DOJ's $14.5M Contract for Medical Services at FMC Lexington Awarded to University of Kentucky Hospital Auxiliary
Contract Overview
Contract Amount: $14,507,068 ($14.5M)
Contractor: University of Kentucky Hospital Auxiliary, Inc.
Awarding Agency: Department of Justice
Start Date: 2009-10-01
End Date: 2010-11-30
Contract Duration: 425 days
Daily Burn Rate: $34.1K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 151060 COMPRHENSIVE MEDICAL, FMC LEXINGTON
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40536
State: Kentucky Government Spending
Plain-Language Summary
Department of Justice obligated $14.5 million to UNIVERSITY OF KENTUCKY HOSPITAL AUXILIARY, INC. for work described as: 151060 COMPRHENSIVE MEDICAL, FMC LEXINGTON Key points: 1. The contract value of $14.5M for medical services represents a significant investment in inmate healthcare. 2. Competition was limited, with a non-competitive delivery order awarded, raising questions about price discovery. 3. The fixed-price contract type aims to control costs, but the lack of competition could lead to inflated pricing. 4. The healthcare sector is a major area of federal spending, with ongoing scrutiny on efficiency and value.
Value Assessment
Rating: fair
The contract value of $14.5M for a 425-day duration appears reasonable for comprehensive medical services in a federal correctional facility. However, without competitive bids, it's difficult to definitively assess if this represents the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded via a non-competitive delivery order, indicating that only one vendor was considered. This method limits price discovery and may not ensure the most cost-effective solution for taxpayers.
Taxpayer Impact: The lack of competition could result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures essential medical services for inmates at FMC Lexington, maintaining public health and safety standards within the facility. Supports the operational needs of the Federal Prison System by providing critical healthcare infrastructure. Highlights the government's commitment to inmate welfare, which can impact recidivism rates and rehabilitation efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited price discovery
Positive Signals
- Essential service provision
- Fixed-price contract
Sector Analysis
The Federal Prison System's healthcare spending is a substantial component of the Department of Justice's budget. Benchmarks for similar comprehensive medical services contracts within correctional facilities are essential for evaluating this award.
Small Business Impact
This contract was awarded to a large hospital auxiliary, not a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that future procurements explore competitive options where feasible.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for overpayment due to lack of competition
- Limited transparency in pricing
- Risk of vendor complacency
- Missed opportunities for small business participation
Tags
general-medical-and-surgical-hospitals, department-of-justice, ky, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $14.5 million to UNIVERSITY OF KENTUCKY HOSPITAL AUXILIARY, INC.. 151060 COMPRHENSIVE MEDICAL, FMC LEXINGTON
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF KENTUCKY HOSPITAL AUXILIARY, INC..
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 $14.5 million.
What is the period of performance?
Start: 2009-10-01. End: 2010-11-30.
What was the justification for awarding this contract on a non-competitive basis, and were alternative solutions explored?
The justification for a non-competitive delivery order typically stems from urgent needs, unique capabilities, or situations where only one source can fulfill the requirement. Without specific documentation, it's unclear if alternatives were thoroughly explored. Future procurements should prioritize competitive strategies to ensure best value and taxpayer savings.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar correctional healthcare provisions?
Benchmarking the per-unit cost is challenging without detailed service breakdowns and specific contract terms. However, given the non-competitive award, there's a risk that costs may be higher than if multiple vendors had competed. A post-award review comparing actual expenditures against industry standards would be beneficial.
What mechanisms are in place to ensure the quality and effectiveness of the medical services provided, despite the lack of competitive pressure?
Quality assurance is typically managed through performance standards, service level agreements, and regular monitoring by the contracting officer's representative. The Department of Justice should have established protocols for overseeing healthcare quality within federal prisons, regardless of the procurement method.
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: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 ROSE STREET, LEXINGTON, KY, 06
Business Categories: Category Business, Government, Hospital, Nonprofit Organization, Not Designated a Small Business, U.S. Regional/State Government, Special Designations
Financial Breakdown
Contract Ceiling: $14,507,068
Exercised Options: $14,507,068
Current Obligation: $14,507,068
Parent Contract
Parent Award PIID: DJB10907046
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2010-11-01
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