VA awards $15.1M for prosthetic sockets, highlighting a sole-source purchase for specialized medical devices

Contract Overview

Contract Amount: $15,101 ($15.1K)

Contractor: Prosthetic Innovations, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-01-02

Contract Duration: 276 days

Daily Burn Rate: $55/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BELOW KNEE PROSTHETIC SOCKET

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15,100.87 to PROSTHETIC INNOVATIONS, LLC for work described as: BELOW KNEE PROSTHETIC SOCKET Key points: 1. The contract value of $15.1 million for prosthetic sockets suggests a significant investment in veteran healthcare. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. The fixed-price contract type aims to control costs, but the absence of competition may limit price reductions. 4. The duration of 276 days indicates a short-term need for these critical medical supplies. 5. The North American Industry Classification System (NAICS) code 339113 points to the manufacturing of surgical appliances and supplies. 6. The contract's focus on prosthetic sockets directly impacts the mobility and quality of life for veterans.

Value Assessment

Rating: fair

Benchmarking the value of this prosthetic socket contract is challenging without comparable sole-source awards. The fixed-price structure provides some cost certainty for the government. However, the lack of competition means there's no direct market comparison to assess if the price is truly competitive or reflects a premium due to limited options. Further analysis would require understanding the specific technological requirements and the availability of alternative suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. The justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. The absence of a competitive bidding process means that the Department of Veterans Affairs did not benefit from the price discovery and potential cost savings that open competition usually provides.

Taxpayer Impact: Taxpayers may be paying a higher price than necessary due to the lack of competition. Without multiple bids, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

Veterans requiring prosthetic devices will benefit from the supply of essential below-knee prosthetic sockets. The services delivered include the provision of specialized medical equipment crucial for rehabilitation and daily living. The geographic impact is primarily within the United States, serving veterans across the nation. Workforce implications may include support for manufacturing and distribution roles within the prosthetic supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can limit innovation by not engaging a broader market.
Dependence on a single supplier could pose a risk if that supplier faces production or delivery issues.

Positive Signals

The contract ensures a supply of critical medical devices for veterans.
The firm fixed-price structure provides budget predictability.
The Department of Veterans Affairs is fulfilling its commitment to provide necessary prosthetics.

Sector Analysis

The market for prosthetic devices falls within the broader healthcare and medical device manufacturing sector. This sector is characterized by significant research and development, stringent regulatory requirements, and a mix of large corporations and specialized small businesses. Spending in this area is driven by healthcare needs, an aging population, and government programs like the VA. Comparable spending benchmarks would typically involve analyzing other VA contracts for similar prosthetic components or broader medical equipment procurements.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a direct purchase from a prime contractor, likely a larger entity or one with specialized capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and contracting offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver the specified goods at the agreed-upon price. Transparency is limited by the sole-source nature of the award; however, contract award data is generally made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award justification required.
Potential for non-competitive pricing.
Supply chain risk due to single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15,100.87 to PROSTHETIC INNOVATIONS, LLC. BELOW KNEE PROSTHETIC SOCKET

Who is the contractor on this award?

The obligated recipient is PROSTHETIC INNOVATIONS, LLC.

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 $15,100.87.

What is the period of performance?

Start: 2026-04-01. End: 2027-01-02.

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

The provided data indicates the contract was awarded on a sole-source basis (ct: NOT COMPETED). Typically, sole-source procurements are justified when only one responsible source is available to provide the required product or service, or in cases of urgent and compelling need that would cause unacceptable delays if a competitive process were followed. For prosthetic devices, this could be due to unique patented technology, highly specialized manufacturing capabilities, or a critical need to maintain continuity of care for specific veteran populations. Without further documentation from the agency, the precise reason remains unstated, but it implies a lack of readily available alternatives or a critical, time-sensitive requirement.

How does the price of these prosthetic sockets compare to similar contracts awarded competitively?

Direct price comparison is difficult due to the sole-source nature of this award. Competitive awards allow for price discovery through multiple bids, establishing a market-driven price. In a sole-source scenario, the government negotiates with a single vendor, and the price may not reflect the lowest possible cost. To assess value, one would need to compare this contract's unit price (if calculable from the total award and quantity, which is not provided) against historical VA contracts for similar prosthetic sockets that were competitively bid, or against industry benchmarks for comparable products. The absence of competition suggests a potential risk of paying a premium.

What are the potential risks associated with a sole-source award for essential medical supplies?

Sole-source awards for essential medical supplies like prosthetic sockets carry several risks. Firstly, there's a heightened risk of paying a higher price than would be achieved through competition, as the vendor faces less pressure to offer cost savings. Secondly, it can lead to vendor lock-in, making it difficult to switch suppliers even if better options emerge later. Thirdly, reliance on a single supplier can create supply chain vulnerabilities; if the contractor experiences production issues, quality control problems, or financial instability, the supply of critical devices to veterans could be disrupted. Finally, it limits opportunities for innovation that might arise from a more diverse and competitive market.

What is the typical duration for contracts of this nature, and does this duration suggest any specific program needs?

The contract duration is 276 days, which is relatively short-term, spanning less than a year. Typical contract durations for medical supplies can vary widely, from short-term purchase orders for immediate needs to multi-year contracts with options for longer-term supply. A duration of 276 days might indicate a specific, immediate need for a batch of prosthetic sockets, perhaps to cover a gap in existing supply, fulfill a surge in demand, or test a new product before a larger commitment. It could also be a precursor to a more extensive, competitively awarded contract if the sole-source was an interim solution.

How does the NAICS code 339113 inform our understanding of the contractor's capabilities and the market?

The North American Industry Classification System (NAICS) code 339113, 'Surgical Appliance and Supplies Manufacturing,' indicates that the contractor, PROSTHETIC INNOVATIONS, LLC, is involved in the production of medical devices designed for surgical or therapeutic use. This includes items like artificial limbs, braces, trusses, and other prosthetic devices. This classification suggests the contractor possesses specialized manufacturing capabilities, adheres to relevant industry standards, and operates within a market segment focused on medical technology. Understanding this code helps contextualize the contract's purpose and the type of expertise required from the vendor.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 642-P65029

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 INDUSTRIAL HWY, CRUM LYNNE, PA, 19022

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,101

Exercised Options: $15,101

Current Obligation: $15,101

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline