VA's December 2025 Medical-Surgical Prime Vendor spending reached $74.2M with Medline Industries, LP

Contract Overview

Contract Amount: $74,217,260 ($74.2M)

Contractor: Medline Industries, LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2025-12-31

Contract Duration: 30 days

Daily Burn Rate: $2.5M/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 DECEMBER 2025

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $74.2 million to MEDLINE INDUSTRIES, LP for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF DECEMBER 2025 Key points: 1. The contract represents a significant portion of the VA's medical supply chain, highlighting the importance of this prime vendor. 2. While a large dollar amount, it's crucial to benchmark against historical VA medical supply expenditures to assess value. 3. The firm-fixed-price contract type suggests predictable costs, but the overall value depends on the efficiency of the supply chain. 4. Competition dynamics are key; understanding the bidding process for this prime vendor contract is essential for price discovery. 5. The geographic concentration in Illinois for the vendor warrants consideration of broader distribution capabilities. 6. Performance context requires analyzing delivery timeliness and product availability against contract requirements.

Value Assessment

Rating: good

The reported $74.2 million in December 2025 spending for medical-surgical supplies through Medline Industries, LP, is substantial. Benchmarking this against the VA's total annual medical supply spend and similar prime vendor contracts across government agencies would provide a clearer picture of value for money. The firm-fixed-price contract type is generally favorable for cost control, but the ultimate value is realized through efficient delivery and quality of goods. Without specific unit cost data or comparisons to market rates for the items procured, a precise value assessment is challenging, but the scale suggests a potentially competitive arrangement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bidders suggests a reasonably competitive landscape for this critical medical supply contract. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process, including the evaluation criteria and the winning proposal's advantages, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the VA receives the best possible value for its medical supply needs.

Public Impact

Veterans across the nation benefit from the timely availability of essential medical and surgical supplies facilitated by this contract. The contract ensures the provision of a wide range of medical, dental, and hospital equipment and supplies. The primary geographic impact is national, supporting VA healthcare facilities wherever they are located. This contract supports a critical segment of the healthcare supply chain workforce, including logistics, warehousing, and distribution personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single prime vendor for a broad category of essential supplies.
Geographic concentration of the vendor in Illinois could pose logistical risks in case of regional disruptions.
The sheer volume of spending necessitates robust oversight to ensure continued cost-effectiveness and prevent price creep over time.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports a critical function for the Department of Veterans Affairs, ensuring healthcare continuity for veterans.

Sector Analysis

The medical, dental, and hospital equipment and supplies merchant wholesalers sector is a vital component of the healthcare industry, ensuring the availability of necessary goods for patient care. This contract falls within this sector, representing a significant expenditure by the Department of Veterans Affairs. Comparable spending benchmarks would involve analyzing other large federal agencies' procurements of similar medical supplies or looking at the total market size for medical supply distribution in the U.S. to contextualize the VA's investment.

Small Business Impact

While this contract is with a large prime vendor, Medline Industries, LP, it's important to assess subcontracting opportunities for small businesses. Prime vendors often engage small businesses for specialized services or to fulfill specific product needs. The contract details should specify any small business subcontracting goals or achievements. A robust subcontracting plan can significantly benefit the small business ecosystem by providing them with access to large government contracts and revenue streams.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS-NG, which report spending data. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were identified.

Related Government Programs

VA Federal Supply Schedule (FSS) Contracts
Department of Defense Medical Prime Vendor Contracts
GSA Schedule for Medical Equipment

Risk Flags

Potential for supply chain disruption
Vendor concentration risk
Price escalation risk (if not managed tightly)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $74.2 million to MEDLINE INDUSTRIES, LP. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF DECEMBER 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 $74.2 million.

What is the period of performance?

Start: 2025-12-01. End: 2025-12-31.

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

Medline Industries, LP has a substantial history of serving the Department of Veterans Affairs (VA) as a prime vendor for medical and surgical supplies. They are a major player in the federal healthcare supply chain, frequently appearing in contract awards across various agencies. Their track record typically involves managing large-scale distribution networks to ensure timely delivery of a wide array of medical products. Analyzing past performance evaluations, any past performance issues, and the duration of their previous contracts with the VA and other entities like the Department of Defense (DoD) would provide a comprehensive view of their reliability and effectiveness in fulfilling complex supply chain requirements. This includes assessing their ability to meet delivery schedules, maintain product quality, and manage inventory efficiently across numerous federal healthcare facilities.

How does the December 2025 spending of $74.2 million compare to previous months or the same month in prior years for this contract?

To assess the value and trends of this contract, comparing the December 2025 spending of $74.2 million to historical data is crucial. If spending in previous months or the same month in prior years was significantly lower, it could indicate increased demand, price inflation, or a shift in procurement strategy. Conversely, if spending has been consistently around this figure, it suggests a stable operational level. Analyzing year-over-year and month-over-month spending patterns can reveal seasonality, the impact of specific healthcare initiatives, or changes in the types and quantities of supplies being procured. This comparative analysis helps determine if the current spending level is an anomaly or part of a consistent trend, providing context for value assessment and future budget planning.

What are the key performance indicators (KPIs) for this prime vendor contract, and how has Medline Industries, LP performed against them?

Key performance indicators (KPIs) for a medical-surgical prime vendor contract typically include metrics such as on-time delivery rates, order fill rates, accuracy of shipments, response times to inquiries, and adherence to product specifications. For Medline Industries, LP, performance against these KPIs would be detailed in contract performance reports, often reviewed by the contracting officer. A high fill rate and on-time delivery percentage are critical for ensuring uninterrupted patient care within VA facilities. Any deviations from these KPIs could indicate potential risks in the supply chain, such as inventory shortages or logistical challenges. Evaluating Medline's historical performance against these established metrics is essential for understanding the true value and reliability of their service beyond the raw dollar amount spent.

What is the estimated total annual spending for this prime vendor contract, and how does it compare to the VA's overall medical supply budget?

The provided data reflects only December 2025 spending ($74.2 million). To understand the full scope, estimating the total annual spending for this prime vendor contract is necessary. This would typically involve extrapolating from monthly data, considering any known seasonality or contract modifications. Comparing this estimated annual figure to the VA's overall medical supply budget provides critical context. If this single contract represents a disproportionately large percentage of the total budget, it could indicate a concentration risk or highlight the efficiency of the prime vendor model. Conversely, if it's a smaller fraction, it suggests a more diversified procurement strategy. This comparison is vital for resource allocation and strategic sourcing decisions within the VA.

Are there any identified risks associated with Medline Industries, LP's performance or the nature of this prime vendor contract?

Risks associated with this prime vendor contract could include supply chain disruptions (e.g., manufacturing issues, transportation delays, natural disasters affecting distribution centers), potential for price increases over the contract term despite the fixed-price nature (if not carefully managed), over-reliance on a single vendor leading to reduced negotiating leverage, and cybersecurity risks if electronic ordering and inventory systems are compromised. For Medline Industries, LP specifically, risks might relate to their financial stability, labor relations, or compliance with regulatory requirements. The VA's risk management strategy would involve monitoring these potential issues through contract surveillance, performance reviews, and contingency planning to ensure the continuity of essential medical supplies.

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: $74,217,260

Exercised Options: $74,217,260

Current Obligation: $74,217,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0032

IDV Type: IDC

Timeline