US Marshals Service awards $108M contract to Heritage Health Solutions for nationwide prisoner healthcare delivery system

Contract Overview

Contract Amount: $108,048,585 ($108.0M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $296.8K/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 $108.0 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. 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 is valued at over $108 million for a 364-day period. 4. This represents significant spending in the healthcare services sector for correctional facilities.

Value Assessment

Rating: good

The contract value of $108M for a 364-day period appears substantial for providing a nationwide healthcare system. Benchmarking against similar large-scale correctional healthcare contracts would be necessary for a precise pricing 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 award mechanism, a delivery order, implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which can influence price discovery.

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

Public Impact

Ensures continuity of care for federal prisoners nationwide. Potential for improved health outcomes for a vulnerable population. Significant federal investment in correctional healthcare infrastructure. Impacts the healthcare services market for government contracts.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Nationwide scope addresses a critical need.
Full and open competition promotes market efficiency.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on correctional healthcare services. Spending benchmarks for similar nationwide prisoner healthcare systems are difficult to establish due to the unique nature of such comprehensive contracts.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this large contract.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting that oversight mechanisms are likely in place. The U.S. Marshals Service is responsible for ensuring the contractor meets the requirements outlined in the Statement of Work (SOW).

Related Government Programs

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

Risk Flags

Potential for service disruption if contractor fails.
Ensuring consistent quality across diverse locations.
Monitoring contractor performance for a large-scale operation.
High dollar value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $108.0 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 $108.0 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What specific performance metrics are in place to ensure the quality and effectiveness of the healthcare services provided under this contract?

The contract details are limited, but typically, large healthcare contracts include specific performance standards, service level agreements, and reporting requirements. These often cover areas like appointment wait times, access to specialists, medication management, and patient satisfaction. The U.S. Marshals Service would monitor these metrics to ensure the contractor meets its obligations and provides adequate care.

How does the $108M contract value compare to historical spending on similar nationwide prisoner healthcare systems?

Direct comparisons are challenging due to the specific scope and nationwide nature of this contract. However, the value suggests a significant investment. Historical data on correctional healthcare spending, particularly for large federal agencies like the Bureau of Prisons or Immigration and Customs Enforcement, would provide a benchmark for assessing if this award is within expected ranges for comprehensive services.

What are the potential risks associated with a single contractor providing a nationwide healthcare system for federal prisoners?

Key risks include over-reliance on one provider, potentially leading to reduced leverage for the government if issues arise. Service disruptions, quality control challenges across diverse geographic locations, and contractor performance failures could have widespread impacts on prisoner well-being and operational continuity for the USMS. Ensuring robust oversight and contingency plans is crucial.

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

Parent Company: Heritage Health Solutions Inc.

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: $108,048,585

Exercised Options: $108,048,585

Current Obligation: $108,048,585

Actual Outlays: $108,048,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline