DOJ awards $89.5M for medical supplies to Medline Industries, LP, under full and open competition

Contract Overview

Contract Amount: $89,511 ($89.5K)

Contractor: Medline Industries, LP

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-01-31

Contract Duration: 122 days

Daily Burn Rate: $734/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 FCC TUCSON MEDLINE / MEDICAL SUPPLES

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $89,511.11 to MEDLINE INDUSTRIES, LP for work described as: FY26 FCC TUCSON MEDLINE / MEDICAL SUPPLES Key points: 1. Value for money appears reasonable given the fixed-price nature and duration, though specific unit cost benchmarks are needed for a definitive assessment. 2. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are low, with a firm fixed-price contract and a defined delivery period. 4. Performance context is within the Federal Prison System's need for essential medical supplies. 5. Sector positioning is within the medical supplies merchant wholesalers category.

Value Assessment

Rating: good

The contract value of $89.5 million over approximately 4 months (Oct 2025 - Jan 2026) suggests a significant volume of medical supplies. Without specific itemized pricing or comparison to similar large-scale procurements for federal correctional facilities, a precise value-for-money assessment is challenging. However, the firm fixed-price structure generally provides cost certainty. Benchmarking against market rates for bulk medical supplies would be necessary for a more granular evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of a single delivery order suggests this is part of a larger contract vehicle or a specific call against an existing agreement. The level of competition is generally positive for price discovery, as it encourages vendors to offer competitive pricing to secure the award.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives fair market value for the essential medical supplies procured for federal inmates.

Public Impact

Federal inmates within the Bureau of Prisons will receive necessary medical supplies, ensuring continuity of care. The services delivered include the provision of medical, dental, and hospital equipment and supplies. The geographic impact is nationwide, covering all facilities managed by the Federal Prison System. Workforce implications are primarily related to the supply chain and logistics managed by Medline Industries, LP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly during the contract period, although the fixed-price nature mitigates this.
Dependence on a single supplier for a large volume of critical supplies could pose a risk if supply chain disruptions occur.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost predictability for the government.
Medline Industries, LP is a known entity in the medical supply sector, suggesting established capabilities.

Sector Analysis

The medical supplies market is a substantial sector, with merchant wholesalers playing a crucial role in distributing a wide array of products. Federal agencies, particularly those managing large populations like the Bureau of Prisons, are significant consumers of these supplies. This contract fits within the broader category of healthcare procurement, where consistent and reliable supply chains are paramount. Comparable spending benchmarks would typically be found within large federal healthcare systems or GSA schedules for similar product categories.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large award to a major supplier, it is unlikely to involve significant subcontracting opportunities for small businesses directly related to this specific delivery order, though Medline's broader supply chain may include small business partners.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Bureau of Prisons contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is generally maintained through contract award databases, though detailed performance metrics are not publicly disclosed.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Commissary and Supply Operations
GSA Federal Supply Schedule 65 II A - Medical Equipment and Supplies

Risk Flags

Potential supply chain vulnerability
Dependence on a single large supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $89,511.11 to MEDLINE INDUSTRIES, LP. FY26 FCC TUCSON MEDLINE / MEDICAL SUPPLES

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 $89,511.11.

What is the period of performance?

Start: 2025-10-01. End: 2026-01-31.

What is Medline Industries, LP's track record with the Federal Prison System and other federal agencies?

Medline Industries, LP has a significant history of contracting with federal agencies, including the Department of Defense and the Department of Veterans Affairs, for medical supplies. Their experience with the Federal Prison System (FPS) specifically would be detailed in historical contract databases. Generally, large federal healthcare procurements involve extensive vetting of contractor performance, quality control, and delivery reliability. A review of past FPS contracts with Medline would reveal their performance history, including any past issues with delivery, product quality, or contract compliance. Their established presence suggests a generally positive track record, but specific performance metrics for this agency would require deeper analysis of past contract performance reports and any associated corrective actions.

How does the per-unit cost of these medical supplies compare to market rates or similar federal contracts?

A direct comparison of per-unit costs is not possible with the provided data, as it only shows the total award amount and contract duration. To assess value for money, one would need to obtain the detailed price list associated with this delivery order and compare it against: 1) market rates for the specific items purchased (e.g., from commercial distributors or group purchasing organizations), and 2) pricing on similar federal contracts, such as those awarded through GSA schedules or other agency-specific IDIQ contracts. Given this is a firm fixed-price contract awarded under full and open competition, it is presumed that the pricing is competitive. However, without the itemized data, a definitive benchmark cannot be established. Further analysis would involve requesting the detailed pricing breakdown.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks for this contract revolve around supply chain disruptions and potential quality control issues. Given the large volume of essential medical supplies, any interruption in delivery could impact inmate healthcare. Mitigation strategies typically include robust contract management by the Bureau of Prisons, requiring adherence to delivery schedules and product specifications. Medline Industries, LP, as a large supplier, likely has established contingency plans for supply chain resilience. Furthermore, the firm fixed-price nature incentivizes timely and correct delivery. Quality assurance clauses within the contract would also mandate that supplies meet specified standards, with penalties for non-compliance. The government may also maintain safety stock or have alternative suppliers identified for critical items.

How effective is the Federal Prison System in managing its medical supply chain, and does this contract reflect best practices?

The effectiveness of the FPS medical supply chain is difficult to assess solely based on this single contract award. However, utilizing a large, established supplier like Medline Industries, LP, through a competitive bidding process, suggests an adherence to best practices for procuring high-volume, essential goods. Best practices include leveraging competition to ensure fair pricing, using fixed-price contracts for predictable costs, and relying on experienced vendors with proven supply chain capabilities. The FPS likely employs a category management approach for medical supplies, consolidating needs to achieve economies of scale. Ongoing monitoring of delivery performance, product quality, and cost trends would be crucial indicators of the overall effectiveness of their supply chain management.

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

Historical spending patterns for medical supplies within the Federal Prison System (FPS) have likely shown a consistent and significant demand, driven by the large inmate population. Annual expenditures can fluctuate based on healthcare needs, inflation, and procurement strategies. Over the past decade, federal agencies have increasingly focused on consolidating purchasing power and leveraging large contracts to achieve cost savings. The FPS, like other large federal healthcare providers, would likely have seen its medical supply spending increase over time, reflecting both rising healthcare costs and potentially expanded services. Analyzing historical data would reveal trends in specific supply categories, average contract values, and the prevalence of different contract types (e.g., sole-source vs. competitive). This $89.5 million award represents a substantial single procurement action within that broader spending context.

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: $89,511

Exercised Options: $89,511

Current Obligation: $89,511

Actual Outlays: $16,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0032

IDV Type: IDC

Timeline