VA awards $21.6M for transfemoral limbs, highlighting potential for improved prosthetic care

Contract Overview

Contract Amount: $21,561 ($21.6K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-17

End Date: 2026-01-16

Contract Duration: 91 days

Daily Burn Rate: $237/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRANSFEMORAL LIMB

Place of Performance

Location: CARTERSVILLE, BARTOW County, GEORGIA, 30120

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,560.52 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: TRANSFEMORAL LIMB Key points: 1. Contract focuses on essential prosthetic components, indicating a need for reliable supply chains. 2. Sole-source award suggests limited market options or specific contractor capabilities. 3. Performance period of 91 days points to a short-term need or pilot program. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Georgia may indicate regional demand or distribution strategy. 6. Absence of small business set-aside warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The award of $21.6 million for transfemoral limbs is a significant investment in prosthetic care. Without comparable contract data for similar prosthetic devices or services, a direct value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost control, but the lack of competition raises questions about whether the government secured the best possible price. Benchmarking against market rates for similar high-value prosthetic components would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or when there is a compelling justification for not seeking competition. The limited competition raises concerns about potential price inflation and the absence of innovation that could arise from a more open bidding process. It suggests that either the market for these specific transfemoral limbs is highly concentrated, or there were specific technical requirements that only Hanger Prosthetics & Orthotics, Inc. could meet.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from competitive pricing. This limits the government's ability to leverage market forces to achieve cost savings.

Public Impact

Veterans requiring transfemoral prosthetic limbs will benefit from the supply of these essential devices. The contract ensures the availability of critical components for prosthetic care within the specified region. This spending supports the healthcare infrastructure and supply chain for prosthetic services. Potential workforce implications include demand for technicians and clinicians involved in prosthetic fitting and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher per-unit costs for taxpayers.
Sole-source nature limits opportunities for small businesses to participate.
Short contract duration might indicate a temporary need, requiring future procurements.
Geographic concentration could overlook broader national needs or supplier bases.

Positive Signals

Ensures supply of critical medical devices for veterans.
Fixed-price contract offers cost predictability.
Focus on specific limb type addresses a defined need.

Sector Analysis

The market for prosthetics and orthotics is a specialized segment within the broader healthcare and medical device industry. This contract falls under Surgical Appliance and Supplies Manufacturing (NAICS 339113). The industry is characterized by technological advancements, regulatory oversight, and a significant role for government agencies like the VA in procuring these essential items for beneficiaries. Spending in this sector is driven by an aging population, increased prevalence of chronic conditions, and ongoing innovation in prosthetic technology.

Small Business Impact

The contract was not competed under SAP and was awarded sole-source, with no indication of a small business set-aside. This means that opportunities for small businesses to directly compete for this award were likely nonexistent. Furthermore, without specific subcontracting plans mandated, the impact on the small business ecosystem is uncertain. Future solicitations should explore options for small business participation, either through direct awards or subcontracting requirements, to foster a more inclusive market.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. As a purchase order, it is subject to standard federal acquisition regulations and internal VA policies. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or performance phases.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Materiel
Medicare/Medicaid Prosthetic Coverage

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to limited market options.
Lack of small business participation opportunities.
Short contract duration may require follow-on procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,560.52 to HANGER PROSTHETICS & ORTHOTICS, INC.. TRANSFEMORAL LIMB

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 $21,560.52.

What is the period of performance?

Start: 2025-10-17. End: 2026-01-16.

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

Analyzing historical spending on transfemoral limbs by the VA is crucial for understanding trends, identifying potential cost efficiencies, and assessing the impact of previous procurement strategies. Without access to specific historical data for this exact item, we can infer that the VA consistently procures prosthetic devices to support its veteran population. Past spending patterns might reveal fluctuations based on veteran population needs, technological advancements in prosthetics, and changes in contracting approaches. A review of previous years' spending could highlight whether this $21.6 million award represents an increase, decrease, or stable investment compared to prior periods. It could also shed light on whether similar items were previously awarded through competitive processes or sole-source contracts, providing context for the current award's nature.

How does the unit cost of these transfemoral limbs compare to similar devices procured by other federal agencies or the private sector?

A key analytical question is how the unit cost of these transfemoral limbs compares to similar devices procured by other federal agencies or the private sector. Given this is a sole-source award, direct price comparison is difficult. However, benchmarking against publicly available data for comparable prosthetic components, or against contracts awarded by agencies like the Department of Defense or through Medicare/Medicaid, could reveal significant price discrepancies. If the unit cost appears higher than market benchmarks, it would suggest potential overpricing due to the lack of competition. Conversely, if it aligns with or is lower than market rates, it might indicate favorable negotiation or unique product specifications. This comparison is vital for assessing value for money.

What specific technical capabilities or unique features justify the sole-source award to Hanger Prosthetics & Orthotics, Inc.?

The justification for a sole-source award typically rests on unique technical capabilities, specialized expertise, or proprietary technology that only a specific contractor can provide. For Hanger Prosthetics & Orthotics, Inc., the VA would need to document why no other responsible source could meet the requirements for these transfemoral limbs. This could involve specific design elements, material compositions, integration with existing veteran medical records systems, or specialized manufacturing processes. Without this detailed justification, the award raises concerns about whether the government adequately explored the market or if there were other viable alternatives. Understanding these specific justifications is critical to determining if the sole-source decision was appropriate and served the government's best interests.

What is the expected impact of this contract on the availability and quality of prosthetic care for veterans in Georgia?

This contract is specifically for transfemoral limbs and is awarded to Hanger Prosthetics & Orthotics, Inc., with a performance location likely tied to their operations in Georgia. The primary impact is expected to be an improved and consistent supply of these critical prosthetic devices for veterans residing in or receiving care within Georgia. This could lead to reduced wait times for veterans needing these limbs, potentially better fitting and functional outcomes if the supplier provides high-quality products and services, and enhanced continuity of care. The contract's duration (91 days) suggests it might be fulfilling an immediate or short-term need, so its long-term impact on overall prosthetic care availability and quality will depend on subsequent procurement actions.

Are there any performance risks associated with this sole-source purchase order, and what mitigation strategies are in place?

Sole-source procurements, while sometimes necessary, can carry inherent performance risks. For this purchase order, potential risks might include the contractor's ability to deliver the specified quantity and quality of transfemoral limbs within the short 91-day timeframe. There's also a risk that without competitive pressure, the contractor might not prioritize timely delivery or may face challenges in meeting stringent quality standards. Mitigation strategies employed by the VA would typically involve clear contract terms and conditions, defined performance metrics, and established procedures for monitoring progress and addressing deficiencies. The fixed-price nature of the contract also incentivizes the contractor to perform efficiently to maintain profitability. However, the VA's oversight and quality assurance processes are critical to mitigating these risks.

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: NOT 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: 17 FELTON PL STE B, CARTERSVILLE, GA, 30120

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

Financial Breakdown

Contract Ceiling: $21,561

Exercised Options: $21,561

Current Obligation: $21,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline