchmarking against past contracts or industry standards for correctional healthcare can reveal if the $6.8M award represents an efficient use of funds or if there is potential for cost savings through better negotiation or service delivery models.

What are the specific performance metrics and quality assurance measures in place to ensure effective MAT delivery nationwide?

Effective delivery of MAT services hinges on stringent performance metrics and quality assurance. The Bureau of Prisons must have clear standards for treatment efficacy, patient outcomes, and provider qualifications. Robust monitoring and regular audits are necessary to ensure Wellpath LLC meets these standards consistently across all facilities.

How does the limited competition under SAP affect the overall cost-effectiveness and potential for innovation in this contract?

While SAP can expedite the acquisition process, limited competition may restrict the government's ability to secure the most competitive pricing. It also potentially limits the exposure to innovative solutions that a broader competition might attract. Evaluating whether this approach was justified by urgency or specific vendor capabilities is key to assessing cost-effectiveness.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15BCTS24R00000001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Boosted Commerce Inc.

Address: 3340 PERIMETER HILL DR, NASHVILLE, TN, 37211

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,839,435

Exercised Options: $6,839,435

Current Obligation: $6,839,435

Actual Outlays: $6,840,777

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BCTS24D00000010

IDV Type: IDC

Timeline