VA Spent $41.4M on Medical Surgical Supplies from Medline Industries, LP (Oct 2017 - Feb 2018)

Contract Overview

Contract Amount: $41,381,555 ($41.4M)

Contractor: Medline Industries, LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-10-01

End Date: 2018-02-28

Contract Duration: 150 days

Daily Burn Rate: $275.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS OF OCTOBER , NOVEMBER, DECEMBER 2017, AND JANUARY , FEBRUARY 2018

Place of Performance

Location: MUNDELEIN, LAKE County, ILLINOIS, 60060

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $41.4 million to MEDLINE INDUSTRIES, LP for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS OF OCTOBER , NOVEMBER, DECEMBER 2017, AND JANUARY , FEBRUARY 2018 Key points: 1. The Department of Veterans Affairs (VA) awarded a significant contract for medical surgical supplies. 2. Medline Industries, LP, a major player in the medical supply sector, was the sole awardee. 3. The contract utilized a firm-fixed-price structure, providing cost certainty for the VA. 4. This expenditure falls within the Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: good

The firm-fixed-price contract likely provided predictable costs for the VA. Benchmarking against similar large-scale medical supply contracts would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayer funds were used for essential medical supplies, with competition aiming to ensure efficient use of these funds.

Public Impact

Ensures availability of critical medical and surgical supplies for veterans' healthcare. Supports a key industry segment involved in manufacturing and distributing medical equipment. The large expenditure highlights the significant role of private vendors in government healthcare provision. Transparency in contract awards is crucial for public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for price increases in future contract periods.
Dependence on a single vendor for a broad range of supplies.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract offers cost predictability.
Supports critical healthcare needs for veterans.

Sector Analysis

The VA's expenditure is within the Surgical and Medical Instrument Manufacturing sector, which is vital for healthcare infrastructure. Spending benchmarks for similar large-scale medical supply contracts can vary widely based on scope and duration.

Small Business Impact

The provided data does not indicate the extent of small business participation in fulfilling this contract. Large prime vendors often subcontract, but specific details are not available here.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and accountability.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Vendor Lock-in Risk
Supply Chain Vulnerability
Potential for Price Escalation
Limited Small Business Subcontracting Visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41.4 million to MEDLINE INDUSTRIES, LP. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS OF OCTOBER , NOVEMBER, DECEMBER 2017, AND JANUARY , FEBRUARY 2018

Who is the contractor on this award?

The obligated recipient is MEDLINE INDUSTRIES, LP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $41.4 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-02-28.

What was the average monthly expenditure during this period?

The total expenditure was $41,381,555.41 over approximately 5 months (October 2017 to February 2018). This averages to roughly $8.28 million per month. This figure provides a baseline for understanding the scale of the VA's procurement needs for these supplies.

How does Medline Industries, LP's pricing compare to other major medical supply vendors?

Without access to competitive bids or market analysis data from the time of award, a direct pricing comparison is difficult. However, Medline is a major industry player, and the 'full and open competition' clause suggests the VA sought competitive pricing. Further analysis would require benchmarking against similar contracts and market rates.

What is the potential impact of relying on a single vendor for such a critical supply chain?

Reliance on a single vendor, even with competitive initial awards, can pose risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues) or potential price escalation in future contract renewals if competition is less robust. Diversification of suppliers can mitigate these risks.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $41,381,555

Exercised Options: $41,381,555

Current Obligation: $41,381,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0006

IDV Type: IDC

Timeline