DOJ's $60M medical supplies contract with Medline Industries, LP, awarded without competition

Contract Overview

Contract Amount: $60,000 ($60.0K)

Contractor: Medline Industries, LP

Awarding Agency: Department of Justice

Start Date: 2026-02-25

End Date: 2026-02-25

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B1 MEDLINE MEDICAL SUPPLIES Q2

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $60,000 to MEDLINE INDUSTRIES, LP for work described as: FY26 B1 MEDLINE MEDICAL SUPPLIES Q2 Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are absent, raising concerns about potential overpricing. 3. Risk indicators include lack of competition and reliance on a single supplier. 4. Performance context is limited to the Federal Prison System's need for medical supplies. 5. Sector positioning is within the healthcare supply chain, specifically medical instruments. 6. The contract's duration and specific delivery order details are not fully elaborated.

Value Assessment

Rating: questionable

Assessing the value for money is challenging given the contract was not competed. Without competitive bids, it's difficult to benchmark pricing against market rates or similar contracts. The firm fixed-price structure provides some cost certainty, but the absence of competition prevents a thorough value assessment. Further analysis would require access to historical pricing data and comparisons with other federal or commercial contracts for similar medical supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. The data indicates it was a 'NOT COMPETED' award. This approach is typically used when only one responsible source can satisfy the agency's needs. The lack of multiple bidders means there was no price discovery through a competitive process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these medical supplies due to the absence of competitive bidding. The government did not leverage market forces to secure the best possible price.

Public Impact

The Federal Prison System (Bureau of Prisons) is the primary beneficiary, ensuring access to essential medical supplies. Services delivered include the provision of medical supplies crucial for inmate healthcare. Geographic impact is concentrated within federal correctional facilities, primarily in Illinois. Workforce implications are indirect, supporting the operational needs of healthcare staff within the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source awards can limit innovation and supplier diversity.
Dependence on a single supplier creates vulnerability in the supply chain.
Limited transparency in the procurement process.

Positive Signals

Ensures a consistent supply of critical medical items.
Firm fixed-price contract provides cost predictability.
Supplier (Medline Industries, LP) is an established provider in the medical supply market.

Sector Analysis

This contract falls within the healthcare sector, specifically the manufacturing and distribution of medical supplies. The North American Industry Classification System (NAICS) code 339112, 'Surgical and Medical Instrument Manufacturing,' indicates the type of goods procured. The federal government is a significant purchaser of medical supplies, with spending often concentrated through agencies like the Department of Defense, Veterans Affairs, and the Bureau of Prisons. Benchmarking this contract's value would require comparing it to other federal contracts for similar supplies or to commercial market prices.

Small Business Impact

The data indicates that this contract was not competed and there is no indication of a small business set-aside (ss: false, sb: false). Therefore, this award does not appear to directly benefit small businesses through a set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal for this specific award, as it was not designed to promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement regulations and the Federal Prison System's contracting office. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Care
Department of Justice Medical Supplies Procurement
Medical Supplies for Federal Inmates
Surgical and Medical Instrument Manufacturing Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Supply Chain Dependency
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $60,000 to MEDLINE INDUSTRIES, LP. FY26 B1 MEDLINE MEDICAL SUPPLIES Q2

Who is the contractor on this award?

The obligated recipient is MEDLINE INDUSTRIES, LP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $60,000.

What is the period of performance?

Start: 2026-02-25. End: 2026-02-25.

What is Medline Industries, LP's track record with the federal government, particularly with the Department of Justice and the Federal Prison System?

Medline Industries, LP is a significant supplier to the federal government across various agencies. While specific contract history with the DOJ and FPS requires deeper database analysis, Medline is known to hold numerous contracts for medical supplies and equipment. Their track record generally involves providing a wide range of products, from basic consumables to specialized equipment. However, the nature of their past awards (competitive vs. sole-source) and performance metrics (on-time delivery, quality compliance) would need to be examined to fully assess their suitability and pricing competitiveness for this specific $60 million contract.

How does the $60 million value of this contract compare to historical federal spending on similar medical supplies for correctional facilities?

Comparing the $60 million value requires analyzing historical spending patterns for medical supplies within the Federal Prison System and potentially other correctional agencies. Without access to detailed historical data, it's difficult to provide a precise benchmark. However, $60 million represents a substantial investment, suggesting a significant volume or range of supplies. If this contract represents a substantial increase or decrease compared to previous periods, it warrants further investigation into factors like inflation, changes in inmate population, or shifts in healthcare needs. A trend analysis over several fiscal years would be necessary to determine if this award is in line with historical expenditure levels.

What are the primary risks associated with awarding a $60 million medical supplies contract on a sole-source basis?

The primary risks of a sole-source award for a $60 million medical supplies contract are significant. Firstly, the government forgoes the benefits of competition, which typically drives down prices and encourages innovation. This can lead to paying a premium for goods and services. Secondly, it creates a dependency on a single supplier, increasing vulnerability to supply chain disruptions, price hikes, or quality issues. If Medline Industries, LP faces operational challenges, the Federal Prison System's access to critical medical supplies could be jeopardized. Lastly, the lack of transparency inherent in sole-source procurements can mask inefficiencies or potential improprieties.

What specific types of medical supplies are covered under this $60 million contract, and are they considered critical or routine?

The provided data indicates the contract is for 'MEDLINE MEDICAL SUPPLIES Q2' and falls under NAICS code 339112 (Surgical and Medical Instrument Manufacturing). This suggests a broad category of items, likely encompassing surgical instruments, diagnostic equipment, bandages, pharmaceuticals, and other consumables essential for healthcare. Whether these are 'critical' or 'routine' depends on the specific items procured. However, given the context of the Federal Prison System, a consistent and reliable supply of a wide range of medical goods is essential for maintaining inmate health and operational continuity. The 'Q2' designation might refer to a specific quarter or a product category within Medline's offerings, requiring further clarification.

What is the justification for awarding this contract as 'NOT COMPETED' to Medline Industries, LP?

The justification for awarding this contract as 'NOT COMPETED' typically stems from specific circumstances outlined in federal acquisition regulations (FAR). Common reasons include: only one responsible source exists (e.g., unique capability, proprietary technology), an urgent and compelling need that cannot be met through competition, or a national emergency. For this specific contract, the agency (Department of Justice / Federal Prison System) would have had to formally document why full and open competition was not feasible or not in the government's best interest. Without that documented justification, it's impossible to definitively state the reason, but it implies a belief that no other vendor could meet the requirement or that the time constraints precluded a competitive process.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3 LAKES DR, NORTHFIELD, IL, 60093

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,000

Exercised Options: $60,000

Current Obligation: $60,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0003

IDV Type: IDC

Timeline