VA awards $12.3M for custom prosthetic eyes, with limited competition impacting price discovery

Contract Overview

Contract Amount: $12,311 ($12.3K)

Contractor: Atlanta EYE Prosthetics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-25

End Date: 2026-04-30

Contract Duration: 248 days

Daily Burn Rate: $50/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM PROSTHETIC EYE

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12,311.25 to ATLANTA EYE PROSTHETICS, INC. for work described as: CUSTOM PROSTHETIC EYE Key points: 1. The contract value of $12.3M for prosthetic eyes appears to be within a reasonable range for specialized medical devices. 2. Limited competition for custom prosthetic eyes may lead to higher prices than a fully open market. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of 248 days suggests a focused effort on delivering a specific set of prosthetic eyes. 5. This contract supports the VA's mission to provide essential medical supplies to veterans. 6. The lack of a small business set-aside is noted, with no subcontracting requirements specified.

Value Assessment

Rating: fair

Benchmarking the value of custom prosthetic eyes is challenging due to the highly specialized nature of the product and the variability in patient needs. However, the $12.3M award for a 248-day period suggests a significant investment in these devices. Without more granular data on the number of units and complexity, a precise value-for-money assessment is difficult. Compared to general medical supply contracts, this appears to be a niche and potentially high-cost area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, indicating potential limitations in the bidding process. The specific reasons for this limited competition are not detailed, but it suggests that only a select number of vendors were considered or capable of fulfilling the requirement. This can reduce the government's ability to secure the most competitive pricing.

Taxpayer Impact: Limited competition means taxpayers may not be benefiting from the lowest possible prices achievable through a broader bidding process.

Public Impact

Veterans requiring custom prosthetic eyes will receive essential medical devices. The services delivered include the manufacturing and supply of specialized prosthetic eyes. The geographic impact is primarily within Georgia, where the contractor is located. This contract supports specialized medical manufacturing jobs within the prosthetics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of price transparency.
The absence of detailed performance metrics makes it difficult to assess the quality and timeliness of delivery.
Reliance on a limited number of suppliers could create future supply chain vulnerabilities.

Positive Signals

The contract is for custom prosthetic eyes, directly addressing a specific medical need for veterans.
The firm fixed-price contract type provides cost certainty for the government.
The award supports a specialized manufacturing capability within the medical device industry.

Sector Analysis

The market for custom prosthetic eyes is a highly specialized segment within the broader medical device and surgical appliance manufacturing industry. This sector is characterized by low volume, high customization, and significant technical expertise. Spending in this area is driven by patient need and healthcare provider requirements, often involving direct patient care and fitting. Comparable spending benchmarks are difficult to establish due to the bespoke nature of each prosthetic.

Small Business Impact

This contract was not competed with a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited. The overall impact on the small business ecosystem for prosthetic manufacturing is neutral, as no specific provisions were made to encourage their involvement.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of Veterans Affairs' procurement and medical supply chain management divisions. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified goods. Transparency is limited by the non-competitive nature of the award; however, standard contract reporting mechanisms should provide some visibility into spending.

Related Government Programs

VA Medical Supplies
Prosthetic and Orthotic Devices
Surgical Appliances
Medical Manufacturing Contracts

Risk Flags

Limited competition
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12,311.25 to ATLANTA EYE PROSTHETICS, INC.. CUSTOM PROSTHETIC EYE

Who is the contractor on this award?

The obligated recipient is ATLANTA EYE PROSTHETICS, 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 $12,311.25.

What is the period of performance?

Start: 2025-08-25. End: 2026-04-30.

What is the historical spending by the VA on custom prosthetic eyes, and how does this award compare?

Historical spending data for 'custom prosthetic eyes' specifically is not readily available in public databases without more granular categorization. However, the Department of Veterans Affairs (VA) consistently spends billions annually on medical supplies and equipment to serve its veteran population. Awards for prosthetic devices, in general, represent a significant portion of this spending. This $12.3M award for custom prosthetic eyes over approximately 8 months indicates a substantial investment in this specialized area. To provide a precise comparison, one would need to analyze historical VA contracts for similar custom ocular prosthetics, considering factors like the number of units, complexity, and specific materials used. Without such detailed historical data, it's challenging to definitively state whether this award is higher or lower than previous spending patterns, but it signifies a considerable allocation for this specific need.

What are the typical profit margins for companies manufacturing custom prosthetic eyes?

Profit margins for companies manufacturing custom prosthetic eyes can vary significantly based on several factors, including the company's operational efficiency, the complexity of the prosthetics, the materials used, and the competitive landscape. Generally, specialized medical device manufacturers, particularly those dealing with custom-fitted products, aim for higher margins than mass-produced goods to cover research, development, skilled labor, and regulatory compliance costs. While specific industry-wide profit margin data for custom prosthetic eye manufacturers is not publicly disclosed in detail, it is reasonable to assume margins could range from 15% to 30% or potentially higher for highly specialized or patented products. The 'limited' competition noted in this contract could allow the awarded vendor to achieve margins at the higher end of this spectrum, as price discovery is constrained.

What are the risks associated with a 'limited' competition award for medical devices?

A 'limited' competition award for medical devices, such as custom prosthetic eyes, carries several inherent risks for the government and taxpayers. Primarily, it reduces the potential for competitive bidding, which can lead to inflated prices and less value for money. Without multiple vendors vying for the contract, the government may end up paying more than necessary. Secondly, it can stifle innovation, as vendors may have less incentive to develop more cost-effective or advanced solutions if they are not actively competing for new business. There's also a risk of vendor lock-in, where the government becomes dependent on a single or limited set of suppliers, potentially leading to supply chain vulnerabilities or difficulties in switching providers if performance issues arise. Finally, limited competition can obscure the true market price, making it harder to assess the fairness and reasonableness of the awarded cost.

How does the firm fixed-price (FFP) contract type benefit the VA in this scenario?

The Firm Fixed-Price (FFP) contract type offers significant benefits to the VA in this scenario involving custom prosthetic eyes. With FFP, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the VA with maximum cost certainty, making budgeting and financial planning more predictable. The risk of cost overruns is transferred entirely to the contractor, Atlanta Eye Prosthetics, Inc. If the contractor incurs higher-than-expected costs in manufacturing the prosthetic eyes, their profit margin will decrease, but the VA's payment obligation remains fixed. This structure incentivizes the contractor to manage their costs efficiently and perform the work within the agreed-upon budget to maximize their profit. For specialized, custom-manufactured items where the scope of work is well-defined, FFP is often the preferred contract type to control government expenditure.

What is the typical lead time for manufacturing and delivering custom prosthetic eyes?

The typical lead time for manufacturing and delivering custom prosthetic eyes can vary widely depending on the complexity of the case, the specific requirements of the patient, the manufacturer's current workload, and the materials needed. Generally, the process involves initial consultation, impression taking or digital scanning, fabrication of the prosthetic, fitting, and final adjustments. This can take anywhere from a few weeks to several months. The contract duration of 248 days (approximately 8 months) for this award suggests that the VA anticipates a lead time within this range, potentially accounting for multiple units, complex fittings, or a phased delivery schedule. It is longer than the shortest possible turnaround but falls within a reasonable timeframe for custom medical devices that require precise craftsmanship and patient-specific adaptation.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6065 ROSWELL RD STE 870, ATLANTA, GA, 30328

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

Financial Breakdown

Contract Ceiling: $12,311

Exercised Options: $12,311

Current Obligation: $12,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline