VA awards $37.9M contract for prosthetics, highlighting need for specialized orthopedic supplies

Contract Overview

Contract Amount: $37,941 ($37.9K)

Contractor: Orthopedic Appliance CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-05-10

Contract Duration: 31 days

Daily Burn Rate: $1.2K/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: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37,940.86 to ORTHOPEDIC APPLIANCE CO INC for work described as: PROSTHESIS Key points: 1. Contract awarded to Orthopedic Appliance Co Inc for prosthetic devices. 2. The contract duration is short, spanning just over a month. 3. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 4. The North Carolina-based contractor operates within the Surgical Appliance and Supplies Manufacturing sector. 5. This award represents a specific need within the VA's broader healthcare procurement strategy. 6. The firm fixed price contract type provides cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking the value of this specific prosthetic contract is challenging without more detailed service descriptions or comparable contract data. The award amount of $37.9 million for a 31-day period suggests a high per-diem or per-unit cost, which warrants further investigation into the specific types of prosthetics and associated services included. Comparing this to other VA prosthetic contracts or similar procurements across the federal government would be necessary to determine if the pricing is competitive and represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP awards often involve a limited number of solicited vendors. This approach is generally used for procurements below certain dollar thresholds, aiming for efficiency. However, it may not always yield the most competitive pricing compared to broader solicitations.

Taxpayer Impact: For taxpayers, competition under SAP can mean faster delivery of needed goods and services, but potentially at a slightly higher cost than if a wider range of vendors had been solicited.

Public Impact

Veterans requiring prosthetic devices will benefit from this contract. The services delivered will include the provision of specialized orthopedic appliances. The geographic impact is primarily focused on supporting VA facilities and the veterans they serve. This contract supports jobs within the surgical appliance and supplies manufacturing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration raises questions about long-term supply chain planning and potential for follow-on contracts.
Limited competition under SAP may not have secured the best possible pricing for taxpayers.
Lack of detailed service description makes it difficult to assess the true value for money.

Positive Signals

Contract awarded to a domestic manufacturer in North Carolina.
Firm fixed price contract provides budget certainty.
Addresses a critical need for prosthetic devices for veterans.

Sector Analysis

The prosthetics market is a specialized segment within the broader medical device and healthcare sector. This contract falls under Surgical Appliance and Supplies Manufacturing, which includes the production of artificial limbs, braces, and other orthopedic devices. The federal government, particularly the Department of Veterans Affairs, is a significant purchaser of these goods to support veteran healthcare needs. Market size for prosthetics is substantial, driven by an aging population and increased demand for advanced prosthetic technologies.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Orthopedic Appliance Co Inc, is likely not a small business for the purpose of this award. There is no information on subcontracting requirements, so the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes lead to subcontracting opportunities for smaller specialized firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. As a purchase order awarded under SAP, it likely undergoes standard administrative review. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight mechanisms are not detailed in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Procurement
Durable Medical Equipment Contracts
Orthotic and Prosthetic Devices
Federal Healthcare Supply Chain

Risk Flags

Potential for higher cost due to limited competition.
Short contract duration may indicate a temporary solution or require follow-on actions.
Lack of detailed service scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37,940.86 to ORTHOPEDIC APPLIANCE CO INC. PROSTHESIS

Who is the contractor on this award?

The obligated recipient is ORTHOPEDIC APPLIANCE CO 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 $37,940.86.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-10.

What is the typical contract duration for prosthetic devices awarded by the VA?

The typical contract duration for prosthetic devices awarded by the VA can vary significantly depending on the nature of the procurement. While some awards might be for specific, short-term needs like this 31-day purchase order, many prosthetic contracts are longer-term to ensure continuous supply and support for veterans. These can range from one to five years, often including option periods. Longer-term contracts allow for better planning, potentially more stable pricing, and established relationships for ongoing maintenance and upgrades. The short duration here might indicate a specific, immediate need or a bridge contract while a larger, longer-term strategy is developed.

How does the pricing of this prosthetic contract compare to similar awards?

Direct price comparison for this $37.9 million contract is difficult without knowing the exact quantity, type, and specifications of the prosthetics and related services procured. The award amount for a 31-day period suggests a potentially high unit cost or a comprehensive service package. To benchmark effectively, one would need to analyze contracts for similar prosthetic categories (e.g., upper limb, lower limb, specialized components) awarded by the VA or other federal agencies over a comparable period. Factors like advanced technology, customization, and included support services heavily influence pricing. A detailed cost breakdown and comparison with market rates for equivalent products and services would be essential for a thorough value assessment.

What are the potential risks associated with a sole-source or limited competition award for prosthetics?

While this contract was 'competed under SAP' and not explicitly sole-source, limited competition under Simplified Acquisition Procedures (SAP) carries potential risks. The primary risk is reduced price competition, which could lead to higher costs for the government compared to a full and open competition. This might mean taxpayers are not getting the best possible value. Additionally, limited competition might restrict the government's access to innovative solutions or a wider range of qualified suppliers. For critical items like prosthetics, ensuring a robust and competitive supply chain is vital for both cost-effectiveness and meeting the diverse needs of veterans.

What is the track record of Orthopedic Appliance Co Inc in federal contracting?

Information regarding the specific track record of Orthopedic Appliance Co Inc in federal contracting is not detailed in the provided data snippet. However, the award of this significant purchase order by the Department of Veterans Affairs suggests they are an established entity capable of meeting federal requirements. To assess their track record thoroughly, one would need to examine their past performance on federal contracts, including contract values, types of goods/services provided, past performance reviews, and any history of contract disputes or awards. Their presence in the Surgical Appliance and Supplies Manufacturing sector indicates specialization relevant to this award.

How does this contract fit into the VA's overall strategy for providing prosthetic care?

This contract likely represents a component of the VA's broader strategy to ensure veterans have access to necessary prosthetic devices and related care. The VA aims to provide comprehensive healthcare, including advanced prosthetic solutions, to improve the quality of life for veterans. Awards like this, even if short-term, fulfill immediate needs while potentially informing future, larger procurement strategies. The VA continuously evaluates its prosthetic programs to incorporate new technologies and ensure cost-effective delivery of services. This specific award may address a gap in supply, a specialized requirement, or serve as a test case for new products or services before wider implementation.

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: 75 VICTORIA RD, ASHEVILLE, NC, 28801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,941

Exercised Options: $37,941

Current Obligation: $37,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline