DOJ's $3.5M medical supply contract with Medline Industries awarded via full and open competition

Contract Overview

Contract Amount: $35,000 ($35.0K)

Contractor: Medline Industries, LP

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B1 MEDLINE MEDICAL SUPPLIES APR26

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $35,000 to MEDLINE INDUSTRIES, LP for work described as: FY26 B1 MEDLINE MEDICAL SUPPLIES APR26 Key points: 1. Contract awarded to a single vendor, Medline Industries, LP, for medical supplies. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. Pricing is based on a firm-fixed-price structure, providing cost certainty. 4. The contract duration is short, covering one month in FY26. 5. The agency is the Department of Justice, specifically the Federal Prison System. 6. The North American Industry Classification System (NAICS) code is 423450 for medical equipment wholesalers.

Value Assessment

Rating: good

This contract represents a single delivery order valued at $3.5 million for medical supplies. Benchmarking this specific order against similar contracts is challenging without more detailed line-item data. However, the firm-fixed-price structure suggests that the price was determined upfront and is not expected to fluctuate significantly. The award to Medline Industries, a known large supplier in the healthcare sector, indicates a potentially competitive bid process for the underlying IDIQ, which this delivery order falls under. The value appears reasonable for a one-month supply of medical goods for the Federal Prison System.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding process for the parent IDIQ contract, from which this delivery order was placed. While the specific number of bidders for this particular delivery order is not detailed, the 'full and open' designation for the parent contract implies a competitive environment that should drive favorable pricing. The agency likely sought multiple qualified vendors to ensure a competitive landscape for ongoing medical supply needs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government procurements.

Public Impact

Inmates within the Federal Prison System will benefit from the consistent availability of necessary medical supplies. The contract ensures the delivery of essential medical, dental, and hospital equipment and supplies. The geographic impact is primarily within the Federal Prison System facilities managed by the Bureau of Prisons. The contract supports the operational needs of healthcare providers within correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases on future delivery orders if the underlying IDIQ terms are not favorable.
Dependence on a single vendor for critical medical supplies could pose a risk if supply chain issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing structure.
Firm-fixed-price contract provides cost certainty for this specific delivery order.
Medline Industries is a well-established supplier in the medical supply market.

Sector Analysis

The medical, dental, and hospital equipment and supplies merchant wholesalers sector (NAICS 423450) is a critical component of the healthcare supply chain. This contract falls within this sector, serving the specific needs of government institutions. The market is characterized by large distributors and manufacturers supplying a wide range of products. Federal spending in this category is substantial, supporting various agencies, including correctional facilities, military bases, and public health services. The value of this specific contract, $3.5 million for a one-month period, is modest within the broader context of federal medical supply procurement.

Small Business Impact

The provided data indicates that small business participation (sb) is false for this contract. There is no explicit mention of small business set-asides or subcontracting requirements associated with this specific delivery order. Therefore, the direct impact on the small business ecosystem for this particular procurement appears limited, with the primary award going to a large corporation. Further analysis of the parent IDIQ contract would be needed to determine any broader small business subcontracting goals or achievements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and financial management systems. The Bureau of Prisons, as the servicing agency, would be responsible for monitoring delivery and performance. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal Prison System Medical Services
Department of Justice Medical Supply Contracts
Medical Equipment and Supplies Procurement
General Services Administration (GSA) Schedules (potential parent contract vehicle)

Risk Flags

Potential for supply chain disruption
Dependence on a single vendor for critical supplies

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $35,000 to MEDLINE INDUSTRIES, LP. FY26 B1 MEDLINE MEDICAL SUPPLIES APR26

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 $35,000.

What is the period of performance?

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

What is Medline Industries, LP's track record with federal contracts, particularly for medical supplies?

Medline Industries, LP is a significant federal contractor, frequently awarded contracts for medical supplies across various agencies, including the Department of Defense, Department of Veterans Affairs, and the Department of Justice. Their track record generally indicates experience in fulfilling large-scale medical supply requirements. Analysis of past performance ratings and any documented disputes or corrective actions associated with their federal contracts would provide a more granular view of their reliability and performance history. Given their established presence, it is likely they have a substantial portfolio of similar contracts, suggesting a capacity to meet the demands of the Federal Prison System.

How does the $3.5 million value for a one-month supply compare to similar federal contracts for correctional facilities?

Comparing the $3.5 million value for a single month's supply of medical goods to similar contracts for correctional facilities requires access to detailed spending data for comparable institutions. However, considering the population size and healthcare needs of federal prisons, this amount appears to be within a reasonable range for comprehensive medical supply provisioning. Factors influencing this value include the specific types and quantities of supplies ordered, the negotiated pricing, and the administrative overhead. Without specific line-item details or comparable contract data, a precise value-for-money assessment is difficult, but the firm-fixed-price nature suggests a pre-determined cost structure.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential supply chain disruptions affecting Medline Industries, LP, which could impact the availability of critical medical supplies for inmates. Another risk is the possibility of price escalation in future delivery orders if the underlying IDIQ contract terms are not sufficiently protective. Mitigation strategies likely involve the contract's firm-fixed-price structure for this specific order, which locks in costs. Furthermore, the 'full and open competition' for the parent IDIQ suggests a competitive market that incentivizes reliable performance. The Department of Justice's oversight mechanisms and potential for alternative sourcing also serve as risk mitigators.

How effective is the 'full and open competition' strategy in ensuring value for this medical supply contract?

The 'full and open competition' strategy is generally effective in ensuring value by maximizing the number of potential bidders, thereby fostering a competitive environment. This competition drives down prices and encourages innovation and quality improvements from offerors. For this specific contract, which is a delivery order under a larger IDIQ, the effectiveness of the competition is primarily determined during the initial award of the IDIQ. If the IDIQ was indeed competed broadly, it sets a strong foundation for competitive pricing on subsequent delivery orders. Taxpayers benefit from this approach through potentially lower overall spending on necessary medical supplies.

What are the historical spending patterns for medical supplies within the Federal Prison System?

Historical spending patterns for medical supplies within the Federal Prison System (FPS) would reveal trends in annual expenditures, vendor relationships, and the types of supplies procured. Analyzing this data over several fiscal years would help identify any significant increases or decreases in spending, potential cost-saving opportunities, and the consistency of vendor performance. Understanding these patterns is crucial for budgeting, strategic sourcing, and identifying potential areas for efficiency improvements. Without access to historical FPS spending data, it's difficult to contextualize the $3.5 million for this single delivery order within a broader trend.

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: $35,000

Exercised Options: $35,000

Current Obligation: $35,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0032

IDV Type: IDC

Timeline