DOJ's $184K contract for dialysis services awarded to Correctional Dialysis Services LLC for a 3-month period

Contract Overview

Contract Amount: $184,536 ($184.5K)

Contractor: Correctional Dialysis Services LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-04-02

Contract Duration: 91 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RENDEVOR: DIALYSIS AND NEPHROLOGY SERVICES DOS: JANUARY 1, 2026- MARCH 31, 2026

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78703

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $184,536 to CORRECTIONAL DIALYSIS SERVICES LLC for work described as: RENDEVOR: DIALYSIS AND NEPHROLOGY SERVICES DOS: JANUARY 1, 2026- MARCH 31, 2026 Key points: 1. The contract value of $184,536 for a 91-day period suggests a daily rate of approximately $2,028. 2. This is a sole-source award, raising questions about potential cost efficiencies and market competitiveness. 3. The short duration of the contract (3 months) may indicate a need for interim services or a pilot program. 4. The contract is for ambulatory health care services, specifically dialysis and nephrology, within the Federal Prison System. 5. The award is a Purchase Order, a less complex contract vehicle, often used for simpler acquisitions. 6. The fixed-price nature of the contract shifts some financial risk to the contractor.

Value Assessment

Rating: questionable

The daily rate of approximately $2,028 for dialysis services appears high when benchmarked against typical Medicare reimbursement rates for dialysis, which are significantly lower. Without more specific details on the scope of services, patient volume, and required staffing, a direct comparison is difficult. However, the absence of competition for this contract means there was no market validation of the pricing. The short duration also limits the ability to assess long-term value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Federal Prison System likely cited a specific justification for this approach, such as urgency or the unavailability of other qualified sources. The lack of competition prevents an assessment of how many other companies could have provided these services and at what price points.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value for the services rendered.

Public Impact

Inmates within the Federal Prison System in Texas requiring dialysis and nephrology services will benefit from this contract. The services delivered include essential medical care for individuals with kidney disease. The geographic impact is limited to facilities within Texas where the services are to be provided. The contract supports healthcare professionals, including potentially nephrologists and dialysis technicians, within the correctional healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Short contract duration raises questions about long-term service planning and potential for service disruption.
Sole-source awards require strong justification to ensure public funds are used efficiently.

Positive Signals

Ensures critical medical services are available to a vulnerable inmate population.
Fixed-price contract provides cost certainty for the government.
Award to a specialized provider (Correctional Dialysis Services LLC) suggests focus on specific needs.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized market. This contract falls under ambulatory health care services, specifically focusing on dialysis and nephrology. The market for correctional healthcare is often characterized by unique operational challenges and specific regulatory requirements. Benchmarking this contract's value is difficult without understanding the specific patient load and service intensity within the Bureau of Prisons facilities.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award. The focus appears to be on securing specialized medical services for the inmate population.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) contracting officers and medical staff. The Department of Justice's Office of the Inspector General (OIG) may conduct audits or investigations into the contract's performance and financial management if concerns arise. Transparency is facilitated through contract databases, but the sole-source nature limits public insight into the negotiation process.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Correctional Healthcare Services
Dialysis and Nephrology Services

Risk Flags

Sole-source award
High daily rate compared to benchmarks
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $184,536 to CORRECTIONAL DIALYSIS SERVICES LLC. RENDEVOR: DIALYSIS AND NEPHROLOGY SERVICES DOS: JANUARY 1, 2026- MARCH 31, 2026

Who is the contractor on this award?

The obligated recipient is CORRECTIONAL DIALYSIS SERVICES LLC.

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 $184,536.

What is the period of performance?

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

What is the track record of Correctional Dialysis Services LLC in providing services to federal correctional facilities?

Information regarding the specific track record of Correctional Dialysis Services LLC in providing services to federal correctional facilities is not detailed in the provided data. However, the company's name suggests a specialization in this area. Further investigation would be required to ascertain their past performance, client satisfaction, and any history of contract issues or successes with government agencies, particularly the Bureau of Prisons. Understanding their experience with similar patient populations and regulatory environments is crucial for assessing reliability and quality of service.

How does the pricing of this contract compare to similar dialysis services procured by the Federal Prison System or other federal agencies?

The provided data indicates a contract value of $184,536 for a 91-day period, equating to a daily rate of approximately $2,028. Direct comparison to similar contracts is challenging without more specific data on patient volume, acuity, and the full scope of services (e.g., staffing, equipment, medications) included. However, this daily rate appears high when benchmarked against general healthcare cost data or typical Medicare reimbursement rates for dialysis, which are substantially lower. The sole-source nature of this award means there was no competitive bidding process to establish a market-driven price, potentially leading to a less favorable rate for the government compared to a competed contract.

What are the primary risks associated with a sole-source award for essential inmate healthcare services?

The primary risks associated with a sole-source award for essential inmate healthcare services include potential overpayment due to the lack of competitive pricing, reduced incentive for the contractor to innovate or improve service quality, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than necessary. Furthermore, if the sole-source provider experiences operational issues, the continuity of care for inmates could be jeopardized without readily available alternative providers. Ensuring robust contract oversight and performance monitoring becomes even more critical in such scenarios to mitigate these risks.

What is the expected effectiveness of these dialysis services in meeting the health needs of the inmate population in Texas?

The effectiveness of these dialysis services hinges on the contractor's ability to deliver timely, high-quality care that meets the specific medical needs of the inmate population requiring dialysis and nephrology treatment. Given the short, 3-month duration, the immediate effectiveness will be in providing continuous care during this period. Long-term effectiveness depends on the contractor's expertise, adherence to medical standards, and the Bureau of Prisons' oversight. The contract's fixed-price nature should ensure cost predictability, but the ultimate measure of effectiveness will be the health outcomes of the patients served and the seamless integration of these services within the correctional healthcare system.

What has been the historical spending pattern for dialysis and nephrology services within the Federal Prison System?

Historical spending patterns for dialysis and nephrology services within the Federal Prison System are not detailed in the provided data. However, the need for such specialized medical care within correctional facilities is ongoing, suggesting a consistent requirement. Analyzing past contracts, including their values, durations, competition levels, and contractor performance, would provide insight into trends, potential cost fluctuations, and the typical procurement approaches used by the Bureau of Prisons for these services. Understanding this history is vital for evaluating the current contract's context and value.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE 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: 807 W FAIRCHILD ST, DANVILLE, IL, 61832

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

Financial Breakdown

Contract Ceiling: $184,536

Exercised Options: $184,536

Current Obligation: $184,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline