VA awards $15.5M for artificial limbs, with 1 bidder in a competed BPA call

Contract Overview

Contract Amount: $15,516 ($15.5K)

Contractor: Hanger, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-30

End Date: 2026-06-29

Contract Duration: 91 days

Daily Burn Rate: $171/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HANGER ARTIFICIAL LIMBS

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15,516.23 to HANGER, INC. for work described as: HANGER ARTIFICIAL LIMBS Key points: 1. Value for money appears fair given the firm-fixed-price structure and duration. 2. Competition dynamics were limited, with only one bid received. 3. Risk indicators are moderate, primarily due to the limited competition. 4. Performance context is within the established scope of prosthetic limb supply. 5. Sector positioning is within the medical supplies and services industry.

Value Assessment

Rating: fair

The contract's value of $15.5 million over approximately three months (BPA call duration) for artificial limbs needs careful benchmarking against similar contracts. Without specific unit costs or detailed service descriptions, a precise value-for-money assessment is challenging. However, the firm-fixed-price (FFP) structure provides cost certainty for the government. The pricing is assumed to be fair based on the competitive bidding process, though the limited number of bidders raises questions about optimal price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), indicated as a BPA call. While competed, only one bid was received. This limited competition suggests potential challenges in attracting multiple vendors, which could be due to market dynamics, the specific requirements of the BPA call, or the existing vendor landscape. The single bid limits the government's ability to leverage competitive pressure for the best possible pricing and terms.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most aggressive pricing that a more robust bidding process could have yielded. This could translate to a higher overall cost for the required prosthetic limbs.

Public Impact

Veterans requiring artificial limbs will receive necessary prosthetic devices and related services. The primary beneficiaries are disabled veterans served by the Department of Veterans Affairs. Geographic impact is concentrated in Texas, where the contractor is located. Workforce implications include potential support for manufacturing and fitting specialists within the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
Single bidder scenario reduces leverage for negotiating favorable terms.
Reliance on a single source for a critical need increases supply chain risk.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract is competed, indicating an effort to solicit offers.
BPA call structure allows for potentially streamlined ordering against an existing agreement.

Sector Analysis

The market for artificial limbs and prosthetic devices is a specialized segment within the broader healthcare and medical device industry. This sector involves manufacturers and suppliers of custom and standard prosthetic components. Spending in this area is driven by healthcare needs, particularly for veterans and individuals with disabilities. Comparable spending benchmarks would typically be found within VA's overall procurement of durable medical equipment and prosthetics, as well as similar contracts from other federal health agencies.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). Therefore, this contract does not appear to have been specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not explicitly detailed but would depend on Hanger, Inc.'s internal policies and the nature of the services/goods procured.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by federal procurement data systems. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Durable Medical Equipment (DME) Procurement
Prosthetic and Orthotic Devices
Veterans Health Administration Services
Medical Supplies Contracts

Risk Flags

Limited competition (1 bidder)
Potential for non-optimal pricing due to limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15,516.23 to HANGER, INC.. HANGER ARTIFICIAL LIMBS

Who is the contractor on this award?

The obligated recipient is HANGER, INC..

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 $15,516.23.

What is the period of performance?

Start: 2026-03-30. End: 2026-06-29.

What is the historical spending pattern for artificial limbs by the Department of Veterans Affairs?

Analyzing historical spending patterns for artificial limbs by the VA is crucial for understanding trends and identifying potential anomalies. While specific data for 'HANGER ARTIFICIAL LIMBS' is not provided in the prompt, the VA consistently procures prosthetic and orthotic devices to serve its veteran population. Past spending would likely show a significant and ongoing investment in this category, reflecting the needs of veterans with limb loss. Trends might indicate increases or decreases in demand, shifts in technology adoption, or changes in contracting strategies over time. Examining multi-year spending data can reveal if the current $15.5 million award is consistent with historical levels, higher, or lower, providing context for its value and necessity. It also helps in assessing the contractor's historical performance and market share within the VA's prosthetic supply chain.

How does the pricing of this contract compare to similar artificial limb contracts awarded by the VA or other federal agencies?

A direct comparison of pricing for this $15.5 million contract against similar artificial limb contracts is challenging without access to detailed unit pricing data for both this award and comparable contracts. However, the fact that it was competed, even with a single bidder, suggests an attempt at market-based pricing. If other VA contracts for similar prosthetic devices (e.g., specific types of artificial legs, arms, or components) were awarded through more robust competition or to different vendors, a comparison could reveal if Hanger, Inc.'s pricing is competitive. Factors like the specific types of limbs, customization levels, associated services (fitting, maintenance), and contract duration significantly influence pricing. Benchmarking against General Services Administration (GSA) schedules or other federal supply schedules for prosthetic devices could also provide a market reference point. The limited competition here raises a flag that pricing might not be as optimized as it could be under stronger competition.

What are the specific risks associated with having only one bidder for this artificial limb contract?

The primary risk associated with having only one bidder for this artificial limb contract is the potential for inflated pricing and reduced quality or service levels due to a lack of competitive pressure. With no alternative vendors to choose from, the government has diminished leverage to negotiate favorable terms or push for cost reductions. This single-source situation, even within a 'competed' BPA call, increases the risk of vendor lock-in and makes the VA vulnerable if the sole bidder experiences performance issues, supply chain disruptions, or decides to increase prices significantly in future solicitations. Furthermore, it raises questions about the overall health and competitiveness of the market for these specific prosthetic devices, potentially indicating barriers to entry for other qualified suppliers.

What is the track record of Hanger, Inc. in fulfilling federal contracts, particularly for the Department of Veterans Affairs?

Hanger, Inc. is a well-established provider of prosthetic and orthotic services and products. Their track record with the Department of Veterans Affairs is likely extensive, given the VA's significant role in providing care for veterans, many of whom require prosthetic limbs. Historically, Hanger has been a major contractor for the VA in this domain. Performance data from past contracts would be the best indicator of their reliability, quality of products, and adherence to delivery schedules. While specific contract performance metrics (e.g., past performance ratings, number of disputes, on-time delivery rates) are not provided in the prompt, their continued presence as a bidder and awardee suggests a generally acceptable performance history. However, a thorough review would involve examining specific contract outcomes and any documented issues or commendations.

How does the contract type (Firm Fixed Price) influence the risk and value proposition for this artificial limb procurement?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government in procurements like this, as it shifts the risk of cost overruns to the contractor, Hanger, Inc. This provides budget certainty for the Department of Veterans Affairs, meaning the total cost of the contract is established upfront and unlikely to change unless the contract scope is modified. For value, FFP encourages the contractor to manage its costs efficiently to maximize profit. However, the value proposition can be diminished if the initial price was not optimized due to limited competition. In such a scenario, the government might be paying a higher fixed price than necessary. The FFP structure is well-suited for procurements where the scope of work is clearly defined, such as the supply of specific types of artificial limbs, reducing the likelihood of disputes over costs.

Industry Classification

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

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

Address: SUITE 300, AUSTIN, TX, 78758

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

Financial Breakdown

Contract Ceiling: $15,516

Exercised Options: $15,516

Current Obligation: $15,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24124A0024

IDV Type: BPA

Timeline