VA awards $17.3M for artificial limbs, a sole-source contract with potential for price variation

Contract Overview

Contract Amount: $17,345 ($17.3K)

Contractor: Hanger, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-07-02

Contract Duration: 87 days

Daily Burn Rate: $199/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HANGER ARTIFICIAL LIMBS

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,344.92 to HANGER, INC. for work described as: HANGER ARTIFICIAL LIMBS Key points: 1. Contract awarded on a sole-source basis, limiting competitive pressure on pricing. 2. The contract is a call against an existing Blanket Purchase Agreement (BPA). 3. Duration of 87 days suggests a short-term or bridging requirement. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 339113 indicates a focus on surgical appliance manufacturing. 6. The contractor, HANGER, INC., is the sole awardee. 7. Awarded by the Department of Veterans Affairs, indicating a focus on veteran healthcare needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and short duration. Without competitive bids, it's difficult to assess if the pricing reflects market rates or represents a good value for the government. The firm fixed price offers predictability, but the absence of competition raises questions about potential overpayment. Further analysis would require comparing unit costs to similar procurements for artificial limbs, if available, or to commercial price lists.

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 as a sole-source call against an existing BPA. This indicates that competition was likely limited or non-existent for this specific award. The absence of multiple bidders means that price discovery through market forces was not leveraged, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. The government did not benefit from the cost savings that typically arise from a competitive bidding process.

Public Impact

Veterans requiring artificial limbs will receive necessary medical devices. The contract supports the Department of Veterans Affairs' mission to provide healthcare services to former military personnel. Services are likely delivered within Texas, based on the state code (ST: TX). The contract supports the workforce within the surgical appliance and supplies manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Short contract duration may indicate an interim solution or potential for follow-on contracts with less competition.
Lack of transparency in the justification for sole-source award.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to an established contractor (HANGER, INC.) may ensure timely delivery of critical supplies.
Focus on veteran healthcare aligns with agency mission.

Sector Analysis

The surgical appliance and supplies manufacturing sector (NAICS 339113) is a specialized area within the broader healthcare industry. This contract falls within the segment focused on producing prosthetic devices. The market for artificial limbs is often characterized by specialized manufacturers and can be influenced by factors such as technological advancements, insurance reimbursement policies, and government procurement needs, particularly for veteran populations. Benchmarking spending in this specific niche requires identifying comparable contracts for similar prosthetic devices.

Small Business Impact

This contract does not appear to have a small business set-aside. Given it was awarded sole-source, there is no indication of subcontracting opportunities for small businesses related to this specific award. The impact on the small business ecosystem is likely minimal unless HANGER, INC. has existing subcontracting relationships with small businesses for components or services not covered by this direct award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, the justification and approval process would be subject to internal VA review and potentially higher-level procurement oversight to ensure compliance with federal acquisition regulations. Transparency regarding the specific justification for the sole-source award would be key to assessing accountability.

Related Government Programs

Prosthetic and Orthotic Devices
Medical Supplies and Equipment
Veteran Healthcare Services
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award
Limited competition
Potential for price variation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,344.92 to HANGER, INC.. HANGER ARTIFICIAL LIMBS

Who is the contractor on this award?

The obligated recipient is HANGER, 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 $17,344.92.

What is the period of performance?

Start: 2026-04-06. End: 2026-07-02.

What is the track record of HANGER, INC. with the Department of Veterans Affairs?

HANGER, INC. has a significant history of contracting with the Department of Veterans Affairs (VA) for prosthetic and orthotic devices. The VA is a major customer for companies in this sector, given the large number of veterans who require such services. Analyzing past performance data, including contract values, delivery timeliness, and any reported issues or disputes, would provide a clearer picture of HANGER, INC.'s reliability and effectiveness in meeting the VA's needs. Without specific historical data for this analysis, it's assumed that the VA's continued engagement with HANGER, INC. suggests a generally satisfactory performance history, though specific contract details would be needed for a definitive assessment.

How does the pricing of this contract compare to similar artificial limb procurements?

Direct comparison of pricing for this specific contract is difficult due to its sole-source nature and short duration. Typically, competitive bidding allows for price discovery and ensures the government receives market-based pricing. As this was a sole-source award, it's possible that the price is higher than what could have been achieved through competition. To benchmark effectively, one would need access to data on other VA or government contracts for similar artificial limbs, specifying the type, materials, and complexity. Without such comparative data, assessing the value-for-money proposition remains speculative. The firm fixed price offers cost certainty but does not inherently guarantee competitive pricing.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. When a contract is awarded without a competitive bidding process, the contractor has less incentive to offer the lowest possible price. Another risk is the potential for reduced innovation or service quality, as there is no competitive pressure to improve. Furthermore, the short duration (87 days) might indicate an interim solution, which could lead to follow-on contracts that also lack competition, creating a dependency on a single vendor. Ensuring the justification for the sole-source award is robust and documented is crucial to mitigate these risks.

How effective is the VA in procuring prosthetic devices through competitive means?

The VA generally aims to procure prosthetic devices through competitive means to ensure value for taxpayer money. However, the nature of specialized medical equipment and the specific needs of veteran populations can sometimes lead to sole-source or limited-competition awards. The VA utilizes various contracting vehicles, including Indefinite Delivery/Indefinite Quantity (IDIQ) contracts and Blanket Purchase Agreements (BPAs), which can streamline procurement but may also be used in ways that limit competition if not managed carefully. The effectiveness of competitive procurement can be measured by the number of bids received, the price savings achieved compared to estimates, and the overall quality and timeliness of delivered products and services. Analyzing a broader portfolio of VA prosthetic contracts would be necessary to fully assess their competitive procurement effectiveness.

What is the historical spending trend for artificial limbs by the VA?

Historical spending by the Department of Veterans Affairs (VA) on artificial limbs and related prosthetic services has been substantial, reflecting the ongoing commitment to providing care for veterans. While specific year-over-year spending figures for artificial limbs alone are not readily available without detailed data analysis, the VA's overall budget for medical care and prosthetics is in the billions of dollars annually. Spending in this category is influenced by factors such as the number of eligible veterans, advancements in prosthetic technology, and the VA's strategic procurement approaches. The trend generally shows a consistent need for these devices, with spending potentially increasing due to technological upgrades and an aging veteran population requiring replacements or advanced prosthetics.

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: SUITE 300, AUSTIN, TX, 78758

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: $17,345

Exercised Options: $17,345

Current Obligation: $17,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24124A0024

IDV Type: BPA

Timeline