VA's August 2025 Medical-Surgical Prime Vendor spending reached $73.2M with Medline Industries, LP

Contract Overview

Contract Amount: $73,191,927 ($73.2M)

Contractor: Medline Industries, LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-01

End Date: 2025-08-31

Contract Duration: 30 days

Daily Burn Rate: $2.4M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF AUGUST 2025

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $73.2 million to MEDLINE INDUSTRIES, LP for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF AUGUST 2025 Key points: 1. The contract demonstrates significant monthly expenditure for essential medical supplies. 2. Medline Industries, LP is a key supplier within the VA's medical-surgical procurement. 3. The contract's fixed-price nature provides cost predictability for the VA. 4. A full and open competition suggests a robust market for these supplies. 5. The monthly spend represents a substantial portion of the overall contract value. 6. Geographic concentration in Illinois for the vendor warrants attention for national distribution.

Value Assessment

Rating: good

The reported August 2025 expenditure of $73.2 million for medical-surgical prime vendor services is substantial. While direct comparisons to similar contracts are difficult without specific scope and duration, the VA's reliance on prime vendors for such a broad category of supplies indicates a strategic approach to procurement. The firm fixed-price contract type suggests that pricing is established and predictable, which is generally favorable for the government. Benchmarking the value would require detailed analysis of the specific items procured and their market prices during the reporting period.

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 bids. The presence of 6 bidders suggests a competitive marketplace for medical-surgical prime vendor services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government. The fact that this was competed suggests the VA actively sought competitive pricing for these essential supplies.

Taxpayer Impact: The full and open competition and multiple bidders indicate that taxpayers likely benefited from competitive pricing and a wider selection of potential suppliers, ensuring value for money.

Public Impact

Veterans across the nation benefit from timely access to a wide range of medical, dental, and hospital equipment and supplies. The contract ensures the continuous availability of critical medical supplies for VA healthcare facilities. The prime vendor model streamlines the supply chain, reducing administrative burden and delivery times. The vendor's operations, based in Illinois, support regional distribution networks for medical supplies. This contract supports the healthcare workforce by ensuring they have the necessary tools and equipment to provide care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single prime vendor for a broad category of goods.
Geographic concentration of the vendor's primary operations in Illinois could impact national distribution efficiency.
The sheer volume of monthly spending necessitates robust inventory management and demand forecasting by the vendor.
Ensuring consistent quality across a vast array of medical-surgical items is a perpetual challenge.

Positive Signals

The contract was awarded through full and open competition, indicating a competitive process.
A firm fixed-price contract provides cost certainty for the Department of Veterans Affairs.
The prime vendor model is designed to ensure efficient and timely delivery of critical supplies.
The vendor's established presence suggests experience in managing complex medical supply chains.

Sector Analysis

The medical, dental, and hospital equipment and supplies merchant wholesalers sector is a critical component of the healthcare supply chain. This contract falls within the broader category of medical supplies procurement, a significant area of federal spending, particularly within the Department of Veterans Affairs. The market is characterized by numerous manufacturers and distributors, with prime vendors playing a crucial role in consolidating and distributing a wide array of products to healthcare providers. Comparable spending benchmarks would typically involve analyzing the total federal outlays for medical supplies across different agencies and contract types.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime vendor is a large entity, the structure of prime vendor contracts often involves subcontracting opportunities. It is possible that smaller businesses could be involved as manufacturers or specialized suppliers to Medline Industries, LP. However, without explicit subcontracting plans or data, the direct impact on the small business ecosystem remains unclear, though large prime vendor contracts can sometimes create indirect opportunities.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs' procurement and contracting officers. Accountability measures are embedded within the contract terms, including performance standards and delivery requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would typically apply if there were allegations of fraud, waste, or abuse related to the contract's execution or performance.

Related Government Programs

VA Federal Supply Schedule (FSS) Contracts
Defense Logistics Agency (DLA) Medical Supplies
General Services Administration (GSA) Schedules
Medical Equipment and Supplies Procurement

Risk Flags

Potential for price escalation over contract life despite fixed-price structure.
Dependence on a single vendor for a wide range of critical supplies.
Ensuring consistent quality across a diverse product catalog.
Logistical challenges in nationwide distribution from a concentrated vendor base.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $73.2 million to MEDLINE INDUSTRIES, LP. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF AUGUST 2025

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 $73.2 million.

What is the period of performance?

Start: 2025-08-01. End: 2025-08-31.

What is the historical spending trend for this specific prime vendor contract with the VA?

Analyzing historical spending data for this specific prime vendor contract would reveal trends in monthly expenditures, potential seasonality, and overall growth or decline in the utilization of Medline Industries, LP's services. For instance, comparing August 2025's $73.2 million expenditure to previous months and years would indicate if this represents a typical spending level, an increase due to specific needs (e.g., public health emergencies), or a decrease. Understanding these patterns is crucial for budget forecasting and identifying any anomalies that might warrant further investigation into contract performance or demand shifts within the VA healthcare system.

How does the monthly expenditure compare to the total contract value and duration?

The monthly expenditure of $73.2 million for August 2025 needs to be contextualized against the total contract value and its remaining duration. If the total contract value is significantly higher and the duration extends well beyond August 2025, then this monthly spend might represent a normal operational level. Conversely, if this expenditure is disproportionately high relative to the total contract value or if the contract is nearing its end, it could signal potential issues such as accelerated spending or scope creep. A detailed analysis requires knowing the contract's ceiling value, obligated amounts, and the period of performance to assess if spending is on track.

What specific types of medical and surgical supplies are included under this prime vendor contract?

The 'Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers' category is broad, encompassing a vast array of items. Understanding the specific subcategories of supplies procured under this contract (e.g., pharmaceuticals, surgical instruments, diagnostic equipment, general consumables) is essential for a comprehensive analysis. This detail would allow for benchmarking against specific market prices for those items, assessing the diversity of the VA's needs, and identifying any potential over-reliance on specific product types. Without this granular data, the $73.2 million figure represents a high-level aggregate.

What is Medline Industries, LP's track record with the VA and other federal agencies for similar contracts?

Medline Industries, LP's performance history with the VA and other federal agencies is a critical indicator of reliability and value. Examining past contract performance, including on-time delivery rates, quality of goods, responsiveness to issues, and any past performance reviews or disputes, provides insight into their capabilities. A strong track record suggests a lower risk associated with the current contract, while a history of performance issues might raise concerns about future delivery and cost-effectiveness. This context is vital for assessing the overall 'good' rating assigned to the value analysis.

Are there any specific performance metrics or KPIs associated with this prime vendor contract?

The effectiveness of this prime vendor contract hinges on the specific performance metrics (Key Performance Indicators - KPIs) established and monitored by the VA. These might include metrics related to order fulfillment accuracy, delivery timeliness, product availability, customer satisfaction, and adherence to pricing agreements. The $73.2 million expenditure is only one aspect; understanding how well Medline Industries, LP is meeting its contractual obligations through these KPIs provides a more complete picture of the contract's success and value for money.

What is the geographic distribution of medical-surgical supply needs met by this contract across the VA system?

While the vendor is based in Illinois, the VA serves veterans nationwide. Understanding the geographic distribution of the $73.2 million expenditure – i.e., which VA facilities or regions are receiving the most supplies – is important. This helps assess if the prime vendor model is effectively serving all geographic areas equally and efficiently. Disparities in distribution could indicate logistical challenges, varying healthcare demands across regions, or potential areas where service could be improved, impacting the overall public impact.

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

Solicitation ID: 36C10X23R0007

Offers Received: 6

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: $73,191,927

Exercised Options: $73,191,927

Current Obligation: $73,191,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0032

IDV Type: IDC

Timeline