DOJ's $547.5K Orthopedic Supplies Contract Awarded to Hanger Prosthetics & Orthotics East Inc

Contract Overview

Contract Amount: $54,750 ($54.8K)

Contractor: Hanger Prosthetics & Orthotics East Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-09

End Date: 2026-09-30

Contract Duration: 174 days

Daily Burn Rate: $315/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY2026 ORTHOPEDIC SUPPLIES FOR INMATE POPULATION AT FCI TEXARKANA

Place of Performance

Location: NORTH SIOUX CITY, UNION County, SOUTH DAKOTA, 57049

State: South Dakota Government Spending

Plain-Language Summary

Department of Justice obligated $54,750 to HANGER PROSTHETICS & ORTHOTICS EAST INC for work described as: FY2026 ORTHOPEDIC SUPPLIES FOR INMATE POPULATION AT FCI TEXARKANA Key points: 1. Contract aims to procure orthopedic supplies for inmates at FCI Texarkana. 2. Awarded to a single vendor, raising questions about competition and potential price optimization. 3. The contract duration is relatively short, covering approximately six months. 4. Fixed-price contract type suggests cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 339113 indicates a focus on surgical appliance and supply manufacturing. 6. This spending falls under the Federal Prison System's operational budget.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific itemized pricing or comparison to similar procurements for inmate populations. The award amount of $547,500 for a six-month period for orthopedic supplies suggests a need for specialized equipment and services. However, the lack of competitive bidding information makes it difficult to assess if this represents a fair market price or if taxpayers received optimal value. Further analysis would require understanding the specific types and quantities of orthopedic supplies required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was noted as 'COMPETED UNDER SAP' (Small Acquisition Program), which typically implies a streamlined process for smaller dollar amounts. However, the specific competition level, number of bidders, and the extent of outreach to potential vendors are not detailed in the provided data. If this was a sole-source or limited competition under SAP, it could indicate a lack of robust price discovery and potentially higher costs for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited or no competition can lead to inflated prices, meaning taxpayer funds are not utilized as efficiently as they could be.

Public Impact

Inmates at FCI Texarkana requiring orthopedic supplies will benefit from this contract. The services delivered include the provision of necessary orthopedic appliances and related supplies. The geographic impact is localized to FCI Texarkana, Texas. Workforce implications are minimal, likely involving administrative and logistical support for supply management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Lack of detailed pricing information hinders value assessment.
Short contract duration may lead to frequent re-procurement costs.

Positive Signals

Addresses a specific need for inmate healthcare.
Firm Fixed Price contract provides cost predictability.
Procurement falls under established federal acquisition regulations.

Sector Analysis

This contract falls within the Healthcare and Medical Supplies sector, specifically focusing on orthopedic appliances. The market for surgical appliances and supplies is diverse, with numerous manufacturers and distributors. Federal agencies, particularly those managing correctional facilities, represent a consistent customer base for such medical necessities. Benchmarking this specific award against broader federal spending on medical supplies for institutionalized populations would provide further context on its scale and efficiency.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if subcontracting opportunities for small businesses were mandated. Given the nature of specialized medical supplies, it is possible that larger, established firms dominate this market. Further investigation into the contracting officer's strategy would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons contracting and financial management divisions. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price structure, and any deviations or performance issues would be subject to contract clauses and potential review by the DOJ's Office of the Inspector General.

Related Government Programs

Federal Prison System Medical Supplies
Bureau of Prisons Healthcare Contracts
Orthopedic Devices Procurement
Inmate Healthcare Services

Risk Flags

Limited Competition Potential
Lack of Detailed Pricing Data
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $54,750 to HANGER PROSTHETICS & ORTHOTICS EAST INC. FY2026 ORTHOPEDIC SUPPLIES FOR INMATE POPULATION AT FCI TEXARKANA

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 $54,750.

What is the period of performance?

Start: 2026-04-09. End: 2026-09-30.

What is the track record of Hanger Prosthetics & Orthotics East Inc. with federal contracts, particularly for correctional facilities?

Information regarding Hanger Prosthetics & Orthotics East Inc.'s specific track record with federal contracts, especially those pertaining to correctional facilities, is not detailed in the provided data. A comprehensive review would involve querying federal procurement databases (like FPDS) for past awards to this contractor, examining performance evaluations (if available), and identifying any patterns of successful or problematic contract fulfillments. Understanding their experience with similar institutional settings and inmate populations would be crucial for assessing their capability and reliability in fulfilling this specific contract.

How does the awarded amount compare to similar procurements for orthopedic supplies in federal correctional institutions?

Direct comparison of the $547,500 award for six months of orthopedic supplies at FCI Texarkana to similar procurements is difficult without access to detailed pricing data for specific items and quantities. General benchmarks for inmate healthcare costs vary significantly based on facility size, inmate health profiles, and the specific types of medical equipment and services required. To perform a robust comparison, one would need to identify contracts with comparable facilities (e.g., other Bureau of Prisons institutions) for similar orthopedic needs, analyze the unit costs of key supplies, and account for differences in contract scope and duration. The 'COMPETED UNDER SAP' designation suggests it might be a smaller acquisition, potentially limiting direct comparison to larger, more broadly competed contracts.

What are the primary risks associated with this contract, considering its nature and the vendor?

Key risks for this contract include potential overpricing due to limited competition, as it was competed under SAP, which may not always yield the most competitive bids. There's also a risk of supply chain disruptions or quality issues with the orthopedic supplies, which could impact inmate care and facility operations. The short duration (approx. 6 months) presents a risk of increased administrative burden and potential cost increases associated with frequent re-procurement cycles. Furthermore, if the specific needs of the inmate population are not accurately forecasted, there could be risks of inadequate supply or procurement of unnecessary items, leading to waste.

How effective is the current procurement strategy in ensuring adequate and cost-effective orthopedic care for inmates at FCI Texarkana?

The effectiveness of the current procurement strategy is difficult to fully assess with the limited data. The strategy appears to be focused on meeting the immediate orthopedic supply needs for the inmate population at FCI Texarkana through a single vendor award under SAP. While a firm-fixed-price contract offers cost certainty, the lack of detailed competition information raises questions about whether this strategy maximizes cost-effectiveness. Ensuring adequate care depends on the vendor's ability to supply the correct items in a timely manner and the accuracy of the government's needs assessment. A more effective strategy might involve broader competition or longer-term agreements if predictable needs exist.

What are the historical spending patterns for orthopedic supplies within the Federal Prison System or Bureau of Prisons?

Historical spending patterns for orthopedic supplies within the Federal Prison System (FPS) or Bureau of Prisons (BOP) are not detailed in the provided data. To analyze this, one would need to examine multi-year procurement data for medical supplies across various BOP facilities. This analysis would reveal trends in spending volume, average costs per inmate, common types of orthopedic supplies procured, and the primary contractors utilized. Understanding these historical patterns is crucial for identifying potential cost savings, forecasting future needs, and assessing the efficiency of current procurement practices compared to past performance.

Are there specific performance metrics or service level agreements tied to this contract to ensure quality and timeliness of supply?

The provided data does not specify performance metrics or service level agreements (SLAs) for this contract. Typically, federal contracts, especially for essential supplies like medical equipment, include clauses related to delivery timelines, product quality standards, and acceptable defect rates. For this specific purchase order, the terms and conditions would dictate these requirements. Without explicit details on SLAs, it is challenging to quantitatively assess the expected performance standards and the mechanisms for holding the contractor accountable for timely and quality delivery of orthopedic supplies.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

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: Hanger, Inc.

Address: 330 DAKOTA DUNES BLVD, DAKOTA DUNES, SD, 57049

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

Financial Breakdown

Contract Ceiling: $54,750

Exercised Options: $54,750

Current Obligation: $54,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline