VA awards $16.3M for lower extremity prosthetics, with Hanger Prosthetics & Orthotics West Inc. as sole provider

Contract Overview

Contract Amount: $16,275 ($16.3K)

Contractor: Hanger Prosthetics & Orthotics West, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-09-30

Contract Duration: 175 days

Daily Burn Rate: $93/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHESIS: LOWER EXTREMITY

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79930

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,275.21 to HANGER PROSTHETICS & ORTHOTICS WEST, INC. for work described as: PROSTHESIS: LOWER EXTREMITY Key points: 1. The contract's value of $16.3 million for prosthetic devices indicates a significant investment in veteran healthcare. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and lack of competitive pressure. 3. Performance risk appears moderate given the established nature of prosthetic services, but continuity of care is a key factor. 4. The contract duration of approximately 5 months suggests a need for ongoing procurement or a potential for extension. 5. This award falls within the broader healthcare sector, specifically focusing on durable medical equipment and prosthetics.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the number and type of prosthetics procured. However, the $16.3 million award for a 5-month period suggests a substantial per-unit cost or a high volume of devices. Given the sole-source nature, it is difficult to assess if this represents competitive pricing. Further analysis would require comparing the unit costs to similar VA contracts or market rates for comparable prosthetic 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, Hanger Prosthetics & Orthotics West, Inc., was considered. This approach bypasses the competitive bidding process, which typically aims to secure the best value through multiple offers. The lack of competition raises concerns about whether the government obtained the most favorable pricing and terms possible.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without competing offers, there is less incentive for the contractor to offer the lowest possible price, potentially leading to higher overall spending.

Public Impact

Veterans requiring lower extremity prosthetic devices will benefit from continued access to necessary medical equipment. The services delivered include the provision and likely fitting of prosthetic limbs, crucial for mobility and quality of life. The geographic impact is primarily within Texas, where Hanger Prosthetics & Orthotics West, Inc. operates. This contract supports jobs within the prosthetics and orthotics manufacturing and service industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in higher costs for taxpayers.
Short contract duration (5 months) could indicate a stop-gap measure or require frequent re-procurement, increasing administrative burden.
Lack of transparency in the justification for a sole-source award needs further investigation.

Positive Signals

Ensures continuity of care for veterans needing lower extremity prosthetics.
Hanger Prosthetics & Orthotics West, Inc. is a known entity in the prosthetics market, potentially offering specialized expertise.
The contract specifies a firm fixed price, which provides cost certainty for the government.

Sector Analysis

The market for prosthetics and orthotics is a specialized segment within the broader healthcare industry. This sector involves the design, manufacturing, and fitting of artificial devices to replace missing body parts or support weakened limbs. The Department of Veterans Affairs is a significant purchaser of such goods and services to support its patient population. Comparable spending benchmarks would involve analyzing other VA or Department of Defense contracts for similar prosthetic devices, considering factors like device complexity and patient needs.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Hanger Prosthetics & Orthotics West, Inc., a potentially larger entity, suggests that small businesses may not have been primary participants in this specific procurement. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to standard government procurement regulations and oversight. The specific Inspector General jurisdiction would be that of the VA's Office of Inspector General, which investigates fraud, waste, and abuse within VA programs. Transparency regarding the justification for the sole-source award and performance monitoring would be key accountability measures.

Related Government Programs

Durable Medical Equipment (DME) Procurement
Veteran Healthcare Services
Medical Supplies and Equipment Manufacturing
Prosthetic and Orthotic Devices

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Short contract duration may lead to continuity issues or increased administrative burden.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,275.21 to HANGER PROSTHETICS & ORTHOTICS WEST, INC.. PROSTHESIS: LOWER EXTREMITY

Who is the contractor on this award?

The obligated recipient is HANGER PROSTHETICS & ORTHOTICS WEST, 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 $16,275.21.

What is the period of performance?

Start: 2026-04-08. End: 2026-09-30.

What is the historical spending pattern for lower extremity prosthetics by the Department of Veterans Affairs?

Analyzing historical spending for lower extremity prosthetics by the VA is crucial for understanding trends and identifying potential cost efficiencies. While specific data for this contract is limited to the current award, a broader review would involve examining VA's budget allocations and actual expenditures on prosthetic devices over the past several fiscal years. This would include looking at the number of contracts awarded, the total dollar amounts obligated, and the primary contractors. Understanding historical spending can reveal whether costs are increasing, decreasing, or remaining stable, and whether the VA relies heavily on a few key suppliers or engages in broader competition. For instance, if historical data shows a consistent increase in spending for similar devices, it might indicate rising market prices, increased demand, or less effective cost control measures. Conversely, a stable or decreasing trend could suggest successful negotiation or competitive sourcing.

What is the justification for awarding this contract on a sole-source basis to Hanger Prosthetics & Orthotics West, Inc.?

The justification for a sole-source award is critical for understanding why competitive bidding was bypassed. Typically, sole-source contracts are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For Hanger Prosthetics & Orthotics West, Inc., the justification might stem from unique capabilities, proprietary technology, or a pre-existing relationship that makes them the only viable option for these specific lower extremity prosthetics. Without the official justification documentation (e.g., a Justification and Approval - J&A), it is difficult to definitively assess its validity. A thorough review would examine whether the stated reasons meet the regulatory criteria and if alternative solutions were adequately considered. The absence of a clear, documented justification raises concerns about potential inefficiencies and lack of accountability in the procurement process.

How does the pricing of this contract compare to market rates for similar lower extremity prosthetics?

Comparing the pricing of this $16.3 million contract to market rates for similar lower extremity prosthetics is essential for assessing value for money. However, without specific details on the types, models, and quantities of prosthetics being procured, a precise comparison is challenging. Market rates can vary significantly based on the complexity of the prosthetic (e.g., basic vs. advanced microprocessor-controlled limbs), customization required, and associated services like fitting and maintenance. To conduct a robust comparison, one would need to obtain unit pricing data from the contract and benchmark it against publicly available price lists from other prosthetic providers, industry reports, or data from similar government contracts awarded through competitive processes. Given this is a sole-source award, there is a heightened risk that the pricing may not reflect competitive market conditions, potentially leading to overpayment.

What is the track record of Hanger Prosthetics & Orthotics West, Inc. in fulfilling government contracts, particularly with the VA?

Evaluating the track record of Hanger Prosthetics & Orthotics West, Inc. in fulfilling government contracts, especially with the VA, provides insight into their reliability and performance history. This involves reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or disputes. A positive track record with timely delivery, quality products, and adherence to contract terms would suggest a lower performance risk for this current award. Conversely, a history of performance problems, such as delays, product defects, or billing irregularities, would raise significant concerns about the contractor's ability to meet the requirements of this $16.3 million contract. Information on past performance is crucial for the VA to make informed decisions about contractor selection and to ensure accountability.

What are the potential risks associated with the short duration (175 days) of this contract?

The short duration of this contract, approximately 175 days (about 5.75 months), presents several potential risks. Firstly, it may indicate that this is a short-term or bridge contract, potentially leading to a continuous cycle of re-procurement. This can result in increased administrative costs and potential disruptions in supply if new contracts are not awarded seamlessly. Secondly, a short duration might limit the contractor's incentive to invest in long-term service improvements or innovations, focusing instead on fulfilling the immediate requirements. It could also suggest that the VA is still in the process of defining longer-term needs or is facing procurement challenges that necessitate a shorter contract term. The VA needs to ensure that this short duration does not compromise the continuity or quality of care for the veterans relying on these prosthetic devices.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hanger, Inc.

Address: 1175 COMMERCE DR STE B, LAS CRUCES, NM, 88011

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

Financial Breakdown

Contract Ceiling: $16,275

Exercised Options: $16,275

Current Obligation: $16,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline