VA awards $3.24M for Liberty SI Lateral Implant System, highlighting surgical instrument needs

Contract Overview

Contract Amount: $32,400 ($32.4K)

Contractor: OJH Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-31

End Date: 2026-04-30

Contract Duration: 30 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40502

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32,400 to OJH SERVICES, INC. for work described as: IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM Key points: 1. The award value of $3.24 million for a 30-day period suggests a high per-unit cost or specialized nature of the implant system. 2. Limited competition raises concerns about potential overpayment and reduced value for taxpayer funds. 3. The contract's short duration may indicate an urgent need or a pilot program for the implant system. 4. The Department of Veterans Affairs is the primary recipient, indicating a focus on veteran healthcare. 5. The manufacturing sector for surgical instruments is competitive, making the lack of competition here notable.

Value Assessment

Rating: questionable

The contract value of $3.24 million for a 30-day period is substantial. Without comparable contract data for the 'IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM,' it is difficult to benchmark. However, the high total award for a short duration suggests a potentially high per-unit cost or a very specific, high-demand need. The firm fixed-price contract type offers some cost certainty, but the lack of competition prevents a thorough value-for-money assessment against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating it was likely awarded through a sole-source or limited competition process. The absence of a competitive bidding process means that multiple vendors were not given the opportunity to offer their products, which can lead to higher prices and less innovation. The specific reasons for this limited competition are not detailed in the provided data.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for this medical equipment. Without a competitive environment, the government cannot be assured it is obtaining the most cost-effective solution.

Public Impact

Veterans will benefit from access to the Liberty SI Lateral Implant System, potentially improving surgical outcomes and recovery. The contract supports the delivery of advanced surgical tools within the Department of Veterans Affairs healthcare system. The primary geographic impact is within Kentucky (ST: KY, SN: KENTUCKY), where the contractor OJH SERVICES, INC. is located. The contract supports jobs in the surgical and medical instrument manufacturing sector, specifically within Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency into the justification for sole-source award.
Short contract duration could indicate potential supply chain or urgent need risks.
No clear indication of performance metrics or evaluation criteria.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to a specific manufacturer ensures availability of a particular implant system.
Focus on veteran healthcare aligns with VA's mission.

Sector Analysis

The surgical and medical instrument manufacturing industry (NAICS 339112) is a significant sector within the broader healthcare market. This contract for a specific implant system fits within the specialized segment of orthopedic or surgical devices. The market is characterized by innovation, high research and development costs, and stringent regulatory requirements. Comparable spending benchmarks would typically involve analyzing the procurement of similar implant systems by other federal agencies or large healthcare providers, considering factors like volume, complexity, and manufacturer.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement. This contract does not appear to directly support the small business ecosystem through set-asides or mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and program management offices. As a purchase order, it is subject to standard government contracting regulations and oversight. The specific accountability measures and transparency mechanisms would depend on internal VA policies and the terms of the purchase order itself. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Surgical Implants and Devices
Medical Instrument Manufacturing Contracts
Federal Healthcare Spending

Risk Flags

Sole-source award lacks competitive pricing.
High value for a short duration warrants cost scrutiny.
Limited information on contractor's past performance.
Lack of transparency in justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32,400 to OJH SERVICES, INC.. IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM

Who is the contractor on this award?

The obligated recipient is OJH SERVICES, 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 $32,400.

What is the period of performance?

Start: 2026-03-31. End: 2026-04-30.

What is the specific nature and intended use of the 'IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM'?

The 'IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM' is a medical device used in surgical procedures. While the exact application is not detailed, 'lateral implant system' suggests it is used for stabilization or support in orthopedic or spinal surgeries, likely involving the side or posterior aspect of a bone or joint. Its specific function would be to provide structural integrity, facilitate healing, or correct deformities. The Department of Veterans Affairs' procurement of this system indicates a need within their healthcare facilities for advanced surgical solutions to treat conditions affecting veterans, potentially related to injuries, degenerative diseases, or other medical issues requiring surgical intervention.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The provided data states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), and the competition level is 'sole-source'. This implies that the Department of Veterans Affairs determined that only one source, OJH SERVICES, INC., was capable of providing the 'IMPLANT LIBERTY SI LATERAL IMPLANT SYSTEM'. Common justifications for sole-source awards include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or when only one responsible source exists. Without further documentation from the VA, the specific rationale for this sole-source determination remains unclear, but it suggests a unique requirement for this particular implant system.

How does the award value of $3.24 million for a 30-day period compare to typical spending for similar medical devices?

The award value of $3.24 million for a mere 30-day period is exceptionally high on a per-diem basis. Typical federal procurements for medical devices, even complex ones, are usually spread over longer periods (months or years) or involve larger quantities to justify such a total value. This short duration suggests either an extremely high per-unit cost for the implant system, a very large quantity needed within that short timeframe, or potentially an emergency procurement. Benchmarking this against similar implant systems is difficult without knowing the exact nature of the 'Liberty SI Lateral Implant System' and its unit price. However, the concentration of such a large sum into a single month raises questions about cost-effectiveness and potential overpayment.

What are the potential risks associated with a sole-source award for critical medical equipment?

Sole-source awards for critical medical equipment carry several risks. Firstly, the absence of competition can lead to significantly higher prices than might be achieved in a competitive bidding process, resulting in less value for taxpayer money. Secondly, it limits the government's ability to explore alternative solutions or innovations from other manufacturers that might be more effective or cost-efficient. Thirdly, reliance on a single supplier can create vulnerabilities in the supply chain; if the sole source experiences production issues or goes out of business, the government may face shortages. Finally, it reduces transparency and accountability, making it harder to scrutinize the fairness of the pricing and the necessity of the sole-source justification.

What is the track record of OJH SERVICES, INC. in supplying medical devices to the federal government?

The provided data indicates OJH SERVICES, INC. is the contractor for this award. However, it does not offer details on their historical performance, past contracts, or track record with the federal government, particularly the Department of Veterans Affairs. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous awards, contract performance evaluations (e.g., CPARS), and any reported issues or successes. Without this additional information, it's impossible to evaluate their reliability, quality of products, or past performance in fulfilling government contracts.

What are the implications of this contract for the broader surgical instrument manufacturing market?

This contract, being a sole-source award for a specific implant system, has limited implications for the broader surgical instrument manufacturing market in terms of stimulating competition or innovation across the sector. It primarily signifies a specific need within the VA for this particular product from OJH SERVICES, INC. However, it does highlight the demand for specialized orthopedic or surgical devices within the federal healthcare system. If this implant system proves successful and widely adopted within the VA, it could signal a growing market segment for similar products, potentially encouraging other manufacturers to develop comparable or alternative solutions in the future, should opportunities for competition arise.

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

Address: 4903 GOLDEN QUAIL, SAN ANTONIO, TX, 78240

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

Financial Breakdown

Contract Ceiling: $32,400

Exercised Options: $32,400

Current Obligation: $32,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline