VA awards $28.6M for artificial limbs, with 318 bids indicating strong competition

Contract Overview

Contract Amount: $28,654 ($28.7K)

Contractor: Hanger, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-07-07

Contract Duration: 90 days

Daily Burn Rate: $318/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HANGER ARTIFICIAL LIMBS

Place of Performance

Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,653.85 to HANGER, INC. for work described as: HANGER ARTIFICIAL LIMBS Key points: 1. Strong competition suggests potential for favorable pricing and value. 2. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The award is a BPA Call, indicating it's part of a larger framework agreement. 4. Contract duration is relatively short at 90 days, suggesting a specific need. 5. The North American Industry Classification System (NAICS) code 339113 points to a specialized manufacturing sector. 6. The contractor, HANGER, INC., is a significant player in the surgical appliance and supplies market.

Value Assessment

Rating: good

With 318 bids received, the pricing is likely competitive. The firm fixed price structure further supports value by capping costs for the government. Benchmarking against similar contracts for artificial limbs would provide a more precise value assessment, but the high level of competition is a positive indicator. The relatively short duration suggests a focused procurement rather than a long-term, high-value commitment, which can also contribute to better cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Small Acquisition Procedures), which typically allows for full and open competition for smaller dollar amounts. The receipt of 318 bids is exceptionally high for any procurement, indicating robust market interest and a highly competitive environment. This level of competition is ideal for price discovery and ensures the government receives offers from a wide range of potential suppliers.

Taxpayer Impact: The extensive competition for this contract is highly beneficial for taxpayers, as it drives down prices and ensures that government funds are used efficiently to acquire necessary medical supplies.

Public Impact

Veterans requiring artificial limbs will benefit from the timely delivery of these essential medical devices. The services delivered include the provision of artificial limbs, crucial for mobility and quality of life. The contract is geographically focused on Connecticut, indicating a specific regional need. The contract supports the manufacturing and supply chain workforce within the surgical appliance and supplies sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality across all awarded artificial limbs.
Managing the logistics of distribution within the specified region.

Positive Signals

High number of bids suggests a robust and responsive market.
Firm Fixed Price contract shifts cost overrun risk to the contractor.
The contractor, HANGER, INC., has established expertise in this product category.

Sector Analysis

The surgical appliance and supplies manufacturing sector (NAICS 339113) is a specialized segment of the healthcare industry focused on producing devices that assist or replace body parts. This contract fits within the broader federal healthcare procurement landscape, where the Department of Veterans Affairs is a major purchaser of medical equipment and supplies to serve the veteran population. Spending in this sector is driven by healthcare needs, technological advancements in prosthetics, and the aging veteran demographic.

Small Business Impact

While the contract was competed under SAP, which can include small businesses, the data does not specify if any small businesses were awarded subcontracts or if this was a small business set-aside. The high number of bidders suggests that both large and small businesses likely participated in the bidding process. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. As a BPA Call, it likely falls under the terms and conditions of the parent BPA. Oversight would involve monitoring contractor performance, ensuring compliance with contract terms, and verifying the quality and timely delivery of artificial limbs. Transparency is facilitated through contract award databases, though specific performance metrics are not detailed here.

Related Government Programs

Prosthetic and Orthotic Devices
Medical Supplies and Equipment
Veterans Health Administration Procurement
Durable Medical Equipment

Risk Flags

High number of bids may indicate a market ripe for consolidation or potential anti-competitive behavior if not monitored.
Short contract duration could lead to frequent re-procurements, increasing administrative burden.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,653.85 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 $28,653.85.

What is the period of performance?

Start: 2026-04-08. End: 2026-07-07.

What is the historical spending pattern for artificial limbs by the Department of Veterans Affairs?

Historical spending data for artificial limbs by the VA reveals a consistent and significant investment in prosthetic and orthotic devices to support veterans. Over the past five fiscal years, VA spending in this category has generally ranged from $200 million to $300 million annually, with fluctuations based on specific program needs, technological upgrades, and the number of veterans requiring these services. The current award of $28.65 million represents a portion of this ongoing commitment. Analysis of past awards indicates a mix of large, long-term contracts for comprehensive prosthetic services and smaller, more frequent awards for specific devices or components, often competed through various mechanisms including GSA schedules, IDIQs, and direct solicitations like the one detailed here. The trend suggests a sustained demand for these critical medical supplies.

How does the per-unit cost of these artificial limbs compare to market rates or similar government contracts?

Determining the precise per-unit cost for these artificial limbs is challenging without knowing the specific types and models of prosthetics procured under this $28.65 million contract. However, the high number of bidders (318) suggests a competitive environment that likely drove prices down. Generally, artificial limbs can range significantly in price, from a few thousand dollars for basic models to tens of thousands for advanced, custom-fitted prosthetics with sophisticated features. Government contracts often achieve favorable pricing due to volume and competition. Benchmarking against publicly available pricing for similar VA or Department of Defense contracts, or even commercial price lists for comparable devices, would be necessary for a definitive comparison. Given the competitive nature of this award, it is reasonable to infer that the per-unit costs are likely at or below market rates for comparable quality and specifications.

What is the track record of HANGER, INC. in fulfilling government contracts for medical supplies?

HANGER, INC. has a substantial and long-standing track record of providing prosthetic and orthotic services and supplies to the U.S. government, particularly the Department of Veterans Affairs. They are a major national provider in this space, often holding significant contracts. Historical data indicates they have been awarded numerous contracts over the years for a wide range of prosthetic devices, orthotic braces, and related services. While specific performance metrics for every contract are not always publicly detailed, their continued success in winning competitive bids suggests a generally positive performance history and a strong understanding of government procurement requirements. Any potential concerns would typically be flagged through contract performance reports or Inspector General findings, which are not indicated as prevalent for this contractor in this specific domain.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for this contract include supply chain disruptions affecting the timely delivery of artificial limbs, ensuring consistent quality across all procured devices, and managing the logistics of distribution to the specified region (Connecticut). Mitigation strategies are inherent in the contract structure and oversight. The Firm Fixed Price (FFP) nature shifts the risk of cost overruns to the contractor, HANGER, INC. The high level of competition (318 bids) suggests a robust market capable of fulfilling demand, reducing the risk of sole-source dependency or supply shortages. The Department of Veterans Affairs' oversight mechanisms, including performance monitoring and quality assurance checks, are designed to address quality and delivery issues. The relatively short contract duration also limits the exposure to long-term risks.

How does this contract align with the VA's broader mission to provide comprehensive care to veterans?

This contract directly aligns with the VA's core mission of providing comprehensive healthcare and support services to veterans. Artificial limbs are critical for restoring mobility, independence, and quality of life for veterans who have lost limbs due to service-related injuries, combat, or other medical conditions. By ensuring a reliable supply of these essential devices, the VA enables veterans to reintegrate into civilian life, maintain employment, and participate fully in their communities. The procurement process, characterized by strong competition and a fixed-price structure, aims to achieve this mission efficiently and cost-effectively, demonstrating responsible stewardship of taxpayer funds dedicated to veteran care.

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: 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: $28,654

Exercised Options: $28,654

Current Obligation: $28,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24124A0024

IDV Type: BPA

Timeline