VA awards $39.4M purchase order for prosthetic and orthopedic supplies to Hanger Prosthetics & Orthotics Inc

Contract Overview

Contract Amount: $39,378 ($39.4K)

Contractor: Hanger Prosthetics & Orthotics Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-05-31

Contract Duration: 52 days

Daily Burn Rate: $757/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIMB

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39,378.44 to HANGER PROSTHETICS & ORTHOTICS INC for work described as: LIMB Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The duration of the contract (52 weeks) suggests a need for ongoing supply. 3. Awarded under the Simplified Acquisition Procedures (SAP), indicating a focus on smaller value procurements. 4. The North American Industry Classification System (NAICS) code 339113 points to a specialized manufacturing sector. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The awardee, Hanger Prosthetics & Orthotics Inc., is a significant player in the prosthetics and orthotics market.

Value Assessment

Rating: fair

Benchmarking the value of this $39.4 million purchase order is challenging without specific unit pricing or detailed service scope. However, given the sole-source nature, it's difficult to assess if the VA secured the best possible price. The contract's duration and value suggest a substantial need for these supplies, but a competitive process would typically provide greater assurance of value for money. Further analysis of historical pricing for similar items and quantities would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award. This means that only one vendor, Hanger Prosthetics & Orthotics Inc., was solicited for this requirement. While sole-source awards can be justified under certain circumstances (e.g., urgency, unique capabilities), they limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract. The absence of competition means taxpayers do not benefit from the potential cost savings that could arise from multiple vendors bidding.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution for these essential medical supplies.

Public Impact

Veterans will benefit from the continued availability of essential prosthetic and orthopedic supplies. The contract ensures the supply of surgical appliances and related medical devices. The geographic impact is primarily within California, where the contractor is located. The contract supports jobs within the surgical appliance and supplies manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings for taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Potential for overpayment without competitive benchmarking.

Positive Signals

Ensures continuity of essential medical supplies for veterans.
Firm Fixed Price contract shifts cost risk to the contractor.
Awardee is a specialized provider in the prosthetics and orthotics field.

Sector Analysis

The surgical appliance and supplies manufacturing sector is a specialized segment of the broader healthcare and medical device industry. This contract falls under NAICS code 339113. The market for prosthetic and orthopedic supplies is driven by demand from healthcare providers, government agencies like the VA, and direct-to-consumer sales. While specific market size data for this niche is not provided, the overall medical device market is substantial. This contract represents a significant procurement within this specialized area, likely contributing to the revenue of Hanger Prosthetics & Orthotics Inc.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the procurement strategy. The focus appears to be on securing a specific supplier for a critical need, rather than on broader economic development goals related to small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and contracting offices. As a purchase order awarded under SAP, it may have less stringent oversight than larger, more complex contracts. Accountability measures would be tied to the delivery of goods and services as per the contract terms. Transparency is limited due to the sole-source nature of the award, with public information primarily consisting of the award notice itself.

Related Government Programs

Department of Veterans Affairs Medical Supplies Contracts
Prosthetic and Orthotic Device Procurement
Surgical Appliance and Supplies Manufacturing Contracts

Risk Flags

Sole-source award raises concerns about price competition.
Lack of transparency in the procurement process.
Potential for higher costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39,378.44 to HANGER PROSTHETICS & ORTHOTICS INC. 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 $39,378.44.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-31.

What is the historical spending by the VA on prosthetic and orthopedic supplies from Hanger Prosthetics & Orthotics Inc. over the past five years?

Analyzing historical spending data is crucial for understanding the VA's reliance on Hanger Prosthetics & Orthotics Inc. and for benchmarking current award values. Without access to specific historical contract data, it's impossible to provide exact figures. However, a trend of consistent or increasing awards to this contractor could indicate a long-term relationship and potentially a reliance that contributed to the sole-source justification. Conversely, a sudden increase might warrant closer scrutiny. A comprehensive review would involve examining all previous purchase orders and contracts with this vendor for similar supplies to establish a baseline and identify any significant price fluctuations or changes in contract volume.

How does the per-unit cost of the supplies in this $39.4 million award compare to similar items procured competitively by other federal agencies?

Comparing per-unit costs is a primary method for assessing value for money. Since this award is sole-source, direct comparison to competitively bid contracts for identical items is the most effective benchmark. If data were available, we would look for contracts from agencies like the Defense Logistics Agency (DLA) or other components of the VA that procure similar prosthetic and orthopedic supplies through competitive processes. A significant deviation in price, especially if this contract's unit costs are higher, would indicate a potential lack of value. The absence of competitive bidding here makes such a direct comparison difficult without further data mining.

What specific justifications were provided for awarding this contract on a sole-source basis, and do they align with federal procurement regulations?

Federal procurement regulations, such as the Federal Acquisition Regulation (FAR), outline specific conditions under which a sole-source award can be justified. These typically include situations where only one responsible source can provide the required supplies or services, or when a public exigency requires immediate procurement and other sources are not available. For this contract, the justification would need to detail why Hanger Prosthetics & Orthotics Inc. was the only viable option. Common justifications might involve proprietary technology, unique manufacturing capabilities, or a critical need that cannot be met through competition within the required timeframe. A review of the justification document would be necessary to confirm its validity and adherence to FAR Part 6.

What is the track record of Hanger Prosthetics & Orthotics Inc. in fulfilling government contracts, particularly regarding delivery performance and quality?

The track record of a contractor is a key indicator of performance risk. Hanger Prosthetics & Orthotics Inc.'s history with government contracts, including past performance evaluations and any instances of contract disputes or terminations, provides insight into their reliability. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable. A history of successful, on-time deliveries and high-quality products suggests a lower risk for this current award. Conversely, past performance issues could signal potential problems in meeting the terms of this new purchase order, even if it's a sole-source award.

What is the anticipated impact of this contract on the availability and cost of prosthetic and orthopedic supplies for veterans beyond the contract period?

This contract ensures a 52-week supply of critical items, directly impacting veterans' access to necessary medical devices. The long-term impact on availability and cost depends on future procurement strategies. If this sole-source award sets a precedent, it could limit future competition and potentially lead to sustained higher costs. However, if it's a necessary measure to ensure immediate supply continuity, future competitive procurements could reintroduce price pressures. The VA's strategy for subsequent contract periods will determine the lasting effect on veterans and the overall cost to the government.

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: 1282 3RD ST S, JACKSONVILLE BEACH, FL, 32250

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $39,378

Exercised Options: $39,378

Current Obligation: $39,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline