DOJ Awards $37.8M Medical Supplies Contract to Medline Industries, LP for Federal Prisons

Contract Overview

Contract Amount: $37,780 ($37.8K)

Contractor: Medline Industries, LP

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $104/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 FCI SCHUYLKILL MEDLINE MEDICAL SUPPLIES CONTRACT# 36C10X23D0032

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $37,779.67 to MEDLINE INDUSTRIES, LP for work described as: FY26 FCI SCHUYLKILL MEDLINE MEDICAL SUPPLIES CONTRACT# 36C10X23D0032 Key points: 1. Contract Value: $37.8 million over one year. 2. Competition: Awarded under full and open competition. 3. Risk: Firm fixed price contract mitigates cost overrun risk. 4. Sector: Medical supplies for federal correctional facilities.

Value Assessment

Rating: good

The contract value of $37.8 million for a one-year period appears reasonable for a large federal medical supply requirement. Benchmarking against similar large-scale medical supply contracts for federal agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

Ensures critical medical supplies are available for federal inmates. Supports the operational needs of the Federal Prison System. Potential for consistent product availability and quality. Impact on the broader medical supply market is likely minimal due to the specific nature of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly.
Dependence on a single supplier for a critical need.

Positive Signals

Firm fixed price contract provides cost certainty.
Awarded through full and open competition.
Long-term relationship with a known supplier.

Sector Analysis

This contract falls within the Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers sector. Spending in this sector for federal agencies is substantial, driven by healthcare needs across various departments, including corrections.

Small Business Impact

While awarded to Medline Industries, LP, a large corporation, the contract's full and open competition structure allows small businesses to potentially participate as subcontractors. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Federal Prison System, under the Department of Justice, is responsible for oversight. Standard contract management and performance monitoring processes should be in place to ensure compliance and delivery.

Related Government Programs

Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for supply chain disruptions.
Dependence on a single supplier.
Quality control of medical supplies.
Price volatility in the medical supply market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37,779.67 to MEDLINE INDUSTRIES, LP. FY26 FCI SCHUYLKILL MEDLINE MEDICAL SUPPLIES CONTRACT# 36C10X23D0032

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 $37,779.67.

What is the period of performance?

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

What is the historical pricing trend for similar medical supply contracts awarded by the Federal Prison System?

Analyzing historical pricing data for comparable medical supply contracts is crucial for validating the current award's value. Trends in market prices, inflation, and specific product demand can significantly influence contract costs. Without this historical context, it's challenging to definitively assess if $37.8 million represents optimal value or if there's potential for cost savings through negotiation or alternative sourcing strategies.

What are the specific risks associated with relying on Medline Industries, LP for essential medical supplies in federal prisons?

Key risks include potential supply chain disruptions affecting Medline, quality control issues with supplied products, or unexpected price increases if contract terms are not sufficiently robust. Dependence on a single vendor can also reduce leverage in future negotiations. The firm fixed price structure mitigates direct cost overrun risk for the government, but indirect risks related to availability and quality remain.

How effectively does this contract ensure the consistent availability of critical medical supplies across all federal correctional facilities?

The contract's effectiveness hinges on Medline's logistical capabilities and inventory management. While the firm fixed price and one-year duration suggest a defined scope, ensuring consistent availability across geographically dispersed facilities requires robust delivery schedules and contingency planning by the vendor. Performance metrics and regular reviews by the Bureau of Prisons are essential to monitor and ensure this effectiveness.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $37,780

Exercised Options: $37,780

Current Obligation: $37,780

Actual Outlays: $16,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0032

IDV Type: IDC

Timeline