DOJ awards $1.6M for hospital services to Seven Corners Inc. in Kentucky

Contract Overview

Contract Amount: $160,176 ($160.2K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-01-01

End Date: 2026-04-06

Contract Duration: 460 days

Daily Burn Rate: $348/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 B2 SEVEN CORNERS HOSP SVCS JAN 25

Place of Performance

Location: ASHLAND, BOYD County, KENTUCKY, 41101

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $160,175.69 to SEVEN CORNERS INC for work described as: FY25 B2 SEVEN CORNERS HOSP SVCS JAN 25 Key points: 1. Contract awarded for essential medical services, indicating a need for specialized care within federal facilities. 2. The firm-fixed-price structure aims to control costs for the duration of the contract. 3. A single delivery order under a larger contract suggests a specific, time-bound requirement. 4. The contract duration of 460 days points to a medium-term service need. 5. Geographic focus on Kentucky highlights localized service delivery for federal inmates.

Value Assessment

Rating: good

The contract value of $1.6 million for 460 days of hospital services appears reasonable for specialized medical support within a correctional setting. Benchmarking against similar contracts for inmate healthcare or specialized medical services would provide a clearer picture of value for money. The firm-fixed-price nature suggests cost predictability for the government, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation is a strong positive signal for robust competition.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring federal funds are used efficiently.

Public Impact

Federal inmates in Kentucky will receive necessary general medical and surgical hospital services. The Bureau of Prisons benefits from a contracted provider for specialized healthcare needs. The services are geographically focused within Kentucky, impacting the local inmate population. This contract supports the operational requirements of the Federal Prison System by ensuring healthcare access for incarcerated individuals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specialized medical services within federal facilities.
Reliance on a single contractor for critical healthcare services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type helps in budget certainty and cost control.
Clear service delivery period (460 days) allows for focused performance management.

Sector Analysis

The healthcare services sector, particularly within government contracts, is a significant market. This contract falls under general medical and surgical hospitals, a core component of healthcare delivery. Spending in this area is driven by the need to provide comprehensive care to specific populations, such as federal inmates. Comparable spending benchmarks would involve analyzing other contracts for similar medical services provided to correctional facilities or government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Seven Corners Inc., is likely a larger entity. There is no explicit information on subcontracting plans, but for a contract of this nature and value, it is possible that specialized services might be subcontracted. The impact on the small business ecosystem would be minimal unless specific subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) within the Department of Justice. The BOP has established procurement and contract management procedures to ensure service delivery meets requirements. Transparency is facilitated through contract databases like FPDS. Accountability measures would include performance reviews, adherence to the firm-fixed-price terms, and potential penalties for non-compliance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Prison System Healthcare Services
Bureau of Prisons Medical Contracts
Inmate Healthcare Services
Department of Justice Medical Support Contracts

Risk Flags

Potential for service disruption
Reliance on single contractor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $160,175.69 to SEVEN CORNERS INC. FY25 B2 SEVEN CORNERS HOSP SVCS JAN 25

Who is the contractor on this award?

The obligated recipient is SEVEN CORNERS 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 $160,175.69.

What is the period of performance?

Start: 2025-01-01. End: 2026-04-06.

What is the track record of Seven Corners Inc. in providing services to the federal government, particularly within correctional facilities?

Seven Corners Inc. has a history of providing various services, including travel insurance and assistance programs, often to government entities and large organizations. While specific experience within federal correctional facilities is not detailed in the provided data, their broader experience in managing complex service delivery and insurance programs suggests a capacity to handle government contracts. A deeper dive into their past performance on similar federal contracts, including any performance evaluations or past performance questionnaires, would be necessary to fully assess their suitability and track record for this specific healthcare services contract within the Bureau of Prisons.

How does the awarded amount of $1.6 million compare to similar contracts for hospital services within the federal prison system?

The awarded amount of $1.6 million for approximately 15 months of general medical and surgical hospital services needs to be benchmarked against comparable contracts. Without specific data on the number of inmates served, the scope of services, or the geographic location of other federal correctional facilities, a direct comparison is challenging. However, this value suggests a significant but not exceptionally large contract for specialized medical support. Analyzing historical data for similar contracts awarded by the Bureau of Prisons for inmate healthcare in facilities of comparable size and security levels would provide a more robust assessment of whether this represents good value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential disruptions in service delivery if the contractor faces staffing shortages or operational issues, leading to gaps in inmate healthcare. Another risk is the potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen medical needs or price escalations, although the FFP structure aims to mitigate this. The government's mitigation strategies likely involve robust contract oversight, performance monitoring, clear service level agreements, and contingency planning. The Bureau of Prisons would also have clauses for remedies in case of contractor default or substandard performance.

How effective is the 'full and open competition' process in ensuring competitive pricing for federal healthcare contracts?

The 'full and open competition' process is designed to maximize the number of potential bidders, thereby fostering a competitive environment that typically drives down prices and improves service quality. For federal healthcare contracts, this means that various qualified providers can submit proposals, allowing the agency to select the offer that represents the best value. While this process is generally effective, its success depends on the clarity of the solicitation, the attractiveness of the contract terms, and the number of capable vendors in the market. In cases where the market for specialized healthcare services is limited, even full and open competition might result in fewer bids than desired.

What is the historical spending pattern for general medical and surgical hospital services within the Federal Prison System?

Historical spending on general medical and surgical hospital services within the Federal Prison System (FPS) has been substantial, reflecting the ongoing need to provide comprehensive healthcare to a large inmate population. The FPS consistently contracts for a wide range of medical services, including primary care, specialty consultations, emergency services, and hospitalizations. Spending fluctuates based on the inmate population size, health needs, and the availability of in-house medical staff versus contracted services. Analyzing multi-year spending data would reveal trends in contract values, types of services procured, and the primary contractors utilized, offering insights into the overall healthcare budget and procurement strategies of the FPS.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 303 CONGRESSIONAL BLVD, CARMEL, IN, 46032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $160,176

Exercised Options: $160,176

Current Obligation: $160,176

Actual Outlays: $160,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15B10219D00000002

IDV Type: IDC

Timeline