DOJ's $9.4M medical services contract for FCI Talladega awarded to Seven Corners Inc. without competition

Contract Overview

Contract Amount: $9,379 ($9.4K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-04-09

Contract Duration: 98 days

Daily Burn Rate: $96/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MONTH TO MONTH COMPREHENSIVE MEDICAL SERVICES FOR FCI TALLADEGA.

Place of Performance

Location: TALLADEGA, TALLADEGA County, ALABAMA, 35160

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $9,378.98 to SEVEN CORNERS INC for work described as: MONTH TO MONTH COMPREHENSIVE MEDICAL SERVICES FOR FCI TALLADEGA. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration is 98 days, suggesting a short-term or interim need. 3. The award was not competed, raising questions about potential cost savings and market responsiveness. 4. The North American Industry Classification System (NAICS) code 622110 points to General Medical and Surgical Hospitals. 5. The contract is a purchase order, typically used for simpler acquisitions. 6. The contractor, Seven Corners Inc., has secured this award, but their track record on similar federal contracts requires further examination.

Value Assessment

Rating: questionable

The contract value of $9.4 million for a 98-day period for comprehensive medical services at FCI Talladega appears high on a daily basis. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar government contracts. The firm-fixed-price structure provides cost certainty, but the lack of competition prevents an assessment of whether this represents the best value for taxpayer dollars. Further analysis would be needed to determine if the scope of services justifies the expenditure.

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 among multiple vendors. This approach bypasses the standard procurement process designed to foster competition and identify the most advantageous offer. The lack of competition means that Seven Corners Inc. was the only entity considered for this award, potentially limiting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the benefits of competitive bidding, which typically drives down prices and encourages innovation.

Public Impact

Inmates at FCI Talladega will receive comprehensive medical services, ensuring their health and well-being within the correctional facility. The primary beneficiaries are the incarcerated individuals requiring medical attention. The services are geographically focused within Talladega, Alabama, at the Federal Correctional Institution. The contract supports the operational needs of the Federal Prison System / Bureau of Prisons by ensuring continuity of care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
The high daily cost raises concerns about the efficiency of resource allocation.
The short duration could indicate a stop-gap measure, potentially leading to future contract instability or higher costs if a long-term solution is not secured.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The award ensures continuity of medical services for inmates at FCI Talladega.

Sector Analysis

The healthcare services sector within the federal government is substantial, encompassing a wide range of medical support for various agencies and facilities. Contracts for correctional healthcare are a significant component, often requiring specialized providers capable of operating within secure environments. Benchmarking this contract's value would ideally involve comparing it to other federal prison medical service contracts or similar institutional healthcare agreements, though the sole-source nature complicates direct comparisons.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Seven Corners Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice and the Federal Prison System / Bureau of Prisons. As a purchase order, it is subject to standard procurement regulations and internal agency oversight. Transparency regarding the justification for the sole-source award and the performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Inmate Health Services
Correctional Facility Medical Support

Risk Flags

Sole-source award bypasses competitive bidding.
High daily cost warrants scrutiny.
Short contract duration may indicate interim solution or potential for future instability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9,378.98 to SEVEN CORNERS INC. MONTH TO MONTH COMPREHENSIVE MEDICAL SERVICES FOR FCI TALLADEGA.

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 $9,378.98.

What is the period of performance?

Start: 2026-01-01. End: 2026-04-09.

What is the track record of Seven Corners Inc. in providing similar medical services to federal correctional facilities?

Information regarding Seven Corners Inc.'s specific track record in providing comprehensive medical services to federal correctional facilities is not detailed in the provided data. A thorough review would require examining past federal contract awards to the company, performance evaluations on those contracts, and any reported issues or successes. Understanding their experience with the unique demands and security requirements of correctional environments is crucial for assessing their capability and reliability in fulfilling this contract effectively. Without this historical data, it is difficult to gauge their suitability beyond the basic award information.

How does the daily cost of this contract compare to industry benchmarks for correctional healthcare?

The daily cost for this contract can be estimated by dividing the total award amount ($9,378,980) by the contract duration in days (98 days), resulting in approximately $95,600 per day. Comparing this figure to industry benchmarks for correctional healthcare is challenging without more specific data on the scope of services, patient population characteristics (e.g., acuity, number of inmates served), and geographic location. However, this daily rate appears substantial and warrants further investigation to ensure it aligns with or is justified relative to established benchmarks for similar correctional healthcare provisions. A detailed service-level agreement and comparison with other Bureau of Prisons contracts or state correctional health services would be necessary for a robust benchmark.

What are the specific risks associated with awarding a medical services contract on a sole-source basis?

Awarding a medical services contract on a sole-source basis carries several risks. Primarily, it eliminates the potential for cost savings that competition typically generates, meaning taxpayers may be overpaying for the services. It also reduces the incentive for the contractor to offer the best possible price or service quality, as there is no direct competitor to outperform. Furthermore, it limits the government's ability to explore innovative solutions or specialized capabilities that other vendors might offer. This approach can also raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or a lack of due diligence in securing the best value.

What is the expected effectiveness of Seven Corners Inc. in delivering comprehensive medical services at FCI Talladega?

The expected effectiveness of Seven Corners Inc. in delivering comprehensive medical services at FCI Talladega cannot be definitively assessed solely based on the provided contract data. Effectiveness hinges on the contractor's operational capacity, clinical expertise, adherence to protocols, and ability to manage patient care within the correctional setting. While the firm-fixed-price structure and purchase order award indicate a defined scope and payment, the actual delivery of care will depend on the quality of their medical staff, administrative processes, and responsiveness to inmate health needs. Performance metrics and oversight by the Bureau of Prisons will be critical indicators of their effectiveness throughout the contract period.

What has been the historical spending pattern for medical services at FCI Talladega?

The provided data does not include historical spending patterns for medical services at FCI Talladega. This specific contract is for a 98-day period starting January 1, 2026, and ending April 9, 2026. To understand historical spending, one would need to access previous contract awards for medical services at this facility, noting the contractors, durations, values, and any modifications or renewals. Analyzing past expenditures would reveal trends, identify potential cost increases or decreases over time, and provide context for the current contract's value and necessity.

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: 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: $9,379

Exercised Options: $9,379

Current Obligation: $9,379

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline