VA awards $70.6M contract for prosthetics, with a 32-day performance period

Contract Overview

Contract Amount: $70,623 ($70.6K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-05-10

Contract Duration: 32 days

Daily Burn Rate: $2.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHESIS

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23434

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $70,623.49 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: PROSTHESIS Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. The contract is for prosthetics, a critical need within the healthcare sector. 3. A short performance period may indicate a need for rapid fulfillment or a specific, time-bound requirement. 4. The awardee, Hanger Prosthetics & Orthotics, Inc., is a known entity in this market. 5. Analysis of pricing against benchmarks is needed to fully assess value for money. 6. The contract's value is significant within the surgical appliance and supplies manufacturing industry.

Value Assessment

Rating: fair

The contract value of $70.6 million for a 32-day period is substantial. Without specific details on the quantity and type of prosthetics, a direct comparison to similar contracts is challenging. However, the price per day is high, suggesting either a large volume of high-value items or a need for specialized, rapid deployment. Benchmarking against industry standards for prosthetic devices and related services will be crucial to determine if this represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), indicating a full and open competition process for a contract valued under the simplified acquisition threshold. The number of bidders is not specified, but the use of SAP generally implies a competitive environment. This method aims to ensure fair pricing and access for a broad range of qualified vendors.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for essential prosthetic devices.

Public Impact

Veterans requiring prosthetic devices will benefit from this contract, ensuring access to necessary medical equipment. The contract supports the provision of surgical appliances and supplies, crucial for patient recovery and quality of life. The primary geographic impact is likely within the regions served by Hanger Prosthetics & Orthotics, Inc., potentially across multiple VA facilities. This contract supports jobs within the surgical appliance and supplies manufacturing sector, including roles in production, distribution, and fitting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short performance period (32 days) could lead to logistical challenges or indicate a reactive procurement rather than strategic planning.
Lack of detailed specifications on the prosthetics provided makes it difficult to assess the true value and appropriateness of the award.
Reliance on a single awardee for a significant dollar amount, even if competed, warrants monitoring for potential supply chain risks.

Positive Signals

The contract was awarded through a competitive process, suggesting a fair market approach.
The awardee is an established company with expertise in prosthetics and orthotics.
The contract addresses a critical need for veterans, aligning with the VA's mission.

Sector Analysis

The surgical appliance and supplies manufacturing industry is a vital segment of the healthcare sector, providing essential medical devices. This contract falls within the broader medical equipment and supplies market, which is characterized by innovation, regulatory oversight, and significant government procurement. The VA's spending in this area is substantial, reflecting the ongoing need for prosthetic and orthotic devices for veterans.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. As it was competed under SAP, it's possible that small businesses participated, but specific set-aside goals are not evident from the data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. Standard contract administration processes, including performance monitoring and payment verification, would be in place. The Inspector General's office within the VA would have jurisdiction for investigating any potential fraud, waste, or abuse related to this award.

Related Government Programs

VA Medical Care Programs
Durable Medical Equipment (DME) Procurement
Prosthetic and Sensory Aids Service (PSAS)

Risk Flags

Unusual contract value for Simplified Acquisition Procedures (SAP)
Short performance period may indicate urgency or planning issues
Lack of detailed product specifications hinders value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $70,623.49 to HANGER PROSTHETICS & ORTHOTICS, INC.. PROSTHESIS

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 $70,623.49.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-10.

What specific types and quantities of prosthetics are included in this $70.6 million contract?

The provided data does not specify the exact types and quantities of prosthetics covered under this $70.6 million contract. The National Drug Code (NDC) listed, 339113, corresponds to 'Surgical Appliance and Supplies Manufacturing,' which is a broad category. To fully assess the value and appropriateness of the contract, detailed specifications of the prosthetic devices, including their complexity, materials, and intended use (e.g., upper limb, lower limb, specialized), would be necessary. This information is typically found in the contract's statement of work or product descriptions.

How does the pricing of these prosthetics compare to market rates or similar government contracts?

Benchmarking the pricing for this $70.6 million contract against market rates or similar government contracts is challenging without specific product details. The awardee, Hanger Prosthetics & Orthotics, Inc., is a major provider, and their pricing can vary significantly based on the type and customization of the prosthetic. A thorough value assessment would require comparing unit prices for specific prosthetic models (e.g., prosthetic legs, arms, components) against publicly available pricing data, other VA or DoD contracts for similar items, and commercial price lists. The short 32-day performance period might also influence pricing due to urgency.

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. As a leading provider of prosthetic and orthotic services and products, they are a common awardee for VA contracts related to veteran care. Their track record likely includes numerous awards for supplying devices, components, and fitting services. A deeper dive into past VA contract performance, including any past performance evaluations, disputes, or quality issues, would provide a more comprehensive understanding of their reliability and effectiveness in serving the veteran population.

What are the potential risks associated with a 32-day performance period for a $70.6 million contract?

A 32-day performance period for a $70.6 million contract presents several potential risks. Firstly, it suggests a potential need for rapid fulfillment, which could lead to increased costs due to expedited production or shipping. Secondly, it might indicate a reactive procurement strategy, possibly addressing an urgent, unforeseen need rather than planned, strategic acquisition, which can sometimes result in less favorable pricing. Thirdly, such a short window could strain the contractor's ability to deliver the full scope of services or products without compromising quality or incurring penalties. Finally, it raises questions about whether this is a standalone contract or part of a larger, phased effort.

How does the 'COMPETED UNDER SAP' designation impact the overall value and competition for this contract?

The designation 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) indicates that this contract, valued at $70.6 million, was procured using procedures designed for purchases below the standard full-scale competitive bidding threshold (typically $250,000, though this can be adjusted for certain economic factors). While SAP is intended to streamline the acquisition process and encourage competition among a broader range of vendors, including small businesses, a $70.6 million award under SAP is highly unusual and suggests either a specific regulatory exception or a potential misclassification in the data. Typically, contracts of this magnitude would undergo full and open competition. If genuinely competed under SAP, it implies a potentially less rigorous competition than a full FAR-based procurement, which could impact price discovery and overall value for taxpayers.

What is the significance of the National Drug Code (NDC) 339113 in the context of this contract?

The National Drug Code (NDC) 339113 is associated with 'Surgical Appliance and Supplies Manufacturing.' In the context of this $70.6 million contract awarded to Hanger Prosthetics & Orthotics, Inc. by the Department of Veterans Affairs, this NDC signifies that the contract is for the provision of prosthetic devices, orthotic devices, and related supplies. It's a broad classification that encompasses a wide range of products used to replace or support body parts, aiding in patient mobility and function. The NDC helps categorize the type of goods procured, aligning with the VA's mission to provide comprehensive care and rehabilitation services to veterans.

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: 150 BURNETTS WAY STE 300-A, SUFFOLK, VA, 23434

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

Financial Breakdown

Contract Ceiling: $70,623

Exercised Options: $70,623

Current Obligation: $70,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline