HHS Awards $4M Medical Supply Prime Vendor Contract to Medline Industries, LP for Indian Health Service
Contract Overview
Contract Amount: $4,000,000 ($4.0M)
Contractor: Medline Industries, LP
Awarding Agency: Department of Health and Human Services
Start Date: 2026-02-26
End Date: 2029-05-31
Contract Duration: 1,190 days
Daily Burn Rate: $3.4K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDLINE DELIVERY ORDER. MEDICAL SURGICAL SUPPLIES, PRIME VENDOR PURCHASES FOR NSSC FEDERAL CUSTOMERS
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73114
State: Oklahoma Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $4.0 million to MEDLINE INDUSTRIES, LP for work described as: MEDLINE DELIVERY ORDER. MEDICAL SURGICAL SUPPLIES, PRIME VENDOR PURCHASES FOR NSSC FEDERAL CUSTOMERS Key points: 1. Contract awarded to Medline Industries, LP, a significant player in the medical supply market. 2. Focuses on medical and surgical supplies for federal customers, indicating a critical need. 3. Potential risk associated with a single vendor for essential supplies. 4. The sector is Surgical and Medical Instrument Manufacturing, a vital area for healthcare delivery.
Value Assessment
Rating: fair
The award amount of $4 million is a baseline. Without specific unit pricing or comparison data, it's difficult to assess value. The firm fixed price contract offers some cost predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP and is a BPA Call, suggesting a limited competition approach. This may limit price discovery and potentially lead to higher costs compared to a fully competed contract.
Taxpayer Impact: Taxpayer funds are being used for essential medical supplies. The lack of full competition raises concerns about maximizing value for money.
Public Impact
Ensures availability of critical medical and surgical supplies for federal healthcare facilities. Supports the operational needs of the Indian Health Service. Potential for price fluctuations if competition is not actively sought in future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Reliance on a single vendor for essential supplies
Positive Signals
- Ensures supply chain continuity
- Firm fixed price contract
Sector Analysis
The medical supply sector is characterized by high demand and significant government spending. Benchmarks for similar prime vendor contracts would be necessary for a precise comparison.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not provide information on subcontracting opportunities. Further analysis is needed to determine small business participation.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services, Indian Health Service. Oversight should focus on ensuring fair pricing and performance throughout the contract's life.
Related Government Programs
- Surgical and Medical Instrument Manufacturing
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Limited competition may lead to higher costs.
- Long contract duration increases exposure to market volatility.
- Potential for supply chain disruptions.
- Lack of transparency in pricing without further data.
Tags
surgical-and-medical-instrument-manufact, department-of-health-and-human-services, ok, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $4.0 million to MEDLINE INDUSTRIES, LP. MEDLINE DELIVERY ORDER. MEDICAL SURGICAL SUPPLIES, PRIME VENDOR PURCHASES FOR NSSC FEDERAL CUSTOMERS
Who is the contractor on this award?
The obligated recipient is MEDLINE INDUSTRIES, LP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Indian Health Service).
What is the total obligated amount?
The obligated amount is $4.0 million.
What is the period of performance?
Start: 2026-02-26. End: 2029-05-31.
What is the historical pricing trend for these specific medical supplies under previous contracts or similar agreements?
Historical pricing data is crucial for evaluating the fairness of the current $4 million award. Analyzing past performance, market trends, and competitor pricing for similar items would reveal if this contract represents good value or if costs have escalated due to limited competition or other market factors.
What are the specific risks associated with relying on a single vendor for essential medical and surgical supplies over a nearly 5-year period?
Reliance on a single vendor, Medline Industries, LP, for an extended period poses risks such as supply chain disruptions, potential price gouging, and reduced incentive for innovation or service improvement. Contingency plans for alternative sourcing or vendor failure should be in place.
How effectively does this contract meet the specific medical supply needs of the Indian Health Service customers?
The effectiveness hinges on the quality, availability, and timeliness of the supplies provided by Medline. Regular performance reviews, user feedback mechanisms, and adherence to delivery schedules are key indicators. The contract's success is directly tied to supporting patient care within IHS facilities.
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 UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
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: $4,000,000
Exercised Options: $4,000,000
Current Obligation: $4,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 75H71125A00016
IDV Type: BPA
Timeline
Start Date: 2026-02-26
Current End Date: 2029-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2026-04-10
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