DOJ's $12.8M Medical Detention Services Contract Awarded to Recovery Solutions of South Carolina, LLC

Contract Overview

Contract Amount: $12,878,384 ($12.9M)

Contractor: Recovery Solutions of South Carolina, LLC

Awarding Agency: Department of Justice

Start Date: 2022-07-01

End Date: 2026-03-31

Contract Duration: 1,369 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL DETENTION SERVICES

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29203

State: South Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $12.9 million to RECOVERY SOLUTIONS OF SOUTH CAROLINA, LLC for work described as: MEDICAL DETENTION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating a phased approach to service delivery. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of 1369 days spans over three years, indicating a significant commitment. 5. The awardee, Recovery Solutions of South Carolina, LLC, is based in South Carolina, potentially impacting local employment. 6. The NAICS code 622110 points to General Medical and Surgical Hospitals, defining the core service area.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total contract value it falls under or comparable contract data for medical detention services. The award amount of $12.8 million over approximately 3.75 years suggests an average annual expenditure of around $3.4 million. This figure needs to be compared against the cost of similar services provided by other government agencies or private entities to assess value for money. The firm-fixed-price structure provides some cost control, but the overall value proposition depends on the quality and efficiency of the medical services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' which implies that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The government's use of full and open competition is intended to ensure it receives the best possible value by considering a wide range of potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is designed to drive down costs through market forces and encourage innovation among bidders, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are individuals detained by the U.S. Marshals Service who require medical services. The contract ensures the provision of essential medical and surgical hospital services for detainees. The geographic impact is focused on South Carolina, where Recovery Solutions of South Carolina, LLC is located and likely where services will be primarily rendered. The contract may have implications for the local healthcare workforce in South Carolina, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for fluctuating medical needs or unforeseen circumstances.
Dependence on a single contractor for critical medical services raises concerns about service continuity and quality if the contractor underperforms.
Limited transparency on the specific medical services included and the quality metrics for performance evaluation.
The duration of the contract could lead to vendor lock-in, making it difficult to switch providers if better options emerge.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield reasonable pricing.
Firm-fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The contract addresses a critical need for medical services for a specific population (detainees).
The contractor is based in the state where services are likely to be provided, potentially improving responsiveness and local economic impact.

Sector Analysis

The healthcare services sector, particularly within government contracting, is substantial. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category. Government spending in this area is often driven by the needs of specific populations, such as military personnel, veterans, and detainees. Benchmarking requires comparing this contract's value and scope against other federal or state contracts for similar detention healthcare services, which can be complex due to varying service levels and patient populations.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the competition was likely dominated by larger entities capable of meeting the specialized requirements for medical detention services. The impact on the small business ecosystem would be minimal unless Recovery Solutions of South Carolina, LLC, as the prime contractor, engages small businesses for subcontracting opportunities, which is not indicated in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, an agency within the Department of Justice. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is often limited in contracts involving sensitive populations or security concerns, but contract awards and basic details are typically made public through federal procurement databases. The Inspector General for the Department of Justice may have jurisdiction for audits and investigations if concerns arise regarding fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Medical Services Contracts
Department of Veterans Affairs Healthcare Contracts
Immigration and Customs Enforcement Detention Healthcare Contracts
State and Local Government Detention Facility Healthcare Contracts

Risk Flags

Potential for service quality degradation if fixed price is insufficient for unpredictable medical needs.
Lack of detailed public information on performance metrics and quality assurance.
Limited insight into the contractor's specific experience in detention healthcare.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.9 million to RECOVERY SOLUTIONS OF SOUTH CAROLINA, LLC. MEDICAL DETENTION SERVICES

Who is the contractor on this award?

The obligated recipient is RECOVERY SOLUTIONS OF SOUTH CAROLINA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-03-31.

What is the track record of Recovery Solutions of South Carolina, LLC in providing medical services, particularly in detention settings?

Information regarding the specific track record of Recovery Solutions of South Carolina, LLC in providing medical services, especially within detention settings, is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, any reported contract disputes or successes, and the company's history with government contracts. Without this information, it is difficult to gauge their experience and reliability for this critical service. Further research into federal procurement databases and contractor performance systems would be necessary to ascertain their capabilities and past performance.

How does the per-diem cost of medical services under this contract compare to other federal or state detention facilities?

The provided data does not include a per-diem cost breakdown for medical services. The total award amount of $12.8 million over approximately 1369 days (about 3.75 years) can be used to calculate an approximate average daily cost, but this figure would represent the total contract value divided by the number of days, not necessarily a per-patient per-day cost for medical services. To perform a meaningful comparison, one would need access to the contract's detailed pricing structure, including per-patient per-day rates for different levels of medical care, and compare these rates against similar contracts awarded by the Bureau of Prisons, ICE, or state correctional systems. Such data is often not publicly available in detail.

What are the specific performance metrics and quality assurance measures included in this contract?

The provided data does not specify the performance metrics or quality assurance measures for this contract. Typically, government contracts for medical services include detailed requirements related to response times, patient care standards, staffing levels, infection control, and reporting. These metrics are crucial for ensuring the quality and effectiveness of the services provided. Without access to the full contract document, it is impossible to assess the robustness of these measures or how compliance is monitored and enforced by the U.S. Marshals Service.

What is the historical spending pattern for medical detention services by the U.S. Marshals Service?

The provided data focuses on a single contract award and does not offer historical spending patterns for medical detention services by the U.S. Marshals Service. To analyze historical spending, one would need to examine procurement data over several fiscal years, identifying all contracts awarded for similar services, their values, durations, and the contractors involved. This would allow for an assessment of trends, potential increases or decreases in spending, and the stability of the contractor base. Such analysis is essential for understanding the long-term resource allocation for these critical services.

What is the potential risk associated with the firm-fixed-price contract type in the context of unpredictable medical needs?

While a firm-fixed-price (FFP) contract provides cost certainty for the government, it can introduce risks in service areas with unpredictable demand, such as medical care. If the actual cost of providing services significantly exceeds the fixed price due to unforeseen patient needs, outbreaks of illness, or escalating medical supply costs, the contractor may face financial strain. This could potentially lead to a decline in service quality if the contractor seeks to cut costs, or requests for contract modifications and additional funding, which negates some of the initial cost certainty. The government's ability to manage these risks depends on the thoroughness of the initial price negotiation and the inclusion of appropriate contingency planning within the contract.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: 800 FAIRWAY DR STE 490, DEERFIELD BEACH, FL, 33441

Business Categories: Category Business, Hospital, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,878,384

Exercised Options: $12,878,384

Current Obligation: $12,878,384

Actual Outlays: $6,724,953

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: DJMODT12C0002

IDV Type: IDC

Timeline