Dialysis services for federal inmates awarded to Correctional Dialysis Services LLC for $240,800

Contract Overview

Contract Amount: $240,800 ($240.8K)

Contractor: Correctional Dialysis Services LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $8.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DIALYSIS SERVICES FOR FEDERAL MEDICAL CENTER DEVENS INMATE POPULATION, IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT. PERIOD OF PERFORMANCE: APR FY26

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78703

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $240,800.4 to CORRECTIONAL DIALYSIS SERVICES LLC for work described as: DIALYSIS SERVICES FOR FEDERAL MEDICAL CENTER DEVENS INMATE POPULATION, IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT. PERIOD OF PERFORMANCE: APR FY26 Key points: 1. Contract awarded for essential inmate healthcare services, ensuring continuity of care. 2. Sole-source award indicates potential limitations in market competition for this specialized service. 3. Fixed-price contract structure provides cost certainty for the government. 4. Performance period of one month (April FY26) suggests a short-term or interim need. 5. Service delivery in Texas raises questions about geographic alignment with Federal Medical Center Devens. 6. Lack of competition may impact overall value for money.

Value Assessment

Rating: fair

The contract value of $240,800 for one month of dialysis services appears high, especially considering it is a sole-source award. Benchmarking against similar contracts for correctional facility dialysis is difficult without more data on service volume and specific medical needs. The fixed-price nature provides predictability, but the absence of competition raises concerns about whether the government secured the best possible price.

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. This suggests that Correctional Dialysis Services LLC was the only known provider capable of meeting the specific requirements, or that circumstances did not allow for a competitive process. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure optimal pricing.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as there was no opportunity to compare offers from multiple providers.

Public Impact

Inmates at Federal Medical Center Devens will receive essential kidney dialysis treatment. Ensures continuity of care for a vulnerable patient population within the federal prison system. Services are critical for maintaining the health and well-being of individuals requiring dialysis. The contract supports specialized healthcare providers and potentially medical staff involved in dialysis delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential value for money.
Geographic discrepancy between service location (Texas) and facility location (Massachusetts) requires clarification.
Short performance period may indicate an interim solution or potential for future, larger contracts.
Lack of transparency in the justification for sole-source award.

Positive Signals

Ensures critical healthcare services are provided to federal inmates.
Fixed-price contract offers cost predictability.
Contractor is identified, suggesting a known entity for service provision.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, requires specialized providers. This contract falls under the broader category of medical services, specifically kidney dialysis centers. The market for correctional healthcare can be unique due to security requirements and the specific patient population. Benchmarking this contract's value is challenging without understanding the volume of patients and the intensity of services required, but the sole-source nature suggests a niche market or specific capability.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting opportunities for small businesses. The focus is on a specialized service provider, and the sole-source nature further reduces the likelihood of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) contracting officers and program managers. The fixed-price nature simplifies some aspects of financial oversight. However, the sole-source justification and the potential geographic mismatch warrant close scrutiny to ensure the services meet performance standards and represent fair value. Transparency regarding the sole-source rationale and performance monitoring would be key accountability measures.

Related Government Programs

Federal Prison System Healthcare Contracts
Inmate Medical Services
Dialysis Treatment Services
Bureau of Prisons Contracts

Risk Flags

Sole-source award raises concerns about competition and value.
Geographic discrepancy between service location and facility location needs clarification.
Short performance period may indicate an interim or incomplete procurement strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $240,800.4 to CORRECTIONAL DIALYSIS SERVICES LLC. DIALYSIS SERVICES FOR FEDERAL MEDICAL CENTER DEVENS INMATE POPULATION, IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT. PERIOD OF PERFORMANCE: APR FY26

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 $240,800.4.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the specific justification for awarding this dialysis service contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded to 'CORRECTIONAL DIALYSIS SERVICES LLC'. A sole-source award typically occurs when only one responsible source is available or capable of providing the required service, or when there is a compelling urgency. For correctional facilities, this could be due to specialized equipment, unique security protocols required for medical staff, or the need for immediate service continuity. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reason remains unclear. This lack of competition raises concerns about whether alternative providers were considered or if specific circumstances genuinely precluded a competitive process, potentially impacting the final price and overall value.

How does the contract value of $240,800 for one month of dialysis services compare to market rates or similar federal contracts?

Benchmarking the $240,800 contract value for one month of dialysis services is challenging without detailed service volume (number of patients, frequency of treatments) and specific medical requirements. However, as a sole-source award, there's a risk that the price may not reflect competitive market dynamics. Typical federal contracts for dialysis services in correctional settings can vary significantly. If this represents services for a substantial inmate population requiring regular dialysis, the cost might be within a reasonable range for specialized care. Conversely, if it's for a smaller group or a limited number of treatments, the per-patient or per-treatment cost could be high. Further analysis would require comparing the scope of work and patient load against publicly available contract data for similar facilities.

What are the implications of the service being performed in Texas (ST: TX) while the facility is Federal Medical Center Devens (located in Massachusetts)?

The data indicates the contract is for 'DIALYSIS SERVICES FOR FEDERAL MEDICAL CENTER DEVENS INMATE POPULATION' but lists the state as 'TX' (Texas). This presents a significant potential issue. It is unclear if the services are being provided remotely (e.g., telehealth consultations, though unlikely for dialysis), if the inmates are being transferred to Texas for treatment (highly improbable and inefficient), or if there is a data entry error regarding the service location. If the services are indeed contracted to be performed in Texas for inmates at a Massachusetts facility, it implies substantial logistical challenges, increased costs for transportation or specialized mobile units, and potential disruptions to inmate care. This geographic discrepancy warrants immediate clarification from the awarding agency.

What is the expected impact on inmate health and continuity of care given this contract?

This contract is crucial for ensuring the continuity of essential healthcare for inmates requiring dialysis at Federal Medical Center Devens. Kidney dialysis is a life-sustaining treatment, and any interruption can have severe health consequences, including increased morbidity and mortality. By awarding this contract, the Bureau of Prisons aims to provide consistent and necessary medical services to this vulnerable population. The successful execution of the performance work statement by Correctional Dialysis Services LLC will directly impact the health outcomes of the affected inmates, preventing complications associated with untreated kidney failure and ensuring they receive the required medical interventions.

What does the short, one-month performance period (April FY26) suggest about the nature of this contract?

A performance period of only one month (April FY26) for dialysis services is unusual for an ongoing medical need. This short duration suggests several possibilities: it could be an interim contract to cover a gap while a longer-term, competitive contract is being procured; it might be for a specific, limited-duration need (e.g., a temporary surge in demand or a specific inmate's treatment); or it could be a placeholder for a contract that is expected to be extended or modified. The short term, combined with the sole-source award, raises questions about the agency's long-term strategy for securing these critical services and whether this represents a sustainable solution or a stop-gap measure.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Kidney Dialysis Centers

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, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $240,800

Exercised Options: $240,800

Current Obligation: $240,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline