DOJ's Bureau of Prisons awards $68.3M for MEDLINE supplies, raising concerns over limited competition
Contract Overview
Contract Amount: $68,342 ($68.3K)
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: $188/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY2026 B1 MEDLINE
Place of Performance
Location: NORTHFIELD, COOK County, ILLINOIS, 60093
State: Illinois Government Spending
Plain-Language Summary
Department of Justice obligated $68,342.36 to MEDLINE INDUSTRIES, LP for work described as: FY2026 B1 MEDLINE Key points: 1. Significant contract value of $68.3M for medical supplies. 2. Sole-source award to MEDLINE INDUSTRIES, LP limits competitive pricing. 3. Potential risk associated with single-vendor reliance for critical supplies. 4. Spending falls within the Surgical and Medical Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $68.3M for a one-year period appears high given the lack of competition. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar contracts for medical supplies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, MEDLINE INDUSTRIES, LP, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for essential medical supplies.
Public Impact
Prisoners may face supply chain disruptions if the sole provider encounters issues. Taxpayer funds are allocated without competitive pressure to ensure best value. Reliance on a single supplier could impact the quality or availability of critical medical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value without competitive benchmark
Positive Signals
- Contract supports essential medical supplies for federal prisons.
Sector Analysis
The $68.3M contract for MEDLINE supplies falls under the Surgical and Medical Instrument Manufacturing sector. Spending in this sector can vary widely, but sole-source awards for such a significant amount warrant scrutiny to ensure cost-effectiveness.
Small Business Impact
The contract data indicates that small businesses were not involved in this procurement, as it was awarded directly to a single, presumably larger, entity. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing strategies. Further oversight is needed to understand why this contract was not competed and to ensure future procurements maximize competition.
Related Government Programs
- Surgical and Medical Instrument Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- Risk of supply chain disruption from single vendor.
- Lack of small business participation.
- High contract value without clear justification for sole-sourcing.
Tags
surgical-and-medical-instrument-manufact, department-of-justice, il, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $68,342.36 to MEDLINE INDUSTRIES, LP. FY2026 B1 MEDLINE
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 $68,342.36.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances. Without this specific justification, it's presumed that competitive processes were bypassed. To ensure fair pricing, the agency should conduct a thorough market analysis and potentially negotiate aggressively with the sole provider, though true price discovery is hindered.
What are the risks associated with relying on a single supplier for critical medical supplies in federal prisons?
Relying on a single supplier for critical medical supplies poses significant risks, including potential supply chain disruptions due to the vendor's internal issues, natural disasters, or geopolitical events. It also limits the government's leverage in price negotiations and could lead to substandard quality if the vendor faces no competitive pressure to maintain high standards.
How does the $68.3M award compare to industry benchmarks for similar medical supply contracts, considering the lack of competition?
Direct comparison to industry benchmarks is challenging without knowing the specific items procured and their quantities. However, a $68.3M award for a one-year contract, especially when sole-sourced, is substantial. Without competitive bids, it's difficult to ascertain if this represents an effective use of taxpayer funds compared to what could be achieved through a competitive process.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
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: $68,342
Exercised Options: $68,342
Current Obligation: $68,342
Actual Outlays: $54,053
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10X23D0003
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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