VA awards $65M for prosthetics, with HATTINGH INC securing the contract

Contract Overview

Contract Amount: $65,027 ($65.0K)

Contractor: Hattingh Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-01

Contract Duration: 153 days

Daily Burn Rate: $425/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHESIS

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65,026.72 to HATTINGH INC for work described as: PROSTHESIS Key points: 1. Value for money appears fair given the fixed-price nature of the award. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period. 4. Performance context is within surgical appliance manufacturing, a critical area for veteran care. 5. Sector positioning is within healthcare supplies, a consistently high-spending federal category.

Value Assessment

Rating: fair

The contract value of $65 million for prosthetics over a 5-month period warrants careful benchmarking. While specific per-unit cost data is not provided, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns. Comparing this award to similar prosthetic procurements by the VA or other agencies would be necessary to fully assess value for money. The relatively short duration might also influence unit pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Program), indicating that it was open to a broad range of potential bidders. The number of bidders is not specified, but the 'COMPETED UNDER SAP' designation suggests a competitive process was followed. This level of competition is generally positive for price discovery and ensuring fair market value.

Taxpayer Impact: A competed award under SAP is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and avoids potential overspending associated with sole-source or limited competition contracts.

Public Impact

Veterans requiring prosthetic devices and related supplies will benefit directly from this contract. The services delivered include the provision of surgical appliances and supplies. The geographic impact is likely focused on regions served by the Department of Veterans Affairs facilities in Virginia. Workforce implications may include jobs in manufacturing, distribution, and support services related to prosthetics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract periods if competition diminishes.
Dependence on a single contractor for a critical supply chain component.
Ensuring consistent quality and availability of prosthetics across all VA facilities.

Positive Signals

Awarded through a competitive process, suggesting fair pricing.
Firm fixed-price contract shifts cost risk to the contractor.
Clear performance period and defined scope of work.

Sector Analysis

The federal market for surgical appliances and supplies is substantial, driven by the needs of the Department of Defense and the Department of Veterans Affairs. This contract fits within the broader healthcare sector, specifically medical devices and equipment. Comparable spending benchmarks would involve analyzing historical VA and DoD expenditures on prosthetics and related medical supplies, which often run into hundreds of millions annually.

Small Business Impact

The data indicates this contract was competed under SAP, which typically involves smaller dollar thresholds. While it's not explicitly stated as a small business set-aside, the nature of SAP can sometimes favor small business participation. Further analysis would be needed to determine if any subcontracting opportunities were mandated or if small businesses were primary bidders.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are embedded in the firm fixed-price contract terms, requiring HATTINGH INC to deliver specified goods within the agreed-upon price and timeframe. Transparency is generally maintained through federal procurement databases, although specific performance metrics and quality control reports may not be publicly available.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Prosthetic and Orthotic Devices Federal Spending
Surgical Appliances and Supplies Manufacturing Contracts

Risk Flags

Short contract duration may impact long-term pricing.
Potential for supply chain vulnerabilities if contractor faces issues.
Need for ongoing market research to ensure continued competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65,026.72 to HATTINGH INC. PROSTHESIS

Who is the contractor on this award?

The obligated recipient is HATTINGH 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 $65,026.72.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-01.

What is HATTINGH INC's track record with the federal government, particularly the VA, for prosthetic supplies?

A review of federal procurement data would be necessary to fully assess HATTINGH INC's track record. This would involve examining past awards, contract performance history, and any reported issues or commendations. For this specific contract, the VA's own contracting officers would have performed due diligence on the contractor's past performance. Without access to internal VA performance assessments or a comprehensive federal contract database search, it's difficult to provide a detailed history. However, the fact that they were awarded this competed contract suggests they met the basic requirements and demonstrated capability.

How does the $65 million award compare to the VA's historical spending on prosthetics?

To compare this $65 million award to historical VA spending on prosthetics, one would need to analyze multi-year spending trends for similar product categories (NAICS 339113). The VA's annual budget for medical care and supplies is in the tens of billions, with prosthetics being a significant component. A $65 million award over a 5-month period suggests a substantial, but not unprecedented, expenditure. Benchmarking would involve looking at the average annual spend on prosthetics over the last 3-5 fiscal years and calculating the average award size and duration to see if this contract represents a typical or outlier investment.

What are the primary risks associated with this firm fixed-price contract for prosthetic supplies?

The primary risks associated with this firm fixed-price contract revolve around potential supply chain disruptions, quality control issues, and contractor performance. While the fixed-price nature shifts cost risk to HATTINGH INC, the VA still faces the risk of receiving substandard products or experiencing delivery delays. If HATTINGH INC faces unforeseen manufacturing challenges or material shortages, it could impact their ability to fulfill the contract, potentially leading to shortages for veterans. The short 5-month duration might mitigate some long-term risks but could also lead to less favorable pricing if the contractor anticipates future needs and builds in contingencies.

How effective is the Small Acquisition Program (SAP) in ensuring competitive pricing for medical supplies?

The Small Acquisition Program (SAP) is designed to streamline the procurement process for acquisitions below certain thresholds, often encouraging competition among a wider range of vendors, including small businesses. Its effectiveness in ensuring competitive pricing for medical supplies depends on several factors, including the specific market dynamics for the item being procured, the clarity of the solicitation, and the number of responsive bids received. For prosthetics, if the SAP process successfully attracted multiple qualified bidders, it would likely lead to competitive pricing. However, if the market is consolidated or barriers to entry are high, even a competed SAP award might not yield the lowest possible price.

What are the implications of a 5-month contract duration for prosthetic supply continuity?

A 5-month contract duration for prosthetic supplies implies a need for rapid procurement and potentially frequent re-solicitation to ensure continuity of care. This short timeframe could lead to less favorable pricing as contractors may factor in the administrative costs of short-term contracts or anticipate higher prices in subsequent awards. It also places a greater burden on the VA contracting team to manage the procurement lifecycle efficiently. For veterans, it underscores the importance of robust inventory management and proactive contract planning by the VA to avoid any gaps in supply.

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: 44115 WOODRIDGE PKWY, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,027

Exercised Options: $65,027

Current Obligation: $65,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline