DOJ's $2.58M medical services contract for federal prisons awarded to NAPHCARE LLC

Contract Overview

Contract Amount: $258,522 ($258.5K)

Contractor: Naphcare LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 NAPHCARE COMP MEDICAL APR 26 MISSION ESSENTIAL

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $258,522 to NAPHCARE LLC for work described as: FY26 B2 NAPHCARE COMP MEDICAL APR 26 MISSION ESSENTIAL Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration is short (29 days), suggesting it may be for immediate or temporary needs. 3. The fixed-price contract type offers cost certainty but may limit flexibility if needs change. 4. The agency's justification for not competing the award warrants further scrutiny. 5. The specific medical services provided are not detailed, making direct value assessment challenging. 6. The contract's value is relatively small in the context of overall federal healthcare spending.

Value Assessment

Rating: fair

The contract value of $2.58 million for a 29-day period appears high on a daily basis, though without specific service details, a direct comparison is difficult. Given the lack of competition, it's challenging to benchmark pricing against market rates or similar contracts. The agency's rationale for a sole-source award needs to be robust to justify this expenditure without competitive pressure to ensure optimal value for taxpayer funds.

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. The justification for this approach is critical to understanding why other qualified contractors were not solicited. A sole-source award typically indicates a unique capability or an urgent need that cannot be met through competitive means, but it also removes the downward price pressure that competition usually provides.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive bidding process to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

Inmates within the Federal Prison System in Illinois will receive essential medical services. The contract ensures continuity of care for a critical population. The services provided are vital for maintaining the health and safety of incarcerated individuals. The contract supports the operational mission of the Bureau of Prisons by ensuring healthcare is available.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited transparency into the specific services and their necessity.
Potential for cost overruns if needs exceed initial assumptions without competitive adjustments.

Positive Signals

Addresses a mission-essential need for inmate healthcare.
Fixed-price contract provides budget certainty for the specified period.
Awarded to a single, presumably capable, provider for a defined service period.

Sector Analysis

This contract falls within the Healthcare sector, specifically the provision of medical services within institutional settings. The market for correctional healthcare is specialized, often involving contracts with a limited number of providers experienced in this unique environment. Benchmarking this contract's value is difficult without more granular data on the scope of services and patient volume, but it represents a small fraction of the overall federal spending on healthcare services.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award further suggests that small businesses were likely not considered or solicited as part of a competitive process. This contract does not appear to contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) within the Department of Justice. Accountability measures would be tied to the terms of the purchase order, including service delivery standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justifications.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Department of Justice Medical Services
Correctional Facility Healthcare

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency into specific services provided.
High daily cost warrants further justification.
Short duration may indicate temporary or urgent need, requiring careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $258,522 to NAPHCARE LLC. FY26 B2 NAPHCARE COMP MEDICAL APR 26 MISSION ESSENTIAL

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 $258,522.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What specific medical services are included in this $2.58 million contract?

The provided data does not specify the exact medical services covered under this contract. It is identified under NAICS code 622110 (General Medical and Surgical Hospitals), suggesting a broad range of services. However, without a detailed statement of work, it is impossible to ascertain if the contract covers primary care, specialized treatments, emergency services, or a combination thereof. This lack of specificity hinders a thorough analysis of the contract's value and necessity.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT COMPETED'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or when the agency determines it is necessary to award to a specific contractor due to urgent and compelling reasons. A detailed justification document should exist within the agency outlining the rationale. Without access to this justification, it is difficult to assess whether this was the most appropriate procurement method and if it served the government's best interest in terms of cost and quality.

How does the daily cost of this contract compare to similar correctional healthcare services?

The contract is valued at $2,585,220 for a 29-day period, equating to approximately $89,145 per day. Benchmarking this daily rate against similar correctional healthcare contracts is challenging without knowing the specific services rendered, the patient population size, and the geographic location's cost of living and labor. However, this daily rate appears substantial, underscoring the importance of understanding the scope of services and the justification for the sole-source award to ensure value for money.

What is NAPHCARE LLC's track record with the Federal Bureau of Prisons or similar agencies?

NAPHCARE LLC is a known provider of correctional healthcare services. While this specific contract is a purchase order for a short duration, the company has a history of serving federal and state correctional facilities. A deeper dive into their past performance, including any past performance evaluations, contract disputes, or successful contract completions with the Bureau of Prisons or other government entities, would provide further insight into their reliability and capability for this mission-essential service.

What are the potential risks associated with a sole-source, short-term contract for essential medical services?

The primary risks associated with a sole-source, short-term contract for essential medical services include potentially higher costs due to the lack of competition, and the risk of service disruption if the contractor fails to perform or if the contract is not renewed or replaced effectively. For a short-term contract like this (29 days), there's also a risk that it might be used to circumvent competitive procurement processes for ongoing needs. Ensuring adequate oversight and contingency planning is crucial.

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: 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: $258,522

Exercised Options: $258,522

Current Obligation: $258,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline