DOJ's $23.9M contract for community healthcare delivery to adults in custody awarded to NAPHCARE LLC

Contract Overview

Contract Amount: $23,931,835 ($23.9M)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2024-06-01

End Date: 2024-09-30

Contract Duration: 121 days

Daily Burn Rate: $197.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTHCARE DELIVERY SERVICES FOR ADULTS IN CUSTODY IN THE COMMUNITY IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT.

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $23.9 million to NAPHCARE LLC for work described as: HEALTHCARE DELIVERY SERVICES FOR ADULTS IN CUSTODY IN THE COMMUNITY IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The contract duration of 121 days suggests a short-term need or a bridge to a larger procurement. 3. Focus on healthcare delivery for adults in custody highlights a critical service area within the correctional system. 4. The firm-fixed-price structure aims to control costs, but the lack of competition may limit price negotiation. 5. Geographic focus on Alabama (AL) indicates a localized service requirement. 6. The absence of small business set-aside or subcontracting requirements may limit opportunities for smaller enterprises.

Value Assessment

Rating: fair

The contract value of $23.9 million for a 121-day period is substantial, averaging approximately $197,784 per day. Without comparable sole-source contracts or detailed performance metrics, it is difficult to definitively benchmark value for money. The firm-fixed-price type suggests an attempt to control costs, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Further analysis would require understanding the scope of services and the specific patient population.

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 urgent situations. The lack of competition limits the government's ability to solicit bids from various providers, potentially impacting price discovery and the opportunity to secure the most cost-effective solution. The rationale for sole-source award needs further justification to ensure it aligns with procurement regulations and best practices.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from competitive pricing that could drive down costs. It also bypasses the opportunity to explore innovative solutions or potentially more efficient service models that might be offered by a wider range of contractors.

Public Impact

Adults in custody within the community in Alabama will receive healthcare delivery services. The primary beneficiary is the Bureau of Prisons, ensuring continuity of care for a specific inmate population. Services are geographically focused within Alabama, impacting the local healthcare provider landscape. The contract supports the operational mission of the Federal Prison System by addressing healthcare needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards require strong justification to ensure fair pricing and prevent potential abuse.
Short contract duration (121 days) raises questions about long-term planning and potential for repeated sole-source awards.
Limited transparency into the selection process due to sole-source nature.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty for the government.
Contract addresses a critical need for healthcare delivery to a vulnerable population.
Award to an established provider (NAPHCARE LLC) may ensure continuity of essential services.

Sector Analysis

The healthcare sector, particularly within correctional facilities, is a significant area of government spending. This contract falls under general medical and surgical hospitals (NAICS 622110). The market for correctional healthcare services is specialized, often involving providers with specific expertise in managing patient populations with unique needs and security considerations. Benchmarking this contract's value is challenging without more data on the scope of services and patient acuity, but the daily rate suggests a comprehensive service offering.

Small Business Impact

This contract does not appear to include any specific small business set-aside provisions, nor are there explicit indications of subcontracting requirements for small businesses. The sole-source nature of the award further limits the opportunities for small businesses to participate in this specific procurement. This could mean that the prime contractor will handle all aspects of the service delivery, potentially bypassing the small business ecosystem that could otherwise benefit from subcontracting opportunities within this federal contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice and the Bureau of Prisons. As a firm-fixed-price contract, performance monitoring is crucial to ensure that the contractor meets the requirements outlined in the Performance Work Statement. Transparency regarding the justification for the sole-source award and the performance metrics achieved would be key areas for oversight. The Inspector General's office for the DOJ may also have jurisdiction for audits and investigations if any concerns arise regarding contract execution or financial accountability.

Related Government Programs

Federal Prison System Healthcare Contracts
Community Corrections Healthcare Services
Bureau of Prisons Medical Services
Inmate Healthcare Delivery

Risk Flags

Sole-source award lacks competitive pricing pressure.
High daily cost requires justification and benchmarking.
Short contract duration may indicate a temporary solution or risk of repeated sole-sourcing.
Limited transparency due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23.9 million to NAPHCARE LLC. HEALTHCARE DELIVERY SERVICES FOR ADULTS IN CUSTODY IN THE COMMUNITY IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT.

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 $23.9 million.

What is the period of performance?

Start: 2024-06-01. End: 2024-09-30.

What is the specific scope of healthcare services NAPHCARE LLC is contracted to provide under this Delivery Order?

The Delivery Order is for 'HEALTHCARE DELIVERY SERVICES FOR ADULTS IN CUSTODY IN THE COMMUNITY IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT.' While the PWS itself is not provided, this indicates a broad mandate to deliver comprehensive healthcare. This likely includes primary care, chronic disease management, mental health services, dental care, and potentially specialized medical treatments as needed by the adult population in custody who are being managed within a community setting rather than a traditional correctional facility. The exact services would be detailed in the Performance Work Statement, which defines the required tasks, standards, and deliverables for NAPHCARE LLC.

What is the justification for awarding this contract on a sole-source basis to NAPHCARE LLC?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available to satisfy the agency's needs, or in cases of urgent and compelling need, or when a specific capability is uniquely held by a single contractor. For a contract of this magnitude ($23.9 million), the agency (Department of Justice, Bureau of Prisons) would need to have documented a strong rationale, likely related to unique capabilities, existing infrastructure, or a critical, time-sensitive requirement that precluded a competitive process. Without access to the justification document, it's impossible to verify the validity of the sole-source determination.

How does the daily cost of this contract compare to industry benchmarks for similar correctional healthcare services?

The contract value is $23,931,835.41 over 121 days, resulting in an approximate daily cost of $197,784. Benchmarking this figure requires detailed information on the patient population's acuity, the specific services included (e.g., medical, dental, mental health, pharmacy), and the geographic location. Correctional healthcare costs can vary significantly. However, this daily rate appears substantial and warrants scrutiny. Without access to the Performance Work Statement and comparable contract data for similar populations and service scopes, it is difficult to definitively state whether this rate is high or low. Industry reports and government audits of correctional healthcare often highlight cost variations and potential for overspending, making this a key area for further investigation.

What are the potential risks associated with a sole-source award for essential healthcare services?

Sole-source awards for essential services like healthcare carry several risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures of a competitive bidding process. Secondly, it may limit innovation, as there's no incentive for the sole provider to offer novel or more efficient solutions. Thirdly, it can create vendor lock-in, making it difficult to transition to a different provider in the future. Finally, without a competitive process, there's a reduced assurance that the chosen contractor is the most capable or offers the best value, potentially impacting the quality of care delivered. Robust oversight and performance monitoring become even more critical in sole-source situations.

What is NAPHCARE LLC's track record in providing healthcare services to correctional facilities or similar populations?

NAPHCARE LLC is a known provider of correctional healthcare services. They operate across numerous facilities nationwide, managing medical, mental health, and dental care for incarcerated individuals. Their experience typically involves navigating the complexities of correctional environments, including security protocols, specific health needs of the inmate population, and regulatory compliance. While their general track record in the correctional healthcare sector is established, the specifics of their performance on past contracts, including client satisfaction, cost-effectiveness, and adherence to quality standards, would require a deeper dive into contract performance reports, client feedback, and any past performance reviews or disputes. This particular contract is a delivery order, suggesting it might be part of a larger existing relationship or a specific, short-term need.

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

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: $23,931,835

Exercised Options: $23,931,835

Current Obligation: $23,931,835

Actual Outlays: $23,806,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BRRC24D00000040

IDV Type: IDC

Timeline