DOJ awards $181K contract for medical services to Wellpath LLC, highlighting a 523-day duration

Contract Overview

Contract Amount: $181,313 ($181.3K)

Contractor: Wellpath LLC

Awarding Agency: Department of Justice

Start Date: 2024-11-01

End Date: 2026-04-08

Contract Duration: 523 days

Daily Burn Rate: $347/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 B2 WELLPATH LLC OUTSIDE MEDICAL NOV 24

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $181,312.94 to WELLPATH LLC for work described as: FY25 B2 WELLPATH LLC OUTSIDE MEDICAL NOV 24 Key points: 1. Contract value appears reasonable for the specified duration and services, pending detailed benchmarking. 2. Full and open competition suggests a potentially competitive bidding process. 3. Risk indicators are low, with a firm fixed-price structure mitigating cost overrun potential. 4. Performance context is within the Federal Prison System, requiring specialized medical support. 5. Sector positioning is within healthcare services, specifically for correctional facilities.

Value Assessment

Rating: good

The contract value of $181,312.94 over approximately 1.5 years for medical services within a correctional setting appears to be within a reasonable range. Benchmarking against similar contracts for inmate medical care would provide a more precise assessment of value for money. The firm fixed-price nature of the award helps control costs and provides predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency's choice of this method suggests confidence in the market's ability to provide qualified vendors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing through a robust bidding process.

Public Impact

Inmates within the Federal Prison System will receive essential medical services. The contract ensures continuity of care for a vulnerable population. Services are to be delivered in Tennessee, impacting the local inmate population. The contract supports the operational mission of the Bureau of Prisons by ensuring inmate health and well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen medical needs arise beyond the contract's defined services.
Dependence on a single contractor for critical inmate healthcare services.

Positive Signals

Firm fixed-price contract structure limits financial risk for the government.
Full and open competition suggests a potentially competitive pricing environment.
Contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the healthcare services sector, specifically catering to the unique demands of correctional facilities. The market for correctional healthcare is specialized, often involving contracts with large healthcare providers experienced in managing patient populations with complex needs and security considerations. Spending in this niche is driven by the federal and state government's responsibility for inmate welfare.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans. Without specific set-aside requirements or reported subcontracting goals, the direct impact on the small business ecosystem for this particular award is likely minimal, though larger prime contractors may engage small businesses for ancillary services.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) contracting officers and program managers. The firm fixed-price nature provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through contract award databases, and the Inspector General's office for the Department of Justice may conduct audits or investigations if concerns arise regarding performance or compliance.

Related Government Programs

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

Risk Flags

Potential for service gaps if contractor performance falters.
Reliance on external facilities may introduce logistical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $181,312.94 to WELLPATH LLC. FY25 B2 WELLPATH LLC OUTSIDE MEDICAL NOV 24

Who is the contractor on this award?

The obligated recipient is WELLPATH 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 $181,312.94.

What is the period of performance?

Start: 2024-11-01. End: 2026-04-08.

What is the historical spending pattern for medical services within the Federal Prison System, and how does this award compare?

Historical spending on medical services within the Federal Prison System (FPS) has been substantial, reflecting the government's obligation to provide healthcare to inmates. The Bureau of Prisons (BOP) consistently allocates significant funds to meet these needs, often through multi-year contracts. This specific award of $181,312.94 for a 523-day period (approximately 1.5 years) represents a relatively small portion of the overall FPS medical budget. To provide a precise comparison, one would need to analyze the average contract value, duration, and scope of services for similar medical support contracts awarded by the BOP over the past several fiscal years. Factors such as the specific facility, inmate population size, and the range of services covered (e.g., primary care, specialized care, dental) heavily influence individual contract values.

What specific medical services are included under this contract with Wellpath LLC?

The provided data indicates the contract is for 'OUTSIDE MEDICAL' services, with the North American Industry Classification System (NAICS) code 622110 for 'General Medical and Surgical Hospitals.' This suggests that the services procured are likely those that cannot be adequately provided within the confines of the correctional facility's own medical infrastructure. This could encompass a range of services such as specialized diagnostic procedures, consultations with medical specialists not available in-house, off-site treatments, or emergency medical care requiring transfer to external facilities. The exact scope would be detailed in the contract's Statement of Work (SOW), outlining specific procedures, referral protocols, and reporting requirements.

How does the firm fixed-price contract type mitigate risks for the Department of Justice?

A firm fixed-price (FFP) contract type is advantageous for the Department of Justice (DOJ) as it establishes a ceiling price that will not be adjusted upward, regardless of the contractor's actual costs. This significantly mitigates the financial risk of cost overruns for the government. Wellpath LLC is obligated to perform the work for the agreed-upon price. Any increase in their labor, material, or overhead costs during the contract period is absorbed by the contractor. This structure incentivizes the contractor to manage its costs efficiently and perform the work within the budget. The primary risk for the government shifts from cost escalation to ensuring the contractor meets the quality and performance standards outlined in the contract.

What is Wellpath LLC's track record in providing services to federal correctional facilities?

Wellpath LLC is a significant provider of correctional healthcare services across the United States, serving numerous state, local, and federal correctional facilities. Their track record includes managing comprehensive healthcare programs for incarcerated populations, encompassing medical, mental health, and dental services. While this specific award is with the Federal Prison System (FPS), Wellpath has extensive experience with similar contracts. Assessing their performance would involve reviewing past performance evaluations, any documented disputes or contract terminations, and their overall reputation within the correctional healthcare industry. Information on their specific performance with the FPS would be available through federal procurement databases and agency performance records.

What are the potential implications of this contract being awarded in Tennessee?

The contract specifies the place of performance as Tennessee (ST: TN, SN: TENNESSEE). This means the medical services procured will be utilized by inmates within federal correctional facilities located in Tennessee. The implications include ensuring that inmates in these specific facilities have access to necessary external medical care, potentially reducing the burden on any on-site medical staff and ensuring continuity of care. It also means that the economic impact of this contract, in terms of service provision and potential local employment by the contractor, will be concentrated within Tennessee. The Bureau of Prisons relies on such contracts to supplement its healthcare delivery network across its various locations.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15B40820R00000001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Boosted Commerce Inc.

Address: 1283 MURFREESBORO RD STE 500, NASHVILLE, TN, 37217

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $181,313

Exercised Options: $181,313

Current Obligation: $181,313

Actual Outlays: $162,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA022D00000026

IDV Type: IDC

Timeline