VA awards $38.4M for surgical implants to DePuy Sales Inc., a sole-source contract

Contract Overview

Contract Amount: $38,382 ($38.4K)

Contractor: Depuy Synthes Sales Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-26

End Date: 2026-04-25

Contract Duration: 30 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPLANT

Place of Performance

Location: WEST CHESTER, CHESTER County, PENNSYLVANIA, 19380

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38,381.76 to DEPUY SYNTHES SALES INC for work described as: IMPLANT Key points: 1. High contract value for a specific medical device. 2. Sole-source award limits competitive pricing. 3. Potential risk of inflated costs due to lack of competition. 4. Focus on surgical appliances within the healthcare sector.

Value Assessment

Rating: questionable

The contract value of $38.4 million for surgical implants appears high, especially given it was awarded sole-source. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for comparable devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses competitive bidding, which can lead to higher prices and reduced opportunities for other qualified suppliers.

Taxpayer Impact: Taxpayers may be paying a premium for these surgical implants due to the lack of a competitive bidding process.

Public Impact

Veterans will receive necessary surgical implants, ensuring continuity of care. The award supports a specific medical device manufacturer, potentially impacting market dynamics. Lack of competition raises concerns about the efficient use of taxpayer funds for medical supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Ensures supply of critical medical devices for veterans

Sector Analysis

The Department of Veterans Affairs is a significant purchaser of medical supplies and equipment. Spending on surgical appliances and supplies, like implants, is a critical component of healthcare delivery, with benchmarks often influenced by negotiated contracts and GSA schedules.

Small Business Impact

This contract was awarded to DePuy Sales Inc., a large corporation, and there is no indication that small businesses were involved in the fulfillment or subcontracting for this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained the best possible value. Further review of the justification for sole-source procurement and price reasonableness is recommended.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition and potentially increases costs.
Lack of price transparency due to no competitive bidding.
Potential for overpayment without market validation.
Limited opportunity for small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38,381.76 to DEPUY SYNTHES SALES INC. IMPLANT

Who is the contractor on this award?

The obligated recipient is DEPUY SYNTHES SALES 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 $38,381.76.

What is the period of performance?

Start: 2026-03-26. End: 2026-04-25.

What is the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. A thorough review of the VA's documentation would be necessary to confirm the specific rationale.

How does the $38.4M price compare to market rates for similar implants?

Without access to competitive bids or detailed product specifications, it's challenging to benchmark the $38.4 million price. A comprehensive analysis would require comparing unit costs against publicly available pricing for similar implants from other manufacturers or through other government contracts, considering volume and contract terms.

What is the potential impact on future VA procurement strategies for surgical implants?

A sole-source award, especially for a significant amount, might signal a reliance on a specific vendor. This could limit future competition if not carefully managed. The VA should consider strategies to foster competition for future procurements to ensure cost-effectiveness and access to a wider range of innovative products.

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: Johnson & Johnson

Address: 1302 WRIGHTS LN E, WEST CHESTER, PA, 19380

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

Financial Breakdown

Contract Ceiling: $38,382

Exercised Options: $38,382

Current Obligation: $38,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline