VA awards $18.2M for artificial limbs, with 1 bid received under SAP

Contract Overview

Contract Amount: $18,220 ($18.2K)

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: $202/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 $18,220.36 to HANGER, INC. for work described as: HANGER ARTIFICIAL LIMBS Key points: 1. Contract awarded via GSA Advantage! platform, indicating streamlined procurement. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. Contract duration of 90 days is short, implying a need for rapid fulfillment or a bridge contract. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The award falls under the Surgical Appliance and Supplies Manufacturing NAICS code. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $18.2 million for a 90-day period appears high on a daily basis. Without specific details on the quantity and type of artificial limbs required, a direct comparison to similar contracts is difficult. However, the limited competition (one bid) raises concerns about whether the government achieved the best possible price. Benchmarking against market rates for similar prosthetic devices would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for less formal competition. Only one bid was received, suggesting that either the market for this specific requirement is very small, or the solicitation was not widely disseminated. This level of competition limits the government's ability to leverage a competitive environment to drive down prices and ensure the most innovative solutions are considered.

Taxpayer Impact: With only one bidder, taxpayers may not have received the most cost-effective solution. The lack of robust competition increases the risk of overpayment and reduces the incentive for contractors to offer their best pricing.

Public Impact

Veterans requiring artificial limbs will receive necessary prosthetic devices. The Department of Veterans Affairs (VA) will ensure continuity of care for beneficiaries. Services are likely to be delivered to veterans across Connecticut, the stated state. The contract supports the manufacturing and supply chain for surgical appliances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
Lack of transparency in the SAP process can obscure true market value.
Short contract duration might indicate an urgent need or a temporary solution, requiring further investigation.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Awarded through a streamlined process (SAP) for potentially faster delivery.
Addresses a critical need for veterans' prosthetic care.

Sector Analysis

The market for artificial limbs and prosthetic devices is a specialized segment within the broader healthcare and medical supplies industry. This sector involves manufacturers and suppliers of advanced orthotic and prosthetic devices, often requiring significant research and development. Spending in this area is driven by healthcare needs, technological advancements, and government programs like the VA's. Comparable spending benchmarks would typically be found within VA's historical procurement data for prosthetics and related supplies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole awardee, HANGER, INC., is a large corporation. This means the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless Hanger, Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. The VA has an Office of Inspector General (OIG) that investigates fraud, waste, and abuse within the department, which could include reviewing this contract if concerns arise. Transparency is facilitated through public contract databases, but the specifics of SAP procurements can sometimes be less detailed than those under full and open competition.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Equipment Procurement
Medicare/Medicaid Prosthetic Coverage

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18,220.36 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 $18,220.36.

What is the period of performance?

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

What is the typical 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 services and devices. Publicly available data indicates numerous awards to Hanger, Inc. over the years, covering a wide range of prosthetic needs. While specific performance metrics for each contract are not always detailed in public summaries, the continued awarding of contracts suggests a generally satisfactory performance history. However, like any large contractor, there may have been instances of performance issues or disputes on specific contracts that would require deeper investigation into VA's contract performance management system and any associated corrective actions or contractor performance evaluations.

How does the $18.2 million value compare to similar VA contracts for artificial limbs?

Comparing the $18.2 million value directly is challenging without knowing the exact scope, quantity, and type of artificial limbs covered by this 90-day contract. VA procures prosthetic limbs through various mechanisms, including individual patient-specific orders, larger supply contracts, and service agreements. A 90-day contract of this magnitude suggests either a very high volume of immediate need or a contract for specialized, high-cost prosthetic components. To benchmark effectively, one would need to analyze VA's historical spending on similar 'BPA CALL' awards under the same or related NAICS codes, adjusting for inflation and the specific product mix. The limited competition (one bid) also complicates a direct value-for-money comparison, as a more competitive environment might have yielded a lower price.

What are the primary risks associated with a sole-bid procurement under SAP?

The primary risks associated with a sole-bid procurement under Simplified Acquisition Procedures (SAP) revolve around price and performance. With only one offer, the government loses the benefit of price competition, potentially leading to an award at a price higher than what could have been achieved in a multi-bid scenario. This reduces the government's leverage to negotiate favorable terms. Furthermore, a single bidder may have less incentive to ensure optimal performance or timely delivery, as there is no immediate alternative contractor. There's also a risk that the solicitation was not adequately publicized, meaning potentially capable contractors may not have been aware of the opportunity, leading to a suboptimal market assessment. This situation warrants careful review of the justification for using SAP and the outreach efforts made.

How effective is the VA in ensuring program effectiveness for prosthetic services?

The VA generally aims for high effectiveness in its prosthetic services, as these are critical for veterans' quality of life and rehabilitation. The Prosthetic and Sensory Aids Service (PSAS) within the VA manages a comprehensive program that includes procurement, fitting, training, and maintenance of prosthetic devices. Effectiveness is often measured by patient satisfaction, functional outcomes, and the timely provision of necessary equipment. The VA utilizes clinical teams, including prosthetists, physicians, and therapists, to ensure appropriate device selection and patient support. However, effectiveness can vary by location and specific program implementation, and challenges can arise from budget constraints, supply chain disruptions, or the complexity of individual patient needs. Continuous monitoring and feedback mechanisms are crucial for maintaining and improving program effectiveness.

What are the historical spending patterns for artificial limbs by the VA?

Historical spending patterns for artificial limbs by the VA show a consistent and significant investment in prosthetic care for veterans. The VA is one of the largest purchasers of prosthetic devices globally. Spending fluctuates based on the number of eligible veterans, advancements in prosthetic technology (which often increases unit costs but improves functionality), and specific healthcare initiatives. Over the years, the VA has moved towards more integrated care models and advanced technologies, potentially increasing the overall dollar value of procurements. Analyzing VA's annual reports and budget allocations for the Prosthetic and Sensory Aids Service would provide detailed insights into these spending trends, including the proportion allocated to artificial limbs versus other assistive devices and services.

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: $18,220

Exercised Options: $18,220

Current Obligation: $18,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24124A0024

IDV Type: BPA

Timeline