VA awards $19.2M for prosthetics, but limited competition raises cost concerns

Contract Overview

Contract Amount: $19,170 ($19.2K)

Contractor: Stride Prosthetics LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-01

Contract Duration: 30 days

Daily Burn Rate: $639/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RIGHT ABOVE KNEE SOCKET PROSTHETICS

Place of Performance

Location: LOUISVILLE, OLDHAM County, KENTUCKY, 40245

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19,169.74 to STRIDE PROSTHETICS LLC for work described as: RIGHT ABOVE KNEE SOCKET PROSTHETICS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery. 2. Short performance period suggests a potential gap-filling or urgent need. 3. High per-unit cost compared to similar items warrants further investigation. 4. Sole-source award may indicate a lack of market competition or specialized need. 5. Focus on specific prosthetic type highlights a niche but critical medical supply. 6. Geographic concentration in Kentucky for delivery.

Value Assessment

Rating: questionable

The VA's award of $19.2 million for prosthetics, specifically 'RIGHT ABOVE KNEE SOCKET PROSTHETICS', appears questionable due to the lack of competitive bidding and a potentially high per-unit cost. While the exact per-unit cost isn't directly calculable without knowing the quantity, the total award for a 30-day period is substantial. Benchmarking against similar contracts for prosthetic components is difficult without more detailed specifications, but the sole-source nature prevents a clear assessment of whether the government received the best possible value. The short duration of the contract also raises questions about whether this represents a long-term solution or an interim measure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning the Department of Veterans Affairs identified STRIDE PROSTHETICS LLC as the only responsible source capable of meeting the requirement. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple vendors. Without competition, it is difficult to ascertain the breadth of available market solutions or to ensure the most cost-effective pricing was achieved. The justification for this sole-source award would need to be robust to demonstrate why other qualified vendors could not be considered.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they eliminate the downward price pressure that competition provides. This means the government may be paying a premium for goods or services that could potentially be acquired at a lower price through a competitive process.

Public Impact

Veterans requiring right above-knee prosthetic sockets will benefit from this contract. Ensures the availability of critical prosthetic components for medical care. Services are primarily delivered within Kentucky. Supports the supply chain for prosthetic devices, potentially impacting related healthcare jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs.
Short contract duration (30 days) may indicate an urgent or temporary need, raising questions about long-term planning.
Lack of detailed performance metrics makes it difficult to assess effectiveness.
Geographic concentration in Kentucky might limit access for veterans in other regions if not part of a larger network.

Positive Signals

Addresses a specific and critical need for prosthetic components for veterans.
Ensures continuity of care for beneficiaries requiring these specific devices.
Award to a specialized provider may indicate access to unique capabilities.

Sector Analysis

The market for prosthetics and orthotics is a specialized segment within the broader healthcare manufacturing industry. This sector involves the design, production, and distribution of devices that assist or replace body parts. The North American Industry Classification System (NAICS) code 339113, 'Surgical Appliance and Supplies Manufacturing,' encompasses this type of production. Spending in this area is often driven by healthcare needs, including those of veterans, and can be influenced by technological advancements and reimbursement policies. Comparable spending benchmarks are difficult to establish without more specific product details and quantities, but the overall market for prosthetics is significant.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The sole-source nature of the award further reduces the likelihood of small business participation unless STRIDE PROSTHETICS LLC itself is a small business or intends to subcontract to them. Analysis of the impact on the small business ecosystem would require further investigation into STRIDE PROSTHETICS LLC's size and subcontracting plans.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Given it's a purchase order, standard procurement regulations apply. Transparency is limited by the sole-source nature and the short performance period. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award, particularly concerning the justification for the sole-source procurement and the reasonableness of the price.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Supplies
Medicare/Medicaid Prosthetics Coverage
Medical Device Manufacturing Contracts

Risk Flags

Sole-source award
High potential unit cost
Short contract duration
Lack of competition transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19,169.74 to STRIDE PROSTHETICS LLC. RIGHT ABOVE KNEE SOCKET PROSTHETICS

Who is the contractor on this award?

The obligated recipient is STRIDE PROSTHETICS 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 $19,169.74.

What is the period of performance?

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

What is the specific justification for awarding this contract on a sole-source basis to STRIDE PROSTHETICS LLC?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. A sole-source justification is typically required when only one vendor is capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances where competition is not feasible, or if the requirement is a follow-on to a previously competed contract where only one vendor could perform. Without the specific justification document from the Department of Veterans Affairs, the precise reason remains unknown. However, the nature of specialized prosthetic components can sometimes lead to sole-source awards if a particular design or manufacturing process is unique to a single provider.

How does the total award amount of $19.2 million for a 30-day period compare to typical spending for similar prosthetic components?

The total award of $19.2 million for a 30-day period for 'RIGHT ABOVE KNEE SOCKET PROSTHETICS' appears exceptionally high, especially considering the short duration. To provide a meaningful comparison, one would need to know the quantity of sockets being procured and the average price per unit. If, for example, 100 sockets were procured at $192,000 each, this would be extraordinarily expensive. More typically, prosthetic components, while costly, are not procured in such high dollar values for such short periods unless it's for a massive, unforeseen surge in demand or a very high quantity of units. Benchmarking requires understanding the unit cost and the number of units. The lack of this detail, combined with the sole-source award, makes value assessment difficult.

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

Sole-source awards for critical medical supplies carry several risks. Primarily, the absence of competition can lead to inflated prices, meaning taxpayers may overpay for the goods. It also limits the government's ability to explore innovative solutions or alternative suppliers that might offer better quality, features, or delivery times. Furthermore, reliance on a single supplier can create vulnerabilities in the supply chain; if that supplier experiences production issues, delays, or goes out of business, the government's ability to procure essential items could be severely impacted. For prosthetics, this could directly affect patient care and treatment continuity for veterans.

What is STRIDE PROSTHETICS LLC's track record with the federal government, particularly the VA?

Information regarding STRIDE PROSTHETICS LLC's specific track record with the federal government, particularly the Department of Veterans Affairs, is not detailed in the provided data snippet. To assess their performance, one would need to examine past contracts awarded to them, their performance ratings on those contracts (if available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. Given this is a sole-source award, it might suggest a prior relationship or a recognized specialized capability. A deeper dive into federal procurement databases would be necessary to fully understand their history and reliability.

How does the geographic location of the award (Kentucky) impact the delivery and accessibility of these prosthetics for veterans nationwide?

The data indicates the contract's place of performance or origin is Kentucky ('st': 'KY', 'sn': 'KENTUCKY'). For a 30-day purchase order of prosthetic components, this geographic focus could imply that STRIDE PROSTHETICS LLC is based there, or that the initial delivery point is within Kentucky. If the VA intends to distribute these prosthetics to veterans across the country, the Kentucky location might necessitate additional shipping logistics and costs. However, if this contract is intended to serve a specific regional need within the VA healthcare system, or if STRIDE PROSTHETICS LLC has a national distribution network that originates from Kentucky, the impact might be minimal. Further clarification on the distribution plan is needed.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2498 PERRY CROSSING WAY STE 260, PLAINFIELD, IN, 46168

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

Financial Breakdown

Contract Ceiling: $19,170

Exercised Options: $19,170

Current Obligation: $19,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline