VA's Medical Surgical Prime Vendor Spending Reached $26.2M in September 2022

Contract Overview

Contract Amount: $26,214,388 ($26.2M)

Contractor: Medline Industries, LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-01

End Date: 2022-09-01

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF SEPTEMBER 2022.

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.2 million to MEDLINE INDUSTRIES, LP for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF SEPTEMBER 2022. Key points: 1. Significant monthly expenditure by the Department of Veterans Affairs for medical surgical supplies. 2. MEDLINE INDUSTRIES, LP is the sole vendor for this period, raising questions about ongoing competition. 3. The contract type is Firm Fixed Price, offering cost predictability. 4. Spending is concentrated in Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: fair

The $26.2M expenditure in September 2022 represents a substantial outlay. Without historical data or benchmarks for this specific prime vendor program, assessing its value relative to similar contracts is difficult. Further analysis is needed to determine if this spending aligns with market rates and program needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. While competition was present at some stage, the current monthly expenditure is with a single vendor, MEDLINE INDUSTRIES, LP. This limits price discovery for this specific period.

Taxpayer Impact: The impact on taxpayers is tied to the efficiency and competitiveness of the procurement process. Limited competition may result in higher costs than a fully open and ongoing competitive environment.

Public Impact

Ensures availability of critical medical and surgical supplies for veterans. Supports the healthcare operations of the Department of Veterans Affairs. Potential for cost savings or overspending depending on vendor pricing and competition. Impacts the medical device and instrument manufacturing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition for the specific monthly expenditure.
Lack of historical spending data for comparison.
Single vendor for September 2022 expenditure.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Supports critical healthcare needs for veterans.

Sector Analysis

The spending falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare delivery. Benchmarking this expenditure against similar prime vendor contracts for medical supplies would provide better context on its efficiency and cost-effectiveness.

Small Business Impact

Analysis of small business participation in this contract is not available from the provided data. Further investigation would be needed to determine if small businesses are involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure performance, quality, and adherence to contract terms. The 'EXPRESS REPORT' suggests a focus on timely data.

Related Government Programs

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

Risk Flags

Potential for non-competitive pricing due to single vendor for the period.
Lack of comparative pricing data.
Limited insight into historical spending trends.
Unclear impact of 'exclusion of sources' on current pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.2 million to MEDLINE INDUSTRIES, LP. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF SEPTEMBER 2022.

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 $26.2 million.

What is the period of performance?

Start: 2022-09-01. End: 2022-09-01.

What is the historical spending trend for this Medical Surgical Prime Vendor contract?

The provided data only covers September 2022 expenditures. To assess value and identify trends, historical spending data is crucial. Analyzing past monthly, quarterly, and annual spending would reveal patterns, potential cost escalations, or savings over time, providing a clearer picture of the contract's long-term financial performance and the vendor's reliability.

How does MEDLINE INDUSTRIES, LP's pricing compare to other surgical and medical instrument manufacturers for similar products?

Benchmarking MEDLINE INDUSTRIES, LP's pricing against competitors is essential for value assessment. Without access to comparative pricing data for identical or substitutable products from other manufacturers, it's difficult to determine if the $26.2M expenditure represents a fair market price. This comparison is key to identifying potential cost savings or overpayments.

What is the effectiveness of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring competitive pricing for this contract?

While this method implies prior competition, its effectiveness in ensuring ongoing competitive pricing for monthly expenditures relies on the frequency and robustness of subsequent re-competitions or price reviews. If the exclusion of sources was a one-time event and the current award is extended without regular competitive bidding, it may not yield the best value, potentially leading to higher costs than a continuously open market.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $26,214,388

Exercised Options: $26,214,388

Current Obligation: $26,214,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X22D0003

IDV Type: IDC

Timeline