DOJ's $1.5M order for life-dependent insulin pumps and supplies from Medtronic Minimed, Inc

Contract Overview

Contract Amount: $15,337 ($15.3K)

Contractor: Medtronic Minimed, Inc

Awarding Agency: Department of Justice

Start Date: 2026-03-17

End Date: 2026-04-30

Contract Duration: 44 days

Daily Burn Rate: $349/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDTRONIC MINIMED CORP - INSULIN PUMPS, INFUSION SETS AND SENSORS ORDER FY26. LIFE DEPENDENT MEDICAL EQUIPMENT

Place of Performance

Location: NAVAL AIR STATION/JRB, TARRANT County, TEXAS, 76127

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $15,337 to MEDTRONIC MINIMED, INC for work described as: MEDTRONIC MINIMED CORP - INSULIN PUMPS, INFUSION SETS AND SENSORS ORDER FY26. LIFE DEPENDENT MEDICAL EQUIPMENT Key points: 1. This purchase order ensures critical medical supplies for federal inmates, highlighting the government's role in healthcare provision. 2. The contract was competed under SAP, suggesting a streamlined procurement process for this essential medical equipment. 3. A firm fixed-price contract provides cost certainty for the government over the specified period. 4. The duration of the order is relatively short, indicating potential for periodic re-evaluation of needs and vendor performance. 5. The sole source of the supplies is Medtronic Minimed, Inc., a key player in the diabetes care market. 6. The geographic location of the delivery is Texas, indicating a specific operational need within that region.

Value Assessment

Rating: good

The value of this order, approximately $1.53 million, appears reasonable for life-dependent medical equipment like insulin pumps, infusion sets, and sensors. Benchmarking against similar federal contracts for diabetes management supplies would provide a more precise assessment. However, given the critical nature of the equipment and the established manufacturer, the pricing is likely competitive within the specialized medical device market. The firm fixed-price structure offers predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), which is typically used for purchases below the simplified acquisition threshold. While the specific details of the competition are not provided, SAP generally allows for broad solicitation, encouraging multiple bids. The fact that it was competed suggests that the Department of Justice sought competitive pricing and vendor options for these essential medical supplies.

Taxpayer Impact: Competing this contract, even under SAP, likely resulted in better pricing for taxpayers compared to a sole-source award. It ensures that multiple qualified vendors had an opportunity to offer their products and services.

Public Impact

Federal inmates requiring insulin pumps, infusion sets, and sensors for diabetes management will benefit directly from this order. The services delivered include the provision of critical medical equipment and supplies essential for maintaining patient health. The geographic impact is concentrated in Texas, where the supplies are scheduled for delivery. This contract supports the operational capacity of the Federal Prison System to provide necessary healthcare to its population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single manufacturer for critical medical equipment could pose a supply chain risk if unforeseen issues arise with Medtronic Minimed.
The short duration of the order might necessitate frequent re-procurement, potentially increasing administrative burden and the risk of price fluctuations if market conditions change.

Positive Signals

The use of a competed contract under SAP suggests an effort to secure competitive pricing for essential medical supplies.
Medtronic Minimed is a well-established provider of diabetes care technology, indicating a likely high degree of product reliability and vendor experience.
The firm fixed-price contract provides cost certainty for the Department of Justice, mitigating budget risks associated with price escalations.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on medical equipment and supplies. The market for diabetes management devices, including insulin pumps and sensors, is dominated by a few key manufacturers. Federal agencies, like the Department of Justice, procure these items to ensure the health and well-being of individuals under their care. Spending in this category is driven by the prevalence of chronic conditions within specific populations and the government's commitment to providing adequate healthcare services.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of insulin pumps and the established market position of manufacturers like Medtronic, it is less likely that small businesses would be primary suppliers for this specific type of equipment. Further analysis would be needed to determine if any subcontracting opportunities exist for smaller firms within the broader supply chain.

Oversight & Accountability

The Department of Justice's Federal Prison System is responsible for overseeing this contract. Oversight mechanisms would likely include monitoring delivery schedules, ensuring product quality meets specifications, and verifying invoice accuracy. Accountability is maintained through the contract terms and the firm fixed-price agreement. Transparency is generally facilitated through contract award databases, though specific performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Healthcare Services
Department of Veterans Affairs Medical Supplies
DOD Medical Equipment Procurement
Bureau of Prisons Medical Services

Risk Flags

Potential supply chain disruption risk due to single manufacturer reliance.
Short contract duration may lead to frequent re-procurement.
Need for ongoing price benchmarking to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,337 to MEDTRONIC MINIMED, INC. MEDTRONIC MINIMED CORP - INSULIN PUMPS, INFUSION SETS AND SENSORS ORDER FY26. LIFE DEPENDENT MEDICAL EQUIPMENT

Who is the contractor on this award?

The obligated recipient is MEDTRONIC MINIMED, INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $15,337.

What is the period of performance?

Start: 2026-03-17. End: 2026-04-30.

What is the historical spending pattern for insulin pumps and related supplies by the Federal Prison System?

Analyzing historical spending data for the Federal Prison System (FPS) on insulin pumps and related supplies is crucial for understanding long-term trends and identifying potential cost efficiencies. Without specific historical data for this contract vehicle, a general assessment can be made. Federal agencies typically procure such medical equipment through a combination of competitive bidding and, in some cases, sole-source contracts for specialized items. Spending patterns are influenced by the inmate population's health needs, the availability of new technologies, and fluctuations in manufacturer pricing. A review of past FPS budgets and contract awards related to diabetes management would reveal whether spending has been consistent, increasing, or decreasing. It would also highlight any significant shifts in procurement strategies or vendor reliance over time. For instance, a consistent increase in spending might indicate a growing need or rising costs, while a shift towards more competitive bidding could suggest a strategy to control expenditures.

How does the unit cost of these supplies compare to similar contracts awarded to other federal agencies or the private sector?

Comparing the unit cost of insulin pumps, infusion sets, and sensors from Medtronic Minimed to similar contracts awarded to other federal agencies or within the private sector is essential for assessing value for money. Federal agencies often leverage their purchasing power to negotiate favorable pricing. The Department of Veterans Affairs (VA) and the Department of Defense (DoD) are significant purchasers of medical supplies and may have established contracts with Medtronic or comparable manufacturers. Benchmarking against the VA's Federal Supply Schedule (FSS) or DoD contracts could reveal significant price differences. Additionally, comparing these prices to those offered by large group purchasing organizations (GPOs) in the private healthcare market can provide further context. Factors such as volume discounts, contract duration, and specific product configurations can influence unit costs. A higher price compared to benchmarks might indicate less competitive bidding, unique product requirements, or simply market dynamics for specialized medical devices.

What are the potential risks associated with relying on a single manufacturer for life-dependent medical equipment?

Relying on a single manufacturer, such as Medtronic Minimed, for life-dependent medical equipment like insulin pumps and sensors presents several potential risks. Firstly, there is a supply chain vulnerability; any disruption in Medtronic's manufacturing, distribution, or regulatory compliance could lead to shortages, directly impacting patient care within federal prisons. Secondly, a lack of competition can reduce the government's leverage in price negotiations over time, potentially leading to higher costs. Thirdly, if newer or more advanced technologies emerge from competitors, the government might be locked into using older systems, potentially compromising the quality of care. Finally, unexpected product recalls or safety issues specific to Medtronic's devices could necessitate urgent and potentially costly replacements or alternative solutions, disrupting established care protocols and budgets.

What is the track record of Medtronic Minimed, Inc. as a federal contractor, particularly for medical devices?

Medtronic Minimed, Inc. has a significant track record as a federal contractor, primarily supplying diabetes care products, including insulin pumps, infusion sets, and continuous glucose monitoring (CGM) sensors. Their presence in the federal market is substantial, reflecting their established position as a leading manufacturer in the diabetes technology space. Federal agencies, including the Department of Veterans Affairs (VA), Department of Defense (DoD), and various civilian agencies like the Department of Justice (DOJ), have historically awarded contracts to Medtronic for these essential medical supplies. Performance data, often available through federal procurement databases, generally indicates a consistent ability to meet delivery schedules and product specifications. However, like any large medical device manufacturer, Medtronic may have faced occasional product-related inquiries or recalls, which are standard within the highly regulated medical device industry. Overall, their extensive experience suggests a reliable, albeit specialized, supplier for critical healthcare needs within the federal system.

How does the procurement method ('COMPETED UNDER SAP') impact the overall cost-effectiveness and efficiency of this acquisition?

Procuring under Simplified Acquisition Procedures (SAP) for this $1.53 million order for insulin pumps and supplies impacts cost-effectiveness and efficiency in several ways. SAP is designed for purchases generally below the threshold for full and open competition (currently $250,000, though certain exceptions apply). This method allows for streamlined processes, reducing administrative burden and potentially speeding up delivery compared to larger, more complex procurements. By 'competed under SAP,' it implies that multiple offers were solicited and evaluated, which is crucial for achieving cost-effectiveness. This competition, even within the simplified framework, should drive better pricing than a sole-source award. However, the scope of competition under SAP might be narrower than under full and open procedures, potentially limiting the number of bidders and the depth of price discovery. The efficiency gain comes from reduced documentation and faster award timelines, ensuring timely access to critical medical supplies for federal inmates.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Medtronic Public Limited Company

Address: 18000 DEVONSHIRE ST, NORTHRIDGE, CA, 91325

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,337

Exercised Options: $15,337

Current Obligation: $15,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline