DOJ's $9.4M medical services contract for inmates awarded to NAPHCARE LLC, a sole-source procurement

Contract Overview

Contract Amount: $9,420,037 ($9.4M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2023-11-30

Contract Duration: 60 days

Daily Burn Rate: $157.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $9.4 million to NAPHCARE LLC for work described as: PROVIDE MEDICAL SERVICES FOR RESIDENTIAL REENTRY AND HOME CONFINEMENT INMATES THRU CR. Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. Short contract duration (2 months) suggests a potential gap-filling or short-term need. 3. The fixed-price contract type shifts performance risk to the contractor. 4. NAPHCARE LLC is the sole awardee, indicating a lack of broader market engagement for this specific requirement. 5. The contract falls under general medical and surgical hospitals, a common service category for correctional facilities.

Value Assessment

Rating: fair

The contract value of $9.4 million for a two-month period appears high for providing medical services to inmates. Without comparable contract data for similar services and durations, it is difficult to definitively benchmark value. However, the absence of competition suggests that taxpayers may not have received the most cost-effective pricing. The fixed-price nature of the contract provides cost certainty but does not inherently guarantee value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in emergency situations. The lack of competition means there was no opportunity for multiple companies to bid, which could have driven down prices through a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price is offered.

Public Impact

Inmates within the Federal Prison System in Alabama will receive medical services. The services provided are general medical and surgical care, crucial for inmate health and well-being. The geographic impact is limited to Alabama, specifically serving residential reentry and home confinement inmates. The contract supports healthcare professionals employed by NAPHCARE LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises questions about the justification for not seeking competitive bids.
Short duration could indicate a reactive procurement rather than strategic planning.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Ensures continuity of essential medical services for a vulnerable population.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized market. Contracts for inmate healthcare are often awarded to a limited number of providers with the necessary expertise and security clearances. The NAICS code 622110 (General Medical and Surgical Hospitals) indicates the broad category, but the specific application within a federal prison system is niche. Benchmarking this contract's value is challenging without direct comparisons to similar inmate healthcare contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of providing medical services within a correctional environment and the sole-source award, it is unlikely that small businesses were significantly involved as prime contractors. Subcontracting opportunities for small businesses are not specified in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons. Accountability measures would be tied to the terms and conditions of the firm-fixed-price contract, including service delivery standards and performance metrics. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Inmate Health Services

Risk Flags

Sole-source award lacks competitive justification.
High cost per month for a short-duration contract.
Limited transparency due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.4 million to NAPHCARE LLC. PROVIDE MEDICAL SERVICES FOR RESIDENTIAL REENTRY AND HOME CONFINEMENT INMATES THRU CR.

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 $9.4 million.

What is the period of performance?

Start: 2023-10-01. End: 2023-11-30.

What is NAPHCARE LLC's track record in providing medical services to federal inmates?

NAPHCARE LLC is a known provider of correctional healthcare services. They have a history of contracting with various federal, state, and local correctional facilities across the United States. Their experience typically includes managing comprehensive healthcare programs within secure environments, encompassing medical, dental, and mental health services. While this specific contract is short-term, NAPHCARE's broader portfolio suggests they possess the operational capacity and expertise required for such services. Further analysis would involve reviewing past performance evaluations and any documented issues or successes from their previous government contracts.

How does the $9.4 million cost for two months of services compare to similar contracts?

Benchmarking this $9.4 million contract for two months of medical services is challenging without access to a database of comparable sole-source or competed contracts for inmate healthcare in similar facilities. However, on a monthly basis, this contract represents approximately $4.7 million. This figure needs to be evaluated against the inmate population size, the scope of services (medical, surgical, etc.), and the specific security requirements of the facilities served. Given the lack of competition, it is plausible that this rate is higher than what might be achieved through a competitive process. A detailed comparison would require identifying contracts with similar patient volumes and service levels.

What are the primary risks associated with this sole-source award?

The primary risk associated with this sole-source award is the potential for inflated costs due to the absence of competitive bidding. Without competing offers, the government may not be securing the most favorable pricing. Another risk is the potential for reduced service quality if the contractor faces less pressure to perform at a high level. Furthermore, the justification for a sole-source award needs to be robust; if it was not truly necessary, it represents a missed opportunity to engage a wider market and potentially find more innovative or cost-effective solutions. The short duration also introduces a risk of service disruption if a follow-on contract is not secured in a timely manner.

How effective is NAPHCARE LLC likely to be in delivering these medical services?

NAPHCARE LLC's effectiveness in delivering these medical services is likely to be influenced by their established experience in correctional healthcare. Companies specializing in this area typically have protocols and staff trained to handle the unique challenges of providing care within a secure environment. Effectiveness will depend on their ability to meet the specific requirements outlined in the contract, including timely access to care, quality of medical treatment, and adherence to security protocols. Past performance reviews and client feedback would provide a more definitive assessment of their effectiveness. The short-term nature of this specific contract might indicate it's a stop-gap measure, potentially limiting the scope for long-term program effectiveness.

What are the historical spending patterns for medical services within the Federal Prison System?

Historical spending patterns for medical services within the Federal Prison System (FPS) have generally shown a significant and often increasing trend, driven by an aging inmate population, rising healthcare costs, and evolving medical needs. The Bureau of Prisons (BOP) consistently allocates substantial portions of its budget to healthcare. These expenditures cover a wide range of services, including primary care, specialty care, mental health, and pharmaceutical needs. Contracts can be awarded through competitive processes or, as in this case, sole-source. Analyzing historical data reveals fluctuations based on contract awards, policy changes, and the overall size of the inmate population. The trend indicates a sustained and substantial investment in inmate healthcare.

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, 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: $9,420,037

Exercised Options: $9,420,037

Current Obligation: $9,420,037

Actual Outlays: $9,417,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15BRRC23D00000049

IDV Type: IDC

Timeline