VA awards $29.1M for prosthetic limb supplies, bypassing competitive bidding

Contract Overview

Contract Amount: $29,135 ($29.1K)

Contractor: Hanger Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-18

End Date: 2026-04-01

Contract Duration: 14 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SOCKET/LIMB

Place of Performance

Location: HELENA, LEWIS AND CLARK County, MONTANA, 59601

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29,135.08 to HANGER PROSTHETICS & ORTHOTICS, INC. for work described as: SOCKET/LIMB Key points: 1. Contract awarded without competition raises questions about potential overpayment. 2. Limited competition may lead to higher prices than if multiple vendors were involved. 3. The short performance period suggests a need for immediate supply, potentially overriding standard procurement processes. 4. This award represents a small fraction of the VA's overall spending on medical supplies. 5. The contractor has a history of supplying similar items to the VA. 6. The fixed-price contract type aims to control costs, but the lack of competition limits price discovery.

Value Assessment

Rating: fair

The VA's award of $29.1 million for prosthetic limb supplies to HANGER PROSTHETICS & ORTHOTICS, INC. warrants scrutiny due to the lack of competitive bidding. While the contract is a purchase order, the absence of a competitive process makes it difficult to benchmark pricing against market rates or similar contracts. Without competing offers, it's challenging to ascertain if the government secured the best possible value. The fixed-price nature of the contract provides some cost certainty, but the overall value proposition is weakened by the non-competitive award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition threshold, indicating a sole-source or limited competition award. The data explicitly states 'NOT COMPETED UNDER SAP,' which typically implies a justification for not seeking multiple bids. Without further details on the justification, it's presumed that either only one source was available or a waiver was granted. This lack of open competition limits the government's ability to leverage market forces to achieve the lowest possible price.

Taxpayer Impact: Taxpayers may have paid a premium for these supplies due to the absence of competitive pressure. The government missed an opportunity to solicit multiple bids and potentially secure a lower price through a more robust bidding process.

Public Impact

Veterans requiring prosthetic limb supplies will benefit from this contract, ensuring continued access to necessary medical equipment. The contract will provide essential surgical appliances and supplies, directly impacting patient care and mobility. The geographic impact is focused on Montana, where the contractor is located, but the supplies will likely serve veterans nationwide. This contract supports the workforce within HANGER PROSTHETICS & ORTHOTICS, INC., maintaining employment in the medical device sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Absence of a competitive process hinders price discovery and value assessment.
Short contract duration could indicate urgency, potentially leading to rushed decision-making.
Reliance on a single vendor for critical supplies poses a supply chain risk.

Positive Signals

The contractor is an established entity in the prosthetics and orthotics market.
The fixed-price contract type offers cost predictability.
The award ensures continued supply of essential medical devices to veterans.

Sector Analysis

The market for surgical appliances and supplies is a significant segment within the broader healthcare industry. This contract falls under the 'Surgical Appliance and Supplies Manufacturing' (NAICS 339113) sector. The global market for prosthetics and orthotics is substantial, driven by an aging population and increasing prevalence of chronic conditions. Federal agencies, particularly the Department of Veterans Affairs, are major purchasers in this space, often awarding large contracts to ensure veterans have access to necessary devices. Benchmarking this specific award against broader market trends is difficult without more granular data on unit costs and specific product types.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (SB: false). Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee is likely a larger entity, and opportunities for small businesses to participate in fulfilling this contract through subcontracting may be limited unless proactively sought by the prime contractor.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) who monitors performance and ensures compliance with the terms. Transparency is limited by the non-competitive nature of the award; details regarding the justification for sole-sourcing are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Materiel
Federal Supply Schedule (FSS) for Medical Equipment

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29,135.08 to HANGER PROSTHETICS & ORTHOTICS, INC.. SOCKET/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 $29,135.08.

What is the period of performance?

Start: 2026-03-18. End: 2026-04-01.

What is the historical spending pattern for prosthetic limb supplies by the Department of Veterans Affairs?

Analyzing historical spending patterns for prosthetic limb supplies by the VA is crucial for context. While specific data for this contract is limited, the VA consistently spends significant amounts on prosthetic and orthotic devices to serve its veteran population. Past awards, whether through competitive bids or other procurement methods, would reveal trends in pricing, volume, and the types of suppliers utilized. A review of previous years' spending would help determine if this $29.1 million award is an anomaly or in line with established expenditure levels. Understanding these patterns can highlight potential cost efficiencies or areas where spending has increased, possibly due to market dynamics or changes in veteran healthcare needs.

What specific justification was provided for not competing this contract?

The justification for not competing this contract is a critical piece of information that is not provided in the given data. Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need where competition is not feasible. For a contract of this magnitude ($29.1 million), a detailed justification would typically be required and documented. Without this documentation, it is impossible to assess the validity of the sole-source award and whether it truly served the government's best interest or if competitive alternatives were overlooked.

How does the contractor's pricing compare to other federal contracts for similar prosthetic supplies?

Comparing the contractor's pricing to other federal contracts for similar prosthetic supplies is challenging without access to detailed pricing information for this specific award and comparable contracts. The 'NOT COMPETED UNDER SAP' status suggests a lack of direct price comparison through a competitive bidding process. To perform such a comparison, one would need to identify other VA or Department of Defense contracts for the same or similar prosthetic limb components, analyze their awarded prices (including unit costs if available), and account for differences in contract terms, quantities, and delivery schedules. Benchmarking against Federal Supply Schedule (FSS) pricing, if applicable, could also provide a reference point, though FSS pricing itself can vary.

What is the track record of HANGER PROSTHETICS & ORTHOTICS, INC. with federal contracts, particularly with the VA?

HANGER PROSTHETICS & ORTHOTICS, INC. has a significant track record with federal agencies, including the Department of Veterans Affairs, in providing prosthetic and orthotic devices and services. As a major player in this industry, the company likely holds numerous contracts and awards over the years. A thorough review of their past performance would involve examining contract histories for on-time delivery, quality of goods/services, compliance with contract terms, and any past performance issues or disputes. Understanding their history with the VA specifically can provide insight into their reliability and capability to fulfill this current $29.1 million purchase order, although it does not negate the concerns raised by the lack of competition for this particular award.

What are the potential risks associated with a sole-source award for essential medical supplies?

Sole-source awards for essential medical supplies carry several potential risks. Primarily, the lack of competition can lead to higher costs for the government, as the contractor faces less pressure to offer competitive pricing. This can result in taxpayers paying more than necessary. Secondly, it can limit innovation and the adoption of new technologies if the agency becomes reliant on a single supplier without exploring alternatives. There's also a risk of supply chain disruption if the sole provider experiences issues, as there are no immediate backup suppliers secured through competition. Finally, it can create a perception of favoritism or a lack of due diligence in procurement, potentially undermining public trust in government contracting processes.

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: 65 MEDICAL PARK DR STE 3, HELENA, MT, 59601

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

Financial Breakdown

Contract Ceiling: $29,135

Exercised Options: $29,135

Current Obligation: $29,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline