DOJ's $2.7M medical supply order to Medline Industries, LP for Bureau of Prisons, awarded under full and open competition

Contract Overview

Contract Amount: $27,075 ($27.1K)

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: $301/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 Q3 ORDER WAS ISSUED AGAINST 36C10X23D0032 AND IAW INTERAGENCY AGREEMENT 990.

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $27,075 to MEDLINE INDUSTRIES, LP for work described as: FY26 B1 MEDLINE MEDICAL SUPPLIES Q3 ORDER WAS ISSUED AGAINST 36C10X23D0032 AND IAW INTERAGENCY AGREEMENT 990. Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a robust bidding process, potentially leading to favorable pricing. 3. Risk indicators are low due to a firm fixed-price contract and established supplier. 4. Performance context is a short-term delivery order for essential medical supplies. 5. Sector positioning is within the healthcare equipment and supplies wholesale market.

Value Assessment

Rating: good

The $2.7 million order for medical supplies represents a significant but standard expenditure for the Federal Prison System. Benchmarking against similar contracts for medical equipment and supplies from other federal agencies or within the broader healthcare market would provide a clearer picture of value. Given the firm fixed-price nature of the contract, the price is set, but its competitiveness relies on the initial bidding process. The duration of the order (90 days) suggests it's for immediate needs rather than long-term strategic stocking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a competitive environment. This level of competition is generally expected to drive down prices and ensure the government receives fair market value for the goods procured.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings inherent in a fully competed contract, as multiple vendors vie for the business, leading to more competitive pricing.

Public Impact

Inmates within the Federal Prison System will benefit from the consistent availability of necessary medical supplies. Essential medical, dental, and hospital equipment and supplies will be delivered to facilities managed by the Bureau of Prisons. The geographic impact is primarily within Illinois, where the order is being fulfilled. Workforce implications are minimal, likely involving logistics and distribution personnel for Medline Industries, LP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future orders if competition dynamics shift.
Dependence on a single supplier for a critical need could pose a risk if supply chain issues arise.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty.
Established supplier with a track record in providing medical supplies.

Sector Analysis

The contract falls within the Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers sector. This sector is crucial for maintaining healthcare operations, particularly within government institutions. Spending in this category is consistently high across federal agencies, with significant annual outlays for a wide range of medical necessities. Comparable spending benchmarks would involve analyzing aggregate federal procurement data for similar medical supply categories.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless Medline Industries, LP voluntarily engages small businesses in its supply chain for this order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System procurement and contracting officials. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by federal procurement databases where such awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Procurement
Bureau of Prisons Supply Chain Management
Medical Equipment and Supplies Procurement
Interagency Agreements

Risk Flags

Supply Chain Vulnerability
Potential for Price Escalation in Future Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $27,075 to MEDLINE INDUSTRIES, LP. FY26 B1 MEDLINE MEDICAL SUPPLIES Q3 ORDER WAS ISSUED AGAINST 36C10X23D0032 AND IAW INTERAGENCY AGREEMENT 990.

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 $27,075.

What is the period of performance?

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

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 and equipment across various agencies, including the Department of Defense and the Department of Veterans Affairs. Their history indicates a strong presence in supplying healthcare products to government entities. Analyzing their past performance on similar firm fixed-price delivery orders can provide insights into their reliability and adherence to contract terms. Specific data on past performance ratings, if available through federal procurement databases, would further illuminate their track record. However, the sheer volume and frequency of their awards suggest a generally positive and established relationship with federal procurement.

How does the $2.7 million value of this order compare to typical federal spending on similar medical supplies?

The $2.7 million value for a 90-day delivery order of medical supplies is substantial but not unusual for a federal agency like the Bureau of Prisons, which serves a large inmate population. To benchmark this value effectively, one would compare it against similar orders placed by the Bureau of Prisons or other correctional facilities, as well as other federal healthcare providers like the VA or IHS, for comparable product categories (e.g., general medical supplies, specific equipment). Analyzing the per-unit costs within this order against market rates or other federal contract prices for the same items would offer a more granular assessment of value for money. Without specific itemization and unit pricing, a definitive comparison is challenging, but the scale aligns with the operational needs of a large federal prison system.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract are relatively low due to its nature. As a firm fixed-price delivery order for a defined period (90 days), cost overruns for the government are unlikely. The main risks revolve around supply chain disruptions affecting Medline Industries, LP, which could lead to delays in delivery or shortages of critical medical supplies for the Federal Prison System. Another potential risk, though less likely given the full and open competition, is that the initial pricing, while fixed, might not have been the absolute lowest achievable if competition had been more intense or if market conditions change rapidly. Ensuring the quality and suitability of the supplied items according to specifications is also a standard, albeit managed, risk.

How effective is the Federal Prison System in managing its medical supply procurement?

The Federal Prison System (FPS) manages its medical supply procurement through various mechanisms, including large-scale contracts and interagency agreements, as evidenced by this order. Their effectiveness can be gauged by factors such as ensuring adequate supply levels, maintaining cost efficiency, and meeting the healthcare needs of the inmate population. Awards like this, often competed, suggest an effort towards achieving fair market value. However, the sheer scale and complexity of operating healthcare within correctional facilities present ongoing challenges. Continuous monitoring of contract performance, supplier reliability, and inventory management are crucial for sustained effectiveness. Data on stock-outs, emergency procurements, or patient care disruptions would provide a more direct measure of effectiveness.

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

Historical spending patterns for medical supplies by the Federal Prison System (FPS) generally show consistent and significant investment due to the healthcare needs of a large, concentrated population. Annual spending typically runs into tens or hundreds of millions of dollars, covering a broad spectrum of medical equipment, pharmaceuticals, and consumables. Procurement often involves a mix of large, multi-year contracts for common items and smaller, more frequent orders for specialized needs or during emergencies. The FPS, like other federal healthcare providers, leverages competitive bidding processes to manage these expenditures, though the specific mix of contract types (e.g., IDIQ, delivery orders) and competition levels can vary year over year based on strategic sourcing and market dynamics.

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: $27,075

Exercised Options: $27,075

Current Obligation: $27,075

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0032

IDV Type: IDC

Timeline