DoD's $27.8M prosthetic contract awarded to Medical Center Orthotics and Prosthetics, LLC, for lower extremity prosthetics

Contract Overview

Contract Amount: $27,822,846 ($27.8M)

Contractor: Medical Center Orthotics and Prosthetics, LLC

Awarding Agency: Department of Defense

Start Date: 2016-12-29

End Date: 2018-03-31

Contract Duration: 457 days

Daily Burn Rate: $60.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF LOWER EXTREMITY PROSTHETICS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to MEDICAL CENTER ORTHOTICS AND PROSTHETICS, LLC for work described as: IGF::OT::IGF LOWER EXTREMITY PROSTHETICS Key points: 1. The contract value of $27.8 million over its period of performance suggests a significant investment in prosthetic devices. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific justification for limiting the initial pool. 3. The fixed-price contract type aims to control costs, but the final expenditure will depend on actual delivery orders. 4. The duration of 457 days for the contract period is relatively short, suggesting a focus on immediate needs or a specific project. 5. The North American Industry Classification System (NAICS) code 339113 points to the manufacturing of surgical appliances and supplies, a specialized sector. 6. The award to a single contractor, Medical Center Orthotics and Prosthetics, LLC, warrants scrutiny regarding the breadth of competition and potential alternatives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific data on the types and quantities of prosthetics procured. However, $27.8 million represents a substantial sum for prosthetic devices. The fixed-price nature of the contract provides some cost certainty, but the actual value realized depends on the specific needs met and the efficiency of the contractor. Without comparative data on similar large-scale prosthetic procurements or detailed cost breakdowns, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, specific sources were excluded for reasons that would need further justification. The number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower competitive field than a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even if justified, may limit the potential for the most competitive pricing, potentially leading to higher costs for taxpayers compared to a broader competition.

Public Impact

Beneficiaries include service members and veterans requiring lower extremity prosthetics, enhancing their mobility and quality of life. The services delivered involve the provision of prosthetic devices, likely including custom fitting and potentially maintenance. The geographic impact is primarily within the purview of the Department of Defense's healthcare system, serving personnel at various locations. Workforce implications may include demand for skilled prosthetists, technicians, and administrative staff within the contractor's organization and potentially related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type raises questions about the extent of market exploration and potential cost savings missed.
Lack of detailed performance metrics or quality indicators in the provided data makes it hard to assess the effectiveness of the prosthetics provided.
The contract duration of 457 days is relatively short for a significant dollar amount, potentially indicating a need for more long-term strategic sourcing.
The specific nature of 'lower extremity prosthetics' could imply specialized, high-cost items, requiring careful oversight of necessity and appropriateness.

Positive Signals

The contract is a Firm Fixed Price (FFP) type, which generally provides cost control and predictability for the government.
The award is to a specialized company (Medical Center Orthotics and Prosthetics, LLC), suggesting expertise in the required prosthetic services.
The procurement falls under the Defense Health Agency, indicating a focus on healthcare for military personnel and their families.

Sector Analysis

The market for surgical appliances and supplies, particularly prosthetics, is a specialized segment within the broader healthcare manufacturing industry. This sector requires significant technical expertise and adherence to strict quality standards. The Department of Defense represents a substantial customer base for such specialized medical equipment, driven by the healthcare needs of active duty personnel and veterans. Comparable spending benchmarks would typically involve analyzing other large government contracts for similar medical devices or services provided to other federal agencies like the Department of Veterans Affairs.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the procurement was likely focused on specialized capabilities or large-scale production that may be better suited to larger firms. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this significant healthcare contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management structures, potentially involving the Defense Contract Management Agency (DCMA) for performance monitoring. The Defense Health Agency (DHA) would also have oversight responsibilities for the healthcare services delivered. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight and accountability measures are internal to the agency and contractor. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Prosthetic Services
Durable Medical Equipment (DME) Contracts
Military Medical Supplies Procurement
Orthotic and Prosthetic Device Manufacturing

Risk Flags

Limited Competition Justification
Potential for Cost Overruns (if not managed tightly)
Technological Obsolescence Risk
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to MEDICAL CENTER ORTHOTICS AND PROSTHETICS, LLC. IGF::OT::IGF LOWER EXTREMITY PROSTHETICS

Who is the contractor on this award?

The obligated recipient is MEDICAL CENTER ORTHOTICS AND PROSTHETICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2016-12-29. End: 2018-03-31.

What specific types and quantities of lower extremity prosthetics were procured under this contract, and how do they align with typical military medical needs?

The provided data does not specify the exact types and quantities of lower extremity prosthetics. However, given the context of the Department of Defense, these likely include a range of devices from basic prosthetic limbs to more advanced, customized solutions for amputees resulting from combat injuries or other service-related conditions. The procurement likely covers components, assembly, and fitting services. Understanding the specific mix would require accessing delivery orders or detailed contract line item numbers (CLINs). The $27.8 million value suggests a significant volume or inclusion of high-value, technologically advanced prosthetics.

What is the typical cost range for similar lower extremity prosthetics in the commercial market, and how does this contract's estimated value compare?

The cost of lower extremity prosthetics can vary dramatically based on complexity, materials, and technology. Basic prosthetic legs might range from a few thousand dollars, while advanced microprocessor-controlled knees or specialized activity-specific limbs can cost upwards of $20,000 to $50,000 or more. Without knowing the specific mix of prosthetics procured under this $27.8 million contract, a direct comparison is difficult. However, if this contract covers a substantial number of high-end prosthetics, the total value could be in line with market rates. A detailed analysis would require comparing the unit costs of specific prosthetic components and systems against commercial benchmarks.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the competitive landscape and potential impact on pricing?

This designation suggests that the initial solicitation was intended to be open to all responsible sources, but specific sources were then excluded. The reasons for exclusion are critical and could range from national security concerns, proprietary technology, or specific performance requirements that only a limited number of entities could meet. This exclusion inherently narrows the competitive field. If the exclusion was not strictly necessary or well-justified, it could lead to reduced price competition and potentially higher costs for the government compared to a scenario where all capable vendors were allowed to bid.

What is the track record of Medical Center Orthotics and Prosthetics, LLC, in fulfilling government contracts, particularly for prosthetic devices?

Information on the specific track record of Medical Center Orthotics and Prosthetics, LLC, with government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including on-time delivery, quality of goods/services, and adherence to budget. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be essential resources to evaluate their history with the DoD or other federal agencies. Their specialization in orthotics and prosthetics suggests relevant expertise, but government contract performance is a distinct measure.

How does the $27.8 million spending on lower extremity prosthetics compare to historical spending patterns for similar items within the Department of Defense?

To assess historical spending patterns, one would need to analyze prior years' contract awards for lower extremity prosthetics by the Department of Defense and the Defense Health Agency. This would involve querying procurement databases for similar NAICS codes (e.g., 339113) and product service codes (PSCs) related to prosthetics. Comparing the $27.8 million figure against average annual spending or specific large-scale procurements over the last 5-10 years would reveal whether this contract represents an increase, decrease, or stable level of investment in these critical medical devices.

Are there any identified risks associated with this contract, such as supply chain vulnerabilities, technological obsolescence, or contractor performance issues?

Potential risks include supply chain disruptions for specialized materials or components used in prosthetics, the risk of technological obsolescence if newer, more effective prosthetic technologies emerge during the contract period, and contractor performance issues (e.g., delays, quality defects). The 'exclusion of sources' could also be a risk if it limits access to innovative solutions. A thorough risk assessment would involve reviewing CPARS reports, analyzing the contractor's financial stability, and understanding the specific technologies involved in the prosthetics being procured.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2421 LINDEN LN, SILVER SPRING, MD, 20910

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,822,846

Exercised Options: $27,822,846

Current Obligation: $27,822,846

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91YTZ13D0022

IDV Type: IDC

Timeline