DOJ's Bureau of Prisons awards $30.4M contract for comprehensive medical services to Seven Corners Inc
Contract Overview
Contract Amount: $30,428 ($30.4K)
Contractor: Seven Corners Inc
Awarding Agency: Department of Justice
Start Date: 2025-08-01
End Date: 2026-04-06
Contract Duration: 248 days
Daily Burn Rate: $123/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ONSITE COMPREHENSIVE MEDICAL SERVICES AUG FY25.
Place of Performance
Location: ASHLAND, BOYD County, KENTUCKY, 41102
State: Kentucky Government Spending
Plain-Language Summary
Department of Justice obligated $30,428.48 to SEVEN CORNERS INC for work described as: ONSITE COMPREHENSIVE MEDICAL SERVICES AUG FY25. Key points: 1. The contract is for onsite comprehensive medical services, indicating a critical need for healthcare within federal facilities. 2. Seven Corners Inc. is the sole awardee, raising questions about the extent of competition. 3. The contract's value of $30.4M over approximately 2 years suggests a significant investment in inmate healthcare. 4. The lack of competition is a key risk factor that warrants further investigation into price reasonableness.
Value Assessment
Rating: questionable
The contract is a firm fixed price purchase order. Without a competitive bidding process, it is difficult to assess if the $30.4M price is reasonable compared to similar medical service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these medical services, impacting taxpayer funds.
Public Impact
Inmate healthcare quality and access are directly impacted by this contract. Taxpayer dollars are being allocated to a non-competitive contract, raising concerns about efficiency. The long-term health outcomes of federal inmates depend on the effectiveness of these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
Positive Signals
- Ensures continuity of essential medical services
- Fixed price contract limits cost overruns
Sector Analysis
The healthcare sector, particularly within government contracts, often involves complex service delivery. Benchmarks for comprehensive medical services in correctional facilities are not readily available, but the value suggests a substantial operational requirement.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The non-competitive nature of this award necessitates robust oversight from the Department of Justice to ensure the services meet contractual requirements and represent fair value.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs.
- Limited transparency in contract negotiation.
- Risk of service quality issues if not closely monitored.
Tags
general-medical-and-surgical-hospitals, department-of-justice, ky, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $30,428.48 to SEVEN CORNERS INC. ONSITE COMPREHENSIVE MEDICAL SERVICES AUG FY25.
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 $30,428.48.
What is the period of performance?
Start: 2025-08-01. End: 2026-04-06.
What justification was provided for not competing this medical services contract, and does it align with federal procurement regulations for sole-source awards?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required services. The justification for this contract's sole-source nature would need to be documented by the Department of Justice, detailing why competition was not feasible or practical. This justification is crucial for ensuring the award was made appropriately and taxpayers are not disadvantaged.
How will the Bureau of Prisons ensure the quality and cost-effectiveness of these medical services given the absence of competitive bidding?
The Bureau of Prisons must implement stringent performance monitoring and quality assurance measures. This includes regular reviews of service delivery, patient outcomes, and adherence to medical standards. Cost-effectiveness will be assessed through careful budget management and comparison against internal benchmarks or available market data, even without direct competition. Regular audits and performance reviews are essential.
What is the potential long-term financial impact on the Bureau of Prisons and taxpayers if the pricing for these services is not optimized due to the lack of competition?
If the pricing is not optimized, the Bureau of Prisons could face sustained higher operational costs for inmate healthcare over the contract's duration and potential future renewals. This could divert funds from other critical prison functions or necessitate budget increases. Over time, this inefficiency can represent a significant financial burden on taxpayers, underscoring the importance of thorough justification for sole-source awards.
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: $30,428
Exercised Options: $30,428
Current Obligation: $30,428
Actual Outlays: $30,428
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-08-01
Current End Date: 2026-04-06
Potential End Date: 2026-04-06 00:00:00
Last Modified: 2026-04-06
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