VA awards $16.7M for prosthetics, with Hanger Prosthetics & Orthotics Inc. as sole provider

Contract Overview

Contract Amount: $16,660 ($16.7K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-08-02

Contract Duration: 121 days

Daily Burn Rate: $138/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHESIS

Place of Performance

Location: AUGUSTA, RICHMOND County, GEORGIA, 30901

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,659.95 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: PROSTHESIS Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Limited competition may lead to higher costs for taxpayers. 3. The fixed-price contract structure aims to control costs, but without competition, oversight is crucial. 4. This award represents a significant portion of spending within the surgical appliance and supplies manufacturing sector. 5. The duration of the contract is relatively short, suggesting potential for future re-competition. 6. Performance will be monitored by the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract value of $16.7 million for prosthetics is substantial. Without competitive bidding, it is difficult to benchmark the value for money. The fixed-price nature of the award suggests an attempt to cap costs, but the absence of multiple bids means there's no clear market comparison to assess if this price is optimal. The Department of Veterans Affairs will need to closely monitor performance and pricing to ensure fair value is received.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP (Simplified Acquisition Procedures) and was awarded as a sole-source purchase order. This indicates that only one vendor, Hanger Prosthetics & Orthotics, Inc., was considered for this requirement. The lack of competition means there were no other bidders to drive down prices or offer alternative solutions, potentially limiting the government's ability to secure the best possible terms.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the most cost-effective pricing that could have been achieved through a bidding process. This could result in a higher overall expenditure for the prosthetics provided.

Public Impact

Veterans will receive essential prosthetic devices and related supplies. The services delivered will support the healthcare needs of the veteran population. The geographic impact is focused on Georgia (ST: GA, SN: GEORGIA), where the contractor is located. The contract supports jobs within the surgical appliance and supplies manufacturing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may reduce incentives for the contractor to offer innovative solutions.
Reliance on a single supplier could create supply chain risks if the contractor faces operational issues.

Positive Signals

Fixed-price contract provides cost certainty for the government.
The Department of Veterans Affairs has a clear vendor for essential prosthetic needs.
The contract duration is defined, allowing for future reassessment of requirements and competition.

Sector Analysis

The surgical appliance and supplies manufacturing sector is critical for healthcare delivery, providing essential devices for patient recovery and quality of life. This contract falls within the broader healthcare and medical supplies industry. Spending in this area is often driven by government healthcare programs like the VA, which procure significant volumes of medical equipment. Benchmarking this contract's value is challenging without competitive data, but it represents a notable investment in prosthetic care.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature, there is no indication of subcontracting opportunities for small businesses through this specific award. The impact on the small business ecosystem is likely minimal unless Hanger Prosthetics & Orthotics, Inc. has its own small business subcontracting program that is not directly tied to this contract's solicitation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a purchase order with a fixed-price structure, oversight will likely focus on delivery timelines, quality of goods, and adherence to contract terms. Transparency is moderate, as the award details are publicly available, but the lack of competitive bidding limits the visibility into the negotiation process. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Durable Medical Equipment Procurement
Federal Healthcare Supply Chain Management

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,659.95 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 $16,659.95.

What is the period of performance?

Start: 2026-04-03. End: 2026-08-02.

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

Hanger Prosthetics & Orthotics, Inc. has a history of providing services and supplies to the Department of Veterans Affairs. Analyzing past contracts, including their values, durations, and performance reviews, would provide insight into their reliability and pricing history. Without specific data on prior VA contracts for prosthetics, it's difficult to definitively assess their track record for this particular product category. However, their selection as a sole-source provider suggests a level of established relationship or capability that the VA deemed necessary for this requirement. Further investigation into their performance on previous VA awards, if any, would be beneficial for a comprehensive risk assessment.

How does the awarded price compare to similar prosthetic procurements by other federal agencies?

Directly comparing the awarded price of $16.7 million for prosthetics is challenging without knowing the specific types and quantities of prosthetics included in this contract. Federal procurement data can be complex, with variations in product specifications, service components, and contract terms. To conduct a meaningful comparison, one would need to identify contracts for similar prosthetic devices (e.g., upper limb, lower limb, specific components) awarded to other agencies like the Department of Defense or civilian agencies. Analyzing the per-unit costs or total contract values for comparable items, adjusted for inflation and volume, would be necessary. Given this is a sole-source award, a robust external benchmark is particularly important to validate the fairness of the price.

What are the primary risks associated with a sole-source award for essential medical supplies like prosthetics?

The primary risks associated with a sole-source award for essential medical supplies like prosthetics include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve service quality, and increased vulnerability to supply chain disruptions if the sole provider experiences issues. Taxpayers may bear a higher cost than necessary. Furthermore, the government has limited leverage to negotiate better terms or pricing. In the long term, reliance on a single source can stifle market development and reduce the availability of alternative solutions. For critical items like prosthetics, ensuring a continuous and affordable supply is paramount, making the risks of sole-sourcing significant.

How effective is the Department of Veterans Affairs in managing sole-source contracts to ensure value?

The effectiveness of the Department of Veterans Affairs (VA) in managing sole-source contracts can vary. The VA has established procurement regulations and oversight mechanisms designed to ensure fair and reasonable pricing, even in sole-source situations. This typically involves requiring justification for the sole-source award, conducting price analyses, and closely monitoring contract performance. However, the inherent lack of competition means that the government's negotiating power is reduced. Success often depends on the diligence of the contracting officers, the availability of independent cost data, and the clarity of performance metrics. While the VA aims for effective management, the potential for less optimal pricing compared to competitive awards remains a persistent challenge with sole-source procurements.

What is the historical spending trend for prosthetics by the Department of Veterans Affairs?

Analyzing the historical spending trend for prosthetics by the Department of Veterans Affairs (VA) is crucial for understanding the context of this $16.7 million award. Without access to specific historical data, it's difficult to provide precise figures. However, the VA's commitment to providing comprehensive healthcare to veterans implies a consistent and likely growing demand for prosthetic services and devices, driven by factors such as an aging veteran population and advancements in prosthetic technology. Examining past annual expenditures on prosthetics, the number of contracts awarded, and the primary vendors utilized would reveal patterns in spending, identify any significant increases or decreases, and highlight whether sole-source awards have been a common practice in this category.

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: 1022 WALTON WAY STE D, AUGUSTA, GA, 30901

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

Financial Breakdown

Contract Ceiling: $16,660

Exercised Options: $16,660

Current Obligation: $16,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline