VA awards $22.5M for prosthetic limbs, with limited competition and a 2-month duration

Contract Overview

Contract Amount: $22,461 ($22.5K)

Contractor: Hanger Prosthetics & Orthotics East Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-06-07

Contract Duration: 61 days

Daily Burn Rate: $368/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROS - BELOW KNEE LIMB

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73112

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,460.51 to HANGER PROSTHETICS & ORTHOTICS EAST INC for work described as: PROS - BELOW KNEE LIMB Key points: 1. Contract awarded for prosthetic limb supplies, indicating a need for ongoing patient care. 2. Limited competition suggests potential for higher pricing or reduced vendor options. 3. Short contract duration may indicate a need for immediate supply or a pilot program. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The award falls under the Surgical Appliance and Supplies Manufacturing NAICS code. 6. Contractor has a presence in Oklahoma, potentially serving regional VA facilities.

Value Assessment

Rating: fair

The contract value of $22.5 million for a 2-month period appears high on a per-month basis, suggesting a significant volume of supplies or high-value items. Without specific unit cost data or comparison to similar prosthetic limb contracts, it is difficult to definitively assess value for money. The fixed-price nature provides cost certainty, but the limited competition raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP), and the data indicates it was 'NOT COMPETED UNDER SAP'. The specific reasons for limited competition are not detailed, but it suggests that either only one vendor was solicited or that the solicitation process was restricted. This lack of broad competition could lead to less favorable pricing for the government.

Taxpayer Impact: Limited competition means taxpayers may not be benefiting from the most competitive pricing available in the market, potentially leading to overspending on these essential medical supplies.

Public Impact

Veterans requiring prosthetic limbs will receive necessary medical supplies. The contract supports the Department of Veterans Affairs' mission to provide healthcare to service members. The geographic impact is likely concentrated around facilities served by HANGER PROSTHETICS & ORTHOTICS EAST INC in Oklahoma. The contract supports jobs within the prosthetics and orthotics manufacturing and supply sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of transparency in the procurement process for this significant award.
Potential for vendor lock-in due to limited competitive bidding.

Positive Signals

Ensures supply of critical prosthetic devices to veterans.
Fixed-price contract provides cost predictability.
Contractor is an established entity in the prosthetics field.

Sector Analysis

The prosthetics and orthotics industry is a specialized segment within the broader healthcare manufacturing sector. This contract falls under NAICS code 339113 (Surgical Appliance and Supplies Manufacturing). The market involves a mix of large manufacturers and specialized suppliers. Spending in this area is driven by healthcare needs, an aging population, and advancements in prosthetic technology. Benchmarking this specific award would require data on similar procurements for prosthetic limbs by other federal agencies or large healthcare providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, HANGER PROSTEXTICS & ORTHOTICS EAST INC, is likely a larger entity, and its role in the small business ecosystem would depend on its own subcontracting practices, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. The fixed-price nature of the award simplifies some aspects of financial oversight. Transparency could be enhanced by making the justification for limited competition publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Prosthetic and Sensory Aids Service (PSAS)
Department of Defense Medical Supplies Contracts
Medicare/Medicaid Prosthetics Reimbursement

Risk Flags

Limited competition raises concerns about price reasonableness.
Lack of detailed justification for sole-source or limited competition award.
Short contract duration may indicate potential for future contract modifications or extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,460.51 to HANGER PROSTHETICS & ORTHOTICS EAST INC. PROS - BELOW KNEE LIMB

Who is the contractor on this award?

The obligated recipient is HANGER PROSTHETICS & ORTHOTICS EAST 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 $22,460.51.

What is the period of performance?

Start: 2026-04-07. End: 2026-06-07.

What is the specific justification for the limited competition on this $22.5 million contract?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and lists the competition as 'LIMITED'. Without further documentation, the specific justification for limiting competition is unknown. Typically, justifications for limited competition include reasons such as only one responsible source being available, an urgent and compelling need, or a specific national defense requirement. For a contract of this value, a formal justification document (e.g., a Justification and Approval - J&A) would normally be required and should be publicly accessible. The absence of this information raises concerns about the procurement process and potential missed opportunities for competitive pricing.

How does the per-day cost of this contract compare to industry benchmarks for prosthetic limbs?

The contract is valued at $22,460,510 for a duration of 61 days (approximately 2 months). This equates to a daily cost of roughly $368,100. However, this figure represents the total value of the purchase order, which likely includes a wide range of prosthetic devices and related supplies, not a single unit. To perform a meaningful benchmark, one would need to know the specific types and quantities of prosthetics being procured and compare their unit costs to market rates or similar government contracts. Without this granular data, the daily cost is a high-level aggregate and not directly comparable to individual prosthetic limb prices.

What is HANGER PROSTETICS & ORTHOTICS EAST INC's track record with the VA and other federal agencies?

Hanger Prosthetics & Orthotics East Inc. is a known provider of prosthetic and orthotic services and products. While this specific data point doesn't detail their entire federal contract history, companies like Hanger often hold numerous contracts with the VA and other healthcare-focused agencies. Their track record would typically be assessed based on past performance evaluations, on-time delivery rates, quality of products/services, and any history of contract disputes or terminations. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their previous federal awards and performance.

What are the potential risks associated with a limited competition award for essential medical supplies?

The primary risk associated with limited competition for essential medical supplies is the potential for inflated pricing. When fewer vendors are involved, the incentive to offer the most competitive price is reduced. This can lead to the government paying more than necessary, impacting the overall budget allocated for veteran healthcare. Additionally, limited competition can stifle innovation and reduce the pool of potential suppliers for future needs. It may also indicate underlying issues with market access or the way requirements are structured, potentially excluding capable small businesses.

How does this contract align with the VA's overall spending on prosthetic and orthotic devices?

This $22.5 million purchase order represents a significant, albeit short-term, investment in prosthetic limb supplies. The VA consistently spends substantial amounts on prosthetic and orthotic devices to support veterans' mobility and quality of life. Annual spending can fluctuate based on veteran population needs, technological advancements, and specific program initiatives. To understand how this contract aligns, one would need to compare its value against the VA's total annual budget for prosthetics and orthotics over several fiscal years. This single award, while large, is likely part of a broader, ongoing procurement strategy for these essential medical items.

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: 3500 NW 56TH ST STE 101, OKLAHOMA CITY, OK, 73112

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

Financial Breakdown

Contract Ceiling: $22,461

Exercised Options: $22,461

Current Obligation: $22,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline