VA Awards $2.1M for Shoulder Prosthetics to Shoulder Innovations, Inc. via Sole Source Purchase Order

Contract Overview

Contract Amount: $21,250 ($21.3K)

Contractor: Shoulder Innovations, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-05-04

Contract Duration: 32 days

Daily Burn Rate: $664/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TOTAL SHOULDER

Place of Performance

Location: HOLLAND, OTTAWA County, MICHIGAN, 49424

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,250 to SHOULDER INNOVATIONS, INC. for work described as: TOTAL SHOULDER Key points: 1. Significant award to a single vendor for a specialized medical device. 2. Sole source procurement raises questions about price discovery and competition. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Focus on surgical appliances highlights a key area of healthcare spending.

Value Assessment

Rating: questionable

The contract's value of $2.125 million for a 32-day period, awarded on a sole-source basis, makes a direct pricing assessment difficult without comparable contract data. The lack of competition suggests potential for a higher price than if multiple vendors were considered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor was considered. This method bypasses competitive bidding, which can limit price discovery and potentially lead to less favorable pricing for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these shoulder prosthetics due to the absence of a competitive market.

Public Impact

Veterans will receive advanced shoulder prosthetics, improving treatment outcomes. The award supports a specific manufacturer in the medical device sector. Potential for increased costs to the VA healthcare system due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 66 / 10

Warning Flags

Sole-source procurement limits competition.
Short contract duration may indicate urgency or limited scope.
No small business participation noted.

Positive Signals

Addresses a specific medical need for veterans.
Utilizes a firm fixed-price contract type.

Sector Analysis

The Department of Veterans Affairs is a major purchaser of medical supplies and equipment. Spending in the Surgical Appliance and Supplies Manufacturing sector (NAICS 339113) is critical for providing necessary medical devices to service members and veterans.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The award went to a single, presumably larger, entity, missing an opportunity to support small business participation in federal contracting.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid was fair and reasonable, and that the justification for not competing the award was sound.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for inflated costs due to no competition.
Limited transparency in price discovery.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,250 to SHOULDER INNOVATIONS, INC.. TOTAL SHOULDER

Who is the contractor on this award?

The obligated recipient is SHOULDER INNOVATIONS, 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 $21,250.

What is the period of performance?

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

What is the justification for awarding this contract on a sole-source basis, and was market research conducted to confirm no other sources could meet the requirement?

The justification for a sole-source award typically involves specific circumstances, such as a unique capability possessed by only one vendor, an urgent need that precludes competition, or a critical need for standardization. Without the specific justification documentation, it's impossible to confirm the rationale. However, the absence of competition inherently limits the government's ability to ensure the most cost-effective solution was secured.

How does the price of this sole-source contract compare to industry benchmarks for similar shoulder prosthetics, and what steps were taken to ensure price reasonableness?

Assessing price reasonableness for a sole-source contract is challenging without competitive bids. The VA likely relied on internal cost analysis, historical pricing data, or commercial price lists. However, the lack of competition means there's no market validation of the price, increasing the risk that it may be higher than what could have been achieved through a competitive process.

What is the long-term strategy for procuring these shoulder prosthetics, and will future requirements be competed to ensure better value?

The short duration of this contract (32 days) suggests it may be an interim solution or for a specific, immediate need. A long-term strategy should ideally involve competitive procurements for future requirements to leverage market forces and achieve better pricing and innovation. The VA should consider market research for future, larger-scale needs to ensure sustained value.

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: 1535 STEELE AVE SW, GRAND RAPIDS, MI, 49507

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

Financial Breakdown

Contract Ceiling: $21,250

Exercised Options: $21,250

Current Obligation: $21,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline