DOJ's $49.1M contract for inmate medical services awarded to NAPHCARE LLC without competition

Contract Overview

Contract Amount: $49,107,881 ($49.1M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $134.9K/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 $49.1 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 sole-source basis, raising questions about potential cost savings through competition. 2. The contract covers essential medical services for federal inmates, a critical but often overlooked area of government spending. 3. Performance period of one year suggests a need for ongoing services, potentially indicating a recurring requirement. 4. The firm-fixed-price structure aims to control costs, but the lack of competition limits benchmarking opportunities. 5. Awarded to NAPHCARE LLC, whose track record with similar services warrants further investigation. 6. The absence of small business set-asides or subcontracting plans may limit opportunities for smaller providers in this sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific context of providing medical services within correctional facilities. Without competitive bids, it's difficult to assess if NAPHCARE LLC's pricing is optimal or if alternative providers could offer similar services at a lower cost. The contract's value of approximately $49.1 million for one year indicates a significant investment in inmate healthcare, a service area where costs can be inherently high due to specialized needs and security requirements. Further analysis would require comparing per-patient costs to similar correctional healthcare contracts, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of meeting the government's needs, or in urgent situations. The lack of competition means that the Department of Justice did not benefit from the price discovery and potential cost reductions that typically arise from a competitive bidding process. This raises concerns about whether the government secured the best possible value for the taxpayer.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the benefits of competitive pricing. Without a competitive process, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

Inmates within the Federal Prison System and under home confinement will receive essential medical services. The contract ensures continuity of care for a vulnerable population, contributing to public health and safety within correctional facilities. Services are delivered across facilities managed by the Bureau of Prisons, with a specific focus on locations in 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 result in higher costs for taxpayers.
Sole-source award limits transparency in pricing and service delivery.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

Firm-fixed-price contract structure helps to control costs.
Ensures essential medical services are provided to a critical population.
Awarded to a single, presumably experienced, provider for continuity of care.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized market. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. The market for correctional healthcare is often characterized by long-term contracts and a limited number of specialized providers capable of meeting the unique security and operational demands. Benchmarking this contract's value is difficult without access to comparable sole-source or competitively bid contracts for similar inmate populations and service scopes within the federal system.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, NAPHCARE LLC. The absence of small business participation goals could mean missed opportunities for smaller, specialized healthcare providers to contribute to the delivery of these services and potentially offer more cost-effective solutions in specific areas.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. Accountability measures would be dictated by the terms of the firm-fixed-price contract, including performance standards and reporting requirements. 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 Healthcare Contracts
Department of Justice Medical Services
Inmate Health Services
Correctional Facility Medical Support

Risk Flags

Sole-source award
Lack of competition
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $49.1 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 $49.1 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is NAPHCARE LLC's track record in providing medical services to correctional facilities?

NAPHCARE LLC is a known provider of correctional healthcare services, operating in numerous facilities across the United States. Their experience includes managing comprehensive medical, mental health, and dental care for inmate populations. While they have a significant presence in this niche market, the specific performance metrics and patient outcomes for their contracts with the Federal Bureau of Prisons (BOP) or other agencies are not readily available in the public domain. A deeper dive into their contract history, including any past performance evaluations, disputes, or contract terminations, would be necessary to fully assess their reliability and effectiveness in fulfilling the requirements of this $49.1 million contract.

How does the per-inmate cost of this contract compare to industry benchmarks for correctional healthcare?

Determining the precise per-inmate cost for this contract is challenging without knowing the exact number of inmates served and the specific services included in the $49.1 million total. However, general industry benchmarks for correctional healthcare can range significantly, often from $5,000 to $15,000 per inmate per year, depending on the level of care required, facility type, and geographic location. Given the sole-source nature of this award, a direct comparison to identify potential overpricing is difficult. A thorough analysis would require obtaining detailed cost breakdowns from NAPHCARE LLC and comparing them against publicly available data for similar contracts, if such data exists and is comparable.

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

The primary risk of a sole-source award for essential inmate medical services is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may pay more than necessary for the services rendered. Another risk is reduced innovation, as a sole-source provider may have less incentive to adopt new technologies or more efficient practices. Furthermore, it can limit the government's flexibility if the sole-source provider's performance is unsatisfactory, as transitioning to a new provider can be a complex and lengthy process, especially in a critical service area like healthcare within a secure environment.

What is the historical spending pattern for inmate medical services by the Federal Bureau of Prisons?

Historical spending by the Federal Bureau of Prisons (BOP) on inmate medical services has been substantial and has generally trended upwards over the years, reflecting rising healthcare costs and the increasing needs of the inmate population. The BOP manages a large number of facilities and inmates, requiring significant investment in healthcare infrastructure and services. While specific year-over-year figures for all inmate medical contracts are not consolidated in a single public report, annual budget documents and contract award databases indicate billions of dollars allocated to healthcare annually. This $49.1 million contract represents a portion of that overall expenditure, and understanding its place within the broader historical spending context is crucial for assessing its significance and potential for cost efficiencies.

What are the potential implications of this contract on the broader correctional healthcare market?

This sole-source award to NAPHCARE LLC for a significant sum suggests that the Federal Bureau of Prisons (BOP) relies on established providers for critical services. For the broader correctional healthcare market, it indicates the continued importance of experienced companies capable of managing complex operations within secure facilities. However, the lack of competition in this instance might discourage new entrants or smaller, innovative firms from bidding on future federal contracts if they perceive the market as dominated by incumbents or awarded through non-competitive means. It also highlights the ongoing need for the government to explore competitive strategies where feasible to foster a more dynamic and cost-effective market.

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

Solicitation ID: 15BRRC22R00000028

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: $49,107,881

Exercised Options: $49,107,881

Current Obligation: $49,107,881

Actual Outlays: $49,095,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BRRC23D00000004

IDV Type: IDC

Timeline