DOJ's Bureau of Prisons awards $450K for medical supplies to Medline Industries, LP

Contract Overview

Contract Amount: $45,000 ($45.0K)

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: $124/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FDC PHILADELPHIA: MEDICAL/SURGICAL SUPPLIES PER IAA 990 MONTHLY ACCRUAL FY26

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $45,000 to MEDLINE INDUSTRIES, LP for work described as: FDC PHILADELPHIA: MEDICAL/SURGICAL SUPPLIES PER IAA 990 MONTHLY ACCRUAL FY26 Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty. 2. Sole-source award indicates potential lack of market research or specific vendor necessity. 3. Delivery order under an existing IAA suggests a pre-established relationship. 4. Contract duration of one year aligns with typical supply needs. 5. No small business set-aside noted, potentially limiting opportunities for smaller vendors. 6. The contract's value is relatively small in the context of federal medical supply procurement.

Value Assessment

Rating: fair

The contract value of $450,000 for a one-year period for medical/surgical supplies appears reasonable for a federal prison system. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or other federal contracts. The firm-fixed-price structure offers predictability, but the absence of competition raises questions about whether the government is receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action, meaning it was not competed. The data indicates it was issued as a delivery order under an existing Interagency Agreement (IAA). The lack of competition means there were no other bidders considered, which can limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from a competitive bidding process, potentially resulting in higher overall spending for these essential supplies.

Public Impact

Inmates within the Federal Prison System will receive necessary medical and surgical supplies. The Federal Prison System, managed by the Bureau of Prisons, is the primary beneficiary. The geographic impact is likely concentrated within the facilities served by this specific delivery order, potentially across Illinois. The contract supports the operational capacity of correctional healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Potential for vendor lock-in due to sole-source nature.
Limited transparency into the justification for sole-source award.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Delivery order under IAA suggests an existing, potentially efficient, procurement mechanism.
Addresses essential medical supply needs for a critical government function.

Sector Analysis

The market for medical and surgical supplies is a significant sector within the broader healthcare industry. Federal agencies, particularly those operating large institutions like correctional facilities, are consistent buyers. While this specific contract is relatively small, it represents a segment of the government's overall spending on healthcare consumables. Benchmarking this against other federal prison system supply contracts or similar institutional healthcare procurements would provide further context on value.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in fulfilling this specific contract are likely limited, potentially excluding them from a portion of federal spending in this category.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency regarding the justification for the sole-source award would be crucial for assessing oversight effectiveness.

Related Government Programs

Federal Prison System Medical Supplies
Bureau of Prisons Procurement
Department of Justice Medical Contracts
Medical and Surgical Supplies Procurement

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher costs due to lack of competition.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $45,000 to MEDLINE INDUSTRIES, LP. FDC PHILADELPHIA: MEDICAL/SURGICAL SUPPLIES PER IAA 990 MONTHLY ACCRUAL FY26

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 $45,000.

What is the period of performance?

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

What is the track record of Medline Industries, LP with the Federal Prison System or other federal agencies for similar medical supplies?

Medline Industries, LP is a major supplier of healthcare products and services. A review of federal procurement data would likely show a history of contracts with various federal agencies, including potentially the Department of Defense, Department of Veterans Affairs, and other components of the Department of Justice. Their track record with the Federal Prison System specifically would need to be examined to understand their performance, delivery reliability, and pricing history on prior awards. Without specific historical data for this contract vehicle, it's assumed they are a capable supplier given their market presence, but past performance on similar contracts would offer a clearer picture of their reliability and value proposition.

How does the pricing of this contract compare to similar medical supply contracts awarded competitively by the Bureau of Prisons or other federal entities?

Direct price comparison is challenging for this sole-source award. Competitively awarded contracts for similar medical and surgical supplies would typically provide a benchmark for pricing. If this contract's unit prices are significantly higher than those found in competitive solicitations for comparable items, it would indicate a potential lack of value for money. The firm-fixed-price nature provides cost certainty, but the absence of competition means the government may not be leveraging market forces to secure the lowest possible prices. A detailed analysis would require comparing specific item costs against publicly available contract data from competitive awards.

What are the specific risks associated with a sole-source award for essential medical supplies in a correctional setting?

The primary risk of a sole-source award for essential medical supplies is the potential for inflated pricing due to the lack of competition. This can lead to higher costs for taxpayers. Additionally, sole-source awards can sometimes indicate a lack of adequate market research or planning by the agency, potentially leading to a reliance on a single vendor that might not be the most innovative or cost-effective in the long run. For essential supplies like medical items, a lack of competition could also pose a risk if the sole-source vendor experiences supply chain disruptions, potentially impacting the continuity of care for inmates.

What is the historical spending pattern for medical/surgical supplies by the Federal Prison System, and how does this contract fit within that pattern?

The Federal Prison System, as a large operator of correctional facilities, consistently procures medical and surgical supplies to meet the healthcare needs of its inmate population. Historical spending patterns would likely show significant annual expenditures in this category, potentially fluctuating based on inmate population size, healthcare service levels, and specific supply needs. This $450,000 delivery order represents a portion of that overall spending for FY26. To understand its place, one would need to examine the total annual budget allocated for medical supplies by the Bureau of Prisons and compare this contract's value to the aggregate spending over previous fiscal years. It appears to be a standard, albeit relatively small, procurement for ongoing operational needs.

What justification was provided for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data indicates the contract was 'NOT COMPETED' and is a 'DELIVERY ORDER' under an 'IAA' (Interagency Agreement). While the specific justification is not detailed in the provided snippet, common reasons for sole-source awards under an IAA include: 1) The IAA itself may have been established through a competitive process for a specific set of services or supplies, and this delivery order falls within its scope. 2) There might be a unique requirement or urgency that only one vendor can meet, though this is less common for standard supplies. 3) The procuring agency might have determined that only one source is capable of fulfilling the requirement due to specialized capabilities or existing infrastructure. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and documented by the agency.

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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,000

Exercised Options: $75,000

Current Obligation: $45,000

Actual Outlays: $9,113

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G20D0029

IDV Type: IDC

Timeline