VA awards $27.8M for prosthetics, with a strong benchmark performance

Contract Overview

Contract Amount: $27,817 ($27.8K)

Contractor: Otto Bock Healthcare LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-05-10

Contract Duration: 30 days

Daily Burn Rate: $927/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: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27,817.25 to OTTO BOCK HEALTHCARE LP for work described as: PROSTHESIS Key points: 1. The contract demonstrates good value for money, with a price per unit significantly below the benchmark. 2. Competition dynamics appear healthy, as the contract was competed under SAP. 3. Risk indicators are low, with a firm fixed-price contract type and a short duration. 4. Performance context is favorable, with a clear deliverable and defined period of performance. 5. The contract aligns with the broader healthcare sector's focus on durable medical equipment.

Value Assessment

Rating: good

The VA's award of $27.8 million for prosthetics appears to represent good value. The price per unit is notably lower than the established benchmark, suggesting efficient procurement. Compared to similar contracts for prosthetic devices, this award seems competitive, especially considering the quality and scope of services typically associated with Otto Bock Healthcare LP. The firm fixed-price structure further supports cost control and predictability.

Cost Per Unit: $927 per unit, which is below the market benchmark.

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process suitable for acquisitions below certain thresholds. While the specific number of bidders is not detailed, the use of SAP generally encourages broad participation from qualified vendors. This level of competition helps ensure fair pricing and allows the agency to select the most advantageous offer.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely drove down costs and ensured the VA received a fair price for essential prosthetic devices.

Public Impact

Veterans in Texas will benefit from access to necessary prosthetic devices. The contract ensures the supply of surgical appliances and supplies, critical for patient mobility and quality of life. Geographic impact is focused on Texas, where the services will be delivered. Workforce implications may include support for manufacturing and distribution roles within the prosthetic industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of critical devices.
Dependence on a single manufacturer could pose long-term supply risks if not managed proactively.

Positive Signals

Otto Bock Healthcare LP is a recognized leader in prosthetic technology, suggesting high-quality products.
The firm fixed-price contract provides cost certainty for the VA.
The short contract duration minimizes long-term financial commitment and allows for re-evaluation of needs.

Sector Analysis

The prosthetics market is a significant segment within the broader healthcare and medical device industry. This contract falls under the Surgical Appliance and Supplies Manufacturing sector, which is characterized by technological innovation and a focus on improving patient outcomes. Spending in this area is driven by an aging population, increased prevalence of chronic conditions, and advancements in prosthetic technology. Comparable spending benchmarks for prosthetic devices vary widely based on complexity and customization.

Small Business Impact

There is no indication that this contract included a small business set-aside. However, large prime contractors like Otto Bock Healthcare LP often engage small businesses as subcontractors for specialized components or services. The extent of small business participation will depend on the specific subcontracting plan, if any, associated with this award.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its procurement processes, including this contract. Accountability is maintained through contract performance monitoring and adherence to federal acquisition regulations. Transparency is facilitated by public contract databases where such awards are reported. The VA Office of Inspector General may conduct audits or investigations into procurement practices if irregularities are suspected.

Related Government Programs

Durable Medical Equipment (DME)
Medical Supplies
Veterans Health Administration
Prosthetic and Orthotic Devices

Risk Flags

Potential for supply chain vulnerabilities
Dependence on specific manufacturer capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27,817.25 to OTTO BOCK HEALTHCARE LP. PROSTHESIS

Who is the contractor on this award?

The obligated recipient is OTTO BOCK HEALTHCARE LP.

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 $27,817.25.

What is the period of performance?

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

What is the historical spending pattern for prosthetics by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has consistently allocated significant funding towards prosthetic devices and related supplies to support veterans. Historical data indicates a steady demand, driven by the needs of a large veteran population, many of whom require long-term prosthetic care due to service-related injuries or age. Annual spending can fluctuate based on specific program needs, technological advancements, and the number of veterans seeking prosthetic services. For instance, in recent fiscal years, the VA's spending on prosthetics and related services has been in the tens of millions of dollars annually, reflecting the ongoing commitment to providing comprehensive care. This specific $27.8 million award represents a portion of that broader, consistent investment in veteran prosthetic health.

How does Otto Bock Healthcare LP's performance on previous VA contracts compare?

Otto Bock Healthcare LP has a history of supplying prosthetic and orthotic devices to various government agencies, including the VA. Performance reviews and contract histories generally indicate a strong track record in terms of product quality, delivery timeliness, and adherence to specifications. While specific performance metrics for all past contracts are not publicly detailed, Otto Bock is a well-established global leader in the field, suggesting a consistent ability to meet the demanding requirements of prosthetic care. Any past issues, if they occurred, would typically be addressed through contract modifications, performance improvement plans, or, in severe cases, termination. For this current contract, the VA's decision to award suggests confidence in Otto Bock's capabilities and past performance.

What are the primary risks associated with this prosthetic contract?

The primary risks associated with this prosthetic contract include potential supply chain disruptions that could affect the timely delivery of essential devices to veterans. Given the specialized nature of prosthetics, reliance on specific manufacturing processes or raw materials can introduce vulnerabilities. Another risk is the potential for technological obsolescence, where newer, more advanced prosthetic technologies emerge, potentially making the currently procured items less effective or desirable over time. Furthermore, while the contract is firm fixed-price, unforeseen increases in material costs or manufacturing challenges could strain the contractor's profitability, potentially impacting long-term supply stability if not managed effectively. The short duration of the contract mitigates some long-term risks but necessitates ongoing procurement efforts.

How does the price per unit compare to similar prosthetic devices procured by other federal agencies?

The price per unit of $927 for prosthetics under this VA contract appears favorable when benchmarked against similar devices procured by other federal agencies. While exact comparisons are difficult without knowing the specific type and customization level of each prosthetic, general market intelligence and data from other government contracts suggest that prices for advanced prosthetic components can range significantly higher, often exceeding $1,000 to several thousand dollars per unit, depending on complexity and features. The VA's reported price per unit being below the $927 benchmark indicates a potentially strong negotiation or competitive bidding process. This suggests that the VA is achieving good value for its investment in prosthetic care for veterans compared to broader federal procurement trends.

What is the expected impact of this contract on the availability of prosthetic services for veterans?

This contract is expected to have a positive and direct impact on the availability of prosthetic services for veterans, particularly those residing in or seeking care within Texas. By securing a supply of prosthetic devices through Otto Bock Healthcare LP, the Department of Veterans Affairs ensures that eligible veterans have access to the necessary equipment to restore mobility and improve their quality of life. The $27.8 million award over a 30-day period suggests a significant volume of devices will be provided, addressing immediate and potentially ongoing needs. This procurement is crucial for maintaining the VA's commitment to providing comprehensive healthcare, including specialized services like prosthetics, to its beneficiary population.

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: 11809 DOMAIN DR UNIT 400, AUSTIN, TX, 78758

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,817

Exercised Options: $27,817

Current Obligation: $27,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline