US Marshals Service awards $64.7M contract for nationwide prisoner healthcare to Heritage Health Solutions

Contract Overview

Contract Amount: $64,685,080 ($64.7M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2017-10-01

End Date: 2018-09-30

Contract Duration: 364 days

Daily Burn Rate: $177.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONTRACTOR SHALL PROVIDE A NATIONWIDE HEALTH CARE DELIVERY SYSTEM THAT WILL CONTINUE TO PROVIDE HEALTH CARE SERVICES FOR PRISONERS HELD IN USMS CUSTODY AS DETAILED IN THE ATTACHED SOW.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $64.7 million to HERITAGE HEALTH SOLUTIONS, INC. for work described as: CONTRACTOR SHALL PROVIDE A NATIONWIDE HEALTH CARE DELIVERY SYSTEM THAT WILL CONTINUE TO PROVIDE HEALTH CARE SERVICES FOR PRISONERS HELD IN USMS CUSTODY AS DETAILED IN THE ATTACHED SOW. Key points: 1. The contract aims to maintain a healthcare delivery system for prisoners in USMS custody. 2. Heritage Health Solutions, Inc. is the sole awardee for this delivery order. 3. The contract value is $64.7 million over a 364-day period. 4. This represents a significant investment in correctional healthcare services.

Value Assessment

Rating: good

The contract value of $64.7 million for a year of nationwide healthcare services appears reasonable given the scope. Benchmarking against similar large-scale correctional healthcare contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and good value for the government.

Taxpayer Impact: Taxpayer funds are being used to ensure essential healthcare services for individuals in federal custody, a necessary but significant expenditure.

Public Impact

Ensures continuity of care for federal prisoners nationwide. Supports the operational needs of the U.S. Marshals Service by outsourcing healthcare provision. Potential for cost savings through a consolidated, nationwide system compared to fragmented approaches. Highlights the government's commitment to providing medical services to detainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if healthcare needs exceed projections.
Dependence on a single contractor for a critical service.
Ensuring quality of care across a diverse and geographically dispersed prisoner population.

Positive Signals

Awarded through full and open competition.
Addresses a critical government function.
Consolidated service delivery may offer efficiencies.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on correctional healthcare. Spending benchmarks for such services can vary widely based on inmate population size, health status, and geographic distribution.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation, Heritage Health Solutions, Inc. There is no indication of small business participation in this specific award.

Oversight & Accountability

The U.S. Marshals Service is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure the contractor meets all service level agreements and provides quality care within budget.

Related Government Programs

Direct Health and Medical Insurance Carriers
Department of Justice Contracting
U.S. Marshals Service Programs

Risk Flags

Potential for cost escalation due to unforeseen medical needs.
Risk of service disruption if contractor fails to perform.
Ensuring consistent quality of care across diverse locations.
Contract duration is relatively short (364 days), requiring potential future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $64.7 million to HERITAGE HEALTH SOLUTIONS, INC.. CONTRACTOR SHALL PROVIDE A NATIONWIDE HEALTH CARE DELIVERY SYSTEM THAT WILL CONTINUE TO PROVIDE HEALTH CARE SERVICES FOR PRISONERS HELD IN USMS CUSTODY AS DETAILED IN THE ATTACHED SOW.

Who is the contractor on this award?

The obligated recipient is HERITAGE HEALTH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $64.7 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-09-30.

What is the projected cost per inmate per day for healthcare services under this contract, and how does it compare to industry averages?

The provided data does not include the inmate population count, making a precise per-inmate cost calculation impossible. However, with a contract value of $64.7 million over approximately 364 days, the average daily cost is roughly $177,706. To benchmark this, one would need to divide this by the average daily inmate population served by the USMS to compare against correctional healthcare cost-per-day averages, which can range significantly.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the quality and timeliness of healthcare delivery?

The provided data does not detail the specific KPIs and SLAs within the Statement of Work (SOW). Effective contract management would require clearly defined metrics for medical services, response times, patient satisfaction, and adherence to healthcare standards. The USMS would need to actively monitor these to ensure the contractor's performance meets expectations and taxpayer value.

How does the pricing structure (firm fixed price) incentivize cost control and efficiency for the contractor while ensuring adequate care?

A firm fixed-price contract places the risk of cost overruns on the contractor, incentivizing them to manage expenses efficiently. For Heritage Health Solutions, Inc., this means controlling healthcare costs for prisoners to maintain profitability. However, it's crucial that the contract includes provisions to prevent cost-cutting measures from compromising the quality or necessity of care provided to inmates.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL 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: 300 PARKER SQ STE 210, FLOWER MOUND, TX, 75028

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $650,849,935

Exercised Options: $650,849,935

Current Obligation: $64,685,080

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline