DOJ's $42.8M Medical Services Contract with Seven Corners Inc. for Federal Prison System
Contract Overview
Contract Amount: $42,860 ($42.9K)
Contractor: Seven Corners Inc
Awarding Agency: Department of Justice
Start Date: 2026-03-01
End Date: 2026-04-02
Contract Duration: 32 days
Daily Burn Rate: $1.3K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: BCMS FPC MRG COMPREHENSIVE MEDICAL SERVICES. MARCH 2026
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Justice obligated $42,860 to SEVEN CORNERS INC for work described as: BCMS FPC MRG COMPREHENSIVE MEDICAL SERVICES. MARCH 2026 Key points: 1. Contract awarded for comprehensive medical services, indicating a critical need within the Federal Prison System. 2. The award to Seven Corners Inc. suggests a focus on specialized healthcare provision for inmates. 3. Lack of competition under SAP raises questions about potential price discovery and value for taxpayer money. 4. The healthcare sector, particularly correctional healthcare, often faces unique challenges in service delivery and cost management.
Value Assessment
Rating: questionable
The contract's value of $42.8M for a 32-day duration appears high, especially given the 'NOT COMPETED UNDER SAP' status. Benchmarking against similar correctional healthcare contracts or general hospital services would be necessary to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under Simplified Acquisition Procedures (SAP), suggesting potential limitations in the competitive process. This lack of full and open competition may have hindered price discovery and potentially led to a higher cost for the government.
Taxpayer Impact: The absence of robust competition could result in taxpayers paying more than necessary for these essential medical services.
Public Impact
Ensures essential medical care for inmates within the Federal Prison System. Potential for service disruptions if contract issues arise due to limited competition. Impacts the operational budget of the Bureau of Prisons and the Department of Justice.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High cost for short duration
- Potential for price inflation
Positive Signals
- Ensures critical medical services are provided
- Contract awarded to a single vendor
Sector Analysis
The healthcare sector, specifically correctional healthcare, is a complex area with unique demands. Spending benchmarks for similar services within federal prisons are crucial for evaluating the appropriateness of this $42.8M award for a short-term contract.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' designation warrants further oversight to ensure the Department of Justice followed appropriate procurement regulations and justification for limiting competition. Accountability for the pricing and service delivery rests with the Bureau of Prisons.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- High cost for short duration
- Lack of justification for sole-source/limited competition
- Potential for overpayment
- Absence of small business participation noted
Tags
general-medical-and-surgical-hospitals, department-of-justice, wv, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $42,860 to SEVEN CORNERS INC. BCMS FPC MRG COMPREHENSIVE MEDICAL SERVICES. MARCH 2026
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 $42,860.
What is the period of performance?
Start: 2026-03-01. End: 2026-04-02.
What specific medical services are included in this $42.8M contract, and how do they align with the needs of the Federal Prison System population?
The contract is for 'COMPREHENSIVE MEDICAL SERVICES' provided by Seven Corners Inc. to the Federal Prison System. While the exact breakdown of services isn't detailed, it likely encompasses general medical, surgical, and potentially specialized care required for inmates. The high cost for a short duration suggests a significant scope or urgency, necessitating a clear understanding of the service catalog to justify the expenditure.
What is the justification for not competing this contract under SAP, and what risks does this pose to cost-effectiveness?
The justification for not competing under SAP is not provided in the data. This limited competition raises concerns about price discovery, potentially leading to inflated costs for taxpayers. Without a competitive process, it's difficult to ascertain if Seven Corners Inc. offered the best value or if alternative, more cost-effective solutions were overlooked.
How will the effectiveness of the medical services provided by Seven Corners Inc. be measured and ensured, given the limited competition?
Effectiveness will likely be measured through performance metrics outlined in the purchase order, such as patient outcomes, access to care, and adherence to medical standards. However, the lack of competition means there's less market pressure to drive high performance. Robust government oversight and clear performance standards are crucial to ensure the quality and effectiveness of services despite the limited competitive landscape.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
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: $42,860
Exercised Options: $42,860
Current Obligation: $42,860
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-03-01
Current End Date: 2026-04-02
Potential End Date: 2026-04-02 00:00:00
Last Modified: 2026-04-02
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