VA awards $50.2M contract for prostheses, with a significant portion allocated to a single vendor

Contract Overview

Contract Amount: $50,193 ($50.2K)

Contractor: DEL Bianco Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-05-10

Contract Duration: 30 days

Daily Burn Rate: $1.7K/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: APEX, WAKE County, NORTH CAROLINA, 27502

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50,193.19 to DEL BIANCO ENTERPRISES LLC for work described as: PROSTHESIS Key points: 1. The contract value represents a substantial investment in prosthetic devices, indicating a significant demand within the VA system. 2. Analysis of the contract's value-for-money requires benchmarking against similar prosthetic procurements and market prices for comparable devices. 3. Competition dynamics appear limited, as the award was made under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. 4. Risk indicators may include the potential for price creep if competition was not robust and the reliance on a single vendor for a critical supply. 5. Performance context is crucial; the effectiveness of the prostheses and the reliability of the supplier will determine the ultimate value. 6. Sector positioning places this contract within the broader healthcare supplies and medical equipment manufacturing industry.

Value Assessment

Rating: fair

The contract value of $50.2 million for prostheses is a significant sum. Without specific details on the types and quantities of prostheses, a direct value-for-money assessment is challenging. However, the award under SAP suggests it may not have undergone the most rigorous competitive scrutiny typically applied to larger contracts. Benchmarking against similar VA or DoD contracts for prosthetic devices, as well as private sector pricing for comparable items, would be necessary to determine if the pricing is competitive. The fixed-price nature of the award provides some cost certainty, but the overall value hinges on the quality and appropriateness of the devices provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures). SAP is typically used for procurements valued below the simplified acquisition threshold (currently $250,000). The data indicates a contract value of $50.2 million, which is significantly above this threshold. This suggests a potential discrepancy or that 'SAP' here refers to a specific agency's internal process that may not align with the standard federal definition. If it was indeed competed under a simplified process for a contract of this size, it raises questions about the extent of competition and potential price discovery. Further clarification on the competition method is needed.

Taxpayer Impact: If the contract was indeed competed under a simplified process for its substantial value, taxpayers may not have received the full benefit of robust competition, potentially leading to higher prices than could have been achieved through a more extensive bidding process.

Public Impact

Veterans requiring prosthetic devices are the primary beneficiaries, receiving essential medical equipment. The contract ensures the availability of surgical appliances and supplies, supporting the VA's mission to care for veterans. The geographic impact is likely nationwide, as the VA serves veterans across the United States, though specific delivery locations are not detailed. Workforce implications could include support for manufacturing and distribution jobs related to prosthetic devices, both within the contractor's organization and potentially in related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price competition due to the contract's value relative to typical SAP procurements.
Lack of detailed information on the specific types and quantities of prostheses, hindering a precise value assessment.
The stated competition method ('COMPETED UNDER SAP') appears inconsistent with the contract's significant dollar value, raising concerns about the procurement process.

Positive Signals

The contract addresses a critical need for veterans requiring prosthetic devices.
The firm fixed-price contract type offers cost certainty for the government.
The award is made to a specific entity, indicating a clear point of accountability for delivery.

Sector Analysis

This contract falls within the Healthcare and Medical Equipment sector, specifically focusing on prosthetic devices. The market for prosthetics is driven by technological advancements, an aging population, and the increasing prevalence of conditions requiring limb replacement. The Department of Veterans Affairs is a major purchaser of medical supplies and equipment, making its contracts significant indicators of spending trends in this area. Comparable spending benchmarks would involve analyzing other large-scale VA or DoD contracts for similar medical devices and supplies, as well as understanding the overall market size for prosthetic manufacturing and distribution.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, DEL BIANCO ENTERPRISES LLC, is likely a larger entity if it was awarded a contract of this magnitude. Analysis of subcontracting opportunities would require further investigation into the prime contractor's practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are established through the contract terms, including delivery schedules, quality standards, and payment terms. Transparency is generally facilitated through contract databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

VA Medical Care Programs
Durable Medical Equipment (DME) Procurement
Prosthetic and Orthotic Devices
Federal Supply Schedule (FSS) Contracts for Medical Supplies

Risk Flags

Potential for inadequate competition due to contract value vs. procurement method.
Lack of detailed performance metrics for prosthetics.
Inconsistent reporting of competition type (SAP) with contract value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50,193.19 to DEL BIANCO ENTERPRISES LLC. PROSTHESIS

Who is the contractor on this award?

The obligated recipient is DEL BIANCO ENTERPRISES 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 $50,193.19.

What is the period of performance?

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

What is the track record of DEL BIANCO ENTERPRISES LLC with the federal government, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to assess DEL BIANCO ENTERPRISES LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Understanding their experience with similar types of medical supplies, specifically prosthetics, and their ability to meet delivery schedules and quality requirements for the VA would provide crucial context. A history of successful contract performance with the VA would indicate a lower risk for this current award, while a pattern of issues might raise concerns about the agency's due diligence in the selection process.

How does the pricing of these prostheses compare to market rates for similar devices?

To compare pricing, one would need to identify the specific types and models of prostheses being procured under this $50.2 million contract. Then, market research would involve obtaining price lists from other manufacturers and distributors of comparable prosthetic devices. Benchmarking against prices paid by other federal agencies (e.g., DoD) or large healthcare systems for similar items would also be informative. If the VA's negotiated prices are significantly higher than market rates or prices paid by comparable entities, it could indicate a lack of effective price negotiation or insufficient competition. Conversely, prices at or below market benchmarks would suggest good value.

What are the potential risks associated with awarding a large contract for prosthetics under Simplified Acquisition Procedures (SAP)?

Awarding a contract of $50.2 million under Simplified Acquisition Procedures (SAP) presents several potential risks. SAP is designed for procurements below the simplified acquisition threshold (currently $250,000) and typically involves less stringent competition and documentation requirements than full and open competition. For a contract of this magnitude, using SAP could mean that the government did not solicit bids from a sufficiently wide range of potential suppliers, potentially leading to higher prices than could have been achieved through a more robust bidding process. It also increases the risk of inadequate vetting of the contractor's capabilities and past performance. Furthermore, the lack of detailed documentation associated with SAP can make post-award oversight and accountability more challenging.

What is the expected effectiveness and impact of these prostheses on veteran healthcare outcomes?

The effectiveness and impact of these prostheses on veteran healthcare outcomes are critical measures of the contract's success. This would be assessed based on the quality, durability, and functionality of the devices provided, ensuring they meet the specific needs of the veteran recipients. Positive impacts would include improved mobility, reduced pain, enhanced quality of life, and successful reintegration into daily activities. The VA's clinical staff would play a key role in evaluating patient satisfaction and functional improvements. Long-term data on device failure rates, patient adherence, and the need for revisions or replacements would provide further insights into the overall effectiveness and value delivered by this contract.

How has federal spending on prosthetics evolved over the past five years, and does this contract represent a significant shift?

Analyzing federal spending on prosthetics over the past five years would involve aggregating data from various agencies, primarily the Department of Veterans Affairs and the Department of Defense. This would reveal trends in overall expenditure, average contract values, and the types of prosthetic devices being procured. If this $50.2 million contract represents a substantial increase compared to historical spending patterns for similar procurements, it could indicate a growing need, a change in procurement strategy, or potentially an overestimation of requirements. Conversely, if it aligns with or is slightly above historical averages, it suggests a continuation of existing demand and procurement levels. Understanding these historical patterns provides context for the current award's significance.

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: 1031 W WILLIAMS ST, APEX, NC, 27502

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,193

Exercised Options: $50,193

Current Obligation: $50,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline