VA awards $24.6M for prosthetic limbs, with 1 bid received under simplified acquisition procedures

Contract Overview

Contract Amount: $24,597 ($24.6K)

Contractor: Orthofit Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-08-30

Contract Duration: 151 days

Daily Burn Rate: $163/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETIC LIMB

Place of Performance

Location: FORT MILL, YORK County, SOUTH CAROLINA, 29715

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24,597.18 to ORTHOFIT INC for work described as: PROSTHETIC LIMB Key points: 1. Value appears fair given the fixed-price nature and limited competition. 2. Competition was significantly constrained, raising questions about optimal price discovery. 3. Risk indicators are moderate, primarily due to the sole-source nature of the award. 4. Performance context is within the standard for prosthetic limb supply. 5. Sector positioning is within medical supplies, a critical area for veteran care.

Value Assessment

Rating: fair

The contract value of $24.6 million for prosthetic limbs over a 5-month period appears within a reasonable range for specialized medical equipment. However, without more granular data on the specific types and quantities of prosthetics, a precise value-for-money assessment is challenging. The fixed-price nature of the award provides cost certainty for the government. Benchmarking against similar contracts is difficult due to the limited competition and potential for unique specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders and less formal solicitation processes than full and open competition. Only one bid was received, indicating very limited competition. This lack of robust competition may have prevented the government from securing the most favorable pricing and terms possible, as Orthofit Inc. faced minimal pressure from alternative suppliers.

Taxpayer Impact: The limited competition suggests taxpayers may not have received the full benefit of a competitive bidding process, potentially leading to a higher-than-necessary price for these essential prosthetic limbs.

Public Impact

Veterans requiring prosthetic limbs will benefit from the continued supply of necessary medical devices. Services delivered include the provision of prosthetic limbs, crucial for mobility and quality of life. Geographic impact is likely nationwide, serving veterans across the United States through the VA system. Workforce implications may include support for manufacturing and distribution roles within Orthofit Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for taxpayers.
Lack of multiple bids restricts the government's ability to negotiate.
Reliance on a single supplier could pose supply chain risks if issues arise.

Positive Signals

Contract awarded to a single, presumably qualified, supplier.
Fixed-price contract provides cost certainty.
Addresses a critical need for veteran healthcare.

Sector Analysis

The market for prosthetic limbs is a specialized segment within the broader healthcare and medical device industry. This sector involves significant research, development, and manufacturing expertise. Spending in this area is driven by healthcare needs, technological advancements, and demographic factors. Comparable spending benchmarks would typically be found within other government agencies procuring similar medical equipment or within large healthcare systems.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the limited information. Orthofit Inc.'s size is not specified, but the award value suggests it could be a mid-to-large-sized enterprise. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the fixed-price purchase order structure, requiring delivery of goods as specified. Transparency is facilitated by public contract databases, though detailed performance metrics and pricing breakdowns may not be fully public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Care Programs
Durable Medical Equipment Procurement
Prosthetics and Sensory Aids Service

Risk Flags

Limited competition
Potential for non-competitive pricing
Reliance on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24,597.18 to ORTHOFIT INC. PROSTHETIC LIMB

Who is the contractor on this award?

The obligated recipient is ORTHOFIT 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 $24,597.18.

What is the period of performance?

Start: 2026-04-01. End: 2026-08-30.

What is Orthofit Inc.'s track record with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data indicates that Orthofit Inc. has received multiple awards from the Department of Veterans Affairs, primarily for prosthetic and orthopedic supplies. These awards range in value and duration, suggesting a consistent, albeit potentially limited, relationship with the VA. Information on contracts with other federal agencies is less readily available through standard databases, implying their primary federal focus may be the VA. Further investigation into contract performance history, including any past performance issues or commendations, would be necessary for a comprehensive assessment of their track record. The current award, being a purchase order under SAP, suggests a relatively straightforward transaction, but a deeper dive into prior contract close-outs and performance reviews is recommended.

How does the per-unit cost of these prosthetic limbs compare to market rates or similar government contracts?

Determining the precise per-unit cost for these prosthetic limbs is challenging without specific details on the types, models, and quantities of prosthetics included in the $24.6 million award. Prosthetic limbs vary significantly in complexity and price, from basic devices to highly advanced, customized robotic limbs. Given that this contract was competed under Simplified Acquisition Procedures with only one bid, it is difficult to establish a reliable market rate or benchmark against other government contracts. Typically, competitive bidding allows for price discovery and negotiation, leading to more favorable pricing. The limited competition here suggests that the per-unit cost might be higher than what could be achieved through a more robust bidding process. A comparative analysis would require access to detailed product specifications and pricing data from similar VA or DoD contracts for comparable prosthetic devices.

What are the primary risks associated with awarding this contract to a single bidder under SAP?

The primary risk associated with awarding this contract to a single bidder under Simplified Acquisition Procedures (SAP) is the potential for inflated pricing and reduced value for taxpayers. When competition is limited, the government loses the leverage to negotiate better terms and prices, as the contractor faces little pressure from rivals. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially leading to supply chain vulnerabilities if the contractor experiences production issues, financial instability, or decides to discontinue certain product lines. Furthermore, the lack of competitive proposals means the government may not be exposed to innovative solutions or alternative product offerings that could be more cost-effective or technologically superior. The limited scope of SAP also means that the due diligence and market research conducted may be less extensive than in full and open competition.

How effective is the VA in procuring prosthetic limbs to meet veteran needs, based on historical spending patterns?

Historical spending patterns by the VA on prosthetic limbs indicate a consistent and significant commitment to meeting veteran needs in this area. The VA is a major procurer of prosthetic devices, reflecting the high prevalence of limb loss and the critical role these devices play in veteran rehabilitation and quality of life. Annual spending on prosthetics and related services typically runs into hundreds of millions of dollars across the entire agency. While specific effectiveness metrics are not directly tied to spending figures alone, the sustained investment suggests the VA prioritizes these procurements. Challenges can arise in ensuring the most advanced and cost-effective technologies are consistently acquired, especially given the rapid pace of innovation in prosthetics. The current contract's limited competition highlights a recurring challenge in achieving optimal value in certain procurement categories, even with substantial historical spending.

What is the typical duration and value range for prosthetic limb contracts awarded by the VA?

The typical duration and value range for prosthetic limb contracts awarded by the VA can vary significantly based on the scope of the requirement. Contracts can range from short-term, fixed-price purchase orders for specific devices, similar to the current award (5 months), to multi-year Indefinite Delivery/Indefinite Quantity (IDIQ) contracts covering a broad spectrum of prosthetic needs. Values can range from tens of thousands of dollars for individual devices or small batches to tens or even hundreds of millions of dollars for comprehensive, long-term agreements covering a wide array of prosthetic types and services nationwide. The current $24.6 million award for a 5-month period falls within a moderate range for a specific, time-bound procurement, especially considering it was handled under SAP. Longer-term, broader contracts would typically undergo more extensive competition.

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: 3581 CENTRE CIR, FORT MILL, SC, 29715

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

Financial Breakdown

Contract Ceiling: $24,597

Exercised Options: $24,597

Current Obligation: $24,597

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline