DOJ's $164K contract for off-site medical services awarded to Seven Corners Inc. raises value and competition questions

Contract Overview

Contract Amount: $164,220 ($164.2K)

Contractor: Seven Corners Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-04-03

Contract Duration: 184 days

Daily Burn Rate: $892/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SEVEN CORNERS OFF SITE SERVICES B2 OCTOBER FY 26

Place of Performance

Location: CARROLLTON, PICKENS County, ALABAMA, 35447

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $164,219.85 to SEVEN CORNERS INC for work described as: SEVEN CORNERS OFF SITE SERVICES B2 OCTOBER FY 26 Key points: 1. The contract's value proposition is unclear given the lack of competitive bidding. 2. Limited competition suggests potential for overpayment and reduced service quality. 3. The short duration of the contract may indicate a need for ongoing evaluation. 4. Performance context is limited due to the sole-source nature of the award. 5. This contract falls within the healthcare sector, specifically supporting federal correctional facilities. 6. The award method warrants scrutiny regarding its justification for not being competed.

Value Assessment

Rating: questionable

The awarded amount of $164,219.85 for off-site medical services over approximately six months appears high without a competitive benchmark. Given the contract was not competed, it is difficult to assess if this price represents fair market value. Comparisons to similar contracts for off-site medical support within federal correctional systems are needed to determine if this pricing is reasonable or if taxpayers are potentially overpaying.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided, but it implies that only one vendor, Seven Corners Inc., was considered capable of meeting the requirement. This lack of competition limits the government's ability to secure the best possible pricing and service terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no pressure on the contractor to offer competitive pricing. It also reduces transparency in the procurement process.

Public Impact

Inmates within the Federal Prison System will benefit from access to off-site medical services. The contract ensures the provision of general medical and surgical hospital services. Services are geographically located in Alabama, impacting inmates within that state's facilities. The contract supports the operational needs of the Bureau of Prisons by outsourcing certain medical care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award raises concerns about the availability of qualified alternative vendors.
Limited transparency in the procurement process hinders accountability.

Positive Signals

Contract aims to fulfill critical medical needs for federal inmates.
Awarding to an established entity like Seven Corners Inc. may ensure some level of service reliability.

Sector Analysis

This contract operates within the healthcare services sector, specifically catering to the unique needs of federal correctional facilities. The market for correctional healthcare is specialized, often involving contracts for both on-site and off-site medical support. Benchmarking this contract against other sole-source or limited-competition awards for similar services within the Bureau of Prisons or other federal agencies would be informative.

Small Business Impact

The data indicates this contract was not competed and does not appear to have a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus remains on the prime contractor, Seven Corners Inc.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management officials. Accountability measures would be tied to the terms and conditions of the purchase order, including service delivery standards and payment schedules. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Contracts
Off-site Healthcare Services for Inmates
Department of Justice Healthcare Procurement

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $164,219.85 to SEVEN CORNERS INC. SEVEN CORNERS OFF SITE SERVICES B2 OCTOBER FY 26

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 $164,219.85.

What is the period of performance?

Start: 2025-10-01. End: 2026-04-03.

What is the specific justification for awarding this contract on a sole-source basis to Seven Corners Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as only one responsible source being available, or an urgent and compelling need that would be compromised by competitive bidding. For this contract, the Department of Justice's Bureau of Prisons would need to document why Seven Corners Inc. was the only viable option and why competition was not feasible or advantageous. Without this documentation, it is difficult to assess the validity of the sole-source determination and ensure taxpayer funds are being used efficiently.

How does the pricing of this contract compare to similar off-site medical services procured by the Bureau of Prisons or other federal agencies?

Direct comparison of pricing is challenging without access to detailed service level agreements and specific medical procedures covered under this $164,219.85 contract. However, given the sole-source nature, there is a heightened risk that the pricing may not be as competitive as it would be in a fully competed environment. To perform a robust comparison, one would need to identify contracts with similar scope, duration, and patient population within the federal correctional system and analyze their per-diem rates, procedure costs, and administrative fees. Benchmarking against commercial healthcare providers offering similar off-site services in Alabama could also provide context, though the unique demands of correctional healthcare may necessitate different pricing structures.

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

Awarding medical services on a sole-source basis carries several potential risks. Firstly, it eliminates the competitive pressure that typically drives down prices, potentially leading to higher costs for the government and taxpayers. Secondly, it reduces the incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements, as there is no threat of losing the contract to a competitor. Thirdly, it can limit the government's access to potentially better or more specialized services offered by other qualified providers. Finally, a lack of transparency in the procurement process can raise concerns about fairness and potential impropriety.

What is the track record of Seven Corners Inc. in providing services to the federal government, particularly the Bureau of Prisons?

Information regarding Seven Corners Inc.'s specific track record with the Bureau of Prisons or other federal agencies is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes in fulfilling federal contracts. Seven Corners Inc. is known as a global travel insurance and assistance company, which may include medical support services. Understanding their experience in the unique environment of correctional healthcare is crucial for evaluating the suitability and reliability of this award.

What is the historical spending pattern for off-site medical services by the Federal Prison System?

The provided data only pertains to a single contract award for FY26. To understand historical spending patterns for off-site medical services by the Federal Prison System, one would need to analyze contract data over multiple fiscal years. This would involve identifying all contracts related to off-site medical care, their values, durations, and the contractors involved. Trends in spending, the prevalence of sole-source versus competed awards, and average costs per service or per inmate could then be identified. Such an analysis would help determine if spending on these services is increasing, decreasing, or remaining stable, and whether the current award aligns with historical norms.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

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: 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: $164,220

Exercised Options: $164,220

Current Obligation: $164,220

Actual Outlays: $127,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline