VA's May 2024 Medical Surgical Prime Vendor Spending Reaches $28.3M with Medline Industries, LP

Contract Overview

Contract Amount: $28,274,816 ($28.3M)

Contractor: Medline Industries, LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-01

End Date: 2024-05-31

Contract Duration: 30 days

Daily Burn Rate: $942.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF MAY 2024

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.3 million to MEDLINE INDUSTRIES, LP for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF MAY 2024 Key points: 1. Significant monthly expenditure of $28.3M on medical surgical supplies. 2. Sole vendor, Medline Industries, LP, dominates this spending category. 3. Lack of competition raises concerns about potential price inflation. 4. Spending is concentrated in the Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: questionable

The $28.3M expenditure for May 2024 represents a substantial outlay. Without competitive benchmarks or detailed pricing breakdowns, it's difficult to assess if this represents excellent value. The lack of competition is a primary driver for this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This significantly limits price discovery and negotiation leverage, potentially leading to higher costs for the government.

Taxpayer Impact: The lack of competition in this large expenditure could result in taxpayers paying a premium for medical surgical supplies.

Public Impact

Veterans receive essential medical supplies through this contract. The Department of Veterans Affairs relies on this vendor for critical healthcare needs. Potential for increased costs impacts the overall VA budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High monthly expenditure

Positive Signals

Consistent supply of medical surgical items
Established vendor relationship

Sector Analysis

This spending falls within the Surgical and Medical Instrument Manufacturing sector, which is critical for healthcare delivery. Benchmarks for similar large-scale prime vendor contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The data does not provide information on small business participation. Further analysis would be needed to determine if small businesses are involved as subcontractors or if opportunities are being missed.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lapse in competitive sourcing. Robust oversight is needed to ensure that sole-source awards are justified and that opportunities for competition are explored regularly.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for price inflation
Limited transparency on pricing
Sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.3 million to MEDLINE INDUSTRIES, LP. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF MAY 2024

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 $28.3 million.

What is the period of performance?

Start: 2024-05-01. End: 2024-05-31.

What is the historical pricing trend for these medical surgical supplies under this vendor?

Analyzing historical pricing data is crucial to understand if costs have remained stable, increased, or decreased over time. Without this context, it's challenging to determine if the current $28.3M monthly spend represents fair value or if prices have escalated due to the lack of competition.

What is the justification for the 'NOT COMPETED' status of this contract?

Understanding the specific reasons why this contract was not competed is vital. Was it due to a lack of available vendors, urgent need, or a previous strategic decision? This justification directly impacts the assessment of risk and potential for future competition.

How does the unit cost of key medical surgical items compare to market rates or other government contracts?

Benchmarking unit costs against similar contracts or market rates is essential for evaluating cost-effectiveness. If unit prices are significantly higher than comparable sources, it indicates potential overspending and a need for renegotiation or re-competition.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $28,274,816

Exercised Options: $28,274,816

Current Obligation: $28,274,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0003

IDV Type: IDC

Timeline