VA awards $43.4M for artificial limbs, with limited competition and a focus on Michigan

Contract Overview

Contract Amount: $43,427 ($43.4K)

Contractor: Mary Free BED Orthotics & Prosthetics

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-09-30

Contract Duration: 174 days

Daily Burn Rate: $250/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: GRAND RAPIDS, KENT County, MICHIGAN, 49503

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $43,426.79 to MARY FREE BED ORTHOTICS & PROSTHETICS for work described as: VISN 10 ARTIFICIAL LIMBS Key points: 1. Contract awarded to a single vendor, raising questions about price discovery and potential cost savings. 2. The contract's duration and value suggest a significant, ongoing need for prosthetic services within VISN 10. 3. Limited competition may indicate specialized services or a lack of market availability for these specific needs. 4. The fixed-price contract structure aims to control costs, but the absence of competition could inflate unit prices. 5. Performance will be monitored through contract clauses, but transparency on specific metrics is not detailed. 6. The geographic focus on Michigan suggests a concentrated demand or a strategic decision for regional support.

Value Assessment

Rating: fair

The contract value of $43.4 million over approximately 1.5 years for artificial limbs and related services appears substantial. Benchmarking against similar contracts is difficult without more specific service details and geographic scope. However, the lack of competition suggests that the VA may not have achieved the most competitive pricing possible. The fixed-price nature of the contract provides cost certainty but could lead to higher unit costs if the awarded vendor's pricing is not market-competitive due to the limited bidding environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a BPA Call, indicating a specific mechanism for fulfilling an existing Blanket Purchase Agreement. The data suggests it was not a full and open competition, and potentially a sole-source or limited competition scenario. The limited number of bidders, likely one given the 'NOT COMPETED UNDER SAP' and 'BPA CALL' designation, means that price discovery through market forces was constrained. This can lead to less favorable pricing for the government.

Taxpayer Impact: The limited competition means taxpayers may not be benefiting from the most cost-effective solutions available in the market. Without robust bidding, there is a risk that the government is overpaying for these essential prosthetic services.

Public Impact

Veterans in VISN 10, particularly those in Michigan, will receive essential prosthetic and orthotic devices and services. The contract supports the provision of surgical appliances and supplies, crucial for veteran mobility and quality of life. The geographic concentration in Michigan indicates a primary service area, potentially impacting veterans across the state. This contract supports the healthcare infrastructure for veterans, ensuring access to necessary medical devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of robust competition may lead to higher costs for taxpayers.
Limited transparency on the specific services and devices covered under the BPA Call.
Potential for vendor lock-in if this is a de facto sole-source arrangement for VISN 10.
Geographic concentration might overlook needs in other VISN 10 states if not managed carefully.

Positive Signals

Contract ensures continued access to critical prosthetic services for veterans.
Fixed-price contract provides budget certainty for the VA.
BPA Call mechanism allows for efficient ordering against an established agreement.
Focus on a specific region (Michigan) may allow for tailored service delivery.

Sector Analysis

The market for surgical appliances and supplies (NAICS 339113) is specialized, involving the manufacturing and distribution of medical devices like artificial limbs. This contract falls within the broader healthcare sector, specifically serving the needs of veterans through the Department of Veterans Affairs. The value of this single contract is significant, suggesting a substantial portion of the VA's spending in this category for VISN 10. Comparable spending benchmarks would typically be found within other large federal healthcare procurements or large hospital systems, but the specific nature of veteran prosthetic care can be unique.

Small Business Impact

The data indicates this contract was not competed under SAP and was awarded as a BPA Call, with no explicit mention of small business set-asides (ss: false, sb: false). This suggests that small businesses were likely not specifically targeted for this procurement. There is no information provided regarding subcontracting plans. Without a competitive bidding process that includes small business participation goals, the direct impact on the small business ecosystem for prosthetic and orthotic services is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and program management offices. As a BPA Call against an existing Blanket Purchase Agreement, the oversight would likely involve monitoring call orders against the master agreement's terms and conditions. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, but detailed performance metrics and specific oversight activities are not publicly disclosed in this summary.

Related Government Programs

VA Prosthetic and Sensory Aids Service (PSAS)
Department of Defense Medical Equipment Procurement
Federal Supply Schedule (FSS) for Medical Equipment
VA VISN 10 Healthcare Services

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency on Specifics
Geographic Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $43,426.79 to MARY FREE BED ORTHOTICS & PROSTHETICS. VISN 10 ARTIFICIAL LIMBS

Who is the contractor on this award?

The obligated recipient is MARY FREE BED ORTHOTICS & PROSTHETICS.

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 $43,426.79.

What is the period of performance?

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

What is the specific breakdown of services and devices covered under this $43.4 million contract?

The provided data identifies the contract as being for 'VISN 10 ARTIFICIAL LIMBS' and the North American Industry Classification System (NAICS) code is 339113, 'Surgical Appliance and Supplies Manufacturing.' This suggests the contract covers the provision, fitting, and potentially maintenance of artificial limbs, as well as related supplies. However, the exact scope, including specific types of prosthetics (e.g., upper limb, lower limb, specialized), ancillary services (e.g., physical therapy, training), and the duration of warranties or follow-on support, is not detailed in the summary data. A more granular analysis would require reviewing the full contract award documentation and the terms of the underlying Blanket Purchase Agreement (BPA).

How does the pricing of this contract compare to similar prosthetic services procured by the VA or other federal agencies?

Direct price comparison is challenging without specific unit cost data for comparable items and services. The contract is designated as 'NOT COMPETED UNDER SAP' and awarded via a 'BPA CALL,' indicating limited competition. Typically, limited competition can result in higher prices than those achieved through full and open competition. To benchmark, one would need to identify contracts for similar prosthetic devices and services awarded competitively, analyze their unit prices, and adjust for factors like geographic location, volume, and specific technological requirements. The absence of such competitive data for this award makes a definitive value-for-money assessment difficult, suggesting potential for suboptimal pricing.

What are the primary risks associated with awarding this contract with limited competition?

The primary risk associated with limited competition is the potential for inflated costs due to a lack of market pressure. When only one or a few vendors are considered, the government may not receive the most competitive pricing. This can lead to inefficient use of taxpayer funds. Additionally, limited competition can reduce the incentive for the awarded contractor to innovate or improve service quality beyond the contract minimums. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, making future transitions more difficult and potentially more expensive. Ensuring adequate performance monitoring and clear contract terms becomes even more critical in such scenarios.

What is the historical spending pattern for artificial limbs and related supplies within VISN 10?

The provided data focuses on a single contract award valued at $43.4 million with an end date of September 30, 2026. To understand historical spending patterns, one would need to analyze cumulative contract data for VISN 10 related to NAICS code 339113 or similar service descriptions over multiple fiscal years. This would involve querying federal procurement databases (like FPDS) for all awards related to prosthetic and orthotic services within that specific Veterans Integrated Service Network. Analyzing trends in spending volume, average contract values, and the number of competitors over time would reveal whether this $43.4 million award represents an increase, decrease, or stable level of investment in these services for the region.

What performance metrics are being used to evaluate the contractor's success under this BPA Call?

The summary data does not specify the performance metrics or evaluation criteria for this contract. However, standard practice for VA contracts, especially those involving medical supplies and services, includes requirements for timely delivery, quality of goods, adherence to specifications, and potentially patient satisfaction or clinical outcomes where applicable. As this is a BPA Call, the performance expectations would be tied to the terms of the underlying Blanket Purchase Agreement. Specific metrics would typically be detailed in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). Without access to these documents, the precise performance evaluation framework remains unknown.

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: Mary Free BED Rehabilitation Hospital

Address: 235 WEALTHY ST SE, GRAND RAPIDS, MI, 49503

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

Financial Breakdown

Contract Ceiling: $43,427

Exercised Options: $43,427

Current Obligation: $43,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77622A0022

IDV Type: BPA

Timeline