US Marshals Service awards $105M contract for nationwide prisoner healthcare services to Heritage Health Solutions, Inc

Contract Overview

Contract Amount: $104,962,488 ($105.0M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2021-10-27

End Date: 2022-09-30

Contract Duration: 338 days

Daily Burn Rate: $310.5K/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 $105.0 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 continued healthcare access for individuals in USMS custody. 2. Services encompass a nationwide healthcare delivery system. 3. The contract is a firm-fixed-price delivery order, indicating predictable costs for the government. 4. Duration of the contract is 338 days, suggesting a short-term or bridge requirement. 5. The award was made under full and open competition, implying a broad search for qualified vendors. 6. The contractor, Heritage Health Solutions, Inc., is responsible for providing these essential services.

Value Assessment

Rating: good

The contract value of approximately $105 million for a nationwide prisoner healthcare system over roughly one year appears reasonable given the scope of services. Benchmarking against similar large-scale correctional healthcare contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the ultimate value depends on the quality and efficiency of care delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process typically leads to a more competitive pricing environment and allows the government to select the offer that best meets its requirements. The number of bidders is not specified, but the open competition is a positive indicator for price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential prisoner healthcare services.

Public Impact

Prisoners in USMS custody nationwide will continue to receive necessary healthcare services. The contract ensures continuity of care, preventing disruptions to essential medical treatment. The services provided are critical for maintaining the health and well-being of a vulnerable population. This contract supports the operational mission of the U.S. Marshals Service by addressing a key logistical and humanitarian requirement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen medical needs arise beyond the initial SOW.
Ensuring consistent quality of care across a nationwide network presents logistical challenges.
Dependence on a single contractor for a critical service requires robust performance monitoring.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
The contract addresses a critical and ongoing need for prisoner healthcare.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on correctional healthcare services. The market for providing medical care within correctional facilities is specialized, often involving government contracts. The value of this single award is substantial, reflecting the complexity and scale of managing healthcare for a federal prisoner population across the United States. Comparable spending benchmarks would likely be found in other large federal or state correctional healthcare contracts.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large-scale, nationwide service contract, it is possible that larger prime contractors are involved. Further analysis would be needed to determine if small businesses are participating in the supply chain or if there are opportunities for them within this contract's execution.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Marshals Service contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with the Statement of Work (SOW), and managing payments. Transparency is generally maintained through contract award databases, but detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Potential for inconsistent quality of care across diverse locations.
Risk of contractor underperformance impacting prisoner health outcomes.
Need for robust oversight to ensure adherence to SOW and quality standards.
Dependence on a single vendor for a critical, nationwide service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $105.0 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 $105.0 million.

What is the period of performance?

Start: 2021-10-27. End: 2022-09-30.

What is the track record of Heritage Health Solutions, Inc. in managing large-scale correctional healthcare contracts?

Heritage Health Solutions, Inc. has a history of providing healthcare services to correctional facilities and government agencies. Their experience in managing complex, nationwide healthcare delivery systems is crucial for fulfilling the requirements of this U.S. Marshals Service contract. Assessing their past performance, including any previous contract awards, client satisfaction, and any documented issues or successes, would provide valuable insight into their capability to deliver these services effectively. A review of their financial stability and operational capacity is also important for a contract of this magnitude.

How does the per-prisoner cost of this contract compare to similar federal or state correctional healthcare contracts?

To benchmark the per-prisoner cost, we would need to know the average daily population of prisoners served under this contract and the contract's total value over its duration. Assuming the $105 million contract covers the full 338-day period and serves an average of, for example, 10,000 prisoners, the daily per-prisoner cost would be approximately $31.06 ($105,000,000 / 338 days / 10,000 prisoners). This figure can then be compared to publicly available data on per-prisoner healthcare costs in other federal (e.g., BOP) or state correctional systems. Variations in medical needs, service scope, and geographic distribution can significantly impact these comparisons.

What are the primary risks associated with a nationwide prisoner healthcare delivery system contract?

Key risks include ensuring consistent quality of care across diverse geographic locations, managing the logistical complexities of a nationwide network, potential for unexpected increases in healthcare utilization or costs, contractor performance issues, and maintaining adequate oversight. For a prisoner population, there are also risks related to managing chronic conditions, mental health services, and potential outbreaks of infectious diseases. The firm-fixed-price nature of this contract could also pose a risk if the contractor underestimates the actual cost of providing care, potentially leading to service quality compromises if not adequately monitored.

How effective is the firm-fixed-price contract type in ensuring value for money for prisoner healthcare?

A firm-fixed-price (FFP) contract aims to provide cost certainty for the government by establishing a set price for the services. This contract type is generally preferred when the scope of work is well-defined and the risks of cost overruns are manageable. For prisoner healthcare, an FFP contract can be effective in controlling overall expenditure, as the contractor assumes the risk of cost overruns. However, it is crucial that the Statement of Work (SOW) is comprehensive and that robust performance monitoring is in place to ensure the contractor does not cut corners on quality or scope to maintain profitability, which could negate the value-for-money objective.

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

Analyzing historical spending data for the U.S. Marshals Service (USMS) on prisoner healthcare is essential for context. This $105 million award for a 338-day period suggests a significant annual expenditure. Understanding previous contract values, durations, and awarded contractors for similar services would reveal trends in spending, potential cost increases over time, and the stability of the vendor landscape. For instance, if previous contracts were significantly smaller or shorter, this award might indicate an expansion of services, an increase in the prisoner population, or a shift in contracting strategy. Without specific historical data, it's difficult to assess if this award represents an increase or decrease in spending relative to past needs.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: $104,962,488

Exercised Options: $104,962,488

Current Obligation: $104,962,488

Actual Outlays: $17,467,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline