VA awards $18.5M for NEUROSTIMULATORs to Medtronic USA Inc., a sole-source purchase

Contract Overview

Contract Amount: $18,498 ($18.5K)

Contractor: Medtronic USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-05-29

Contract Duration: 52 days

Daily Burn Rate: $356/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEUROSTIMULATOR

Place of Performance

Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55432

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18,498 to MEDTRONIC USA INC for work described as: NEUROSTIMULATOR Key points: 1. High value contract for critical medical equipment. 2. Sole-source award limits competition and potentially increases price. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector: Healthcare/Medical Devices.

Value Assessment

Rating: questionable

The contract value of $18.5M for NEUROSTIMULATORs is significant. Without competitive pricing data, it's difficult to assess if this price is fair compared to similar contracts or market rates. The sole-source nature raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP and was awarded sole-source. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers. The justification for sole-source is critical for understanding this decision.

Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Veterans will receive advanced neurostimulator devices, improving treatment options. Potential for higher costs impacts overall VA healthcare budget allocation. Dependence on a single supplier could create supply chain vulnerabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures access to specific technology for veterans
Direct award to established supplier

Sector Analysis

The healthcare sector, particularly medical devices like neurostimulators, often involves high-value contracts. Spending benchmarks vary widely based on device complexity and intended use. This contract falls within the typical range for specialized medical equipment procurement.

Small Business Impact

This contract was awarded to Medtronic USA Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure the government is receiving fair value. The VA must have a strong justification for the sole-source award and should monitor contract performance closely to ensure accountability.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing.
Lack of transparency in procurement process.
Dependence on a single supplier.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18,498 to MEDTRONIC USA INC. NEUROSTIMULATOR

Who is the contractor on this award?

The obligated recipient is MEDTRONIC USA 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 $18,498.

What is the period of performance?

Start: 2026-04-07. End: 2026-05-29.

What is the specific justification for awarding this contract sole-source?

The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, justifications include unique capabilities, urgent needs, or lack of available alternatives. Without this information, it's impossible to fully assess the necessity and potential risks associated with this procurement method.

What is the estimated cost savings if this contract had been competitively bid?

Estimating cost savings from a sole-source award is challenging without market research or comparable bids. However, competitive bidding in the medical device sector can often yield savings of 10-30% or more, depending on the product and market dynamics. The VA should conduct post-award analysis to gauge potential savings.

How will the VA ensure continued access to this technology if Medtronic faces production or supply chain issues?

Given the sole-source nature, the VA is reliant on Medtronic. To mitigate this risk, the VA could explore options like maintaining strategic stockpiles, encouraging Medtronic to diversify its supply chain, or initiating early market research for alternative suppliers for future procurements. Contingency planning is essential.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument 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

Parent Company: Medtronic Public Limited Company

Address: 710 MEDTRONIC PKWY, MINNEAPOLIS, MN, 55432

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

Financial Breakdown

Contract Ceiling: $18,498

Exercised Options: $18,498

Current Obligation: $18,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline