DOJ's $54.6M Medical Services Contract with Seven Corners Inc. Lacks Competition for Federal Prison System

Contract Overview

Contract Amount: $54,630 ($54.6K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-02-01

End Date: 2026-04-06

Contract Duration: 429 days

Daily Burn Rate: $127/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 B2 SEVEN CORNERS COMPREHENSIVE MEDICAL SERVICES FEB 2025.

Place of Performance

Location: ASHLAND, BOYD County, KENTUCKY, 41101

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $54,629.96 to SEVEN CORNERS INC for work described as: FY25 B2 SEVEN CORNERS COMPREHENSIVE MEDICAL SERVICES FEB 2025. Key points: 1. The contract is a sole-source award, raising concerns about potential overpricing and lack of innovation. 2. Seven Corners Inc. is the sole provider, indicating a lack of market competition. 3. The significant value of the contract presents a risk if not managed effectively. 4. The healthcare sector is prone to cost overruns, making competitive bidding crucial.

Value Assessment

Rating: questionable

Without competitive bids, it's difficult to assess if the $54.6M price is reasonable. The lack of comparison data makes a definitive pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning Seven Corners Inc. was selected without offering other vendors a chance to bid. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Federal inmates may receive medical services from a single, non-competitively selected provider. Taxpayers could be paying a premium for medical services due to the lack of competitive bidding. The long duration of the contract (429 days) means potential inefficiencies could persist.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited oversight due to single vendor

Positive Signals

Ensures continuity of medical services
Potentially faster award process

Sector Analysis

The Federal Prison System requires comprehensive medical services for inmates. Spending benchmarks in this sector vary widely based on service scope and location, but competitive procurement is standard practice to ensure value.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a single large entity.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the Federal Prison System is receiving fair value and that services meet required standards. Accountability may be reduced without competitive pressure.

Related Government Programs

General Medical and Surgical Hospitals
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited vendor accountability
Risk of service quality decline

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $54,629.96 to SEVEN CORNERS INC. FY25 B2 SEVEN CORNERS COMPREHENSIVE MEDICAL SERVICES FEB 2025.

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 $54,629.96.

What is the period of performance?

Start: 2025-02-01. End: 2026-04-06.

What is the justification for awarding this contract as sole-source, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without this information, it's difficult to assess the necessity. To ensure fair pricing, the agency should conduct a thorough price analysis against market data and historical costs, even without competition, and closely monitor service delivery and costs throughout the contract period.

What are the risks associated with relying on a single provider for comprehensive medical services for federal inmates?

The primary risks include potential price gouging due to lack of competition, reduced incentive for quality improvement, and service disruptions if the sole provider faces operational issues. There's also a risk of vendor lock-in, making it difficult to switch providers even if performance is unsatisfactory. This can lead to decreased patient care and increased long-term costs.

How will the effectiveness of the medical services provided by Seven Corners Inc. be measured and ensured?

Effectiveness should be measured through key performance indicators (KPIs) tied to patient outcomes, access to care, and adherence to medical standards. Regular performance reviews, patient satisfaction surveys, and independent audits of clinical practices are essential. The contract should include clear remedies for underperformance to ensure accountability and maintain service quality.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $54,630

Exercised Options: $54,630

Current Obligation: $54,630

Actual Outlays: $54,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline