DOJ's $44.5M medical services contract for inmates awarded to NAPHCARE LLC without competition

Contract Overview

Contract Amount: $44,485,042 ($44.5M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $122.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROVIDE MEDICAL SERVICES FOR RESIDENTIAL REENTRY AND HOME CONFINEMENT INMATES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $44.5 million to NAPHCARE LLC for work described as: PROVIDE MEDICAL SERVICES FOR RESIDENTIAL REENTRY AND HOME CONFINEMENT INMATES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating a defined scope and cost. 2. The contract was not competed, raising questions about potential price discovery and value. 3. The duration of the contract is one year, suggesting a need for ongoing services. 4. The service area is Alabama, indicating a localized focus for inmate healthcare. 5. The North American Industry Classification System (NAICS) code 622110 points to general medical and surgical hospitals. 6. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without knowing the specific services rendered and the patient population size. However, the lack of competition inherently limits the ability to assess if the fixed price represents the best possible value. Comparing it to similar contracts for inmate medical services across different regions or states would be necessary for a more robust assessment. The absence of competitive bidding means there's no market validation of the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or non-competitive procurement. This means that only one vendor, NAPHCARE LLC, was solicited or considered for this award. Without a competitive process, it is difficult to ascertain the extent of price discovery and whether taxpayers received the most advantageous pricing.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings typically achieved through a competitive bidding process, potentially leading to higher overall expenditures for these services.

Public Impact

Inmates within the Federal Prison System in Alabama will receive medical services. The contract ensures the provision of general medical and surgical hospital services. The geographic impact is limited to the state of Alabama. The contract supports healthcare professionals and administrative staff employed by NAPHCARE LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Limited transparency in pricing due to sole-source award.
Potential for reduced service quality if contractor faces no competitive pressure.

Positive Signals

Contract provides essential medical services to a vulnerable population.
Firm-fixed-price structure offers cost predictability for the government.
Established contractor (NAPHCARE LLC) likely has experience in this specialized area.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized market. Contracts for inmate medical care are often awarded to providers with specific expertise in managing the unique health needs and security requirements of this population. The market size for correctional healthcare is substantial, driven by federal, state, and local correctional systems. This contract fits within the broader category of government health services, often characterized by long-term agreements and specific regulatory compliance.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal, as the award went to a single, presumably larger, entity. Without a competitive process, opportunities for small businesses to participate as subcontractors are not explicitly mandated or explored.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System (FPS) or Bureau of Prisons (BOP) within the Department of Justice. Accountability measures would be defined in the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Bureau of Prisons Medical Services Contracts
Department of Justice Healthcare Procurement
Inmate Health Services
Residential Reentry Center Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $44.5 million to NAPHCARE LLC. PROVIDE MEDICAL SERVICES FOR RESIDENTIAL REENTRY AND HOME CONFINEMENT INMATES

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 $44.5 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending pattern for medical services for inmates in Alabama by the Federal Prison System?

Analyzing historical spending for inmate medical services in Alabama by the Federal Prison System is crucial for context. Without specific historical data for this exact contract or region, we can infer general trends. Government contracts for inmate healthcare are often long-term and can involve significant annual expenditures due to the unique health needs of the incarcerated population. Historically, such contracts are awarded through competitive bidding processes to ensure value for money. However, sole-source awards, like this one, can deviate from historical patterns of competition. To provide a precise historical comparison, access to prior contract awards, their values, durations, and the number of bidders for similar services in Alabama would be necessary. This would allow for an assessment of whether the current $44.5 million award represents an increase, decrease, or is in line with previous investments in inmate healthcare in the region.

How does NAPHCARE LLC's performance on other federal contracts compare to the value of this award?

Assessing NAPHCARE LLC's performance on other federal contracts is key to understanding the potential value and risks associated with this $44.5 million award. A review of NAPHCARE's contract history with federal agencies, particularly the Bureau of Prisons or other correctional systems, would reveal their track record. This includes examining past contract values, the services provided, contract durations, and any performance evaluations or awards received. If NAPHCARE has a history of successful, on-time, and within-budget contract completion for similar medical services, it suggests a lower risk profile for this current contract. Conversely, any past performance issues, disputes, or contract terminations could raise concerns. Without access to specific performance data and comparisons across multiple contracts, it is difficult to definitively benchmark NAPHCARE's overall reliability and value proposition for this specific award.

What are the specific medical services included in this $44.5 million contract, and how do they align with the needs of the inmate population?

The contract specifies 'PROVIDE MEDICAL SERVICES FOR RESIDENTIAL REENTRY AND HOME CONFINEMENT INMATES' and is categorized under NAICS code 622110 (General Medical and Surgical Hospitals). This suggests a broad scope of services, likely encompassing primary care, chronic disease management, emergency medical services, mental health support, and potentially specialized treatments required by the inmate population. The needs of inmates can be complex, often including higher rates of infectious diseases, mental health conditions, and substance abuse disorders compared to the general population. A comprehensive medical services contract is essential to address these needs and ensure public health and safety. The $44.5 million value over one year indicates a significant level of service provision. A detailed breakdown of the service catalog, patient volume, and specific health metrics targeted would be necessary to fully assess the alignment between the services procured and the actual health requirements of the inmates served.

What is the risk assessment associated with a sole-source award for essential inmate medical services?

A sole-source award for essential inmate medical services carries inherent risks. The primary risk is the potential for inflated costs, as the absence of competition means NAPHCARE LLC was not incentivized by market pressures to offer the lowest possible price. This could lead to taxpayers bearing a higher cost than if the contract had been competed. Another risk is reduced accountability; without competitive alternatives, the government may have less leverage to enforce strict performance standards or service level agreements. Furthermore, a sole-source award can limit innovation, as the contractor may not feel compelled to introduce cost-saving or efficiency-improving measures. While NAPHCARE LLC may have existing expertise, the lack of competition prevents a thorough assessment of whether they are truly the best value provider. This approach bypasses the standard due diligence of exploring multiple qualified vendors.

Are there any alternative providers or mechanisms that could have been considered for these inmate medical services?

Given that this contract was awarded on a sole-source basis ('NOT COMPETED'), it implies that alternative providers were not formally solicited or considered through a competitive process. However, for essential services like inmate medical care, the government typically has mechanisms to ensure competition where feasible. These could include indefinite-delivery/indefinite-quantity (IDIQ) contracts with multiple awardees, task orders under existing government-wide acquisition contracts (GWACs), or open solicitations for specific geographic regions or service types. The justification for a sole-source award would need to be robust, perhaps citing unique capabilities of NAPHCARE LLC or urgent needs that precluded a competitive process. Without this justification, it raises questions about whether alternative providers, potentially offering better value or specialized services, were overlooked. Exploring these alternatives is standard practice to ensure fair and competitive procurement.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2090 COLUMBIANA RD, SUITE 4000, BIRMINGHAM, 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: $44,485,042

Exercised Options: $44,485,042

Current Obligation: $44,485,042

Actual Outlays: $44,573,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BRRC21D00000101

IDV Type: IDC

Timeline