VA awards $37.7M for prosthetics, including TMJ and surgical implants, with no competition

Contract Overview

Contract Amount: $37,716 ($37.7K)

Contractor: Stryker Sales, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-07-06

Contract Duration: 90 days

Daily Burn Rate: $419/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS: TMJ, CLEAR VIEWS, VSP ORTHOG & GUIDES SURGICAL IMPLANTS

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37,715.71 to STRYKER SALES, LLC for work described as: PROSTHETICS: TMJ, CLEAR VIEWS, VSP ORTHOG & GUIDES SURGICAL IMPLANTS Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery and potential value. 2. The contract duration is short (90 days), suggesting a potential need for rapid fulfillment or a bridge to a larger procurement. 3. The specific nature of the prosthetics (TMJ, surgical implants) indicates a specialized medical need within the VA. 4. The awardee, Stryker Sales, LLC, is a known entity in the medical device market. 5. Lack of competition limits the ability to benchmark pricing against market alternatives. 6. The contract is a purchase order, which typically signifies a simpler procurement process than a traditional contract.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $37.7 million price represents good value for money. The short 90-day duration for such a significant dollar amount also warrants scrutiny. Benchmarking against similar sole-source procurements for specialized prosthetics would be necessary to determine fair pricing. The absence of competition means the VA did not benefit from potential cost savings that could arise from multiple vendors vying for the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means only one vendor, Stryker Sales, LLC, was solicited for this requirement. The lack of competition prevents an assessment of the number of potential bidders or the dynamics of price negotiation that would occur in a competitive environment. This approach may be justified if there are unique capabilities or proprietary products involved, but it bypasses the standard competitive process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The VA missed an opportunity to leverage market forces to potentially reduce costs.

Public Impact

Veterans requiring specialized prosthetics, including those for Temporomandibular Joint (TMJ) disorders and surgical implants, will receive necessary medical devices. The contract supports the Department of Veterans Affairs' mission to provide comprehensive healthcare to its beneficiaries. The services are likely to be delivered within California, where the contractor is registered. The procurement supports the medical device manufacturing sector, specifically in the area of surgical appliances and supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings for taxpayers.
Short contract duration for a high dollar value may indicate urgency or a stop-gap measure, requiring further investigation.
Lack of transparency in the justification for sole-source award.
No indication of small business subcontracting opportunities due to sole-source nature.

Positive Signals

Ensures timely access to critical medical devices for veterans.
Award to a known supplier (Stryker Sales, LLC) may indicate reliability and established product quality.
Firm Fixed Price contract provides cost certainty for the VA.

Sector Analysis

This contract falls within the Healthcare sector, specifically concerning the procurement of medical devices and surgical supplies. The North American Industry Classification System (NAICS) code 339113, Surgical Appliance and Supplies Manufacturing, indicates a specialized segment of the healthcare manufacturing industry. Spending in this area is critical for providing advanced medical treatments to beneficiaries. Comparable spending benchmarks would typically involve analyzing other VA or Department of Defense contracts for similar high-value, specialized prosthetics and implants, often procured through competitive processes.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a factor in this award. As a sole-source procurement, there were no explicit small business set-aside provisions. Furthermore, there is no information provided regarding subcontracting plans with small businesses. This suggests that the primary contractor, Stryker Sales, LLC, will likely fulfill the requirement directly, potentially limiting opportunities for small businesses within the supply chain for this specific contract.

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 may undergo less rigorous oversight than a large, complex contract, but the significant dollar amount suggests it would still be subject to internal controls and review. Transparency is limited due to the sole-source nature and lack of public justification. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this procurement.

Related Government Programs

VA Medical Equipment Procurement
Prosthetics and Orthotics Services
Surgical Implant Contracts
Department of Veterans Affairs Healthcare Services

Risk Flags

Sole-source award without clear justification
High dollar value for a short contract duration
Lack of competitive bidding limits price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37,715.71 to STRYKER SALES, LLC. PROSTHETICS: TMJ, CLEAR VIEWS, VSP ORTHOG & GUIDES SURGICAL IMPLANTS

Who is the contractor on this award?

The obligated recipient is STRYKER SALES, LLC.

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 $37,715.71.

What is the period of performance?

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

What is the specific justification for awarding this $37.7 million contract on a sole-source basis to Stryker Sales, LLC?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is 'sole-source'. A definitive justification for this sole-source award is not detailed in the provided data snippet. Typically, sole-source awards 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. Without further documentation from the Department of Veterans Affairs, the precise reason for bypassing competitive bidding remains unclear. This lack of competition raises concerns about whether the government obtained the best possible pricing and value for taxpayer dollars.

How does the $37.7 million award compare to historical VA spending on similar prosthetics and surgical implants?

Direct comparison of this $37.7 million award to historical VA spending on similar prosthetics and surgical implants is challenging without access to detailed historical procurement data for specific product categories and awardees. However, the amount itself is substantial, suggesting a significant need for these specialized medical devices. The fact that it's a sole-source award for a large sum warrants scrutiny. Analyzing past competitive procurements for comparable items, or even past sole-source awards to Stryker or other major medical device manufacturers for similar product lines, would be necessary to establish a benchmark and assess if this award represents a fair market price or an outlier.

What are the potential risks associated with awarding a 90-day contract for $37.7 million on a sole-source basis?

Awarding a 90-day contract valued at $37.7 million on a sole-source basis presents several risks. Firstly, the high dollar value for a short duration could indicate an emergency procurement or a stop-gap measure, potentially leading to rushed decision-making and less favorable terms. Secondly, the sole-source nature eliminates competitive pressure, increasing the risk of paying a premium price. There's also a risk that the VA may become dependent on a single supplier for critical items. Furthermore, the short duration might not allow for adequate vetting of the supplier's long-term capabilities or the full evaluation of product performance, potentially leading to future issues or the need for another urgent, non-competitive award.

What is the track record of Stryker Sales, LLC in fulfilling VA contracts, particularly for prosthetics and surgical implants?

Stryker Sales, LLC is a well-established entity in the medical technology and device industry. While specific details of their track record with the VA for this exact category of prosthetics and implants are not provided in the snippet, Stryker is known for a broad range of orthopedic implants, surgical equipment, and neurotechnology products. Federal procurement databases would typically show a history of awards to Stryker across various agencies, including the VA. Their performance on past contracts, including delivery timeliness, product quality, and adherence to terms, would be crucial for assessing their reliability. However, the current sole-source award does not inherently reflect their past performance but rather the circumstances of this specific procurement.

Given the 'NOT COMPETED UNDER SAP' status, what type of procurement process was likely followed, and what does this imply?

The notation 'NOT COMPETED UNDER SAP' implies that the procurement did not utilize the Simplified Acquisition Procedures (SAP), which are typically for purchases below the SAP threshold (currently $250,000). Since this award is for $37.7 million, it would have been subject to more formal, full and open competition requirements under the Federal Acquisition Regulation (FAR). However, the data explicitly states it was 'sole-source,' meaning that despite not using SAP, the agency chose to solicit only one vendor. This suggests that either the agency determined statutory exceptions to full and open competition applied (e.g., sole-source justification under FAR Part 6), or the procurement was conducted under specific agency procedures that allowed for a sole-source award, which would still require justification and approval.

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: Stryker Sales LLC

Address: 3800 E CENTRE AVE, PORTAGE, MI, 49002

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: $37,716

Exercised Options: $37,716

Current Obligation: $37,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline