US Marshals Service awards $102M contract for nationwide prisoner healthcare system to Heritage Health Solutions

Contract Overview

Contract Amount: $102,072,562 ($102.1M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2020-10-01

End Date: 2021-09-30

Contract Duration: 364 days

Daily Burn Rate: $280.4K/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: COPPELL, DALLAS County, TEXAS, 75019

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $102.1 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 ensure continuous healthcare services for prisoners in USMS custody. 2. Heritage Health Solutions, Inc. is the sole awardee for this delivery order. 3. The contract value is substantial, reflecting the complexity of nationwide healthcare delivery. 4. This award falls under the Direct Health and Medical Insurance Carriers sector.

Value Assessment

Rating: good

The contract value of $102M for a nationwide system is significant. Benchmarking against similar large-scale healthcare delivery contracts for correctional facilities would be necessary for a precise value 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. The specific pricing mechanisms and discovery during this process are not detailed here, but the method implies an effort to achieve fair market value.

Taxpayer Impact: Taxpayer funds are being used to ensure essential healthcare 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 centralized, specialized provider compared to fragmented local care. Impacts the healthcare services available to a vulnerable population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a complex, nationwide system.
Dependence on a single contractor for critical health services.
Ensuring consistent quality of care across diverse geographic locations.

Positive Signals

Awarded through full and open competition.
Addresses a critical need for prisoner healthcare.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract operates within the healthcare sector, specifically focusing on correctional healthcare services. Benchmarks for similar nationwide correctional healthcare contracts are not readily available but would likely be in the tens to hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee is a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The U.S. Marshals Service is responsible for overseeing this contract. Robust oversight mechanisms will be crucial to ensure the quality, cost-effectiveness, and compliance of the healthcare services provided nationwide.

Related Government Programs

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

Risk Flags

Potential for cost escalation if not managed tightly.
Ensuring consistent quality of care across diverse locations.
Dependence on a single provider for critical services.
Complexity of managing a nationwide healthcare system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $102.1 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 $102.1 million.

What is the period of performance?

Start: 2020-10-01. End: 2021-09-30.

What specific performance metrics are in place to ensure the quality and timeliness of healthcare services provided to prisoners across all USMS facilities?

The Statement of Work (SOW) would detail specific performance metrics, service level agreements (SLAs), and reporting requirements. These likely include response times for medical requests, availability of specialists, patient satisfaction scores, and adherence to medical standards of care. The USMS would monitor these metrics through regular reviews and audits to ensure contractor compliance and the effective delivery of healthcare.

How does the firm fixed price structure mitigate the risk of cost overruns given the inherent unpredictability of healthcare needs in a correctional environment?

A firm fixed price contract shifts most of the risk to the contractor, obligating them to provide the specified services within the agreed-upon price. While it offers cost certainty to the government, it requires the contractor to accurately estimate all potential costs, including fluctuations in patient needs. The contractor assumes the risk of unforeseen expenses, but the government must ensure the SOW is comprehensive to avoid scope creep or disputes.

What mechanisms are in place to ensure the effectiveness of this nationwide healthcare system in addressing diverse medical needs and geographic challenges?

Effectiveness is likely ensured through a combination of the contractor's established network, credentialing processes for providers, and the USMS's oversight. The SOW would mandate specific service capabilities, referral networks, and potentially telehealth solutions to address geographic disparities. Regular performance reviews and audits by the USMS would assess the system's ability to meet the varied medical requirements of the prisoner population across different regions.

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: $102,072,562

Exercised Options: $102,072,562

Current Obligation: $102,072,562

Actual Outlays: $83,641,932

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline