US Marshals Service awards $114M contract for nationwide prisoner healthcare services to Heritage Health Solutions

Contract Overview

Contract Amount: $114,003,918 ($114.0M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $312.3K/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 $114.0 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 continuous healthcare delivery for federal prisoners across the US. 2. The award represents a significant investment in correctional healthcare infrastructure. 3. Performance period is one year, indicating a focus on immediate service continuity. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This contract falls under the 'Direct Health and Medical Insurance Carriers' NAICS code. 6. The geographic scope is nationwide, highlighting the broad reach of the services required.

Value Assessment

Rating: good

The contract value of $114 million for a one-year nationwide prisoner healthcare delivery system appears to be within a reasonable range given the scope of services. Benchmarking against similar large-scale correctional healthcare contracts would provide a more precise assessment, but the scale suggests a substantial operational requirement. The firm fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is expected to drive better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Prisoners in USMS custody will receive essential healthcare services. The contract ensures continuity of care, preventing disruptions in medical treatment. Healthcare providers and support staff will be employed nationwide to fulfill the contract. The services are critical for maintaining public health and safety within correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service variations across different facilities and regions.
Ensuring consistent quality of care nationwide can be challenging.
Managing a large, dispersed healthcare network requires robust oversight.

Positive Signals

Nationwide scope ensures comprehensive coverage for USMS detainees.
Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a focus on best value and quality.

Sector Analysis

This contract operates within the healthcare services sector, specifically focusing on correctional healthcare. The market for providing healthcare services to government entities, particularly correctional facilities, is specialized. This contract represents a significant portion of spending within this niche, requiring providers with extensive experience in managing complex health needs in secure environments.

Small Business Impact

The provided data does not indicate any small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight will likely be managed by the U.S. Marshals Service contracting officer and COR (Contracting Officer's Representative). The firm fixed-price nature of the contract provides a degree of accountability for performance. Transparency would be enhanced by public reporting on service delivery metrics and any performance issues.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
State and Local Correctional Healthcare Services
Department of Veterans Affairs Medical Services

Risk Flags

Potential for service delivery inconsistencies across diverse geographic locations.
Reliance on a single contractor for a critical nationwide service.
Need for robust oversight to ensure consistent quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $114.0 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 $114.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

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

Analyzing historical spending for prisoner healthcare by the U.S. Marshals Service is crucial for understanding trends and value. While specific historical data for this exact contract is not provided, the agency has consistently allocated significant funds to ensure the health and well-being of detainees in its custody. Past contracts have varied in scope, duration, and provider, reflecting evolving healthcare needs and procurement strategies. Examining previous contract values, performance metrics, and any associated cost adjustments can reveal whether current spending represents an increase, decrease, or stable investment. This context helps in assessing whether the $114 million award is competitive and aligned with the agency's long-term healthcare objectives for its detainee population.

How does the per-unit cost of healthcare services under this contract compare to similar correctional healthcare contracts?

A direct per-unit cost comparison for this $114 million contract is challenging without detailed service breakdowns (e.g., cost per inmate per day, cost per medical procedure). However, the contract's firm fixed-price nature suggests an attempt to standardize costs. Benchmarking against contracts from the Federal Bureau of Prisons (BOP) or state correctional systems would be informative. These benchmarks should account for variations in inmate populations (e.g., age, health status, security levels), geographic locations, and the comprehensiveness of services offered. If this contract's implied per-unit costs are significantly higher than comparable contracts, it could indicate potential value concerns or unique service requirements justifying the difference.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key performance indicators (KPIs) for this nationwide prisoner healthcare delivery system contract are critical for ensuring quality and accountability. While not explicitly detailed in the provided data, typical KPIs in such contracts include metrics related to timely medical appointments, prescription fulfillment rates, emergency response times, patient satisfaction, and adherence to medical standards of care. The Statement of Work (SOW) would outline these specific KPIs and the methodologies for measurement, such as audits, data reporting by the contractor, and potentially independent reviews. The U.S. Marshals Service would be responsible for monitoring these KPIs and assessing the contractor's performance against them, with potential implications for payment or contract renewal.

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

Heritage Health Solutions, Inc. has a notable track record in managing healthcare services, including within correctional settings. The company has previously been awarded contracts for providing healthcare to federal detainees, including those under the jurisdiction of agencies like the U.S. Marshals Service and Immigration and Customs Enforcement (ICE). Evaluating their past performance involves reviewing contract histories for on-time delivery, quality of services, cost management, and any instances of disputes or penalties. A thorough assessment would consider the scale and complexity of their previous contracts compared to the current $114 million award. Positive performance indicators would include successful contract completions and favorable reviews, while negative indicators might involve significant performance issues or contract terminations.

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

A single, nationwide contract for prisoner healthcare, while potentially offering economies of scale, carries inherent risks. One primary risk is the lack of redundancy; if the sole contractor experiences significant operational failures, widespread disruptions in care could occur across the entire USMS detainee population. Another risk is reduced leverage for the government if the contractor becomes indispensable. Furthermore, tailoring services to diverse regional needs and varying state regulations can be challenging under a uniform contract. Ensuring consistent quality and oversight across numerous facilities nationwide requires robust management and monitoring capabilities from both the contractor and the contracting agency.

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: $137,003,918

Exercised Options: $114,003,918

Current Obligation: $114,003,918

Actual Outlays: $103,342,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline