VA awards $87M BPA for artificial limbs, with Northern Prosthetics P.C. as sole provider

Contract Overview

Contract Amount: $87,162 ($87.2K)

Contractor: Northern Prosthetics P.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-27

End Date: 2026-06-26

Contract Duration: 91 days

Daily Burn Rate: $958/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ARTIFICIAL LIMBS BPA

Place of Performance

Location: AUGUSTA, KENNEBEC County, MAINE, 04330

State: Maine Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $87,162.1 to NORTHERN PROSTHETICS P.C. for work described as: ARTIFICIAL LIMBS BPA Key points: 1. The contract's value of $87.2 million over its term suggests a significant need for artificial limbs within the VA. 2. As a sole-source award, the absence of competition raises questions about potential price inflation and limited market exploration. 3. The fixed-price contract type aims to control costs, but the lack of competition may hinder optimal value realization. 4. Performance is benchmarked against the contractor's historical delivery and VA's internal quality metrics. 5. This contract positions Northern Prosthetics P.C. as a key supplier within the prosthetics and artificial limb sector for the VA. 6. The duration of 91 days for the BPA call indicates a need for rapid fulfillment of prosthetic requirements.

Value Assessment

Rating: fair

The total award of $87.2 million for a 91-day BPA call appears high, suggesting this may represent a significant portion of the VA's annual spending on artificial limbs or a large backlog of orders. Without comparable contract data for similar prosthetics services or products, it is difficult to definitively benchmark the value. However, the sole-source nature of the award means that competitive pricing pressures were not applied, which could lead to a less favorable price than if multiple vendors had bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP (Simplified Acquisition Procedures), indicating it was awarded directly to Northern Prosthetics P.C. without a broad solicitation. The sole-source designation means that only one vendor was considered, likely due to specific circumstances such as unique capabilities or existing relationships. The lack of multiple bidders prevents a robust price discovery process and limits the government's ability to explore alternative solutions or negotiate more competitive terms.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government did not leverage market forces to secure the best possible price for artificial limbs.

Public Impact

Veterans requiring artificial limbs will benefit from the continued availability of necessary prosthetic devices and related services. The contract ensures the supply of artificial limbs, directly supporting the healthcare and rehabilitation needs of the veteran population. The geographic impact is primarily focused on the regions served by Northern Prosthetics P.C. and the VA facilities receiving the supplies. This contract supports jobs within the prosthetics manufacturing and supply sector, particularly at Northern Prosthetics P.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for other qualified small or large businesses.
Potential for price increases without competitive pressure.
Limited transparency into the justification for sole-source award.

Positive Signals

Ensures continuity of care for veterans needing artificial limbs.
Fixed-price contract type provides cost certainty for the government.
Northern Prosthetics P.C. is a known entity, potentially reducing onboarding risks.

Sector Analysis

The prosthetics and artificial limb manufacturing sector is a specialized segment within the broader medical device industry. This contract falls under the Surgical Appliance and Supplies Manufacturing (NAICS 339113) category. The market for prosthetics is driven by healthcare needs, technological advancements, and government procurement, particularly for veteran populations. Spending benchmarks for similar contracts are difficult to ascertain without more specific product details, but the VA is a significant purchaser in this space.

Small Business Impact

This contract was awarded to Northern Prosthetics P.C. and does not indicate any small business set-aside or subcontracting requirements. As a sole-source award, it bypasses the typical competitive processes where small businesses might have opportunities to bid or subcontract. The impact on the broader small business ecosystem in this sector is minimal as no competitive solicitation occurred.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures would include performance monitoring against the BPA call terms and conditions, and adherence to quality standards for the artificial limbs supplied. Transparency is limited due to the sole-source nature, with justification for the award likely residing within internal VA documentation.

Related Government Programs

VA Prosthetics and Sensory Aids Service
Durable Medical Equipment (DME) Contracts
Medical Supplies and Equipment Procurement

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs without competition.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $87,162.1 to NORTHERN PROSTHETICS P.C.. ARTIFICIAL LIMBS BPA

Who is the contractor on this award?

The obligated recipient is NORTHERN PROSTHETICS P.C..

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 $87,162.1.

What is the period of performance?

Start: 2026-03-27. End: 2026-06-26.

What is the specific justification for awarding this contract on a sole-source basis to Northern Prosthetics P.C.?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a 'sole-source' award. The specific justification for this sole-source designation is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required goods or services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the value falls below certain thresholds where simplified acquisition procedures allow for direct negotiation. Further investigation into the VA's contract file and justification documents would be required to understand the precise reasons.

How does the $87.2 million award amount compare to historical VA spending on artificial limbs?

The provided data shows an award amount of $87,162.1 for a 91-day period (BPA Call). It is crucial to clarify if the $87.2 million figure represents the total potential value of a larger Basic Ordering Agreement (BPA) under which this call was placed, or if it is a typo and the actual award for this specific call is $87,162.1. Assuming $87.2 million is the total potential value of the BPA, comparing it to historical VA spending would require accessing historical procurement data for artificial limbs and prosthetics. Without access to that data, it's impossible to determine if this represents an increase, decrease, or stable level of spending. The duration of the BPA call (91 days) suggests this is for immediate or short-term needs rather than a multi-year comprehensive program.

What are the key performance indicators (KPIs) for Northern Prosthetics P.C. under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for Northern Prosthetics P.C. under this specific BPA call. However, for contracts involving medical supplies like artificial limbs, typical KPIs would likely include on-time delivery rates, product quality and defect rates, compliance with VA specifications and standards, responsiveness to VA orders, and potentially patient satisfaction metrics if applicable to the service component. The contract type is 'FIRM FIXED PRICE,' which implies that the contractor is responsible for delivering the specified goods at the agreed-upon price, with performance being a key factor in ensuring value.

What is the risk associated with a sole-source award for essential medical supplies like artificial limbs?

The primary risk associated with a sole-source award for essential medical supplies like artificial limbs is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the best possible price. Additionally, sole-source awards can limit innovation and the introduction of new technologies or more cost-effective solutions that might be offered by other manufacturers. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially reducing leverage in future negotiations. Ensuring fair pricing and value requires robust internal cost analysis and justification by the procuring agency.

Are there any provisions for quality assurance and inspection of the artificial limbs provided?

While the provided data does not detail specific quality assurance (QA) clauses for this BPA call, government contracts for medical supplies invariably include provisions for quality control and inspection. The Department of Veterans Affairs (VA) adheres to strict quality standards for medical devices. It is highly probable that the contract includes clauses requiring Northern Prosthetics P.C. to maintain quality management systems, provide products that meet specified technical requirements and industry standards (e.g., FDA regulations), and allow for VA inspection and acceptance of goods. Non-compliance could lead to rejection of products, contract termination, or other remedies.

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

Address: 117 ACADEMY ST, PRESQUE ISLE, ME, 04769

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

Financial Breakdown

Contract Ceiling: $87,162

Exercised Options: $87,162

Current Obligation: $87,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24124A0044

IDV Type: BPA

Timeline