VA awards $47K for custom prosthetic limb, citing sole-source justification for veteran care

Contract Overview

Contract Amount: $47,071 ($47.1K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-06-02

Contract Duration: 61 days

Daily Burn Rate: $772/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 PROSTHETIC LIMB FOR VETERAN PATIENT IAW 38 USC 8123

Place of Performance

Location: JOHNSON CITY, WASHINGTON County, TENNESSEE, 37604

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47,070.72 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: VA CLINICIAN PRESCRIBED CUSTOM PROSTHETIC LIMB FOR VETERAN PATIENT IAW 38 USC 8123 Key points: 1. Contract awarded to Hanger Prosthetics & Orthotics, Inc. for a custom prosthetic limb. 2. The award was made under a Blanket Purchase Agreement (BPA) Call. 3. The contract duration is 61 days, ending in April 2026. 4. The procurement was not competed under Simplified Acquisition Procedures (SAP). 5. The Department of Veterans Affairs (VA) is the contracting agency. 6. The North American Industry Classification System (NAICS) code is 339113 (Surgical Appliance and Supplies Manufacturing).

Value Assessment

Rating: fair

The contract value of $47,070.72 for a custom prosthetic limb appears within a reasonable range for specialized medical devices. However, without specific details on the complexity of the prosthetic and comparable pricing for similar custom-made devices, a definitive value-for-money assessment is challenging. The sole-source nature of the award limits direct price comparison to the open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not detailed in the provided data, but it is often used when only one source can fulfill the requirement, such as for highly specialized or proprietary items, or in urgent situations. The lack of competition means that the VA did not receive multiple bids, potentially impacting price discovery.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. However, if the sole source is justified by unique capabilities or urgent need, it may still represent the best available option for timely service delivery.

Public Impact

Veterans requiring custom prosthetic limbs will benefit from this contract. The service delivered is the provision of a custom-fitted prosthetic limb. The contract is being executed in Tennessee (ST: TN, SN: TENNESSEE). This contract supports the healthcare needs of veterans through specialized medical devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than a competed award.
Limited contract duration (61 days) might indicate a specific, short-term need or a bridge to a larger procurement.
Sole-source justification needs further review to ensure it aligns with federal procurement regulations.

Positive Signals

Directly addresses a specific veteran's need for a custom prosthetic.
Awarded to a known entity in the prosthetics and orthotics field.
Supports the VA's mission to provide healthcare to veterans.

Sector Analysis

The surgical appliance and supplies manufacturing sector (NAICS 339113) encompasses companies that produce medical, surgical, and personal protective equipment. This contract falls within the specialized segment of custom prosthetic devices, which often involves significant customization and skilled labor. The market for prosthetics is driven by healthcare needs, technological advancements, and patient-specific requirements. Benchmarking this specific award is difficult without more data on custom prosthetic costs.

Small Business Impact

The provided data indicates that small business participation (SB) is false (sb: false) and there is no indication of a small business set-aside. Therefore, this contract does not appear to have been specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The VA has an Office of Inspector General (OIG) that investigates fraud, waste, and abuse within the department, which could include reviewing sole-source procurements if concerns arise. Transparency is facilitated through contract databases like SAM.gov, where award details are published.

Related Government Programs

VA Medical Services
Prosthetic and Orthotic Devices
Veteran Healthcare Services
Medical Equipment Manufacturing

Risk Flags

Sole-source award without clear justification.
Limited competition may lead to higher costs.
Short contract duration requires understanding of underlying need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47,070.72 to HANGER PROSTHETICS & ORTHOTICS, INC.. VA CLINICIAN PRESCRIBED CUSTOM PROSTHETIC LIMB 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 $47,070.72.

What is the period of performance?

Start: 2026-04-02. End: 2026-06-02.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source is available, or for urgent and compelling reasons. For a custom prosthetic limb, the justification might relate to the unique patient needs, the specific expertise or proprietary technology of Hanger Prosthetics & Orthotics, Inc., or the need for continuity of care with a previously fitted device. Further investigation into the VA's contracting file would be required to ascertain the precise justification cited.

How does the $47,070.72 price compare to similar custom prosthetic limb contracts awarded by the VA or other federal agencies?

A direct comparison of the $47,070.72 price to similar custom prosthetic limb contracts is challenging without more specific data on the type and complexity of the prosthetic device, the materials used, and the labor involved. Custom prosthetics can vary significantly in cost based on factors such as the level of amputation, the technology integrated (e.g., microprocessor knees, myoelectric hands), and the specific fitting and alignment requirements. While this amount may be within a reasonable range for a highly specialized custom device, a comprehensive benchmark would require analyzing contracts for prosthetics with comparable specifications and patient needs, ideally awarded through competitive processes to establish a clearer market price.

What are the potential risks associated with awarding a contract for essential medical equipment on a sole-source basis?

The primary risk associated with sole-source awards for essential medical equipment is the potential for inflated pricing due to the absence of competition. Without competing offers, the government may pay more than it would in a competitive environment. Other risks include a lack of innovation, as the sole provider may have less incentive to improve products or services. Furthermore, if the sole source encounters performance issues or becomes unable to fulfill the contract, there may be limited alternative options available, potentially disrupting critical patient care. Ensuring robust justification and fair pricing negotiation is crucial to mitigate these risks.

What is the track record of Hanger Prosthetics & Orthotics, Inc. in fulfilling VA contracts for prosthetic devices?

Hanger Prosthetics & Orthotics, Inc. is a well-established provider of prosthetic and orthotic services. While specific details of their past performance with the VA for this exact type of custom prosthetic are not provided in the data, the company has a significant presence in the healthcare sector and frequently contracts with government entities, including the VA, to provide these specialized devices. Their long-standing operation suggests a level of experience and capability in meeting patient needs. A thorough review of their contract history, past performance evaluations, and any reported issues with the VA would provide a more complete picture of their track record.

What is the significance of the contract being awarded under a BPA Call rather than a direct solicitation?

A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services. A BPA Call is an order placed against an existing BPA. Awarding under a BPA Call suggests that the VA has an established BPA with Hanger Prosthetics & Orthotics, Inc. for prosthetic services. This streamlines the procurement process for recurring needs, allowing for faster delivery and potentially more favorable pricing due to pre-negotiated terms. However, the initial establishment of the BPA itself should have undergone a competitive process, unless it too was a sole-source BPA. The 'Call' signifies an individual task order against that agreement.

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: $47,071

Exercised Options: $47,071

Current Obligation: $47,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24924A0003

IDV Type: BPA

Timeline