DOJ's Bureau of Prisons awards $35M contract for medical flight services to Healthnet Aeromedical
Contract Overview
Contract Amount: $34,976 ($35.0K)
Contractor: Healthnet Aeromedical Services, Inc.
Awarding Agency: Department of Justice
Start Date: 2025-05-19
End Date: 2026-04-03
Contract Duration: 319 days
Daily Burn Rate: $110/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY25 B2 HEALTHNET MEDICAL FLIGHT JUN 25
Place of Performance
Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25302
Plain-Language Summary
Department of Justice obligated $34,976 to HEALTHNET AEROMEDICAL SERVICES, INC. for work described as: FY25 B2 HEALTHNET MEDICAL FLIGHT JUN 25 Key points: 1. Contract awarded to Healthnet Aeromedical Services, Inc. for $34.98M. 2. Services are for medical flight operations within the Federal Prison System. 3. The contract is a Firm Fixed Price Purchase Order. 4. Duration of the contract is 319 days, starting May 19, 2025.
Value Assessment
Rating: fair
The contract value of $34.98M for approximately 11 months of service appears high for ambulance services, especially considering the NAICS code 621910 typically involves ground ambulance services. Benchmarking against similar medical flight contracts is difficult without more specific service details.
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 as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these critical medical flight services.
Public Impact
Ensures critical medical transport for inmates within the Federal Prison System. Potential for increased costs due to sole-source procurement. Service continuity for inmate health and safety is maintained.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potentially high cost for services
Positive Signals
- Ensures essential medical transport
- Firm Fixed Price contract type
Sector Analysis
This contract falls under the healthcare sector, specifically ambulance services. The value of $34.98M for a single-source, 11-month contract for medical flights seems substantial and warrants scrutiny against industry benchmarks for similar specialized aerial medical transport.
Small Business Impact
The contract was awarded to Healthnet Aeromedical Services, Inc. and there is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The Bureau of Prisons awarded this contract via a Purchase Order. Oversight should focus on ensuring the necessity of sole-source procurement and verifying that the services provided are essential and priced appropriately.
Related Government Programs
- Ambulance Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- High contract value for the duration
- Limited transparency on service specifics
Tags
ambulance-services, department-of-justice, wv, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $34,976 to HEALTHNET AEROMEDICAL SERVICES, INC.. FY25 B2 HEALTHNET MEDICAL FLIGHT JUN 25
Who is the contractor on this award?
The obligated recipient is HEALTHNET AEROMEDICAL SERVICES, 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 $34,976.
What is the period of performance?
Start: 2025-05-19. End: 2026-04-03.
What is the justification for awarding this medical flight contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. For this contract, the Bureau of Prisons needs to clearly document why Healthnet Aeromedical Services, Inc. was the only viable option. Furthermore, even in sole-source situations, agencies should conduct price analysis using historical data, commercial price lists, or other cost data to ensure the price is fair and reasonable.
How does the $34.98M cost for 11 months of medical flight services compare to industry standards for similar operations, particularly given the sole-source nature of the award?
Benchmarking this contract's cost is challenging without detailed service scope and operational data. However, $34.98M for approximately 11 months of medical flight services, especially under a sole-source award, raises concerns about potential overpayment. A thorough review comparing the cost per flight hour, patient transport, and operational overhead against publicly available data for comparable government or commercial contracts is warranted to assess value for money.
What is the expected effectiveness of Healthnet Aeromedical Services, Inc. in providing timely and critical medical flight support for the Federal Prison System?
The effectiveness of Healthnet Aeromedical Services, Inc. will be measured by their ability to meet the contract's performance requirements, including response times, patient care standards during transport, and overall reliability. Given the critical nature of medical flights for inmate health, the Bureau of Prisons must have robust performance monitoring mechanisms in place to ensure the contractor consistently delivers high-quality services throughout the contract period.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
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: 110 WYOMING ST, CHARLESTON, WV, 25302
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,976
Exercised Options: $34,976
Current Obligation: $34,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-05-19
Current End Date: 2026-04-03
Potential End Date: 2026-04-03 00:00:00
Last Modified: 2026-04-03
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