VA awards $25,362 for anterior cervical disc and fusion procedure to Medtronic Inc

Contract Overview

Contract Amount: $25,362 ($25.4K)

Contractor: Medtronic Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-04-03

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BILL ONLY, POST SURGICAL VA CLINICIAN PRESRIBED ANTERIOR CERVICAL DISC AND FUSION PROCEDURE FOR VETERAN PATIENT IAW 38 USC 8123

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37212

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25,362 to MEDTRONIC INC for work described as: BILL ONLY, POST SURGICAL VA CLINICIAN PRESRIBED ANTERIOR CERVICAL DISC AND FUSION PROCEDURE FOR VETERAN PATIENT IAW 38 USC 8123 Key points: 1. The award is for a specific surgical procedure, indicating a focus on specialized medical needs. 2. Medtronic Inc. is a major player in the medical device industry, suggesting established market presence. 3. The contract is not competed under Simplified Acquisition Procedures (SAP), raising questions about price discovery. 4. The sector is healthcare, specifically surgical supplies and related procedures.

Value Assessment

Rating: questionable

The contract value of $25,362 for a single procedure is difficult to benchmark without specific details on the device and complexity. However, the lack of competition under SAP suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not yield the best price for the government as it bypasses standard competitive processes designed to ensure fair and reasonable pricing.

Taxpayer Impact: The lack of robust competition could lead to higher costs for taxpayers compared to a fully competed contract.

Public Impact

Veterans will receive necessary surgical care, improving health outcomes. The procurement supports a specific medical technology provider, impacting the healthcare supply chain. Taxpayer funds are allocated for specialized medical procedures, reflecting healthcare priorities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing

Positive Signals

Addresses specific veteran healthcare need
Utilizes established medical technology

Sector Analysis

This contract falls within the healthcare sector, specifically medical devices and surgical procedures. Spending benchmarks for such specialized procedures can vary widely based on device type, surgeon expertise, and hospital facility costs.

Small Business Impact

This contract was awarded to Medtronic Inc., a large corporation, and there is no indication of any subcontracting or set-aside for small businesses. Therefore, this procurement does not appear to benefit small businesses.

Oversight & Accountability

The contract was awarded via a purchase order, which is a common method for acquiring goods and services. Oversight would typically involve ensuring the procedure is medically necessary and the billing is accurate according to the contract terms.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on cost components
No clear justification for limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25,362 to MEDTRONIC INC. BILL ONLY, POST SURGICAL VA CLINICIAN PRESRIBED ANTERIOR CERVICAL DISC AND FUSION PROCEDURE FOR VETERAN PATIENT IAW 38 USC 8123

Who is the contractor on this award?

The obligated recipient is MEDTRONIC 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 $25,362.

What is the period of performance?

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

What specific components or services are included in the $25,362 cost for the anterior cervical disc and fusion procedure?

The provided data lacks specifics on the exact components (e.g., type of disc, fusion hardware) or services (e.g., surgeon fees, facility costs) included in the $25,362. Understanding these details is crucial for a thorough cost-benefit analysis and for comparing this price against industry standards for similar procedures.

What is the justification for not competing this contract under Simplified Acquisition Procedures (SAP)?

The justification for not competing under SAP is not provided. Typically, agencies may use limited competition for specialized items, urgent needs, or when only one source can provide the required item. Without this justification, it's difficult to assess if the limited competition was appropriate or if it potentially led to a higher price for the government.

How does the cost of this procedure compare to similar procedures performed at other VA facilities or non-VA healthcare providers?

A direct comparison is challenging without more detailed cost breakdowns and procedure specifics. However, the lack of competition suggests a potential for the VA to have paid a non-competitive price. Benchmarking against Medicare reimbursement rates or contracts with other large healthcare systems could provide insights into potential cost savings if competition had been pursued.

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

Parent Company: Medtronic Public Limited Company

Address: 710 MEDTRONIC PKWY, MINNEAPOLIS, MN, 55432

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

Financial Breakdown

Contract Ceiling: $25,362

Exercised Options: $25,362

Current Obligation: $25,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline