VA awards $22.3M for surgical implants, highlighting a concentrated market for specialized supplies

Contract Overview

Contract Amount: $22,338 ($22.3K)

Contractor: Affirmative Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-02

Contract Duration: 31 days

Daily Burn Rate: $721/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPLANTS

Place of Performance

Location: CHEYENNE, LARAMIE County, WYOMING, 82001

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,337.77 to AFFIRMATIVE SOLUTIONS LLC for work described as: IMPLANTS Key points: 1. Value for money appears fair given the short duration and specialized nature of the implants. 2. Competition dynamics suggest a limited market for these specific surgical devices. 3. Risk indicators are low due to the short contract term and established product type. 4. Performance context is limited by the short duration, focusing on immediate supply needs. 5. Sector positioning places this within the broader healthcare supply chain for medical devices.

Value Assessment

Rating: fair

The contract value of $22.3 million for a 31-day period suggests a high per-diem cost, typical for specialized medical supplies. Benchmarking against similar short-term implant procurements is difficult without more data on the specific types of implants. However, the price seems reasonable for emergency or immediate need fulfillment, assuming high-value, low-volume items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Program), indicating a full and open competition for acquisitions below a certain threshold. While the specific number of bidders is not provided, this method generally encourages broad participation. The competition level is expected to drive reasonable pricing for the required surgical implants.

Taxpayer Impact: A competed award under SAP ensures that taxpayers benefit from competitive pricing, even for specialized medical supplies.

Public Impact

Veterans Affairs beneficiaries will receive necessary surgical implants. The contract ensures the availability of critical medical supplies for surgical procedures. Geographic impact is primarily within the facilities served by the VA in Wyoming. Workforce implications include support for surgical teams and medical staff requiring these implants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future, longer-term contracts if competition narrows.
Dependence on a limited number of manufacturers for specialized implant technology.

Positive Signals

Awarded under a competitive process, suggesting fair market pricing.
Short contract duration limits long-term financial exposure and allows for re-evaluation.
Focus on essential medical supplies ensures critical patient care continuity.

Sector Analysis

The medical device manufacturing sector is highly specialized, with significant R&D investment. Surgical implants represent a high-value segment within this market. Spending in this area is driven by healthcare demand, technological advancements, and an aging population. Comparable spending benchmarks are difficult without knowing the exact implant types, but the VA is a significant purchaser of medical supplies.

Small Business Impact

The contract was competed under SAP, which is designed to encourage participation from small businesses. However, the nature of specialized surgical implants often favors larger, established manufacturers with significant R&D and production capabilities. There is no explicit small business set-aside noted, and subcontracting opportunities for small businesses would depend on the prime contractor's strategy.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for procurement, including contract administration and payment verification. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this award.

Related Government Programs

VA Medical Equipment Procurement
Surgical Supplies Contracts
Medical Device Manufacturing
Federal Healthcare Spending

Risk Flags

Short contract duration may indicate urgent need or limited scope.
High value for a short period warrants scrutiny of unit pricing.
Limited competition potential for highly specialized medical devices.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,337.77 to AFFIRMATIVE SOLUTIONS LLC. IMPLANTS

Who is the contractor on this award?

The obligated recipient is AFFIRMATIVE SOLUTIONS 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 $22,337.77.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-02.

What is the specific type of surgical implant being procured, and how does its unit cost compare to similar devices?

The provided data indicates the North American Industry Classification System (NAICS) code is 339113 for Surgical Appliance and Supplies Manufacturing. However, it does not specify the exact type of implant. Surgical implants range widely in complexity and cost, from relatively simple devices to highly advanced prosthetics and internal fixation systems. Without knowing the specific product, a precise unit cost comparison is not feasible. Generally, implants for cardiovascular, orthopedic, or neurological procedures can cost thousands to tens of thousands of dollars per unit, while simpler devices might be in the hundreds. The total award of $22.3 million over 31 days suggests a high average unit cost or a significant volume of less expensive items.

What is the historical spending pattern for this specific type of implant or supplier by the VA?

Historical spending data for this specific implant type or Affirmative Solutions LLC by the VA is not detailed in the provided information. To assess historical patterns, one would need to query federal procurement databases (like FPDS) for previous awards to this contractor or for the specific NAICS code 339113 over several fiscal years. This analysis would reveal if this is a new requirement, a recurring need, or if Affirmative Solutions LLC is a new or established supplier for the VA. Understanding past spending can help identify trends, potential price increases or decreases, and the contractor's performance history.

How does the awarded price compare to the market rate for similar surgical implants?

Directly comparing the awarded price to the market rate for similar surgical implants is challenging without knowing the exact product specifications. The contract value of $22.3 million over 31 days implies a significant daily expenditure. If these are high-value, specialized implants (e.g., custom prosthetics, advanced cardiac devices), the price might be in line with market rates for such critical items. If they are more common or less complex implants, the price could be higher than anticipated. Benchmarking would require access to GSA schedules, other agency contracts for the same or comparable items, or commercial price lists, which are not provided here.

What are the potential risks associated with a short-duration contract for surgical implants?

The primary risk associated with a short-duration contract (31 days) for surgical implants is the potential for supply chain disruption if the need extends beyond the contract period or if the initial procurement does not meet all requirements. It may also indicate an emergency procurement or a stop-gap measure, which could lead to higher prices compared to longer-term, strategically sourced contracts. Furthermore, a short term limits the ability to fully assess the contractor's performance and the value delivered, potentially leading to rushed decisions or less favorable terms in subsequent procurements if the need persists.

What is the track record of Affirmative Solutions LLC in fulfilling federal contracts, particularly for medical supplies?

Information regarding the specific track record of Affirmative Solutions LLC in fulfilling federal contracts, especially for medical supplies, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance ratings, contract history (including any past performance issues or awards), and the types of contracts they have previously executed with the VA or other federal agencies. Without this background, it's difficult to gauge their reliability and experience in delivering critical surgical implants.

Does the $22.3 million award represent a significant portion of the VA's annual spending on surgical implants?

The provided data shows a $22.3 million award for surgical implants with an end date of May 2, 2026, and a duration of 31 days. This suggests the award is for a specific, short-term need rather than annual requirements. To determine if it represents a significant portion of the VA's annual spending, one would need to compare this amount to the VA's total annual budget allocation or historical expenditures for surgical implants across all its facilities and contract vehicles. Given the short duration, it is likely a targeted procurement for immediate needs or a specific event, rather than a reflection of overall annual spending.

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: 209 E 20TH ST, CHEYENNE, WY, 82001

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,338

Exercised Options: $22,338

Current Obligation: $22,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline