US Marshals Service awards $112.8M contract for nationwide prisoner healthcare system to Heritage Health Solutions

Contract Overview

Contract Amount: $112,834,056 ($112.8M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $310.0K/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 $112.8 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 continued 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 scale of nationwide prisoner healthcare needs. 4. This represents a significant expenditure in the healthcare services sector for government contracts.

Value Assessment

Rating: good

The contract value of $112.8M for a one-year period appears reasonable given the scope of providing a nationwide healthcare delivery system for prisoners. Benchmarking against similar large-scale correctional healthcare contracts would provide a more precise 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. This method is expected to yield fair pricing and good value for the government.

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

Public Impact

Ensures continuity of care for a vulnerable population. Supports a critical government function in the justice system. Potential for cost savings through efficient healthcare delivery. Impacts healthcare providers and facilities nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed effectively.
Ensuring quality of care across diverse locations.
Dependence on a single contractor for a critical service.

Positive Signals

Awarded through full and open competition.
Addresses a clear and ongoing government need.
Firm fixed price contract can provide cost certainty.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on correctional healthcare services. Government spending in this area is substantial, driven by the need to provide medical care to incarcerated individuals.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The U.S. Marshals Service is responsible for overseeing this contract. Robust oversight will be crucial to ensure the contractor meets all performance requirements and delivers quality healthcare services within budget.

Related Government Programs

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

Risk Flags

Ensuring consistent quality of care across all locations.
Managing potential cost escalations over the contract period.
Dependence on a single provider for a critical service.
Contractor's ability to handle the scale of nationwide operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $112.8 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 $112.8 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure quality of care and cost-effectiveness?

Key performance indicators likely include patient outcomes, access to care metrics, adherence to medical standards, and patient satisfaction surveys. The USMS will monitor these through regular reporting, site visits, and potentially independent audits. Effective measurement is crucial for ensuring the contractor delivers high-quality healthcare services efficiently and justifies the $112.8M expenditure.

What is the historical performance of Heritage Health Solutions, Inc. with similar government contracts, particularly in correctional healthcare?

Assessing Heritage Health Solutions' past performance is vital for understanding their capability to manage a nationwide system. Reviewing their track record with other federal or state correctional facilities, including contract compliance, patient care quality, and financial management, will help gauge their reliability and identify potential risks associated with this award.

How does the pricing structure of this contract compare to industry benchmarks for providing healthcare services to similar populations?

A detailed cost-benefit analysis comparing this contract's pricing to benchmarks for correctional healthcare services is essential. Factors like per-patient costs, administrative overhead, and scope of services should be evaluated. This comparison will determine if the $112.8M award represents good value for taxpayers or if there are opportunities for cost savings in future procurements.

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: $112,834,056

Exercised Options: $112,834,056

Current Obligation: $112,834,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline