DOJ's $300K contract for medical care at USP IOWA highlights sole-source procurement for essential services

Contract Overview

Contract Amount: $300,000 ($300.0K)

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: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B2 NAPHCARE OUTSIDE MEDICAL CARE APR 26 MISSION ESSENTIAL

Place of Performance

Location: CLINTON, CLINTON County, IOWA, 52732

State: Iowa Government Spending

Plain-Language Summary

Department of Justice obligated $300,000 to NAPHCARE LLC for work described as: FY26 B2 NAPHCARE OUTSIDE MEDICAL CARE APR 26 MISSION ESSENTIAL Key points: 1. The contract's value, while modest, represents a critical component of inmate welfare and operational continuity. 2. Sole-source procurement suggests a lack of readily available alternatives or a specific need met by NAPHCARE LLC. 3. The short duration (29 days) indicates a potential need for interim services or a bridge to a longer-term solution. 4. Fixed-price contract type offers cost certainty for the government, assuming scope is well-defined. 5. The absence of small business considerations in this specific award warrants further examination of subcontracting opportunities. 6. Performance context is limited to essential medical care, a high-stakes service within correctional facilities.

Value Assessment

Rating: fair

Benchmarking this specific $300,000 purchase order for a 29-day period is challenging due to its limited scope and sole-source nature. However, the cost appears reasonable for providing essential medical services within a federal correctional facility, where specialized staffing and security protocols are required. Without comparable bids or a longer-term contract for similar services, a definitive value-for-money assessment is difficult. The fixed-price structure provides cost predictability.

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 is typically used when a specific contractor possesses unique capabilities, or when there is an urgent need that cannot be met through a competitive process. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may not receive the benefit of competitive pricing, as the government did not leverage market dynamics to secure the best possible rate for these essential medical services.

Public Impact

Inmates at USP IOWA will receive essential medical care, ensuring their health and well-being. The contract supports the operational stability of the Federal Prison System by addressing healthcare needs. This service directly impacts the daily lives and health outcomes of the incarcerated population. The contract ensures continuity of care, preventing potential disruptions to inmate health services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Short contract duration raises questions about long-term planning and potential for recurring sole-source awards.
Lack of small business participation noted in this specific award.

Positive Signals

Ensures critical medical services are provided to a vulnerable population.
Fixed-price contract offers budget certainty for the specified period.
Addresses an essential function of the correctional facility.

Sector Analysis

The healthcare sector within federal prisons is a critical but often specialized market. This contract falls under general medical and surgical hospitals (NAICS 622110), serving a unique patient population with specific needs. The market for correctional healthcare is characterized by a need for providers who can operate within secure environments, often involving sole-source or limited competition due to security and specialized operational requirements. Spending in this area is essential for maintaining facility operations and inmate welfare.

Small Business Impact

This specific award was not competed and there is no indication of a small business set-aside. While this particular purchase order may not have direct small business subcontracting implications, the Bureau of Prisons generally aims to utilize small businesses where feasible in larger, competed contracts. Further analysis would be needed to understand the overall small business utilization strategy for medical services within the agency.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) contracting officers and program managers. The Department of Justice's Office of the Inspector General (OIG) also has jurisdiction to investigate potential fraud, waste, or abuse in federal contracts. Transparency is facilitated through contract databases like FPDS, though the sole-source nature limits detailed public insight into the justification and pricing negotiations.

Related Government Programs

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

Risk Flags

Sole-source justification requires scrutiny.
Short contract duration may indicate interim solution or potential for recurring sole-source awards.
Limited public data on performance and pricing benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $300,000 to NAPHCARE LLC. FY26 B2 NAPHCARE OUTSIDE MEDICAL CARE 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 $300,000.

What is the period of performance?

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

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

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). For this contract, potential reasons could include an urgent need for medical services at USP IOWA that could not be met through a competitive process within the required timeframe, or NAPHCARE LLC possessing unique capabilities, qualifications, or existing infrastructure essential for providing these services in a correctional environment. The Bureau of Prisons would have documented this justification, often citing FAR Part 6, which governs competitive contracting, and its exceptions. Without access to the specific Justification and Approval (J&A) document, the precise rationale remains speculative, but it is a prerequisite for non-competitive awards.

How does the $300,000 cost for 29 days of medical care compare to similar contracts or market rates?

Directly comparing this $300,000 purchase order for a 29-day period is difficult due to its limited duration and sole-source nature. Standard market rates for general medical and surgical hospitals (NAICS 622110) vary significantly based on location, services offered, and patient population. However, providing comprehensive medical care within a federal prison involves specialized staffing, security protocols, and logistical challenges that often command a premium compared to civilian healthcare settings. The fixed-price nature suggests a defined scope of services. A more robust comparison would require analyzing historical BOP contracts for similar facilities or services, or benchmarking against specialized correctional healthcare providers, which are not readily available in the public domain for this specific, short-term award.

What are the potential risks associated with a sole-source contract for essential inmate medical care?

Sole-source contracts for essential inmate medical care present several risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures of a competitive bidding process. Secondly, it may limit the government's access to innovative solutions or potentially more efficient service providers that could emerge in a competitive market. Thirdly, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially weakening its negotiating position for future contracts. Finally, without the scrutiny of multiple bidders, there's a heightened need for robust internal oversight to ensure the quality of care and adherence to contract terms.

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

NAPHCARE LLC is a known provider of correctional healthcare services. While specific details of their performance at USP IOWA under this particular purchase order are not publicly available, the company has a history of contracting with various federal, state, and local correctional agencies. Assessing their overall track record would involve reviewing past performance evaluations, any documented disputes or contract terminations, and their history of compliance with healthcare regulations and correctional standards across their portfolio of contracts. Information on their performance at other Bureau of Prisons facilities or similar institutions would provide a broader context for their capabilities and reliability.

What is the historical spending pattern for medical care at USP IOWA or similar Bureau of Prisons facilities?

Historical spending data for medical care at USP IOWA or similar Bureau of Prisons (BOP) facilities is crucial for context. While this specific $300,000 purchase order is for a short, 29-day period, understanding the typical annual or multi-year expenditure for comprehensive medical services at this institution would reveal trends. Analyzing past contracts, including their value, duration, and whether they were competed or sole-sourced, can indicate patterns of reliance on specific vendors, fluctuations in costs, and the overall budget allocated to inmate healthcare. Without access to detailed historical BOP spending reports specific to USP IOWA, it's challenging to establish a precise spending pattern, but such data would be vital for evaluating the reasonableness of current and future contract awards.

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: $300,000

Exercised Options: $300,000

Current Obligation: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline