VA awards $16.7M contract for surgical appliances, highlighting potential for improved patient care

Contract Overview

Contract Amount: $16,684 ($16.7K)

Contractor: Encore Medical, L.P.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-04-30

Contract Duration: 21 days

Daily Burn Rate: $794/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SHOULDER

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,683.82 to ENCORE MEDICAL, L.P. for work described as: SHOULDER Key points: 1. Contract value suggests a significant need for specialized medical supplies. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration indicates a sustained requirement for these supplies. 4. Focus on surgical appliances points to critical support for medical procedures. 5. Geographic concentration in Texas may impact national distribution and accessibility.

Value Assessment

Rating: fair

The contract value of $16.7 million for surgical appliances is substantial, indicating a significant demand. However, without comparable contract data or detailed pricing breakdowns, it is difficult to definitively benchmark the value for money. The fixed-price nature of the contract provides some cost certainty, but the lack of competition could lead to suboptimal pricing. Further analysis of unit costs and market rates for similar surgical appliances would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, ENCORE MEDICAL, L.P., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required capabilities or when urgency dictates, they generally limit price discovery and may result in higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost efficiencies that a competitive bidding process could have generated. This could translate to a higher overall expenditure for the required surgical appliances.

Public Impact

Veterans will benefit from access to necessary surgical appliances, supporting their medical treatment and recovery. The contract ensures the supply of critical items for surgical procedures within the VA healthcare system. The primary geographic impact is within Texas, where the contractor is located, potentially affecting distribution logistics. The contract supports the workforce involved in the manufacturing, distribution, and administration of surgical supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Lack of detailed performance metrics in the provided data makes assessing contractor performance difficult.
Geographic concentration in Texas could pose logistical challenges for wider distribution.

Positive Signals

Contract ensures a steady supply of essential surgical appliances for veterans.
Firm fixed-price contract provides cost predictability for the VA.
Long contract duration suggests a stable and reliable partnership.

Sector Analysis

The market for surgical appliances and supplies is a critical segment of the broader healthcare industry, encompassing a wide range of products used in medical procedures. This contract falls within the 'Surgical Appliance and Supplies Manufacturing' sector, which is characterized by innovation and stringent quality control. Comparable spending benchmarks are difficult to establish without more specific product details, but the overall healthcare supply market is vast, with significant government procurement activity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless ENCORE MEDICAL, L.P. voluntarily engages small businesses in its supply chain. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the contract terms, including delivery schedules and quality standards. Transparency is limited due to the sole-source nature and the absence of publicly available detailed performance reports. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Federal Healthcare Supply Chain Management
Surgical Equipment and Device Contracts

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Geographic concentration could impact distribution efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,683.82 to ENCORE MEDICAL, L.P.. SHOULDER

Who is the contractor on this award?

The obligated recipient is ENCORE MEDICAL, L.P..

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 $16,683.82.

What is the period of performance?

Start: 2026-04-09. End: 2026-04-30.

What is the historical spending pattern for surgical appliances by the Department of Veterans Affairs?

Analyzing historical spending patterns for surgical appliances by the Department of Veterans Affairs (VA) is crucial for understanding trends, identifying potential cost-saving opportunities, and assessing the significance of the current $16.7 million award. While specific historical data for this exact contract is not provided, the VA consistently procures a wide array of medical supplies, including surgical appliances, to support its vast network of healthcare facilities. Past spending often reveals fluctuations based on healthcare needs, policy changes, and the introduction of new medical technologies. A review of previous VA budgets and contract awards for similar items would likely show a sustained and substantial investment in this category. For instance, if previous awards for comparable surgical appliances were significantly lower or higher, it could indicate changes in demand, pricing, or the scope of services. Understanding these patterns helps in evaluating whether the current contract represents an increase in need, a market adjustment, or a potential area for negotiation in future procurements.

How does the pricing of this contract compare to similar surgical appliance contracts awarded by other federal agencies?

Benchmarking the pricing of this $16.7 million contract against similar surgical appliance contracts awarded by other federal agencies is essential for assessing value for money. However, without specific details on the exact types and quantities of surgical appliances included in this award, a direct comparison is challenging. Generally, federal agencies leverage bulk purchasing power and competitive bidding to secure favorable pricing. If this contract was awarded sole-source, as indicated, it inherently limits the ability to achieve the lowest possible price that might be obtained through open competition. Agencies like the General Services Administration (GSA) or the Department of Defense (DoD) often have established schedules and contracts for medical supplies. Comparing unit costs for specific items (e.g., types of bandages, surgical tools, prosthetic components) against these benchmarks, if available, would reveal whether the VA is paying a fair market price. A higher price point for this sole-source contract, compared to competitively bid contracts for similar items, would suggest a potential overpayment and a missed opportunity for cost savings for taxpayers.

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

A sole-source award for essential medical supplies, such as surgical appliances, carries several inherent risks. The most significant risk is the potential for inflated pricing due to the absence of competitive pressure. When only one vendor is considered, there is less incentive for the contractor to offer the most cost-effective solution. This can lead to taxpayers bearing a higher cost than necessary. Another risk is a potential disruption in supply if the sole-source contractor experiences production issues, financial instability, or fails to meet delivery schedules. Without alternative vendors readily available through a competitive process, the VA could face shortages, impacting patient care. Furthermore, sole-source awards can stifle innovation, as other potential suppliers are not encouraged to develop and offer competing products or services. This lack of market dynamism can also lead to a reduced range of available options for the VA in the long run.

What is the track record of ENCORE MEDICAL, L.P. in fulfilling federal contracts, particularly for surgical appliances?

Assessing the track record of ENCORE MEDICAL, L.P. in fulfilling federal contracts, especially for surgical appliances, is critical for evaluating the reliability and performance associated with this $16.7 million award. While the provided data confirms ENCORE MEDICAL, L.P. as the contractor, it does not offer details on their past performance history with the government. A thorough review would involve examining databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to identify previous contracts awarded to this company. Key aspects to investigate include on-time delivery rates, adherence to quality standards, responsiveness to issues, and any history of contract disputes or terminations. A strong performance history would provide confidence in their ability to meet the VA's needs. Conversely, a record of poor performance or unresolved issues would raise significant concerns about the suitability of this sole-source award and the potential risks to the VA's supply chain and patient care.

How does the duration of this contract (21 months) align with typical procurement cycles for surgical appliances?

The duration of this contract, with an estimated completion date in April 2026, suggests a period of approximately 21 months from the award date (assuming award shortly after the data extraction). This duration is relatively standard for many federal supply contracts, particularly for items with consistent demand and established manufacturing processes, such as surgical appliances. Shorter durations (e.g., 6-12 months) might be used for pilot programs, rapidly evolving technologies, or when seeking to re-compete frequently to ensure competitive pricing. Longer durations (multiple years, often with option periods) are typically seen for large-scale, complex services or major system procurements where stability and long-term planning are paramount. A 21-month period for surgical appliances suggests the VA anticipates a stable need for these specific products over this timeframe and may intend to re-evaluate the requirement and market conditions upon its conclusion, potentially leading to a new competitive solicitation.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DJO LLC

Address: 9800 METRIC BLVD, AUSTIN, TX, 78758

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,684

Exercised Options: $16,684

Current Obligation: $16,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G23D0058

IDV Type: IDC

Timeline