VA awards $17.8M for breast implants, raising questions about competition and value

Contract Overview

Contract Amount: $17,863 ($17.9K)

Contractor: Mentor Worldwide LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-05-06

Contract Duration: 27 days

Daily Burn Rate: $662/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BREAST IMPLANTS

Place of Performance

Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37129

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,862.69 to MENTOR WORLDWIDE LLC for work described as: BREAST IMPLANTS Key points: 1. The contract was awarded on a non-competitive basis, limiting price discovery. 2. The duration of the contract is relatively short, suggesting potential for future re-competition. 3. The fixed-price nature of the award provides some cost certainty. 4. The awardee, Mentor Worldwide LLC, is a significant player in the medical device market. 5. The specific product code is not detailed, making direct cost comparisons difficult. 6. The contract falls under surgical appliance manufacturing, a specialized sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of detailed product information and the non-competitive award. While the firm fixed-price structure offers some predictability, the absence of competitive bids prevents a thorough assessment of whether the government secured the best possible price. The award amount of $17.8 million for a 27-day period suggests a high per-diem cost, which warrants further investigation into the specific services and products included.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This means that only one vendor, Mentor Worldwide LLC, was solicited for this requirement. The lack of competition limits the government's ability to explore alternative solutions or negotiate more favorable terms, potentially leading to higher costs than if multiple vendors had been involved.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no market pressure to drive down prices.

Public Impact

Veterans requiring breast implants will receive necessary medical supplies. The Department of Veterans Affairs ensures access to essential surgical appliances for its patient population. The contract supports the healthcare services provided by the VA. The primary geographic impact is within Tennessee, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency on the specific products and services procured.
Short contract duration could indicate a need for urgent or specialized supply, potentially at a higher cost.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awardee is an established manufacturer in the medical device sector.
Contract supports essential healthcare services for veterans.

Sector Analysis

The surgical appliance and supplies manufacturing sector is a critical component of the broader healthcare industry. This contract, valued at $17.8 million, falls within this specialized niche. While the specific product is breast implants, the industry encompasses a wide range of medical devices used in surgical procedures. Benchmarking this contract against others in the sector is difficult without more granular data on the specific type and quantity of implants, but the award amount suggests a significant procurement.

Small Business Impact

This contract was awarded to Mentor Worldwide LLC and does not appear to have a small business set-aside. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, and opportunities for small business participation in fulfilling this specific requirement are not evident from the data.

Oversight & Accountability

The oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and contracting offices. As a purchase order, it is subject to standard federal acquisition regulations and internal VA oversight procedures. Transparency is limited due to the sole-source nature of the award. Further oversight could be provided by the VA Office of Inspector General if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Medical Supplies
Surgical Implants
Veterans Health Administration Contracts
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award lacks competitive pricing.
High value for a short contract duration.
Limited transparency on specific product details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,862.69 to MENTOR WORLDWIDE LLC. BREAST IMPLANTS

Who is the contractor on this award?

The obligated recipient is MENTOR WORLDWIDE 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 $17,862.69.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-06.

What is the track record of Mentor Worldwide LLC with the Department of Veterans Affairs?

Mentor Worldwide LLC has a history of supplying medical devices, including breast implants, to various healthcare providers. While specific contract details with the VA are not fully elaborated in this data, their presence as a sole-source awardee suggests a prior relationship or a recognized capability to meet the VA's needs. Further analysis would require examining historical VA contract awards to Mentor Worldwide LLC, including their performance ratings, any past disputes, and the volume of business conducted. This would help assess their reliability and established presence within the VA's supply chain for similar medical products.

How does the pricing of these breast implants compare to market rates or other federal contracts?

Directly comparing the pricing of these breast implants is difficult without knowing the specific product model, quantity, and associated services included in the $17.8 million award. The contract's sole-source nature also prevents a direct competitive benchmark. However, the award amount for a 27-day period suggests a high unit cost or a significant volume. To assess value, one would need to compare the per-unit cost against publicly available pricing for similar medical-grade implants from other manufacturers and analyze historical VA or other federal agency contracts for comparable breast implant procurements, looking for price variations over time and across different award mechanisms.

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

The primary risk associated with a sole-source award for critical medical supplies like breast implants is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the most cost-effective outcome. Another risk is vendor lock-in, where the agency becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. Furthermore, a sole-source award can sometimes indicate a lack of market research or an insufficient understanding of available alternatives, which could lead to suboptimal product selection or higher overall program costs. Ensuring the necessity and justification for the sole-source award is crucial to mitigate these risks.

How effective is the Department of Veterans Affairs in procuring medical supplies through competitive means?

The Department of Veterans Affairs (VA) generally aims to procure medical supplies through competitive means to ensure value for taxpayer dollars, utilizing various contract vehicles and strategies. However, the VA, like other federal agencies, does encounter situations where sole-source or limited competition awards are necessary due to specific requirements, urgent needs, or the unique nature of certain products. Data from the Federal Procurement Data System (FPDS) can provide insights into the proportion of VA spending that is competitively awarded versus non-competitively. While the VA has faced scrutiny regarding its procurement processes, ongoing efforts and reforms aim to increase competition and transparency. The effectiveness can vary by specific medical category and market dynamics.

What is the historical spending pattern for breast implants by the Department of Veterans Affairs?

Analyzing historical spending patterns for breast implants by the Department of Veterans Affairs requires accessing and aggregating data from federal procurement databases over multiple fiscal years. This would involve searching for contracts related to breast implants, identifying the primary awardees, and tracking the total dollar amounts awarded. Understanding historical spending can reveal trends in demand, identify key suppliers, and highlight any significant shifts in pricing or procurement strategies. For instance, a consistent increase in spending might indicate growing demand or rising costs, while a decrease could suggest changes in medical practice or successful cost-saving measures. This contract's $17.8 million award for a short period warrants comparison with historical VA expenditures to determine if it represents a typical procurement or an outlier.

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: Johnson & Johnson

Address: 31 TECHNOLOGY DR STE 200, IRVINE, CA, 92618

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,863

Exercised Options: $17,863

Current Obligation: $17,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline