Hanger Prosthetics & Orthotics contract for ortho prosthetics exceeds $135K for FY26, serving federal inmates

Contract Overview

Contract Amount: $135,505 ($135.5K)

Contractor: Hanger Prosthetics & Orthotics East, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-12-01

End Date: 2026-09-30

Contract Duration: 303 days

Daily Burn Rate: $447/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HANGER: ORTHO PROSTHETICS OPTION YEAR 2 DOS: DECEMBER 1, 2025- SEPTEMBER 30, 2026 FUNDING THROUGH JANUARY 31, 2026

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27704

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $135,504.85 to HANGER PROSTHETICS & ORTHOTICS EAST, INC. for work described as: HANGER: ORTHO PROSTHETICS OPTION YEAR 2 DOS: DECEMBER 1, 2025- SEPTEMBER 30, 2026 FUNDING THROUGH JANUARY 31, 2026 Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a potentially favorable pricing environment. 3. Risk indicators appear low given the nature of the service and established contractor. 4. Performance context is within the Federal Prison System, requiring specialized healthcare. 5. Sector positioning is within healthcare services for a niche government population.

Value Assessment

Rating: good

The contract value of approximately $135,505 for the specified period appears reasonable for specialized prosthetic and orthotic services within a correctional setting. Benchmarking against similar government contracts for these services is challenging due to the specific nature of the client population and potential variations in service scope. However, the firm-fixed-price structure suggests predictable costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process was utilized for awards below certain thresholds. While the specific number of bidders is not provided, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and considered, contributing to price discovery and potentially securing a better value for the government.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayers benefited from a process designed to solicit multiple bids, likely leading to more cost-effective pricing than a sole-source arrangement.

Public Impact

Inmates within the Federal Prison System will receive necessary prosthetic and orthotic devices and services. The services ensure continuity of care and improved quality of life for individuals requiring these medical aids. The contract supports healthcare delivery within federal correctional facilities, a critical component of inmate welfare. Workforce implications include the need for qualified prosthetists and orthotists to serve the inmate population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited contractor options in highly specialized fields like prosthetics within correctional facilities.
Ensuring consistent quality of care across different federal prison locations could be a challenge.
Dependence on a single contractor for a critical health service requires robust performance monitoring.

Positive Signals

The contract is firm-fixed-price, providing cost certainty for the government.
The services are essential for inmate health and well-being, addressing a clear need.
The competitive nature of the award suggests a degree of market responsiveness.

Sector Analysis

The healthcare services sector, particularly within government and correctional facilities, is a specialized market. This contract falls under the Miscellaneous Health Practitioners category (NAICS 621399). The market for prosthetic and orthotic services is driven by medical necessity and technological advancements. Government contracts in this area often focus on providing essential care to specific populations, such as veterans or inmates, where access to civilian healthcare may be limited.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The contractor, HANGER PROSTETICS & ORTHOTICS EAST, INC., is a known entity in the prosthetics and orthotics field, and its size relative to small business categories would need further investigation. The absence of small business set-aside information suggests the competition was open to all eligible offerors.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) contracting officers and program managers. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Prosthetics and Sensory Aids Service
TRICARE Prosthetic Services
State and Local Correctional Healthcare Contracts

Risk Flags

Potential for service disruption if contractor faces issues.
Risk of complacency in service quality due to single-source provision.
Need for rigorous performance monitoring to ensure quality of care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $135,504.85 to HANGER PROSTHETICS & ORTHOTICS EAST, INC.. HANGER: ORTHO PROSTHETICS OPTION YEAR 2 DOS: DECEMBER 1, 2025- SEPTEMBER 30, 2026 FUNDING THROUGH JANUARY 31, 2026

Who is the contractor on this award?

The obligated recipient is HANGER PROSTHETICS & ORTHOTICS EAST, 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 $135,504.85.

What is the period of performance?

Start: 2025-12-01. End: 2026-09-30.

What is the historical spending pattern for Hanger Prosthetics & Orthotics with the Federal Prison System?

Analyzing historical spending for Hanger Prosthetics & Orthotics with the Federal Prison System (FPS) requires accessing detailed contract databases. Without specific historical data for this contractor within the FPS, it's difficult to establish a precise spending pattern. However, the current contract represents a specific allocation for orthopedic prosthetics and orthotics services for the period of December 1, 2025, through September 30, 2026. Generally, recurring needs for such medical supplies and services within correctional facilities suggest a potential for ongoing or cyclical spending. To provide a comprehensive analysis, one would need to review past awards to Hanger Prosthetics & Orthotics by the BOP, noting the value, duration, and scope of services for each. This would help identify trends, potential increases or decreases in spending, and the contractor's consistent role in fulfilling these needs.

How does the per-unit cost of services under this contract compare to market rates for similar prosthetic and orthotic services?

Determining the precise per-unit cost comparison for services under this contract is challenging without a detailed breakdown of the services provided and their associated costs. The contract is a firm-fixed-price delivery order, meaning the total cost is set, but the cost per individual prosthetic device or specific service (e.g., fitting, adjustment) is not explicitly detailed in the provided data. Market rates for prosthetic and orthotic services can vary significantly based on the complexity of the device, materials used, geographic location, and the provider's overhead. Government contracts, especially those competed, aim to achieve competitive pricing. However, the unique environment of a federal prison may involve different cost structures or service requirements compared to civilian markets. A thorough comparison would necessitate obtaining a detailed price list from the contractor and benchmarking it against average costs from civilian providers in comparable regions, while accounting for any specific requirements of the correctional setting.

What is the track record of Hanger Prosthetics & Orthotics East, Inc. in fulfilling government contracts, particularly for healthcare services?

Hanger Prosthetics & Orthotics East, Inc. is a significant provider in the prosthetics and orthotics industry, and its track record with government contracts, including those with the Department of Defense (DoD) and Department of Veterans Affairs (VA), is generally established. These agencies frequently contract for prosthetic and orthotic services to support service members and veterans. While specific details on past performance with the Federal Prison System (FPS) are not provided in this data, the company's broader experience suggests a capacity to manage government contracts. Key aspects of their track record would typically include on-time delivery, quality of products and services, adherence to contract terms, and responsiveness to government needs. Any past performance evaluations or contract disputes would be critical factors in a comprehensive assessment, but the current award indicates a level of confidence from the contracting agency.

What are the potential risks associated with relying on a single contractor for prosthetic and orthotic services within the Federal Prison System?

Relying on a single contractor, even if competitively selected, for essential healthcare services like prosthetic and orthotic provision within the Federal Prison System presents several potential risks. Firstly, there's a risk of service disruption if the contractor faces operational issues, financial difficulties, or labor disputes, which could directly impact inmate care. Secondly, a lack of ongoing competition could potentially lead to complacency in service quality or innovation over time. Thirdly, if the contract scope is not meticulously defined, there might be challenges in ensuring all specific inmate needs are met cost-effectively. Finally, the government's leverage in negotiating future contract terms or addressing performance issues might be diminished compared to a scenario with multiple qualified providers available. Robust contract management, performance monitoring, and contingency planning are crucial to mitigate these risks.

How does the funding allocation for this contract align with the overall healthcare spending within the Federal Prison System?

The funding allocation for this specific contract, approximately $135,505 for the period ending September 30, 2026, represents a portion of the Federal Prison System's (FPS) overall healthcare budget. The FPS, like other large correctional systems, faces significant healthcare expenditures due to the health needs of its inmate population. This contract's value, while substantial for the services it covers, is likely a small fraction of the total annual healthcare spending for the entire FPS. To assess alignment, one would need to compare this amount against the total allocated budget for medical services within the FPS for the relevant fiscal years. Factors such as the number of inmates requiring prosthetic/orthotic services, the complexity of those needs, and the availability of alternative providers would influence the proportion of the budget dedicated to such specialized services. Without broader budget data, it's difficult to definitively state alignment, but the contract addresses a specific, necessary medical requirement.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of All Other Miscellaneous Health Practitioners

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hanger, Inc.

Address: 314 CRUTCHFIELD ST, DURHAM, NC, 27704

Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,505

Exercised Options: $135,505

Current Obligation: $135,505

Actual Outlays: $46,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA024D00000012

IDV Type: IDC

Timeline