VA awards $15.5M for artificial limbs and related services to Hanger Prosthetics & Orthotics, Inc

Contract Overview

Contract Amount: $15,548 ($15.5K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-06-01

Contract Duration: 61 days

Daily Burn Rate: $255/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ARTIFICIAL LIMBS AND RELATED SERVICES

Place of Performance

Location: TOWSON, BALTIMORE County, MARYLAND, 21286

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15,548.11 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: ARTIFICIAL LIMBS AND RELATED SERVICES Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. Focus on artificial limbs and related services indicates a critical need for veteran care. 3. The contract duration of 61 days suggests a short-term need or a bridge to a larger procurement. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. The specific NAICS code (339113) points to a specialized manufacturing and supply sector. 6. Delivery Order under a larger contract structure implies a pre-existing framework for these services.

Value Assessment

Rating: good

The contract value of $15.5 million for a 61-day period appears substantial, suggesting a significant need for these services. Without specific benchmarks for similar short-term procurements of artificial limbs and related services, a direct value-for-money assessment is challenging. However, the competitive nature of the award (indicated by 'COMPETED UNDER SAP') suggests that the VA sought multiple bids, which typically drives more favorable pricing. The firm fixed-price structure further aids in cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Procedures), indicating a competitive process suitable for acquisitions below certain thresholds. While the exact number of bidders is not specified, the 'COMPETED' designation implies that multiple offers were solicited and evaluated. This level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans requiring artificial limbs and related prosthetic or orthotic services are the primary beneficiaries. The contract ensures the continued availability of essential medical devices and support for mobility. Services are likely delivered across various VA facilities within the Maryland region, given the 'MD' state code. The contract supports jobs within the medical device manufacturing and healthcare services sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (61 days) may indicate a temporary need or potential for future contract instability.
Reliance on a single contractor (Hanger Prosthetics & Orthotics, Inc.) for this value could pose a risk if performance issues arise.
The specific details of 'related services' are not fully elaborated, which could lead to scope creep or unforeseen costs.

Positive Signals

Award to an established provider (Hanger Prosthetics & Orthotics, Inc.) suggests a level of expertise and reliability.
The competitive award process indicates due diligence in selecting a vendor.
Firm Fixed Price contract type provides cost certainty for the VA.

Sector Analysis

This contract falls within the Healthcare and Medical Supplies sector, specifically focusing on prosthetic and orthotic devices. The market for artificial limbs and related services is specialized, involving manufacturers and providers with specific technical expertise. Spending in this area is driven by the ongoing needs of veterans and the broader healthcare system. Comparable spending benchmarks would typically be found within VA's historical procurement data for similar services and devices.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Hanger Prosthetics & Orthotics, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem would depend on whether Hanger utilizes small business subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs. As a delivery order under a larger contract structure (implied by 'COMPETED UNDER SAP' and 'DELIVERY ORDER'), existing oversight mechanisms from the parent contract would likely apply. Accountability measures would be tied to the firm fixed-price terms and performance requirements. Transparency is generally facilitated through contract databases like FPDS, where this award is recorded.

Related Government Programs

VA Medical Care Services
Prosthetic and Orthotic Devices
Veteran Rehabilitation Programs
Durable Medical Equipment

Risk Flags

Short contract duration
High value for short period
Potential for sole-source reliance if competition was limited in practice

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15,548.11 to HANGER PROSTHETICS & ORTHOTICS, INC.. ARTIFICIAL LIMBS AND RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is HANGER PROSTHETICS & ORTHOTICS, 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 $15,548.11.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-01.

What is the track record of Hanger Prosthetics & Orthotics, Inc. with the Department of Veterans Affairs?

Hanger Prosthetics & Orthotics, Inc. has a significant history of contracting with the Department of Veterans Affairs. They are a major provider of prosthetic and orthotic services and devices nationwide. Historical data from federal procurement databases would show numerous awards to Hanger from the VA across various regions and for different types of services and products. This includes contracts for custom prosthetic limbs, orthotic braces, and related clinical services. The VA often relies on established providers like Hanger due to their specialized capabilities and existing infrastructure to serve the veteran population. Analyzing past performance reviews, any past performance issues, and the volume of previous contracts would provide a comprehensive view of their track record with the VA.

How does the $15.5 million value for a 61-day period compare to typical VA spending on artificial limbs?

The value of $15.5 million for a 61-day period for artificial limbs and related services is exceptionally high on a daily basis. This translates to an approximate daily spend of $254,000. This suggests that the contract likely covers a very large volume of high-cost items, potentially including complex custom prosthetics, advanced technologies, or a significant number of devices for a large cohort of veterans within a specific region or for a particular initiative. Typical VA spending on artificial limbs can vary widely based on the complexity of the device, the number of beneficiaries, and the duration of the contract. Shorter-term contracts at this value often indicate emergency needs, bridge procurements, or the fulfillment of a specific, high-demand order rather than routine, ongoing supply. A direct comparison would require analyzing the specific types of limbs and services included and benchmarking against similar high-value, short-duration awards.

What are the primary risks associated with this contract award?

Several risks are associated with this contract. Firstly, the short duration of 61 days raises questions about the long-term strategy for providing these essential services. It could indicate a temporary solution, a bridge to a larger, more permanent contract, or a potential gap in future planning. Secondly, the substantial value concentrated within a short period might suggest a high-demand, potentially urgent need, which can sometimes lead to rushed execution or less thorough vetting. Thirdly, while competed, the reliance on a single entity, Hanger Prosthetics & Orthotics, Inc., for this significant amount within the timeframe means that any performance issues, supply chain disruptions, or quality control problems with the contractor could have an immediate and severe impact on veteran care. Finally, the 'related services' component, if not clearly defined, presents a risk of scope creep and cost overruns.

How effective is the competitive process ('COMPETED UNDER SAP') in ensuring value for taxpayer money in this specific case?

The 'COMPETED UNDER SAP' (Small Acquisition Procedures) designation indicates that the contract was competed, which is generally a positive sign for value. SAP is designed for acquisitions below certain dollar thresholds, aiming to streamline the procurement process while still encouraging competition. For a contract valued at $15.5 million, even under SAP, competition implies that multiple vendors were invited to bid, and the VA evaluated these bids to select the best value. This process helps ensure that the pricing is market-driven and that the government is not overpaying. However, the effectiveness is contingent on the number of bidders, the clarity of the solicitation, and the rigor of the evaluation criteria. Without knowing the number of bidders or the specific evaluation metrics used, it's difficult to definitively quantify the value achieved, but the competitive nature itself is a strong indicator of an effort to secure good value.

What are the implications of the Firm Fixed Price (FFP) contract type for this procurement?

The Firm Fixed Price (FFP) contract type is generally favorable for the government when procuring goods or services with well-defined requirements, as is likely the case for artificial limbs and related services. Under an FFP contract, the contractor agrees to a set price for the specified goods or services, regardless of the contractor's actual costs. This shifts the cost risk from the government to the contractor. For the VA, this means greater cost certainty and predictability, making budgeting easier and protecting against unexpected cost increases by the supplier. It incentivizes the contractor to manage its own costs efficiently to maximize profit. The primary implication is that the VA knows the total cost upfront, assuming the scope of work remains unchanged.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hanger, Inc.

Address: 10910 DOMAIN DR, AUSTIN, TX, 78758

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

Financial Breakdown

Contract Ceiling: $15,548

Exercised Options: $15,548

Current Obligation: $15,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24523D0060

IDV Type: IDC

Timeline