DOJ's $16.3M medical supplies contract awarded to MEDLINE INDUSTRIES, LP for Federal Prison System

Contract Overview

Contract Amount: $16,321 ($16.3K)

Contractor: Medline Industries, LP

Awarding Agency: Department of Justice

Start Date: 2025-12-19

End Date: 2026-01-30

Contract Duration: 42 days

Daily Burn Rate: $389/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SUPPLIES DECEMBER FY 26

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $16,320.52 to MEDLINE INDUSTRIES, LP for work described as: MEDICAL SUPPLIES DECEMBER FY 26 Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract duration of 42 days is relatively short, suggesting a specific, immediate need. 3. Fixed-price contract type aims to control costs, but initial price competitiveness is unverified. 4. The North American Industry Classification System (NAICS) code 339112 indicates a focus on medical instrument manufacturing, though the award is for supplies. 5. Awarded by the Department of Justice's Federal Prison System, indicating a need within correctional healthcare. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar framework.

Value Assessment

Rating: questionable

Benchmarking the value of this $16.3 million contract for medical supplies is challenging without more detailed pricing information or comparison to similar recent awards for the Federal Prison System. The 'NOT COMPETED' status suggests potential for overpayment if market prices are significantly lower. However, the fixed-price nature provides some cost certainty. Further analysis would require access to the specific items and quantities procured to compare against market rates for 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 competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and terms.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding, potentially leading to higher costs than if multiple suppliers had vied for the contract.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of necessary medical supplies. Essential medical supplies will be delivered to facilities managed by the Bureau of Prisons. The geographic impact is primarily within the states where federal correctional facilities are located. The contract supports the operational capacity of the healthcare services provided within federal prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Potential for vendor lock-in if this is a recurring need.
Limited transparency into the justification for sole-source award.

Positive Signals

Fixed-price contract type offers cost predictability.
Award to an established supplier like MEDLINE INDUSTRIES, LP may ensure timely delivery.
Contract addresses a critical need for healthcare within the correctional system.

Sector Analysis

The medical supplies market is a significant sector within the broader healthcare industry, encompassing a wide range of products from basic consumables to advanced equipment. Federal agencies, particularly those managing large populations like the Federal Prison System, are substantial buyers. This contract, focused on medical supplies, fits within the manufacturing and distribution segment of this sector. Comparable spending benchmarks would typically involve analyzing other large-scale medical supply procurements by agencies like the Department of Defense or the Department of Veterans Affairs.

Small Business Impact

This contract was not competed and there is no indication of a small business set-aside. Consequently, there are no direct subcontracting opportunities for small businesses stemming from this specific award. The absence of a set-aside means that larger, established companies like MEDLINE INDUSTRIES, LP are the primary recipients, potentially limiting the direct economic benefit to the small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of the Inspector General (OIG), which is responsible for auditing and investigating federal programs to prevent waste, fraud, and abuse. The Federal Prison System's internal procurement and contracting offices would also provide oversight. Transparency is limited due to the sole-source nature of the award, but contract details are typically recorded in federal procurement databases.

Related Government Programs

Federal Prison System Medical Services
Department of Justice Healthcare Procurement
Medical Supplies for Incarcerated Populations
Bureau of Prisons Operational Support

Risk Flags

Sole-source award lacks competitive pricing.
Short contract duration may indicate urgency or a temporary need.
Limited public information on justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16,320.52 to MEDLINE INDUSTRIES, LP. MEDICAL SUPPLIES DECEMBER FY 26

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 $16,320.52.

What is the period of performance?

Start: 2025-12-19. End: 2026-01-30.

What is the specific justification provided by the Department of Justice for awarding this contract on a sole-source basis to MEDLINE INDUSTRIES, LP?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are justified under circumstances such as urgent and compelling needs, the unavailability of comparable products or services from other sources, or when only one responsible source is capable of providing the required supplies or services. Without further documentation from the Department of Justice, the precise rationale remains unknown. This lack of competition raises concerns about potential price inflation and limits the government's ability to ensure it is obtaining the best value for taxpayer dollars.

How does the pricing of this $16.3 million medical supplies contract compare to similar contracts awarded by the Federal Prison System or other federal agencies?

Direct price comparison is not feasible with the provided data alone. The contract is for 'MEDICAL SUPPLIES DECEMBER FY 26' with a total value of $16,320.52 and a short duration of 42 days. To perform a meaningful price comparison, one would need to know the exact list of medical supplies, their quantities, and the unit prices. This information is not present. Furthermore, since the contract was sole-sourced, it bypasses the competitive process that typically drives prices down. Benchmarking against other federal contracts for similar supplies would require accessing detailed pricing data from those awards and accounting for differences in quantities, delivery locations, and specific product specifications.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with a sole-source award of this magnitude ($16.3 million) is the potential for paying a premium price due to the lack of competition. Without multiple vendors bidding, MEDLINE INDUSTRIES, LP may not have been incentivized to offer its most competitive pricing. Another risk is reduced transparency and accountability, as the justification for not competing the award may not be fully scrutinized. There's also a risk of vendor lock-in, where the agency becomes reliant on a single supplier, potentially hindering future flexibility and cost savings. Finally, if the sole-source justification is weak or based on incomplete information, it could represent a failure of effective procurement practices.

What is the expected performance period and delivery timeline for these medical supplies?

The contract has a start date of 2025-12-19 and an end date of 2026-01-30. This results in a performance period of approximately 42 days (or about 6 weeks). This relatively short duration suggests that the contract is intended to fulfill an immediate or short-term need for medical supplies, possibly for a specific period, event, or to bridge a gap until a larger, competitively awarded contract is in place. The delivery order nature also implies that the supplies are expected within this timeframe.

What is the historical spending pattern for medical supplies by the Federal Prison System or the Department of Justice?

The provided data focuses on a single delivery order and does not offer historical spending patterns. To analyze historical spending, one would need to query federal procurement databases (like USASpending.gov or FPDS) for all contracts awarded by the Federal Prison System (or the broader Department of Justice) for 'medical supplies' over several fiscal years. This would reveal trends in spending volume, the number of contracts awarded, the primary awardees, and the mix of competitive versus sole-source awards. Such an analysis could highlight whether this $16.3 million contract represents a typical expenditure or an anomaly, and whether sole-source awards are a common practice for this category of goods within 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: 1 MEDLINE PL, MUNDELEIN, IL, 60060

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: $16,321

Exercised Options: $16,321

Current Obligation: $16,321

Actual Outlays: $10,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0012

IDV Type: IDC

Timeline