US Marshals Service awards $80.5M contract for nationwide prisoner healthcare services to Heritage Health Solutions

Contract Overview

Contract Amount: $80,485,764 ($80.5M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2018-10-19

End Date: 2019-09-30

Contract Duration: 346 days

Daily Burn Rate: $232.6K/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 $80.5 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. Contract aims to ensure continuous healthcare for federal prisoners across the US. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration is approximately one year, indicating a need for ongoing service provision. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. This contract falls under the 'Healthcare' sector, specifically for correctional facilities. 6. The scale of the contract suggests a significant operational footprint for the awarded vendor.

Value Assessment

Rating: good

The contract value of $80.5 million for a nationwide prisoner healthcare delivery system over approximately one year appears to be within a reasonable range for such a large-scale operation. Benchmarking against similar contracts for correctional healthcare services would provide a more precise value-for-money assessment. However, the fixed-price structure suggests the government has negotiated a set cost, which can be advantageous if the contractor manages costs effectively. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging.

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. This suggests a competitive environment where multiple vendors likely vied for the contract. The level of competition is a positive sign for price discovery, as it encourages bidders to offer competitive pricing to win the award. The specific number of bidders is not provided, but the designation implies a healthy market response.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by fostering a market where contractors must offer their best value to secure the contract.

Public Impact

Federal prisoners in USMS custody nationwide will receive essential healthcare services. The contract ensures continuity of care, preventing disruptions in medical treatment for detainees. The services delivered are critical for maintaining public health and safety within correctional facilities. The geographic impact is nationwide, covering all USMS-held prisoners. The contract supports a healthcare delivery infrastructure, potentially involving numerous medical professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's operational efficiency is lower than anticipated.
Ensuring consistent quality of care across diverse geographic locations presents a challenge.
Monitoring contractor performance to guarantee adherence to healthcare standards and prisoner welfare.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Fixed-price contract shifts financial risk to the contractor.
Nationwide scope indicates a comprehensive approach to prisoner healthcare.

Sector Analysis

This contract operates within the Healthcare sector, specifically focusing on correctional healthcare services. The market for providing medical care to incarcerated populations is specialized, often involving government contracts due to the unique environment and security requirements. Comparable spending benchmarks would typically involve other federal, state, and local correctional systems procuring similar services. The scale of this contract suggests it is a significant award within this niche.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans, it's difficult to assess the broader impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service contracting officer and their representatives. Accountability measures would be embedded within the contract's Statement of Work (SOW), outlining performance standards and remedies for non-compliance. Transparency is generally facilitated through contract award databases and public reporting, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
State Department of Corrections Healthcare Services
Immigration and Customs Enforcement Detention Healthcare

Risk Flags

Potential for service disruption if contractor fails to perform.
Ensuring consistent quality of care nationwide.
Risk of vendor lock-in due to single-award nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $80.5 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 $80.5 million.

What is the period of performance?

Start: 2018-10-19. End: 2019-09-30.

What is the historical spending pattern for prisoner healthcare services by the U.S. Marshals Service?

Analyzing historical spending patterns for prisoner healthcare by the U.S. Marshals Service (USMS) is crucial for understanding the context of the $80.5 million award to Heritage Health Solutions. While specific historical data is not provided, general trends in correctional healthcare spending often show increases due to rising healthcare costs, aging inmate populations requiring more complex care, and evolving medical standards. The USMS, responsible for managing a large and transient prisoner population, would likely have consistent and substantial healthcare expenditures. Comparing this $80.5 million award to previous years' spending would reveal whether this represents an increase, decrease, or stable investment in prisoner healthcare. Fluctuations could be attributed to changes in prisoner population size, contract scope, or vendor pricing. A detailed analysis would require access to USMS budget documents and prior contract awards in this category.

How does the per-unit cost of healthcare services under this contract compare to industry benchmarks for correctional facilities?

Determining the per-unit cost of healthcare services under this $80.5 million contract requires defining the 'unit' and having detailed service delivery data, which is not fully available. Units could be defined as cost per prisoner per day, cost per medical encounter, or cost per specific procedure. Without this granular data, a direct comparison to industry benchmarks for correctional facilities is challenging. However, the contract's fixed-price nature suggests an attempt to control these per-unit costs. Generally, correctional healthcare costs can be higher than community-based care due to security requirements, specialized facilities, and the often complex health needs of the incarcerated population. Benchmarking would involve comparing the contractor's proposed cost structure against data from similar-sized contracts or aggregated data from other federal, state, or local correctional systems. A significant deviation from established benchmarks, either higher or lower, would warrant further investigation into the underlying cost drivers and service scope.

What are the key performance indicators (KPIs) used to evaluate Heritage Health Solutions' performance under this contract?

Key Performance Indicators (KPIs) are essential for evaluating the performance of Heritage Health Solutions in delivering nationwide prisoner healthcare services under the $80.5 million contract. While specific KPIs are not detailed in the provided summary, typical metrics in correctional healthcare contracts include: timeliness of medical appointments (e.g., sick call response time), rates of preventable conditions or hospital readmissions, adherence to medication protocols, patient satisfaction surveys (where feasible), infection control rates, and compliance with established medical standards and accreditation requirements. The contract's Statement of Work (SOW) would outline these specific KPIs, along with acceptable performance thresholds and potential penalties for failing to meet them. The U.S. Marshals Service would monitor these KPIs to ensure the quality, accessibility, and appropriateness of care provided to prisoners in their custody.

What is the track record of Heritage Health Solutions in managing large-scale government healthcare contracts, particularly in correctional settings?

Heritage Health Solutions, Inc. has a history of managing government healthcare contracts, including those within correctional settings. Prior to this $80.5 million USMS contract, the company has been involved in providing healthcare services to correctional populations in various jurisdictions. Assessing their track record involves examining past contract performance, including adherence to schedules, quality of services delivered, cost management, and any history of disputes or contract terminations. Information from contract databases and government audit reports can provide insights into their operational capabilities and reliability. A positive track record would indicate a lower risk for the USMS, suggesting Heritage Health Solutions possesses the necessary infrastructure, expertise, and management capacity to fulfill the requirements of this nationwide prisoner healthcare delivery system.

What are the potential risks associated with a nationwide, single-award contract for prisoner healthcare?

A nationwide, single-award contract for prisoner healthcare, such as the $80.5 million award to Heritage Health Solutions by the USMS, carries several potential risks. Firstly, there's a risk of vendor over-reliance; if Heritage Health Solutions faces operational challenges, financial difficulties, or fails to perform adequately, the entire nationwide system could be disrupted, leaving the USMS with limited immediate alternatives. Secondly, a single award might reduce competitive pressure over time, potentially leading to less innovation or less aggressive pricing in future contract renewals. Thirdly, ensuring consistent quality of care across diverse geographic locations and varying facility needs presents a significant management challenge for both the contractor and the overseeing agency. Finally, the sheer scale of the contract means that any failure in service delivery could have widespread implications for prisoner welfare, public health, and the operational capacity of the USMS.

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: $85,485,764

Exercised Options: $85,485,764

Current Obligation: $80,485,764

Actual Outlays: $13,667,016

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline