DOJ's Bureau of Prisons Spends $414K on Hospital Services in March 2026
Contract Overview
Contract Amount: $414,473 ($414.5K)
Contractor: Naphcare LLC
Awarding Agency: Department of Justice
Start Date: 2026-03-01
End Date: 2026-03-31
Contract Duration: 30 days
Daily Burn Rate: $13.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FOR ESTIMATED OUTSIDE HOSPITAL SERVICES (B2) FOR THE PERIOD OF MARCH 1, 2026 THROUGH MARCH 31, 2026.
Place of Performance
Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35216
State: Alabama Government Spending
Plain-Language Summary
Department of Justice obligated $414,472.79 to NAPHCARE LLC for work described as: FOR ESTIMATED OUTSIDE HOSPITAL SERVICES (B2) FOR THE PERIOD OF MARCH 1, 2026 THROUGH MARCH 31, 2026. Key points: 1. Spending is for a single month of estimated outside hospital services. 2. The contract was not competed, raising questions about price discovery. 3. The fixed-price contract type offers some cost certainty. 4. The specific need for these services is not detailed, impacting value assessment.
Value Assessment
Rating: questionable
The $414,472.79 for one month of hospital services appears high without further context on patient volume or acuity. Benchmarking against similar contracts for federal correctional facilities or general hospital services is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price negotiation and may result in higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition could lead to inflated prices, meaning taxpayers may be paying more than necessary for these essential medical services.
Public Impact
Ensures medical care for federal inmates, a critical function of the Bureau of Prisons. The cost impacts the overall budget for inmate healthcare services. Lack of transparency in the procurement process may erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited transparency on service details
- Potential for overpayment
Positive Signals
- Fulfills essential inmate healthcare needs
- Fixed-price contract provides some budget predictability
Sector Analysis
This spending falls within the Healthcare sector, specifically general medical and surgical hospitals. Benchmarking is challenging due to the specific context of correctional facility healthcare needs and the sole-source nature of the award.
Small Business Impact
No information is available regarding small business participation in this contract award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid is fair and reasonable. Further review of the justification for not competing the award is recommended.
Related Government Programs
- General Medical and Surgical Hospitals
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on service details
- High monthly cost without clear justification
Tags
general-medical-and-surgical-hospitals, department-of-justice, al, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $414,472.79 to NAPHCARE LLC. FOR ESTIMATED OUTSIDE HOSPITAL SERVICES (B2) FOR THE PERIOD OF MARCH 1, 2026 THROUGH MARCH 31, 2026.
Who is the contractor on this award?
The obligated recipient is NAPHCARE 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 $414,472.79.
What is the period of performance?
Start: 2026-03-01. End: 2026-03-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a documented justification, such as the unavailability of other sources or a unique capability. Without this justification, it's impossible to assess if the price was fair and reasonable, as competitive market forces were bypassed.
How does the cost of these estimated outside hospital services compare to benchmarks for similar services provided to correctional populations or within the state of Alabama?
Benchmarking is difficult with the current data. The $414K for one month is a significant sum. Comparing it to general hospital costs is misleading. A more relevant benchmark would involve analyzing historical costs for similar services within the Bureau of Prisons or state correctional systems, considering patient volume and acuity.
What is the expected impact of this spending on the overall Bureau of Prisons healthcare budget and inmate well-being?
This $414K represents a specific allocation for outside hospital services for one month. Its impact on the overall budget depends on the total healthcare allocation. Ensuring this spending is efficient and effective directly contributes to inmate well-being by providing necessary medical care, but the lack of competition raises concerns about value for money.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL 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: 2090 COLUMBIANA RD, VESTAVIA HILLS, AL, 35216
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $414,473
Exercised Options: $414,473
Current Obligation: $414,473
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-03-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-08
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