VA awards $14.6M sole-source contract to Optimum Prosthetics & Orthotics for outpatient care in California

Contract Overview

Contract Amount: $14,600 ($14.6K)

Contractor: Optimum Prosthetics & Orthotics LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-13

End Date: 2026-04-10

Contract Duration: 393 days

Daily Burn Rate: $37/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIMB

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14,599.82 to OPTIMUM PROSTHETICS & ORTHOTICS LLC for work described as: LIMB Key points: 1. Contract awarded without competition, raising questions about potential cost savings and market fairness. 2. The contract duration of 393 days suggests a need for ongoing, specialized services. 3. Sole-source award may limit opportunities for other qualified providers to enter the market. 4. Focus on outpatient care centers indicates a specific need within the VA's healthcare delivery. 5. The firm fixed-price structure provides cost certainty but may not capture all potential efficiencies. 6. Geographic focus on California suggests a concentrated demand for these services in that region.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without comparable bids. The VA's reliance on a single provider for specialized outpatient care suggests either a unique capability or a lack of proactive market research. The firm fixed-price structure offers predictability, but the absence of competition prevents a direct assessment of whether the price reflects the best possible value for the services rendered. Further analysis would require understanding the specific services and the contractor's pricing model relative to industry standards for similar prosthetic and orthotic services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of Veterans Affairs identified Optimum Prosthetics & Orthotics LLC as the only responsible source capable of meeting the government's needs. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct price comparison or evaluation of alternative solutions, potentially leading to a less optimal price outcome.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. Sole-source awards can sometimes result in higher costs than if multiple vendors had vied for the contract.

Public Impact

Veterans in California requiring outpatient prosthetic and orthotic services will benefit from this contract. The contract ensures the continued provision of essential medical devices and related care. Services are likely concentrated within specific geographic areas of California served by the VA. The contract supports specialized healthcare professionals employed by Optimum Prosthetics & Orthotics LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source award limits transparency in pricing and service delivery.
Potential for vendor lock-in without exploring alternative providers.
Absence of competitive benchmarking makes value assessment difficult.

Positive Signals

Contract ensures continuity of care for veterans.
Firm fixed-price contract provides budget certainty.
Specialized provider likely possesses necessary expertise.

Sector Analysis

The healthcare sector, particularly the provision of durable medical equipment and related services, is characterized by both large established players and specialized niche providers. Contracts for prosthetics and orthotics are crucial for patient rehabilitation and mobility. The market size for such services is substantial, driven by an aging population and increasing demand for advanced medical technologies. This VA contract fits within the broader category of healthcare services procurement, aiming to ensure veterans have access to necessary assistive devices and care.

Small Business Impact

This contract was awarded to Optimum Prosthetics & Orthotics LLC, a specific company, and there is no indication of it being a small business set-aside. The sole-source nature of the award means that opportunities for small businesses to subcontract or compete directly were likely bypassed. Without a competitive process, it's difficult to assess the potential impact on the small business ecosystem for prosthetic and orthotic services in the region.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs. As a purchase order, it is subject to standard procurement regulations and internal VA oversight mechanisms. Accountability measures would include performance monitoring against contract requirements and payment verification. Transparency is limited due to the sole-source nature, but contract award details are typically available through federal procurement databases.

Related Government Programs

VA Medical Services
Durable Medical Equipment Procurement
Outpatient Care Services
Prosthetic and Orthotic Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in contract negotiation and pricing.
Absence of market research to identify alternative providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14,599.82 to OPTIMUM PROSTHETICS & ORTHOTICS LLC. LIMB

Who is the contractor on this award?

The obligated recipient is OPTIMUM PROSTHETICS & ORTHOTICS 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 $14,599.82.

What is the period of performance?

Start: 2025-03-13. End: 2026-04-10.

What specific prosthetic and orthotic services are covered under this contract?

The provided data indicates the contract is for 'All Other Outpatient Care Centers' (NA 621498) and awarded to 'OPTIMUM PROSTHETICS & ORTHOTICS LLC'. While the specific services are not detailed in the provided snippet, this classification typically encompasses a range of outpatient services related to the provision, fitting, and maintenance of prosthetic limbs, orthotic braces, and other assistive devices. This could include initial consultations, device customization, adjustments, repairs, and follow-up care to ensure proper function and patient comfort. The contract's duration and value suggest a comprehensive scope of these services for a defined veteran population within California.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one vendor is capable of providing the required goods or services. For Optimum Prosthetics & Orthotics LLC, this could be due to unique technical expertise, proprietary technology, geographic exclusivity, or a critical need for continuity of care with an existing provider. The Department of Veterans Affairs would have had to document the justification for this sole-source determination, likely citing reasons such as specialized skills in prosthetic/orthotic fabrication and fitting, established patient relationships, or the inability of other firms to meet the specific requirements within the necessary timeframe. Without this detailed justification, the rationale remains speculative.

How does the $14.6 million contract value compare to similar VA contracts for prosthetic and orthotic services?

Direct comparison of this $14.6 million contract value is difficult without access to a comprehensive database of similar VA contracts, especially sole-source awards. However, the value suggests a significant scope of services, potentially covering a large number of veterans or a wide array of complex prosthetic and orthotic needs over the contract period. The average cost for prosthetic and orthotic services can vary widely based on the complexity of the device (e.g., a basic prosthetic leg versus a multi-articulating robotic limb) and the level of ongoing care required. Given the sole-source nature, it's crucial to benchmark this against industry standards for similar services to assess value for money.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $14.6 million is the potential for paying a non-competitive price, meaning the government might be overpaying compared to what could have been achieved through open competition. Other risks include a lack of innovation, as the contractor may have less incentive to improve services or offer cost-saving measures without competitive pressure. There's also a risk of vendor lock-in, making it difficult to switch providers in the future if performance issues arise or better options become available. Furthermore, the absence of multiple bidders reduces transparency and makes it harder to independently verify the fairness of the pricing and the quality of services.

What is the historical spending pattern for prosthetic and orthotic services by the VA, particularly in California?

Analyzing historical spending patterns for prosthetic and orthotic services by the VA, especially in California, would require access to detailed federal procurement data over several fiscal years. This contract's value of $14.6 million for a period of approximately 13 months (March 2025 to April 2026) suggests a substantial annual spend in this category. Historically, the VA has been a significant purchaser of healthcare services and medical equipment, including prosthetics and orthotics, to serve its veteran population. Understanding past spending levels, whether through competitive bids or sole-source awards, would provide context for the current contract's size and necessity, and help identify trends or potential areas for cost optimization.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

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: 7345 W SAND LAKE RD STE 220, ORLANDO, FL, 32819

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,600

Exercised Options: $14,600

Current Obligation: $14,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline