US Marshals Service awards $115.5M contract for nationwide prisoner healthcare delivery system to Heritage Health Solutions

Contract Overview

Contract Amount: $115,522,560 ($115.5M)

Contractor: Heritage Health Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $317.4K/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 $115.5 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 nationwide. 2. Heritage Health Solutions, Inc. is the sole awardee for this delivery order. 3. The contract is a Firm Fixed Price type, indicating predictable costs for the government. 4. This award represents a significant investment in maintaining essential health services for a vulnerable population.

Value Assessment

Rating: good

The contract value of $115.5M over one year appears reasonable given the scope of providing a nationwide healthcare system for prisoners. Benchmarking against similar large-scale correctional healthcare contracts would provide further validation.

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 that should have driven a fair price. The specific award mechanism is a delivery order, implying it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for essential services.

Public Impact

Ensures continuity of care for federal prisoners, a critical public safety and humanitarian concern. Supports the operational needs of the U.S. Marshals Service by managing prisoner health. Potential for improved health outcomes for a population with significant healthcare needs. Highlights the government's commitment to providing essential services even within correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a nationwide system.
Ensuring consistent quality of care across diverse geographic locations.
Managing healthcare costs for a population with complex and often chronic conditions.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract provides cost certainty.
Addresses a critical and ongoing government requirement.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on correctional healthcare. Spending in this area is driven by the need to provide medical services to incarcerated individuals, a requirement mandated by law and ethical considerations. Benchmarks for similar nationwide correctional healthcare contracts are typically in the hundreds of millions of dollars annually.

Small Business Impact

The provided data does not indicate whether small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The U.S. Marshals Service is responsible for overseeing this contract. Robust oversight mechanisms will be crucial to ensure the contractor meets all performance requirements, maintains quality standards, and manages costs effectively across the nationwide system.

Related Government Programs

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

Risk Flags

Nationwide scope presents logistical challenges.
Potential for high healthcare utilization by the prisoner population.
Ensuring consistent quality of care across all contracted facilities.
Contract duration of one year may limit long-term strategic planning for health improvements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $115.5 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 $115.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

How does the per-prisoner healthcare cost under this contract compare to national averages for correctional facilities?

Calculating the per-prisoner cost requires knowing the average daily population of USMS-custody prisoners served by this contract. Without that specific population data, a direct comparison to national averages is difficult. However, the total contract value of $115.5M for one year suggests a significant per-prisoner expenditure, necessitating careful monitoring to ensure cost-effectiveness relative to industry benchmarks for correctional healthcare.

What are the primary risks associated with managing a nationwide healthcare system for federal prisoners?

Key risks include ensuring consistent quality of care across diverse geographic locations, managing the healthcare needs of a population with complex and often chronic conditions, potential for unexpected surges in demand or outbreaks, and the challenge of maintaining cost control over a large and varied service area. Effective risk mitigation strategies and strong contractor performance management are essential.

How will the effectiveness of this healthcare delivery system be measured and ensured?

Effectiveness will likely be measured through key performance indicators (KPIs) outlined in the Statement of Work (SOW), such as patient outcomes, access to care, patient satisfaction, adherence to medical standards, and cost management. Regular performance reviews, site visits, and data analysis by the U.S. Marshals Service will be critical to ensuring the contractor consistently meets or exceeds these performance expectations.

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: $115,522,560

Exercised Options: $115,522,560

Current Obligation: $115,522,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJM17A35V0040

IDV Type: IDC

Timeline