VA awards $37.8K purchase order for surgical appliance, highlighting potential for sole-source procurement

Contract Overview

Contract Amount: $37,792 ($37.8K)

Contractor: Fillauer Companies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-09-30

Contract Duration: 176 days

Daily Burn Rate: $215/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASKA CX HAND-7 1/4 RH QD - BLACK MODEL: TASKA-D1FB31-U1

Place of Performance

Location: ASPINWALL, ALLEGHENY County, PENNSYLVANIA, 15215

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37,792.35 to FILLAUER COMPANIES, INC for work described as: TASKA CX HAND-7 1/4 RH QD - BLACK MODEL: TASKA-D1FB31-U1 Key points: 1. The contract value is relatively small, suggesting a specific need for a specialized item. 2. The absence of competition raises questions about potential overpricing and lack of market testing. 3. The short duration of the contract (under six months) indicates a tactical or immediate requirement. 4. The product is a surgical appliance, placing it within the healthcare supplies sector. 5. The award to Fillauer Companies, Inc. suggests a specialized manufacturer or distributor. 6. The fixed-price nature of the contract provides cost certainty for the government.

Value Assessment

Rating: questionable

The contract value of $37,792.35 for a single surgical appliance appears high on a per-unit basis, though specific product details are limited. Without competitive bidding, it's difficult to benchmark against market rates or similar contracts. The lack of competition prevents an assessment of whether the government secured the best possible value. Further investigation into the specific item and its typical market price is warranted.

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. This typically occurs when a product is proprietary, a critical upgrade, or in an emergency situation. The lack of competition means the Department of Veterans Affairs did not explore alternative suppliers or negotiate pricing with multiple bidders, potentially leading to a higher cost than if it had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher expenditures for taxpayers compared to competitively awarded contracts.

Public Impact

Veterans requiring specialized surgical appliances will benefit from this award. The contract ensures the availability of a specific medical device for patient care. The geographic impact is primarily within Pennsylvania, where the contractor is located. The contract supports a specific niche within the medical device manufacturing and supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency and potential for cost savings.
Short contract duration might indicate an urgent need that could have been better planned.
Specific product details are not readily available for independent cost analysis.

Positive Signals

Ensures availability of a critical medical supply for veterans.
Fixed-price contract provides cost certainty.
Award to a known entity (Fillauer Companies, Inc.) may indicate a trusted supplier for specialized equipment.

Sector Analysis

This contract falls within the Healthcare sector, specifically the manufacturing and supply of surgical appliances. The market for specialized medical devices can be niche, with a few key manufacturers dominating specific product categories. The Department of Veterans Affairs is a significant purchaser of medical supplies, and contracts like this, even if small, are crucial for maintaining the healthcare infrastructure for service members.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the limited information. The award is directly to Fillauer Companies, Inc., a likely manufacturer or primary distributor. The impact on the broader small business ecosystem is minimal for this specific transaction.

Oversight & Accountability

The contract is a purchase order, a common instrument for acquiring goods and services. Oversight would typically involve the contracting officer's representative (COR) ensuring delivery and quality. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Supplies
Surgical Devices
Veterans Health Administration Procurement
Sole Source Contracts

Risk Flags

Sole-source award lacks competition
Potential for non-competitive pricing
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37,792.35 to FILLAUER COMPANIES, INC. TASKA CX HAND-7 1/4 RH QD - BLACK MODEL: TASKA-D1FB31-U1

Who is the contractor on this award?

The obligated recipient is FILLAUER COMPANIES, 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 $37,792.35.

What is the period of performance?

Start: 2026-04-07. End: 2026-09-30.

What specific surgical appliance is being procured, and what is its typical market price?

The data indicates the item is a 'TASKA CX HAND-7 1/4 RH QD - BLACK MODEL: TASKA-D1FB31-U1'. This appears to be a specific prosthetic hand component. Without access to detailed product catalogs or market research reports specific to prosthetic components, establishing a precise 'typical market price' is challenging. However, prosthetic devices, especially advanced ones, can be costly. The $37,792.35 award for what seems to be a single component or a small set of components suggests a high unit cost, which is not uncommon in the specialized field of prosthetics. Further analysis would require comparing this price against similar prosthetic hand components from other manufacturers or against historical VA pricing for comparable items, which is not available in the provided data.

Why was this contract awarded on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED' and lists the contract type as 'SOLE SOURCE'. This implies that the Department of Veterans Affairs determined that only one source, Fillauer Companies, Inc., was capable of providing the required surgical appliance. Common justifications for sole-source awards include the item being a proprietary product available only from a single manufacturer, a critical need for compatibility with existing equipment, or a lack of adequate competition within the required timeframe. Without further documentation from the VA, the precise reason remains officially unstated but falls under these typical categories for sole-source justifications.

What is the track record of Fillauer Companies, Inc. with federal contracts?

Fillauer Companies, Inc. has a history of receiving federal contracts, primarily from the Department of Veterans Affairs and other healthcare-focused agencies. Their awards typically relate to prosthetic and orthotic devices. While this specific award is a purchase order for a relatively small amount, their presence in the federal market indicates they are an established supplier of specialized medical equipment. A deeper dive into their contract history would reveal the volume and types of contracts awarded, their performance ratings on past contracts (if available), and whether they have faced any significant performance issues or disputes. However, based on the data provided, they appear to be a regular, albeit niche, federal contractor.

How does this spending compare to other VA procurements for surgical appliances?

This specific contract for $37,792.35 is a relatively small award in the context of overall federal spending on medical supplies. The Department of Veterans Affairs procures a vast array of surgical appliances, devices, and related supplies, often through much larger, competitively bid contracts or indefinite-delivery/indefinite-quantity (IDIQ) vehicles. While this single purchase order might seem significant for a single item, it represents a fraction of the VA's total annual expenditure on surgical and prosthetic needs. Benchmarking this against other individual procurements for similar specialized items would require a more extensive database search, but it is likely on the lower end of contract values for major medical equipment.

What are the potential risks associated with this sole-source award?

The primary risk associated with this sole-source award is the potential for paying a non-competitive price. Without competition, there is less incentive for the contractor to offer the lowest possible price, and the government loses the opportunity to discover market-driven pricing through bidding. Another risk is the potential for limited availability or delivery delays if the sole source encounters production issues, as there are no alternative suppliers readily available under this contract. Furthermore, the lack of transparency inherent in sole-source procurements can sometimes mask inefficiencies or less-than-optimal contract terms.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2710 AMNICOLA HWY, CHATTANOOGA, TN, 37406

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: $37,792

Exercised Options: $37,792

Current Obligation: $37,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline