Audit of the Federal Bureau of Prisons’ Procurements Awarded to NaphCare, Inc. for Medical Services Provided to Residential Reentry Management Branch Inmates

Submitting OIG:

Department of Justice OIG

Date Issued:

Thursday, September 22, 2022

Agency Reviewed / Investigated:

Department of Justice

Submitting OIG-Specific Report Number:

22-111

Component, if applicable:

Federal Bureau of Prisons

External entity, if applicable:

NaphCare, Inc.

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$34,524

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
22-111.pdf	17.07 MB

Recommendation Number	Recommendation Status	Significant Recommendation	Additional Details
1	Open	No	https://oig.justice.gov/reports
Enhance policies and procedures to ensure appropriate contract vehicles are used and that adequate acquisition planning and market research is conducted for RRMB medical services awards. This includes: (1) ensuring an adequate acquisition plan is used for each procurement when required; (2) conducting extensive market research that considers industry sources and pricing; and (3) properly documenting and evaluating price and/or cost to the government, to include an assessment of price reasonableness for each offeror; the quality of care received; and past performance of each offeror.
3	Open	No	https://oig.justice.gov/reports
Reduce RRMB medical services expenses by implementing a strategy that considers: (1) incentivizing contractors to reduce medical claims by structuring awards in a way that eliminates premiums on healthcare costs; (2) structuring awards in a way that does not commit the BOP to reimburse contractors at Medicare rates when the provider bills are less than the Medicare rate; (3) whether the BOP should have a more central role in negotiating out-of-network costs; (4) how the BOP can minimize invoicing errors and improper use of CPT codes; and (5) cost saving mechanisms for pharmaceutical costs and interest costs resulting from late payments.
4	Open	No	https://oig.justice.gov/reports
Enhance policies and procedures to ensure that RRMB officials conduct adequate award administration and oversight of medical services awards. This includes developing a quality assurance surveillance plan in conjunction with the award terms and conditions and ensuring that key contracting duties are appropriately delegated and performed by qualified staff so that procurement objectives and deliverables are achieved.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

https://oig.justice.gov/reports

Enhance policies and procedures to ensure appropriate contract vehicles are used and that adequate acquisition planning and market research is conducted for RRMB medical services awards. This includes: (1) ensuring an adequate acquisition plan is used for each procurement when required; (2) conducting extensive market research that considers industry sources and pricing; and (3) properly documenting and evaluating price and/or cost to the government, to include an assessment of price reasonableness for each offeror; the quality of care received; and past performance of each offeror.

Open

https://oig.justice.gov/reports

Reduce RRMB medical services expenses by implementing a strategy that considers: (1) incentivizing contractors to reduce medical claims by structuring awards in a way that eliminates premiums on healthcare costs; (2) structuring awards in a way that does not commit the BOP to reimburse contractors at Medicare rates when the provider bills are less than the Medicare rate; (3) whether the BOP should have a more central role in negotiating out-of-network costs; (4) how the BOP can minimize invoicing errors and improper use of CPT codes; and (5) cost saving mechanisms for pharmaceutical costs and interest costs resulting from late payments.

Open

https://oig.justice.gov/reports