DOJ's Bureau of Prisons awards $200K for medical supplies to Medline Industries, LP

Contract Overview

Contract Amount: $20,000 ($20.0K)

Contractor: Medline Industries, LP

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $222/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B1 MEDLINE SUPPLIES QTR 3

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $20,000 to MEDLINE INDUSTRIES, LP for work described as: FY26 B1 MEDLINE SUPPLIES QTR 3 Key points: 1. Value for money is difficult to assess without competitive bidding. 2. Sole-source award limits price discovery and potential savings. 3. Risk indicators include lack of competition and potential for price inflation. 4. Performance context is within the Federal Prison System's need for medical supplies. 5. Sector positioning is within medical supply manufacturing and distribution.

Value Assessment

Rating: questionable

The contract value of $200,000 for a 90-day period for medical supplies is modest. However, without a competitive bidding process, it is challenging to benchmark the value for money. The firm fixed-price contract type offers some cost certainty, but the absence of competition raises concerns about whether the government is receiving the best possible price compared to what might be achieved in a more open market.

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 solicited. This approach bypasses the standard competitive procurement process. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), the lack of competition here means potential savings from a bidding war among multiple suppliers were forgone. The number of bidders was effectively one.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the most cost-effective pricing. Without multiple bids, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher expenditures for the government.

Public Impact

Inmates within the Federal Prison System will benefit from the availability of necessary medical supplies. The services delivered include the provision of essential medical items for healthcare within correctional facilities. The geographic impact is primarily within the Federal Prison System facilities served by the Bureau of Prisons. Workforce implications are minimal, likely involving logistics and distribution personnel for Medline Industries, LP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competed contract.
Sole-source awards can reduce transparency in government spending.
Dependence on a single supplier could pose supply chain risks if not managed carefully.

Positive Signals

Firm fixed-price contract provides cost certainty for this specific order.
Medline Industries, LP is an established supplier in the medical field.
The contract duration is short, limiting long-term financial exposure.

Sector Analysis

The medical supplies sector is a significant part of the healthcare industry, encompassing a wide range of products from basic consumables to advanced equipment. Federal agencies, particularly those managing large populations like the Bureau of Prisons, are consistent buyers of these supplies. Spending benchmarks for medical supplies can vary widely based on the specific items and quantities, but competitive solicitations typically drive prices down. This contract, being a sole-source award for a specific quarter, represents a small slice of the overall federal spending on medical goods.

Small Business Impact

This contract does not appear to involve a small business set-aside. Medline Industries, LP is a large corporation. There is no information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely negligible for this specific award, as it was not targeted towards small business participation.

Oversight & Accountability

Oversight for this contract would fall under the Bureau of Prisons' contracting and procurement division within the Department of Justice. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Care
Bureau of Prisons Supply Chain Management
Department of Justice Medical Procurement
Medical Supplies for Government Facilities

Risk Flags

Lack of Competition
Potential for Price Inflation
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,000 to MEDLINE INDUSTRIES, LP. FY26 B1 MEDLINE SUPPLIES QTR 3

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 $20,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is Medline Industries, LP's track record with the federal government, particularly the Bureau of Prisons?

Medline Industries, LP has a significant history of contracting with various federal agencies, including the Department of Defense and the Department of Veterans Affairs, for medical supplies. Their engagement with the Bureau of Prisons (BOP) is also established, often through delivery orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or through direct awards. Analyzing past performance data, if available through federal procurement databases like SAM.gov or FPDS, would reveal the volume and nature of their previous awards to the BOP. This includes examining on-time delivery rates, product quality feedback, and any past disputes or contract modifications. A review of their history would indicate their capacity and reliability in meeting the specific needs of correctional healthcare.

How does the pricing of this sole-source contract compare to similar contracts for medical supplies within the federal government?

Direct price comparison for this sole-source contract is inherently difficult due to the absence of competitive bidding. Typically, sole-source awards are expected to be priced at fair and reasonable rates, often justified by market research or historical pricing. To assess value, one would ideally compare the unit prices of the specific medical supplies listed in this contract (if detailed) against prices paid by other federal agencies (like the VA or DoD) for identical or comparable items, especially those procured through competitive means. Benchmarking against commercial catalog prices or GSA schedules can also provide context. Without this comparative data, it's challenging to definitively state if the $200,000 award represents optimal value for the taxpayer.

What are the primary risks associated with awarding medical supply contracts on a sole-source basis to the Bureau of Prisons?

The primary risks associated with sole-source medical supply contracts for the Bureau of Prisons include potential price inflation, reduced innovation, and diminished accountability. Without competition, Medline Industries, LP faces less pressure to offer the lowest possible prices, potentially leading to higher costs for taxpayers. The lack of multiple bidders can also stifle innovation, as there's less incentive for vendors to propose novel solutions or cost-saving alternatives. Furthermore, sole-source awards can sometimes indicate a lack of robust market research or planning, potentially leading to over-reliance on a single vendor and creating supply chain vulnerabilities if that vendor experiences disruptions. Ensuring fair and reasonable pricing through rigorous justification and price analysis becomes critical in mitigating these risks.

What is the historical spending pattern for medical supplies by the Bureau of Prisons, and how does this award fit within that pattern?

The Bureau of Prisons (BOP) historically spends significant amounts on medical supplies to serve its large inmate population across numerous facilities nationwide. Annual spending can fluctuate based on healthcare needs, population size, and procurement strategies. This $200,000 award for a single quarter represents a relatively small portion of the BOP's overall annual medical supply budget. To understand its place, one would need to examine the BOP's total medical supply expenditures over the past several fiscal years. This analysis would reveal whether spending has been increasing or decreasing, the typical contract vehicles used (e.g., IDIQs, sole-source, competitive), and the average award values. This specific award, being a sole-source delivery order, might indicate a need for immediate replenishment or a gap in a larger, potentially competed, contract.

How does the firm fixed-price (FFP) contract type mitigate risks for the Bureau of Prisons in this medical supply acquisition?

The Firm Fixed-Price (FFP) contract type is generally advantageous for the Bureau of Prisons (BOP) when acquiring standardized goods like medical supplies, as it shifts the risk of cost overruns to the contractor, Medline Industries, LP. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's actual costs. This provides budget certainty for the BOP, allowing them to know the exact expenditure for the specified quantity of medical supplies. It incentivizes the contractor to manage its own costs efficiently to maintain profitability. For the BOP, this means predictable spending and protection against unexpected increases in material or labor costs incurred by the supplier during the contract period, assuming the initial price was deemed fair and reasonable.

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: $20,000

Exercised Options: $20,000

Current Obligation: $20,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0003

IDV Type: IDC

Timeline