VA awards $565K for dental implants, highlighting a sole-source purchase for surgical instruments

Contract Overview

Contract Amount: $56,530 ($56.5K)

Contractor: Johnson & Johnson Health Care Systems Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-01

Contract Duration: 30 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MANDIBLE IMPLANT

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $56,530.34 to JOHNSON & JOHNSON HEALTH CARE SYSTEMS INC. for work described as: MANDIBLE IMPLANT Key points: 1. The contract value represents a significant investment in specialized medical equipment. 2. Limited competition suggests potential for higher pricing compared to a more open market. 3. The short duration of the contract may indicate a specific, immediate need. 4. The award falls within the surgical and medical instrument manufacturing sector. 5. This purchase is categorized under a firm-fixed-price agreement, offering cost certainty. 6. The absence of a small business set-aside warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this specific dental implant purchase is challenging without detailed specifications and comparable market data. However, the $565,303.34 award for a 30-day period suggests a high per-unit cost, typical for specialized medical devices. The lack of competition further complicates a direct value-for-money assessment, as it limits the ability to compare pricing against multiple vendors. The VA's reliance on a sole-source award for this critical item may indicate unique product requirements or a lack of readily available alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Johnson & Johnson Health Care Systems Inc., was solicited. This approach is typically used when a product or service is unique and cannot be obtained from multiple sources, or in cases of urgent and compelling need. The limited competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to a higher price than might be achieved in an open market.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The sole-source nature limits the government's ability to negotiate the best possible price.

Public Impact

Veterans requiring specialized dental implants will benefit from access to necessary medical devices. The contract supports the provision of advanced surgical and medical instruments for healthcare. The primary geographic impact is within California, where the services or products will be utilized. The award may have implications for the workforce involved in the manufacturing and distribution of these implants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of small business participation may reduce opportunities for smaller firms in the supply chain.
Short contract duration could indicate a reactive procurement rather than strategic planning.
Limited public information on the specific implant type makes value assessment difficult.

Positive Signals

Ensures access to specialized dental implants for veterans, addressing a critical healthcare need.
Award to a known entity (Johnson & Johnson) may suggest reliability and established product quality.
Firm-fixed-price contract provides budget certainty for the Department of Veterans Affairs.

Sector Analysis

The contract falls under the Surgical and Medical Instrument Manufacturing (NAICS 339112) sector, a critical component of the healthcare industry. This sector is characterized by high innovation, stringent regulatory requirements, and significant investment in research and development. The market size for medical devices is substantial globally, with a growing demand driven by an aging population and advancements in medical technology. This specific award represents a small but vital segment of federal spending on medical supplies, supporting the VA's mission to provide healthcare to veterans.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them mentioned in the provided data. The award to a large corporation like Johnson & Johnson suggests that the primary focus was on acquiring a specific product rather than fostering small business participation. Further investigation into the contract details might reveal if any subcontracting opportunities exist, but based on the initial data, the direct impact on the small business ecosystem appears minimal.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a purchase order under the Federal Acquisition Regulation (FAR), it is subject to standard procurement regulations and audit requirements. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected. The firm-fixed-price nature of the award provides a degree of accountability regarding cost.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Federal Dental Services Contracts
Surgical Implant Federal Spending
Sole-Source Medical Device Awards

Risk Flags

Sole-source justification requires scrutiny.
Potential for overpayment due to lack of competition.
Limited transparency on specific product details.
Short contract duration may indicate urgency or limited scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $56,530.34 to JOHNSON & JOHNSON HEALTH CARE SYSTEMS INC.. MANDIBLE IMPLANT

Who is the contractor on this award?

The obligated recipient is JOHNSON & JOHNSON HEALTH CARE SYSTEMS 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 $56,530.34.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-01.

What specific type of dental implant is being procured, and what are its unique features that necessitate a sole-source award?

The provided data does not specify the exact type of dental implant. A sole-source award is typically justified when a product is proprietary, requires unique compatibility with existing systems, or is the only option available to meet an urgent and compelling need. For dental implants, this could relate to specific surgical techniques, material biocompatibility, or integration with other dental prosthetics. Without further details from the contracting agency, it is difficult to ascertain the precise technical or operational reasons for the sole-source designation. This lack of specificity hinders a thorough assessment of whether the sole-source justification is robust and if alternative solutions were adequately explored.

How does the unit cost of this dental implant compare to similar products available on the market or previously procured by the VA?

Direct comparison of the unit cost is not feasible with the provided data alone. The total award is $565,303.34 for a 30-day period, but the number of units is not specified. To benchmark the unit cost, one would need to know the quantity purchased. Furthermore, 'similar products' can vary significantly in material, design, manufacturer, and intended use, all of which impact price. A comprehensive analysis would involve accessing historical VA procurement data for comparable dental implants, market research reports, and potentially consulting with subject matter experts in dental prosthetics. The sole-source nature of this award also complicates direct price comparisons, as competitive bidding often drives prices down.

What is the track record of Johnson & Johnson Health Care Systems Inc. in supplying dental implants to the federal government, particularly the VA?

Johnson & Johnson Health Care Systems Inc. is a major player in the healthcare industry, and their track record in supplying medical devices, including dental products, to the federal government, especially the Department of Veterans Affairs, is likely extensive. While this specific data point doesn't detail their past performance on dental implant contracts, their established presence suggests a capacity to meet federal requirements. A deeper dive into federal procurement databases (like FPDS) would reveal the volume and types of contracts they have held with the VA and other agencies. Analyzing past performance, including delivery timeliness, product quality, and any past disputes or issues, would provide a clearer picture of their reliability for this specific procurement.

What are the potential risks associated with a sole-source award for critical medical supplies like dental implants?

Sole-source awards for critical medical supplies present several risks. Primarily, the lack of competition can lead to inflated prices, meaning taxpayers may overpay for the goods. It also reduces the incentive for the sole provider to innovate or maintain competitive quality standards over time. Furthermore, it creates a dependency on a single supplier, which can be problematic if that supplier experiences production issues, supply chain disruptions, or decides to discontinue the product. For the VA, this could jeopardize the consistent availability of necessary dental implants for veterans, potentially impacting patient care. Ensuring robust justification and exploring all possible competitive avenues beforehand is crucial to mitigate these risks.

How does this $565K award fit into the broader context of federal spending on dental and surgical supplies?

This $565,303.34 award for dental implants is a relatively small component within the vast landscape of federal spending on medical and surgical supplies. The Department of Veterans Affairs, along with the Department of Defense and other health agencies, collectively spend billions annually on a wide array of healthcare products. Dental care is a significant part of VA services, encompassing everything from routine check-ups to complex procedures like implants. While this specific contract addresses a specialized need, it represents one of many procurements necessary to maintain comprehensive healthcare services for veterans. Understanding its place requires looking at the VA's overall medical-surgical supply budget and the proportion allocated to dental services and advanced prosthetics.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument 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

Parent Company: Johnson & Johnson

Address: 1000 US HIGHWAY 202, RARITAN, NJ, 08869

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

Financial Breakdown

Contract Ceiling: $56,530

Exercised Options: $56,530

Current Obligation: $56,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline