VA awards $42.7K for custom prosthetic leg, bypassing competitive bidding for a single vendor

Contract Overview

Contract Amount: $42,737 ($42.7K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-06-01

Contract Duration: 61 days

Daily Burn Rate: $701/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA CLINICIAN PRESCRIBED CUSTOM REPLACEMENT ABOVE KNEE RIGHT LEG PROSTHESIS FOR VETERAN PATIENT IAW 38 USC 8123.

Place of Performance

Location: BOWLING GREEN, WARREN County, KENTUCKY, 42104

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $42,736.59 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: VA CLINICIAN PRESCRIBED CUSTOM REPLACEMENT ABOVE KNEE RIGHT LEG PROSTHESIS FOR VETERAN PATIENT IAW 38 USC 8123. Key points: 1. The contract was awarded using a non-competitive process, raising questions about potential value for money. 2. Limited competition suggests a risk of higher pricing compared to a more open bidding environment. 3. The fixed-price contract structure provides some cost certainty, but the lack of competition is a key risk indicator. 4. This award is for a specific need for a veteran patient, contextualizing its limited scope. 5. The contract falls within the Surgical Appliance and Supplies Manufacturing sector.

Value Assessment

Rating: questionable

Benchmarking the value of a custom, patient-specific prosthetic is challenging without comparable bids. However, the absence of competition for a significant dollar amount like $42.7K warrants scrutiny. Typically, competitive processes drive down costs. Without this, it's difficult to ascertain if the government secured the best possible price for this custom device. Further analysis would require understanding the specific customization requirements and market rates for such specialized medical equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source action. This means only one vendor, HANGER PROSTHETICS & ORTHOTICS, INC., was solicited and awarded the contract. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve a lower price.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no pressure from competing vendors to offer the most competitive pricing. This limits the government's purchasing power and potentially reduces the funds available for other essential services.

Public Impact

The primary beneficiary is a veteran patient requiring a custom replacement above-knee right leg prosthesis. The service delivered is the provision of a highly specialized, custom-fitted prosthetic device. The geographic impact is localized to Kentucky, where the veteran patient resides and the vendor operates. There are potential workforce implications for HANGER PROSTHETICS & ORTHOTICS, INC., which will be involved in the manufacturing and fitting of the prosthesis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing for the custom prosthetic.
Sole-source awards can set a precedent for future non-competitive procurements if not properly justified.
Transparency regarding the justification for sole-source award is crucial for public trust.

Positive Signals

The contract addresses a specific, critical need for a veteran's medical care.
The firm-fixed-price contract type provides cost predictability for the government.
The vendor, HANGER PROSTHETICS & ORTHOTICS, INC., is likely specialized in providing such custom medical devices.

Sector Analysis

The contract falls under the Surgical Appliance and Supplies Manufacturing industry, which is part of the broader healthcare sector. This sector involves the production of medical devices and equipment used for patient care and treatment. Spending in this area is often driven by specific patient needs and technological advancements in medical prosthetics and orthotics. Benchmarking this specific custom prosthetic award against broader industry spending is difficult due to its highly individualized nature, but it represents a small component of the overall federal spending on medical supplies and equipment for veterans.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the sole-source nature of the award, there is no indication of subcontracting opportunities for small businesses through this specific procurement. The impact on the small business ecosystem is likely minimal for this particular award, as it was directed to a single, presumably established, vendor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers. Accountability measures would include ensuring the prosthetic meets the specified requirements and is delivered within the agreed timeframe and budget. Transparency is facilitated through federal procurement databases where contract awards are recorded, though the justification for sole-source awards may not always be publicly detailed.

Related Government Programs

VA Medical Equipment Procurement
Prosthetic and Orthotic Devices
Veteran Healthcare Services
Surgical Appliances

Risk Flags

Sole-source award without clear justification
Potential for overpricing due to lack of competition
Dependence on a single vendor for critical medical device

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $42,736.59 to HANGER PROSTHETICS & ORTHOTICS, INC.. VA CLINICIAN PRESCRIBED CUSTOM REPLACEMENT ABOVE KNEE RIGHT LEG PROSTHESIS FOR VETERAN PATIENT IAW 38 USC 8123.

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 $42,736.59.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-01.

What is the typical pricing range for custom above-knee prosthetics for veterans, and how does this award compare?

Determining a precise 'typical' pricing range for custom above-knee prosthetics is complex due to significant variations in materials, technology, customization levels, and the specific clinical needs of each patient. However, custom prosthetics can range from several thousand dollars to upwards of $30,000 or more. The $42,736.59 award for this specific veteran's prosthesis falls within the higher end of this spectrum, which is not necessarily indicative of overpricing given the 'custom' nature. Without a competitive bidding process, it is difficult to definitively benchmark this price against market alternatives. A more thorough analysis would involve comparing the specific components and labor involved against industry standards and potentially seeking quotes from other qualified prosthetic providers, if feasible under VA regulations for sole-source justifications.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded to 'HANGER PROSTHETICS & ORTHOTICS, INC.' as a sole-source action. Federal regulations (specifically the Federal Acquisition Regulation - FAR) allow for sole-source procurements under certain circumstances, such as when only one responsible source can provide the required supply or service. For a custom prosthetic, this justification might stem from unique patient requirements, specialized fitting expertise held by a single provider, or specific compatibility needs with existing medical records or treatment plans managed by that provider. A detailed justification document would typically be required by the VA, outlining why competition was not feasible or advantageous in this specific instance, and would need to meet the criteria outlined in FAR Part 6.

What is the track record of HANGER PROSTHETICS & ORTHOTICS, INC. with the Department of Veterans Affairs?

Hanger Prosthetics & Orthotics, Inc. is a significant provider of prosthetic and orthotic services. While the provided data does not detail their specific track record with the VA, publicly available information and historical contract databases suggest they have been a frequent contractor for the Department of Veterans Affairs and other federal agencies. Their extensive network and specialization in prosthetic care make them a likely candidate for such awards. A comprehensive review of their past performance, including any quality issues, delivery performance, or past disputes with the VA, would be necessary for a complete assessment of their reliability in fulfilling this contract.

How does the duration and value of this contract compare to typical VA prosthetic procurements?

This contract has a duration of 61 days (approximately two months) with a value of $42,736.59. The duration is relatively short, suggesting a focus on a specific, immediate need for a custom prosthetic rather than a long-term supply agreement. The value, while substantial for a single custom device, is not exceptionally high in the context of overall federal healthcare spending. Typical VA prosthetic procurements can vary widely; some may involve large-scale contracts for standardized items over several years, while others, like this one, are for highly specialized, patient-specific items with shorter performance periods. The value is consistent with the high cost associated with custom-fabricated medical devices.

Are there any performance risks associated with this type of custom prosthetic contract?

Performance risks for this type of custom prosthetic contract primarily revolve around the fit and functionality of the device for the veteran patient. Key risks include: 1) Inadequate fit leading to discomfort, skin breakdown, or reduced mobility. 2) Material defects or manufacturing flaws in the custom components. 3) Delays in fabrication or fitting appointments, impacting the veteran's quality of life and rehabilitation. 4) Potential need for adjustments or modifications post-delivery, which could incur additional costs or delays if not clearly defined in the contract. Given the sole-source nature, the VA relies heavily on the contractor's expertise and quality control to mitigate 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: 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: $42,737

Exercised Options: $42,737

Current Obligation: $42,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24924A0003

IDV Type: BPA

Timeline