DOJ awards $6M contract for hospital services to Naphcare LLC, with a 30-day duration

Contract Overview

Contract Amount: $6,000 ($6.0K)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2026-05-01

End Date: 2026-05-31

Contract Duration: 30 days

Daily Burn Rate: $200/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 MAY ONSITE NAPHCARE 15BFA022D00000002 UEI: GB3CE4QXH6A4 DUNS: 004677399

Place of Performance

Location: GREENVILLE, BOND County, ILLINOIS, 62246

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $6,000 to NAPHCARE LLC for work described as: FY26 MAY ONSITE NAPHCARE 15BFA022D00000002 UEI: GB3CE4QXH6A4 DUNS: 004677399 Key points: 1. Contract awarded for general medical and surgical hospital services. 2. Naphcare LLC, the contractor, has a single delivery order under this contract. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. The contract is for a short duration of 30 days. 5. The award was made under full and open competition. 6. The contract is for services in Illinois.

Value Assessment

Rating: fair

The contract value of $6 million for a 30-day period appears high for a single delivery order. Benchmarking against similar contracts for hospital services, especially for short-term needs, is crucial to assess value for money. Without more context on the scope of services and patient volume, it's difficult to definitively assess if the pricing is competitive or if this represents a fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type generally promotes price discovery and potentially better pricing for the government. The agency's approach to competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, potentially leading to cost savings and access to a broader pool of qualified providers.

Public Impact

Inmates within the Federal Prison System in Illinois will receive general medical and surgical hospital services. The services are crucial for maintaining the health and well-being of the incarcerated population. The contract directly impacts the healthcare delivery within federal correctional facilities. The geographic impact is limited to Illinois, specifically where the services are rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for a short-term contract requires scrutiny.
Lack of detailed service scope makes value assessment difficult.
Potential for price gouging if competition was not robust despite 'full and open' designation.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Firm Fixed Price contract type provides cost certainty.
Contract addresses essential healthcare needs for a vulnerable population.

Sector Analysis

The healthcare sector, specifically within correctional facilities, is a critical area of government spending. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) industry. While the overall market for hospital services is vast, contracts for federal prisons are a specialized niche. Benchmarking this $6 million, 30-day contract against other federal prison healthcare contracts or similar short-term, high-intensity service agreements would provide better context for its value.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. The focus was on full and open competition, which may include small businesses if they were competitive.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates Naphcare LLC to deliver specified services at the agreed-upon price. Transparency is generally maintained through contract databases, though detailed performance metrics and specific oversight activities are not publicly detailed in this summary.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Inmate Health Services
General Medical and Surgical Hospitals

Risk Flags

High Cost for Short Duration
Limited Scope Detail
Potential for Price Inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $6,000 to NAPHCARE LLC. FY26 MAY ONSITE NAPHCARE 15BFA022D00000002 UEI: GB3CE4QXH6A4 DUNS: 004677399

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 $6,000.

What is the period of performance?

Start: 2026-05-01. End: 2026-05-31.

What is the specific scope of medical and surgical services to be provided under this $6 million, 30-day contract?

The provided data indicates the contract is for 'General Medical and Surgical Hospitals' (NAICS 622110) services. However, the specific scope of services, such as the types of surgeries, diagnostic procedures, inpatient care levels, and staffing requirements, is not detailed in the summary. This level of detail is crucial for a comprehensive understanding of the contract's purpose and for accurately benchmarking its value against comparable services. Without this information, it's difficult to ascertain if the $6 million is justified for the 30-day period.

How does the $6 million cost for a 30-day hospital services contract compare to similar contracts awarded by the Bureau of Prisons or other federal agencies?

Benchmarking this contract's cost requires comparing it to similar services provided within federal correctional facilities or other government healthcare contracts of comparable scope and duration. A $6 million expenditure for a single month of hospital services suggests a high volume of patients or highly specialized, resource-intensive care. Without access to a database of comparable federal contracts, it is challenging to definitively state whether this represents a competitive price. However, the cost per day is approximately $200,000, which warrants further investigation into the specific services and patient needs driving this figure.

What was the competitive landscape for this 'full and open competition' award, and how many bids were received?

While the contract was awarded under 'full and open competition,' the specific number of bids received is not detailed in the provided data. This information is critical for assessing the effectiveness of the competition. A high number of responsive bids typically indicates robust market interest and can lead to better price negotiation for the government. Conversely, a low number of bids, even under full and open competition, might suggest challenges in the market or the specific requirements, potentially impacting price discovery and value for taxpayers.

What is Naphcare LLC's track record with the Federal Bureau of Prisons or similar government healthcare contracts?

Naphcare LLC is a known provider of correctional healthcare services. Their track record with the Federal Bureau of Prisons (BOP) and other state and local correctional agencies would be a key factor in the award decision. Information regarding their past performance, including any history of contract disputes, quality of care issues, or cost overruns on previous government contracts, would be essential for a thorough risk assessment. The fact that this is a single delivery order suggests it might be a new or specific need rather than a long-term, broad contract.

What are the potential risks associated with a high-value, short-duration contract for essential medical services in a federal prison?

A significant risk with a high-value, short-duration contract like this is the potential for inflated pricing due to the time sensitivity and the critical nature of the services. If the competition was not sufficiently robust or if the scope was not precisely defined, the contractor might leverage the situation. Another risk involves ensuring continuity and quality of care, especially if this is a temporary measure or a bridge to a more permanent solution. Ensuring proper oversight and performance monitoring within such a compressed timeframe is also challenging.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2090 COLUMBIANA RD, SUITE 4000, BIRMINGHAM, AL, 35216

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,000

Exercised Options: $6,000

Current Obligation: $6,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA022D00000002

IDV Type: IDC

Timeline