DOJ awards $2.4M contract for inmate dialysis services at FMC Devens, highlighting specialized correctional healthcare needs

Contract Overview

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

Contractor: Correctional Dialysis Services LLC

Awarding Agency: Department of Justice

Start Date: 2026-06-01

End Date: 2026-06-30

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: JUNE 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: JUNE FY26 Key points: 1. Contract addresses a critical health service for a vulnerable inmate population. 2. The award to Correctional Dialysis Services LLC suggests a focus on specialized providers. 3. Limited competition may impact pricing and service innovation. 4. The firm-fixed-price structure aims to control costs for a defined service period. 5. Performance is tied to a specific work statement, ensuring service standards. 6. The contract duration of approximately one year requires regular re-evaluation of needs.

Value Assessment

Rating: fair

The contract value of $2.4 million for approximately one year of dialysis services for federal inmates appears to be within a reasonable range for specialized correctional healthcare. Benchmarking against similar contracts for inmate dialysis is challenging due to the unique environment and specific patient needs within correctional facilities. However, the absence of competition raises questions about whether the government secured the best possible value. The firm-fixed-price structure provides cost certainty, but without competitive pressure, it's difficult to definitively assess if the pricing is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Bureau of Prisons identified Correctional Dialysis Services LLC as the only capable provider or that circumstances did not allow for a competitive solicitation. Sole-source awards can sometimes lead to higher prices and reduced innovation compared to fully competed contracts, as there is less market pressure to offer the most competitive terms. The lack of multiple bidders means there was no direct comparison of service offerings or pricing from competing entities.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for services due to the absence of competitive bidding. This limits the government's ability to leverage market forces to achieve cost savings.

Public Impact

Inmates at Federal Medical Center Devens requiring kidney dialysis will receive essential medical treatment. The services ensure continuity of care for a critical health condition within the federal prison system. This contract directly supports the healthcare mission of the Bureau of Prisons. The geographic impact is localized to FMC Devens, serving its specific inmate population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the justification for sole-source procurement.
Potential for higher costs due to absence of market competition.
Contract duration is relatively short, requiring frequent re-procurement cycles.

Positive Signals

Addresses a critical and specialized healthcare need for a vulnerable population.
Firm-fixed-price contract provides cost certainty for the specified period.
Focus on a specific performance work statement ensures service quality standards.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, is a specialized niche. This contract falls under the broader category of medical services, specifically focusing on dialysis, which requires dedicated equipment and trained personnel. The market for correctional healthcare is often characterized by unique procurement challenges and a limited number of providers equipped to operate within secure environments. Benchmarking this contract's value is difficult without access to comparable correctional dialysis contracts, which are not widely publicized.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. The award to Correctional Dialysis Services LLC, a specific entity, suggests that small businesses were likely not considered or did not meet the specialized requirements for this sole-source procurement. This limits opportunities for small businesses to participate in providing essential healthcare services within federal correctional facilities.

Oversight & Accountability

Oversight for this contract will primarily fall under the Bureau of Prisons (BOP) contracting officers and the designated COR (Contracting Officer's Representative). The performance work statement (PWS) will dictate the service standards and deliverables. While specific IG jurisdiction for this particular contract isn't detailed, the Office of the Inspector General (OIG) for the Department of Justice generally oversees federal prison system operations and contract compliance to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Inmate Medical Services
Dialysis Treatment Services
Correctional Facility Healthcare

Risk Flags

Sole-source award may indicate limited competition, potentially leading to higher costs.
Lack of detailed justification for sole-source procurement requires scrutiny.
Contract duration is short, necessitating frequent re-procurement and potential instability.
Specialized nature of correctional healthcare can limit the pool of qualified bidders.

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: JUNE 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: 2026-06-01. End: 2026-06-30.

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 readily available in the provided data. As this contract was awarded sole-source, it suggests a potential existing relationship or a specific capability that led to this determination. Further investigation would be required to ascertain their performance history, client satisfaction, and any past issues or commendations related to their work within correctional settings. Understanding their experience with similar inmate populations and facility requirements would be crucial for assessing future performance risk.

How does the cost of this contract compare to similar inmate dialysis services at other federal correctional institutions?

Direct comparison of the cost of this contract ($2.4 million for approximately one year) to similar inmate dialysis services at other federal correctional institutions is challenging without access to proprietary contract data from other facilities. The unique nature of correctional healthcare, including security protocols, patient acuity, and geographic location, can significantly influence pricing. Furthermore, the sole-source nature of this award means there was no competitive bidding process to establish a market-driven price. To conduct a robust comparison, one would need to analyze contracts with similar patient volumes, service scopes, and contract durations, ideally from competitively solicited procurements, which are not available in this dataset.

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 efficiency, and a higher likelihood of vendor lock-in. Taxpayers may bear a higher cost than if the contract were competed. Additionally, if the sole-source provider experiences performance issues or financial instability, the government has limited immediate alternatives for service continuity, potentially disrupting critical patient care. The justification for sole-sourcing must be robust to mitigate these inherent risks.

What is the expected impact of this contract on the overall healthcare delivery within Federal Medical Center Devens?

This contract is expected to ensure the continuity and quality of essential dialysis services for inmates at Federal Medical Center (FMC) Devens who require this critical medical treatment. By securing a dedicated provider, the facility can maintain its healthcare obligations to this specific patient population, preventing potential disruptions to care. The contract's performance work statement will guide the delivery standards, aiming to meet the medical needs of the inmates. The impact is primarily focused on the direct provision of dialysis, ensuring that inmates with kidney conditions receive necessary treatment within the correctional environment.

What historical spending patterns exist for dialysis services at FMC Devens or similar federal correctional facilities?

The provided data does not include historical spending patterns for dialysis services at FMC Devens or similar federal correctional facilities. To analyze historical spending, one would need access to past contract awards, their values, durations, and the contractors involved for this specific facility or comparable ones within the Bureau of Prisons. Understanding trends in spending, such as year-over-year increases or decreases, changes in awarded contractors, or shifts in service scope, would provide valuable context for assessing the current contract's value and necessity. Without this historical data, it is difficult to determine if current spending aligns with past trends or represents a significant deviation.

Are there specific performance metrics or key performance indicators (KPIs) outlined in the Performance Work Statement (PWS)?

The provided data indicates that the contract is 'IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT,' but it does not detail the specific performance metrics or Key Performance Indicators (KPIs) within that PWS. Typically, a PWS for dialysis services would include metrics related to treatment timeliness, patient outcomes (e.g., adherence to treatment schedules, management of complications), equipment maintenance and availability, staffing levels and qualifications, infection control, and patient satisfaction. These KPIs are crucial for the government to monitor the contractor's performance and ensure the delivery of high-quality, safe, and effective dialysis care to the inmate population.

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