VA awards $16.8M for prosthetics to Otto Bock Patient Care LLC, a sole-source contract

Contract Overview

Contract Amount: $16,846 ($16.8K)

Contractor: Otto Bock Patient Care LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-08-05

Contract Duration: 121 days

Daily Burn Rate: $139/day

Competition Type: NOT 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 $16,846.3 to OTTO BOCK PATIENT CARE LLC for work described as: PROSTHESIS Key points: 1. Contract Value: $16.8 million over 121 days. 2. Competition: Sole-source award, raising concerns about price discovery. 3. Risk: Potential for overpayment due to lack of competition. 4. Sector: Healthcare supplies, specifically prosthetics.

Value Assessment

Rating: questionable

The contract is a sole-source award, making it difficult to benchmark pricing against similar contracts. Without competitive bidding, the government may not be achieving the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP (Simplified Acquisition Procedures) and was awarded sole-source. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition for this sole-source contract may result in taxpayers paying a premium for prosthetic devices.

Public Impact

Veterans may experience delays or higher costs for essential prosthetic devices. The VA's reliance on sole-source contracts can impact overall healthcare spending efficiency. Transparency in sole-source procurements is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential medical supplies for veterans
Fixed-price contract

Sector Analysis

The healthcare sector, particularly medical supplies, often sees significant government spending. Prosthetics are critical for patient care, and ensuring competitive pricing is vital for budget efficiency.

Small Business Impact

The award to Otto Bock Patient Care LLC does not indicate any specific provisions or benefits for small businesses. Further analysis would be needed to determine if small businesses were excluded or had opportunities.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value. Accountability measures should focus on validating the necessity of the sole-source justification and the reasonableness of the price.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source justification questionable
Lack of competitive pricing
Potential for inflated costs
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,846.3 to OTTO BOCK PATIENT CARE LLC. PROSTHESIS

Who is the contractor on this award?

The obligated recipient is OTTO BOCK PATIENT CARE 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 $16,846.3.

What is the period of performance?

Start: 2026-04-06. End: 2026-08-05.

What is the justification for this sole-source award, and has the VA explored all avenues for competitive bidding?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. The VA should have documented why competitive bidding was not feasible, such as a lack of alternative suppliers or a critical, time-sensitive need that precluded a full solicitation process. Without this documentation, the award raises concerns about procurement efficiency.

How does the pricing of these prosthetics compare to industry benchmarks or previous VA contracts for similar items?

Given this is a sole-source award, direct price comparison is challenging. However, the VA should have conducted a price analysis using available market data, historical pricing, or cost breakdowns from the vendor to ensure the price is fair and reasonable. If such analysis was not robust, the risk of overpayment increases significantly, impacting taxpayer value.

What is the long-term strategy for ensuring competitive pricing for prosthetic supplies to the VA?

The VA should develop a long-term strategy that minimizes reliance on sole-source contracts for recurring needs like prosthetics. This could involve market research to identify potential competitors, encouraging new entrants into the market, or exploring different contract vehicles that foster competition over the contract lifecycle. Proactive planning is key to achieving cost savings.

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 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 100, AUSTIN, TX, 78758

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

Financial Breakdown

Contract Ceiling: $16,846

Exercised Options: $16,846

Current Obligation: $16,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline