DOJ Awards $12.5M to NAPHCARE LLC for Nationwide Inmate Healthcare in FY26
Contract Overview
Contract Amount: $12,478,176 ($12.5M)
Contractor: Naphcare LLC
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2025-11-30
Contract Duration: 60 days
Daily Burn Rate: $208.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: NATIONWIDE HEALTHCARE DELIVERY SYSTEM FOR INMATES IN THE COMMUNITY FOR FY26, OCTOBER - NOVEMBER.
Place of Performance
Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216
State: Alabama Government Spending
Plain-Language Summary
Department of Justice obligated $12.5 million to NAPHCARE LLC for work described as: NATIONWIDE HEALTHCARE DELIVERY SYSTEM FOR INMATES IN THE COMMUNITY FOR FY26, OCTOBER - NOVEMBER. Key points: 1. NAPHCARE LLC secured a $12.5M contract for nationwide inmate healthcare services. 2. The contract is for a 2-month period (Oct-Nov FY26). 3. Awarded under full and open competition, indicating market availability. 4. The contract falls under General Medical and Surgical Hospitals (NAICS 622110).
Value Assessment
Rating: good
The award amount of $12.5M for a 60-day period suggests a high per diem cost. Benchmarking against similar contracts for inmate healthcare would be necessary to fully assess value.
Cost Per Unit: $207,970 per month (estimated)
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The firm fixed price contract aims to control costs for taxpayers, though the per-unit cost needs further validation against benchmarks.
Public Impact
Ensures continuity of healthcare for federal inmates transitioning back into the community. Supports public health by managing healthcare needs of a vulnerable population. Potential for improved health outcomes and reduced recidivism through consistent care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (2 months) may limit long-term planning and efficiency.
- High estimated monthly cost requires validation against industry benchmarks.
- Limited data on performance history for this specific delivery order.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract provides cost certainty.
- Addresses critical healthcare needs for a specific inmate population.
Sector Analysis
Healthcare services for correctional facilities are a specialized sector. Spending benchmarks for inmate healthcare vary significantly based on location, inmate population needs, and service scope. This contract appears to be a short-term solution for a nationwide system.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Bureau of Prisons (part of the Department of Justice) is responsible for this contract. Oversight would focus on service delivery, quality of care, and adherence to the firm fixed price terms.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Short contract duration
- High estimated monthly cost
- Potential for care discontinuity
- Limited performance data for this specific award
Tags
general-medical-and-surgical-hospitals, department-of-justice, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $12.5 million to NAPHCARE LLC. NATIONWIDE HEALTHCARE DELIVERY SYSTEM FOR INMATES IN THE COMMUNITY FOR FY26, OCTOBER - NOVEMBER.
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 $12.5 million.
What is the period of performance?
Start: 2025-10-01. End: 2025-11-30.
What is the typical cost per inmate per day for similar community-based healthcare services?
The typical cost per inmate per day for community-based healthcare services can vary widely depending on factors like location, medical complexity, and the specific services included. Benchmarking requires detailed comparison with contracts for similar populations and service levels, considering the specific needs of federal inmates transitioning from incarceration.
What are the risks associated with a short-term (2-month) contract for nationwide healthcare delivery?
Short-term contracts can pose risks such as potential disruption in care continuity, increased administrative burden for transition, and difficulty in establishing long-term provider relationships. It may also limit the ability to implement comprehensive, long-term health strategies and could lead to higher per-unit costs due to the lack of economies of scale.
How effective is a firm fixed price contract in managing healthcare costs for a diverse inmate population?
A firm fixed price contract provides cost certainty for the government, shifting the risk of cost overruns to the contractor. However, for healthcare, it can be less effective if the fixed price doesn't adequately account for the unpredictable nature of medical needs within a diverse inmate population, potentially leading to either contractor underperformance or excessive profit.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $12,478,176
Exercised Options: $12,478,176
Current Obligation: $12,478,176
Actual Outlays: $7,583,747
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15BRRC25D00000010
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2026-03-17
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