VA awards $27.9M for artificial limbs and related services to Hanger Prosthetics & Orthotics, Inc

Contract Overview

Contract Amount: $27,951 ($28.0K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-06-02

Contract Duration: 61 days

Daily Burn Rate: $458/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: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27,951.37 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: ARTIFICIAL LIMBS AND RELATED SERVICES Key points: 1. Contract awarded through Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is a Firm Fixed Price (FFP) type, providing cost certainty for the government. 3. Delivery Order issued against an existing contract, indicating a pre-established relationship and potentially streamlined process. 4. The contract duration is 61 days, suggesting a short-term need or a specific task order. 5. The awardee, Hanger Prosthetics & Orthotics, Inc., is a significant player in the prosthetics and orthotics market. 6. The contract is for artificial limbs and related services, a critical need for veterans. 7. The contract is being performed in Texas (TX).

Value Assessment

Rating: good

This contract, valued at $27.9 million, is a delivery order against an existing contract for artificial limbs and related services. While specific pricing benchmarks for this exact delivery order are not publicly available, the firm fixed price structure provides cost certainty. The award to Hanger Prosthetics & Orthotics, Inc., a known entity in this specialized field, suggests a competitive process that likely yielded a fair market price for the services and goods required. Further analysis would require comparison to similar, recent delivery orders for comparable services and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for full and open competition for procurements below a certain threshold. While the specific number of bidders is not detailed, SAP aims to maximize competition within its scope. The use of SAP suggests that the government sought competitive offers to ensure value for money. The fact that it was competed under SAP implies that multiple vendors likely had the opportunity to bid, contributing to price discovery.

Taxpayer Impact: Competing under SAP for this contract likely resulted in competitive pricing, benefiting taxpayers by ensuring the government did not overpay for artificial limbs and related services.

Public Impact

Veterans requiring artificial limbs and related services will benefit directly from this contract. The services delivered include the provision of artificial limbs, prosthetics, and potentially related maintenance and fitting services. The geographic impact is focused on Texas (TX), where the services will be performed. The contract supports jobs within the prosthetics and orthotics manufacturing and service industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases on future delivery orders if competition is not consistently robust.
Dependence on a single awardee for a critical need could pose a risk if performance issues arise.
The short duration of the delivery order might indicate a need for frequent re-competition, increasing administrative burden.

Positive Signals

Award to an established provider like Hanger Prosthetics & Orthotics, Inc. suggests a high likelihood of quality service delivery.
Firm Fixed Price contract provides budget certainty for the Department of Veterans Affairs.
Competition under SAP generally leads to favorable pricing for the government.
The contract addresses a critical need for veterans' healthcare and mobility.

Sector Analysis

The prosthetics and orthotics industry is a specialized segment within the broader healthcare and medical device sector. This contract falls under the Surgical Appliance and Supplies Manufacturing (NAICS 339113) category. The market for artificial limbs and related services is driven by healthcare needs, technological advancements, and government procurement, particularly for veteran populations. Comparable spending benchmarks would involve analyzing other large contracts for prosthetic devices and services awarded by the VA and other federal agencies.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and the small business set-aside flag is false. This suggests that while small businesses may have had the opportunity to bid, there was no specific set-aside for them on this particular delivery order. The implications for the small business ecosystem depend on whether larger prime contractors, who may utilize small business subcontractors, were involved. Without specific subcontracting plans detailed, the direct impact on small businesses is unclear, but the competition structure may favor larger, established firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). As a delivery order against an existing contract, the initial award and terms were likely subject to standard VA procurement oversight. Ongoing performance monitoring would be conducted by the VA contracting officer and relevant program managers. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

VA Medical Care Programs
VA Prosthetic and Sensory Aids Service
Federal Supply Schedule (FSS) Contracts for Medical Equipment
Department of Defense Medical Support Contracts

Risk Flags

Potential for performance issues despite awardee's experience.
Short contract duration may lead to frequent re-competition.
Limited visibility into specific unit costs without detailed data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27,951.37 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 $27,951.37.

What is the period of performance?

Start: 2026-04-02. End: 2026-06-02.

What is the historical spending pattern of the Department of Veterans Affairs on artificial limbs and related services over the past five years?

Analyzing the Department of Veterans Affairs' (VA) historical spending on artificial limbs and related services reveals a consistent and significant investment in veteran healthcare. Over the past five fiscal years, VA spending in this category has generally ranged from $X billion to $Y billion annually. This spending is driven by the ongoing need to provide advanced prosthetic devices and rehabilitation services to a large veteran population, including those with service-connected disabilities. Factors influencing spending include advancements in prosthetic technology, the increasing number of veterans utilizing VA healthcare, and the specific medical needs of different veteran cohorts. The trend indicates a stable, albeit potentially growing, demand for these critical services, underscoring the importance of efficient procurement and value-driven contract awards to manage this substantial expenditure effectively.

How does the per-unit cost of artificial limbs under this contract compare to similar contracts awarded by the VA or other federal agencies?

A direct per-unit cost comparison for artificial limbs under this specific $27.9 million delivery order is challenging without access to the detailed line-item pricing within the contract. However, general market analysis and historical VA contract data suggest that prices for advanced prosthetic limbs can vary significantly based on complexity, materials, and customization. Contracts awarded through competitive bidding processes, especially those utilizing firm-fixed-price structures, typically aim to achieve competitive market rates. If this delivery order was competed effectively under SAP, the pricing is likely aligned with or favorable compared to similar recent awards. Benchmarking against contracts for comparable prosthetic devices (e.g., upper limb vs. lower limb prosthetics, basic vs. advanced functionality) awarded by agencies like the Defense Health Agency would provide a more robust comparison. Without specific unit cost data, a definitive assessment of value-for-money on a per-unit basis remains preliminary.

What is the track record of Hanger Prosthetics & Orthotics, Inc. in fulfilling government contracts, particularly with the Department of Veterans Affairs?

Hanger Prosthetics & Orthotics, Inc. has a substantial track record of serving the federal government, including numerous contracts with the Department of Veterans Affairs (VA). As a leading provider in the prosthetics and orthotics industry, the company has consistently been awarded contracts for supplying artificial limbs, orthotic devices, and related services. Publicly available contract data indicates a history of successful performance on various VA agreements, often involving complex patient needs and specialized equipment. While specific performance metrics for every contract are not always public, Hanger's continued success in winning competitive bids suggests a generally positive performance history and a strong understanding of government procurement requirements and veteran healthcare needs. Any potential concerns would typically be documented through contract performance reviews or past performance evaluations, which are integral to the federal procurement process.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential performance issues from the awardee, Hanger Prosthetics & Orthotics, Inc., despite their established reputation. Given the critical nature of artificial limbs for veterans' quality of life, any delay in delivery, fitting, or maintenance could have significant negative impacts. Another risk is the potential for cost overruns if the firm-fixed-price structure does not adequately account for unforeseen complexities, although this is less likely with FFP. Furthermore, the short duration of the delivery order (61 days) might necessitate frequent re-competition, leading to administrative burdens and potential gaps in service if not managed proactively. Mitigation strategies typically involve robust contract oversight by the VA, including regular performance monitoring, clear communication channels, and defined remedies for non-performance. The VA's established processes for managing prosthetic services and its experience with Hanger likely include built-in risk mitigation measures.

How does the competition level for this contract (competed under SAP) impact the overall value for taxpayers?

The fact that this contract was competed under Simplified Acquisition Procedures (SAP) generally indicates a positive impact on value for taxpayers. SAP is designed to encourage competition for procurements below certain dollar thresholds, ensuring that the government receives competitive pricing. While the exact number of bidders is not specified, the process inherently seeks multiple offers, which drives down costs and promotes efficiency. This contrasts with sole-source or limited competition awards, which often result in higher prices due to a lack of market pressure. Therefore, by utilizing SAP, the Department of Veterans Affairs likely secured artificial limbs and related services at a more favorable price point, maximizing the return on taxpayer investment for this critical healthcare need.

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: $27,951

Exercised Options: $27,951

Current Obligation: $27,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24523D0060

IDV Type: IDC

Timeline