VA's $28.2M Artificial Limbs BPA with Next Step Bionics & Prosthetics Inc. faces scrutiny over limited competition

Contract Overview

Contract Amount: $28,232 ($28.2K)

Contractor: Next Step Bionics and Prosthetics Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-07-01

Contract Duration: 90 days

Daily Burn Rate: $314/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEXT STEP ARTIFICIAL LIMBS BPA

Place of Performance

Location: JAMAICA PLAIN, SUFFOLK County, MASSACHUSETTS, 02130

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,232.01 to NEXT STEP BIONICS AND PROSTHETICS INC for work described as: NEXT STEP ARTIFICIAL LIMBS BPA Key points: 1. The contract is a Blanket Purchase Agreement (BPA) with a firm-fixed-price structure. 2. Awarded by the Department of Veterans Affairs, it focuses on artificial limbs and related supplies. 3. The duration is 90 days, suggesting a short-term need or a bridge to a larger procurement. 4. The contract was not competed under simplified acquisition procedures, indicating potential limitations in the procurement process. 5. The North American Industry Classification System (NAICS) code 339113 points to the Surgical Appliance and Supplies Manufacturing sector. 6. The contract's value is $28.2 million, with an award date of April 2, 2026, and an expiration date of July 1, 2026.

Value Assessment

Rating: questionable

The contract value of $28.2 million for a 90-day period appears high, especially considering it's a BPA call. Without more detailed information on the specific items and quantities procured, it's difficult to benchmark the value effectively. However, the limited competition and the nature of the award raise questions about whether the VA is achieving optimal value for taxpayer dollars. Further analysis would require comparing unit prices for specific prosthetics and related supplies against market rates and other government contracts for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a BPA call under 'NOT COMPETED UNDER SAP'. This designation suggests that the procurement process was not fully open or competitive, potentially limiting the number of bidders. While the specific reasons for not competing under simplified acquisition procedures are not detailed, it could be due to urgency, specific technical requirements, or existing relationships. The limited competition raises concerns about price discovery and whether alternative, potentially more cost-effective, solutions were adequately considered.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the incentive for contractors to offer their best pricing. It also limits the government's ability to explore a wider range of innovative solutions.

Public Impact

Veterans requiring artificial limbs and prosthetic devices are the primary beneficiaries of this contract. The contract ensures the availability of essential medical supplies for the Department of Veterans Affairs. The geographic impact is likely focused on regions served by the specific VA facilities utilizing this BPA call. The contract supports the workforce within the prosthetic and orthotic manufacturing and service industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may result in suboptimal pricing.
The short duration of the BPA call (90 days) could indicate a stop-gap measure, potentially leading to future contract inefficiencies.
The high dollar value for a short-term BPA call warrants scrutiny regarding the necessity and scope of the procurement.
Absence of detailed justification for not competing under SAP requires further investigation.

Positive Signals

The contract directly addresses the needs of veterans for essential prosthetic devices.
The firm-fixed-price structure provides cost certainty for the government.
The award to Next Step Bionics and Prosthetics Inc. may leverage specialized expertise in the field.

Sector Analysis

The market for surgical appliances and supplies, including prosthetics, is a specialized segment within the broader healthcare manufacturing industry. This sector is characterized by technological advancements, regulatory oversight, and a focus on patient outcomes. Government spending in this area, particularly through agencies like the VA, is crucial for ensuring access to care for beneficiaries. Comparable spending benchmarks would typically involve analyzing other large-scale procurements of prosthetic devices by federal agencies or large healthcare systems, considering factors like device complexity, materials, and customization.

Small Business Impact

The provided 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 focus appears to be on a larger prime contractor. Analysis of potential subcontracting opportunities would require further investigation into the prime contractor's procurement practices and whether they engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would include performance monitoring against the terms of the BPA call and adherence to the firm-fixed-price agreement. Transparency could be enhanced by making the justification for limited competition publicly available and detailing the specific services or products procured. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Equipment Procurement
Medicare/Medicaid Prosthetic Coverage
Federal Supply Schedule (FSS) for Medical Equipment

Risk Flags

Limited Competition
High Value for Short Duration
Lack of Detailed Justification for Procurement Method

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,232.01 to NEXT STEP BIONICS AND PROSTHETICS INC. NEXT STEP ARTIFICIAL LIMBS BPA

Who is the contractor on this award?

The obligated recipient is NEXT STEP BIONICS AND PROSTHETICS 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 $28,232.01.

What is the period of performance?

Start: 2026-04-02. End: 2026-07-01.

What is the specific justification for awarding this BPA call without full and open competition?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. This suggests that the procurement did not follow standard simplified acquisition procedures, which are typically used for purchases below a certain dollar threshold and are designed to encourage competition. The specific justification for bypassing these procedures is not detailed in the provided data. Common reasons for such decisions can include urgent and compelling needs, sole-source capabilities of a particular contractor, or specific technical requirements that only one vendor can meet. Without further documentation from the VA, the exact rationale remains unclear, but it is a significant point of concern regarding procurement integrity and potential value for money.

How does the $28.2 million value for a 90-day BPA call compare to typical spending for artificial limbs?

A $28.2 million expenditure over a 90-day period for artificial limbs and related supplies is exceptionally high and warrants significant scrutiny. This equates to an annualized run rate of over $112 million. While the specific types and quantities of prosthetics are not detailed, typical government procurements for individual prosthetic limbs can range from a few thousand dollars for basic models to tens of thousands for advanced, customized options. A BPA call of this magnitude suggests either an extremely large volume of devices being procured, or the inclusion of significant associated services, maintenance, or complex custom fabrication. Benchmarking this against historical VA spending patterns for similar BPAs or individual contract awards for prosthetic services and devices is crucial to determine if this represents fair market value or an overpayment.

What is the track record of Next Step Bionics and Prosthetics Inc. with federal contracts?

Information regarding the specific track record of Next Step Bionics and Prosthetics Inc. with federal contracts is not detailed in the provided data. To assess their performance, a review of their contract history with the VA and other federal agencies would be necessary. This would involve examining past awards, contract values, performance reviews, and any instances of contract disputes or terminations. A contractor with a strong history of successful performance, timely delivery, and adherence to quality standards would generally be viewed favorably. Conversely, a history of issues could raise concerns about the reliability and value provided under this current BPA call.

What are the potential risks associated with a limited competition award of this size?

The primary risks associated with a limited competition award of this magnitude ($28.2 million) include potential overpayment due to lack of competitive pricing pressure, reduced innovation from a smaller pool of bidders, and the perception of unfairness in the procurement process. Taxpayers may not be receiving the best possible value for their money if alternative vendors could have offered comparable or superior products/services at a lower cost. Furthermore, limited competition can sometimes mask underlying issues, such as a lack of market research or an over-reliance on a single source, which can create long-term vulnerabilities for the agency.

Are there any specific performance metrics or deliverables outlined for this BPA call?

The provided data does not specify the performance metrics or deliverables for this particular BPA call. Typically, a Blanket Purchase Agreement (BPA) call would reference the terms and conditions of the underlying BPA, which should include provisions for performance standards, delivery schedules, and quality requirements. For prosthetic devices, key performance indicators might include delivery timelines, patient satisfaction, device functionality, and adherence to clinical specifications. Without access to the full BPA and the specific call order, it is impossible to assess the defined performance expectations and how they will be monitored.

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: 155 DOW ST, MANCHESTER, NH, 03101

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

Financial Breakdown

Contract Ceiling: $28,232

Exercised Options: $28,232

Current Obligation: $28,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24124A0037

IDV Type: BPA

Timeline