VA awards $17.8M for artificial limbs, highlighting potential value concerns with sole-source contract

Contract Overview

Contract Amount: $17,784 ($17.8K)

Contractor: Superior Prosthetic Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-05-13

Contract Duration: 41 days

Daily Burn Rate: $434/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 10 ARTIFICIAL LIMBS

Place of Performance

Location: NEWPORT, CAMPBELL County, KENTUCKY, 41071

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,783.61 to SUPERIOR PROSTHETIC SOLUTIONS INC for work described as: VISN 10 ARTIFICIAL LIMBS Key points: 1. Contract awarded to Superior Prosthetic Solutions Inc. for artificial limbs. 2. The contract duration is short, suggesting a potential need for ongoing services. 3. The award was not competed under SAP, raising questions about price discovery. 4. The fixed-price contract type aims to control costs, but competition is key. 5. The manufacturing NAICS code (339113) indicates a focus on specialized medical devices. 6. The contract is a BPA Call, indicating it's part of a larger agreement. 7. The geographic location is Kentucky, potentially impacting local veteran access.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the value for money on this $17.8 million contract. The sole-source nature prevents direct comparison to market rates or other providers. The fixed-price structure offers some cost certainty, but the absence of competition means the VA may not be securing the most advantageous pricing. Further analysis would require understanding the specific services and products included, and whether similar contracts have been awarded competitively elsewhere.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition limits the VA's ability to explore alternative solutions or negotiate better terms. It also means that the price is determined without the benefit of market forces driving efficiency and cost reduction.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to offer the lowest possible price. This limits the government's ability to achieve cost savings and ensure the best use of public funds.

Public Impact

Veterans in Kentucky will benefit from the provision of artificial limbs. The contract ensures the supply of essential prosthetic devices for mobility and quality of life. The services delivered are critical for the rehabilitation and ongoing care of amputee veterans. The contract's geographic focus is Kentucky, directly impacting veterans in that region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises concerns about fair market value.
Short contract duration could indicate a need for future, potentially uncompeted, renewals.
Limited transparency into the justification for sole-source award.

Positive Signals

Fixed-price contract type helps to control costs.
BPA Call structure suggests it aligns with existing procurement vehicles.
Focus on specialized prosthetic devices addresses a critical veteran need.

Sector Analysis

The market for prosthetic devices and artificial limbs is a specialized segment within the broader healthcare and medical supplies industry. This sector involves manufacturers and suppliers of advanced prosthetics, orthotics, and related services. Spending in this area is driven by medical necessity, technological advancements, and the needs of specific patient populations, such as veterans. Comparable spending benchmarks would typically be found within VA's broader prosthetics and medical equipment procurement categories.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award, the primary contractor, Superior Prosthetic Solutions Inc., is responsible for fulfilling the contract. Without specific subcontracting plans, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. The fixed-price nature of the contract provides a degree of cost control. Transparency regarding the justification for the sole-source award and the performance metrics would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Prosthetics and Sensory Aids Service
Medical Equipment and Supplies Procurement
Veteran Health Administration Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Short contract duration may indicate a need for future sole-source extensions.
Limited transparency on specific services and pricing breakdown.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,783.61 to SUPERIOR PROSTHETIC SOLUTIONS INC. VISN 10 ARTIFICIAL LIMBS

Who is the contractor on this award?

The obligated recipient is SUPERIOR PROSTHETIC SOLUTIONS 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 $17,783.61.

What is the period of performance?

Start: 2026-04-02. End: 2026-05-13.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis to Superior Prosthetic Solutions Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without the official justification document, it is impossible to ascertain the precise reasons. However, the absence of competition raises concerns about potential price inflation and limits the VA's ability to leverage market dynamics for cost savings. Further investigation into the VA's procurement records would be necessary to obtain this critical information.

How does the $17.8 million value of this contract compare to historical VA spending on artificial limbs or similar prosthetic services?

The provided data does not offer historical spending figures for comparison. To assess if $17.8 million is high or low, we would need to analyze past VA contracts for artificial limbs, prosthetics, and related services, ideally over several fiscal years. This analysis should consider contract volume, duration, and the specific types of prosthetics procured. Benchmarking against similar contracts awarded competitively would also be crucial. Without this historical context and competitive data, it is difficult to determine if this award represents good value for money or if it is an outlier. The short duration (approx. 1 month) also suggests this might be a bridge contract or for a specific, limited need, which could influence its total value compared to longer-term, comprehensive prosthetic care contracts.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure quality and timely delivery of artificial limbs?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. For a contract of this nature, critical KPIs would likely include metrics related to the quality of the prosthetic devices (e.g., durability, fit, functionality), turnaround time for fitting and delivery, patient satisfaction, and adherence to clinical standards. SLAs might cover response times for adjustments or repairs, and availability of support staff. The fixed-price nature of the contract suggests that the contractor bears the primary risk for cost overruns, but robust KPIs and SLAs are essential for the VA to ensure that veterans receive high-quality, timely, and appropriate prosthetic care, regardless of the contract type or award method.

What is the track record of Superior Prosthetic Solutions Inc. in fulfilling government contracts, particularly for the Department of Veterans Affairs?

The provided data does not include information on the track record of Superior Prosthetic Solutions Inc. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government contracts, especially those with the VA. Key areas to investigate would include on-time delivery, quality of goods/services, adherence to contract terms, and any past disputes or contract terminations. Without this information, it is challenging to gauge the contractor's reliability and capability to successfully execute this $17.8 million award.

Given the sole-source nature, what steps has the VA taken to ensure the pricing is fair and reasonable for these artificial limbs?

The data provided does not detail the specific steps taken by the VA to ensure fair and reasonable pricing for this sole-source contract. Typically, agencies will conduct price analysis, which may involve reviewing historical pricing data, comparing prices with similar commercial items, or obtaining cost breakdowns from the contractor. However, the effectiveness of these measures is significantly diminished without the leverage of competition. For sole-source awards, agencies often rely on certified cost and pricing data from the contractor and may engage in negotiation. The absence of competitive bids means the VA cannot directly benchmark against market offers, making the 'fair and reasonable' determination more reliant on the contractor's data and the agency's analytical capabilities.

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

Address: 901 MONMOUTH ST, NEWPORT, KY, 41071

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

Financial Breakdown

Contract Ceiling: $17,784

Exercised Options: $17,784

Current Obligation: $17,784

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77622A0021

IDV Type: BPA

Timeline