DOJ's $22.7M medical services contract for Federal Prison System awarded to Seven Corners Inc. without competition

Contract Overview

Contract Amount: $22,709 ($22.7K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2026-04-06

Contract Duration: 217 days

Daily Burn Rate: $105/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 B1 SEVEN CORNERS ONSITE MED SVCS SEP 25

Place of Performance

Location: ASHLAND, BOYD County, KENTUCKY, 41102

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $22,708.86 to SEVEN CORNERS INC for work described as: FY25 B1 SEVEN CORNERS ONSITE MED SVCS SEP 25 Key points: 1. Contract awarded via purchase order, indicating a less formal procurement process. 2. The firm fixed-price contract type suggests predictable costs for the government. 3. Duration of 217 days points to a short-term or interim service need. 4. The contract is not set aside for small businesses, potentially limiting broader participation. 5. Awarded to a single vendor, raising questions about market competitiveness. 6. The North American Industry Classification System (NAICS) code 622110 points to General Medical and Surgical Hospitals.

Value Assessment

Rating: questionable

Benchmarking the value of this $22.7 million contract is challenging without detailed service scope and comparable market rates for on-site medical services within correctional facilities. The award mechanism (purchase order) and lack of competition suggest potential for overpayment or suboptimal pricing compared to a competitively bid contract. Further analysis would require understanding the specific medical services provided and the patient population served.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition procurement. The absence of a competitive bidding process means that Seven Corners Inc. was likely the only vendor considered or available for this specific requirement. This limits the government's ability to explore alternative solutions or secure the most favorable pricing through market forces.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of a lower price that could have been achieved through a bidding process. This could result in higher overall spending for the required medical services.

Public Impact

Inmates within the Federal Prison System will receive on-site medical services. The services are delivered within correctional facilities located in Kentucky. The contract supports the operational needs of the Bureau of Prisons by ensuring healthcare access for incarcerated individuals. This contract ensures continuity of care for inmates, potentially reducing the need for external medical transports and associated costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if this becomes a recurring need without re-competition.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded to a single vendor, potentially streamlining administrative processes for a short-term need.
Ensures essential medical services are provided to a vulnerable population.

Sector Analysis

The healthcare services sector, particularly within specialized environments like correctional facilities, is a significant area of government spending. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) classification. While specific market data for on-site prison medical services is scarce, the broader healthcare services market is competitive, making the sole-source nature of this award notable.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Seven Corners Inc., a large business, means that opportunities for small business participation in this specific contract are likely minimal. This does not necessarily reflect the overall small business utilization by the contractor across all their contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. As a purchase order, the level of formal oversight might be less rigorous than for a larger, competitively awarded contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $22,708.86 to SEVEN CORNERS INC. FY25 B1 SEVEN CORNERS ONSITE MED SVCS SEP 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 $22,708.86.

What is the period of performance?

Start: 2025-09-01. End: 2026-04-06.

What is the specific justification provided by the Department of Justice for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is a strong signal of a sole-source or limited competition award. Typically, agencies justify sole-source awards under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without access to the contract file or a public justification document (like a Justification and Approval - J&A), the precise reason remains unknown. However, common reasons include unique capabilities of the contractor, proprietary technology, or a critical, time-sensitive requirement where competition is impractical. This lack of competition warrants scrutiny to ensure taxpayer funds are used efficiently and that the government explored all viable options.

How does the per-unit cost or overall pricing of this contract compare to similar medical service contracts within other federal correctional facilities?

Direct comparison of pricing for this $22.7 million contract is difficult without detailed service scope and patient metrics. However, the 'NOT COMPETED' status suggests that Seven Corners Inc.'s pricing was not benchmarked against other potential providers through a competitive process. Generally, sole-source contracts are at higher risk of being priced above fair market value compared to those awarded through full and open competition. To assess value, one would need to compare the cost per inmate per day, cost per medical encounter, or cost for specific services (e.g., specialist consultations, medication management) against industry benchmarks for correctional healthcare or similar institutional settings. The firm fixed-price nature provides cost certainty but does not inherently guarantee value for money if the initial price was not optimized.

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

Seven Corners Inc. is known for providing travel insurance and assistance services, which often include medical support and coordination. While their expertise in managing medical services is established, their specific experience in operating comprehensive, on-site medical facilities within the unique environment of federal prisons is less publicly documented. A thorough assessment would involve reviewing their past performance on similar government contracts, including client feedback, any past performance issues or awards, and their demonstrated ability to meet the stringent requirements of correctional healthcare, such as security protocols, patient management, and regulatory compliance. Without this detailed performance history, it's difficult to fully gauge their suitability and reliability for this specific federal prison contract.

What are the potential risks associated with awarding a medical services contract of this magnitude without competition?

The primary risk associated with awarding a $22.7 million medical services contract without competition is the potential for inflated pricing and suboptimal value for taxpayers. A lack of competition removes the incentive for the contractor to offer the most competitive rates. Furthermore, it limits the government's ability to explore innovative solutions or leverage market competition to drive efficiency and quality improvements. There's also a risk of reduced accountability, as the contractor may feel less pressure to perform exceptionally when there are no immediate alternatives. Finally, it raises concerns about the fairness and transparency of the procurement process, potentially signaling a missed opportunity to engage a broader range of qualified providers, including small businesses.

How does this contract align with the Bureau of Prisons' overall strategy for providing healthcare to inmates, and what is the historical spending pattern in this area?

This contract for on-site medical services in Kentucky aligns with the Bureau of Prisons' (BOP) mandate to provide healthcare to federal inmates. The BOP historically spends significant amounts on inmate healthcare, encompassing a wide range of services from primary care to specialized treatments and pharmaceuticals. Analyzing historical spending patterns for medical services within BOP facilities, and specifically for the region or institution this contract serves, would provide context. Understanding if this $22.7 million award represents an increase, decrease, or stable level of spending compared to previous years or similar facilities is crucial. It also helps determine if this sole-source award is an anomaly or part of a broader trend in how the BOP procures essential medical support.

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: $22,709

Exercised Options: $22,709

Current Obligation: $22,709

Actual Outlays: $22,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline