VA awards $57M for prosthetic limbs, with Hanger Prosthetics & Orthotics East Inc. as the primary contractor

Contract Overview

Contract Amount: $57,053 ($57.1K)

Contractor: Hanger Prosthetics & Orthotics East, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-09-02

Contract Duration: 153 days

Daily Burn Rate: $373/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: DURHAM, DURHAM County, NORTH CAROLINA, 27704

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57,053.1 to HANGER PROSTHETICS & ORTHOTICS EAST, INC. for work described as: PROSTHETIC LIMB Key points: 1. Contract awarded for prosthetic limbs, a critical need for veterans. 2. The contract value is substantial, indicating significant demand for these devices. 3. Competition dynamics for this contract need further examination to ensure optimal value. 4. Performance context is crucial to understand the effectiveness of the supplied prosthetics. 5. Sector positioning highlights the importance of medical supply chains for the VA. 6. Risk indicators may include supply chain disruptions or quality control issues. 7. The fixed-price nature of the contract aims to control costs. 8. Geographic impact is likely nationwide, serving veterans across the US.

Value Assessment

Rating: good

The award of $57,053.10 for prosthetic limbs appears to be a standard purchase order for supplies. Without specific details on the quantity or type of prosthetic limbs, a direct per-unit cost comparison is challenging. However, the contract value itself is modest in the context of federal procurement, suggesting it may cover a specific set of needs or a limited duration. Benchmarking against similar VA contracts for prosthetic devices would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for awards under a certain dollar threshold. While the specific number of bidders is not provided, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and considered. This level of competition, even within SAP, generally promotes price discovery and encourages contractors to offer competitive pricing to secure the award.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source procurement. It ensures that the government is not overpaying for essential medical supplies.

Public Impact

Veterans requiring prosthetic limbs will benefit from the services delivered under this contract. The contract ensures the availability of essential prosthetic devices for medical rehabilitation. The geographic impact is expected to be nationwide, supporting veterans across different regions. Workforce implications may include demand for skilled technicians and fitters within Hanger Prosthetics & Orthotics East, Inc. and potentially related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting timely delivery of critical prosthetic devices.
Ensuring consistent quality and performance of prosthetic limbs across all issued devices.
Monitoring contractor performance to ensure adherence to delivery schedules and specifications.

Positive Signals

Award to an established company, Hanger Prosthetics & Orthotics East, Inc., suggests potential for reliable service.
The use of a firm fixed-price contract provides cost certainty for the government.
Competition under SAP indicates an effort to secure competitive pricing for these essential supplies.

Sector Analysis

The market for prosthetic limbs is a specialized segment within the broader healthcare and medical device industry. This sector involves the design, manufacturing, and distribution of artificial devices to replace missing body parts. The Department of Veterans Affairs is a significant purchaser of prosthetic devices, aiming to provide comprehensive care to its veteran population. Spending in this area is influenced by factors such as veteran population size, technological advancements in prosthetics, and healthcare policy.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Hanger Prosthetics & Orthotics East, Inc. voluntarily engages small businesses in its supply chain or subcontracting efforts. Further analysis would be needed to determine any indirect effects.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this contract.

Related Government Programs

Prosthetic and Orthotic Devices
Medical Supplies and Equipment
Veterans Health Administration Services
Durable Medical Equipment

Risk Flags

Potential supply chain vulnerabilities
Quality assurance of medical devices
Timeliness of delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57,053.1 to HANGER PROSTHETICS & ORTHOTICS EAST, INC.. PROSTHETIC LIMB

Who is the contractor on this award?

The obligated recipient is HANGER PROSTHETICS & ORTHOTICS EAST, 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 $57,053.1.

What is the period of performance?

Start: 2026-04-02. End: 2026-09-02.

What is the historical spending pattern of the VA on prosthetic limbs, and how does this award compare?

Analyzing historical VA spending on prosthetic limbs requires access to detailed procurement data over several fiscal years. Typically, the VA procures a significant volume of prosthetic devices annually to serve its large veteran population. This specific award of $57,053.10 appears to be a single purchase order with a defined end date, suggesting it might be for a specific need or a limited quantity rather than an overarching indefinite-delivery/indefinite-quantity (IDIQ) contract. Comparing this to broader VA spending trends would involve looking at total annual expenditures for prosthetic limbs, average contract values, and the number of awards made. Without more granular data on the specific items and quantities within this $57,053.10 award, a precise comparison to historical averages is difficult, but it represents a component of the VA's ongoing investment in prosthetic care.

What specific types of prosthetic limbs are covered under this contract, and what are their unit costs?

The provided data identifies the contract's purpose as 'PROSTHETIC LIMB' but does not specify the exact types of prosthetic limbs (e.g., upper limb, lower limb, specific components like sockets or feet) or their quantities. Consequently, calculating a precise per-unit cost is not possible with the available information. The total award amount of $57,053.10 represents the ceiling value for the purchase order. To determine unit costs, one would need to know the number of units procured and the breakdown of costs per unit type. This level of detail is typically found in the contract line item details (CLINs) which are not included in the summary data.

What is the track record of Hanger Prosthetics & Orthotics East, Inc. with the VA for similar contracts?

Hanger Prosthetics & Orthotics East, Inc. is a known entity in the prosthetics and orthotics field. To assess their track record with the VA specifically for similar contracts, a review of past performance information would be necessary. This would involve examining previous awards, contract values, contract types (e.g., purchase orders, IDIQs), and any available performance ratings or past performance questionnaires. Companies like Hanger often hold numerous contracts across various federal agencies, including the VA. Understanding their history with the VA for prosthetic limb provision would shed light on their reliability, quality of service, and pricing competitiveness in previous engagements, providing context for this current award.

How does the pricing of this contract benchmark against other federal or commercial contracts for similar prosthetic devices?

Benchmarking the pricing of this $57,053.10 contract requires access to comparable contract data. Since the specific types and quantities of prosthetic limbs are not detailed, a direct per-unit cost comparison is challenging. However, the fact that it was 'COMPETED UNDER SAP' suggests an effort to achieve competitive pricing within simplified acquisition thresholds. To perform a robust benchmark, one would need to identify similar VA or Department of Defense contracts for the same or equivalent prosthetic devices, noting their award dates, quantities, and pricing structures (e.g., firm fixed price). Comparing the average unit costs or total contract values for similar scopes of work would indicate whether this award represents good value for money. Without such comparative data, assessing the pricing relative to market rates or other government contracts remains speculative.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include supply chain disruptions that could delay the delivery of essential prosthetic limbs, quality control issues leading to suboptimal patient outcomes, and potential cost overruns if the fixed-price contract does not adequately account for all associated expenses. Mitigation strategies typically involve robust oversight by the contracting officer, clear performance standards and specifications within the contract, regular communication with the contractor, and potentially requiring performance bonds. The VA likely has established procedures for monitoring contractor performance and addressing any deviations from contract requirements to ensure timely and quality delivery of prosthetic devices.

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

Parent Company: Hanger, Inc.

Address: 314 CRUTCHFIELD ST, DURHAM, NC, 27704

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

Financial Breakdown

Contract Ceiling: $57,053

Exercised Options: $57,053

Current Obligation: $57,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline