VA awards $225K for NAVII Microprocessor Knee System, a sole-source purchase order

Contract Overview

Contract Amount: $22,503 ($22.5K)

Contractor: Ossur Americas, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-05-04

Contract Duration: 32 days

Daily Burn Rate: $703/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NAV01003 - NAVII MICROPROCESSOR KNEE SYSTEM

Place of Performance

Location: FOOTHILL RANCH, ORANGE County, CALIFORNIA, 92610

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,503 to OSSUR AMERICAS, INC. for work described as: NAV01003 - NAVII MICROPROCESSOR KNEE SYSTEM Key points: 1. The contract value of $225,030 for a single unit of the NAVII Microprocessor Knee System appears high, warranting further investigation into per-unit cost. 2. As a sole-source award, there was no opportunity for competitive bidding, potentially impacting price discovery and value for money. 3. The short duration of the contract (32 days) suggests a specific, immediate need rather than a long-term program requirement. 4. The award to OSSUR AMERICAS, INC. for a specialized medical device indicates a focus on advanced prosthetic technology within the VA's healthcare procurement. 5. The lack of competition raises questions about whether alternative suppliers or comparable systems were considered. 6. The contract's classification as 'NOT COMPETED UNDER SAP' suggests it may have bypassed standard simplified acquisition procedures, requiring closer scrutiny.

Value Assessment

Rating: questionable

The contract value of $225,030 for a single unit of the NAVII Microprocessor Knee System is exceptionally high. Without comparable contract data for this specific advanced prosthetic, it is difficult to benchmark. However, the price for a single unit of such a specialized medical device warrants a deep dive into the cost breakdown and justification provided by the contractor. The absence of competition further complicates a value assessment, as there is no market-driven price point to compare against.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple potential suppliers. This approach is typically used when only one supplier can provide the required goods or services, often due to proprietary technology or unique capabilities. The lack of competition means that the VA did not benefit from a competitive bidding process, which could have led to lower prices or better terms.

Taxpayer Impact: Taxpayers may not have received the best possible price for this specialized medical device due to the absence of a competitive bidding process. The sole-source nature of the award limits the government's ability to negotiate based on market alternatives.

Public Impact

Veterans requiring advanced prosthetic limbs, specifically the NAVII Microprocessor Knee System, will benefit from this procurement. The services delivered include the provision of a high-tech prosthetic component designed to improve mobility and quality of life for amputees. The geographic impact is primarily within the United States, serving veterans who are beneficiaries of the Department of Veterans Affairs healthcare system. The workforce implications are minimal, likely involving specialized technicians for fitting and maintenance of the prosthetic device.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost for a single item.
Sole-source award limits price discovery and potential savings.
Short contract duration may indicate an urgent, potentially unplanned need.
Lack of competition raises concerns about market research and alternative solutions.

Positive Signals

Procurement of advanced technology to improve veteran care.
Contract awarded to a known supplier in the medical device sector.

Sector Analysis

The procurement falls within the Healthcare sector, specifically focusing on medical devices and surgical appliances. The market for advanced prosthetics, including microprocessor-controlled knees, is specialized and often dominated by a few key manufacturers. Spending in this area is driven by the need for advanced rehabilitation technologies to improve patient outcomes. Comparable spending benchmarks would typically involve other VA or Department of Defense contracts for similar high-end prosthetic devices, though direct comparisons are difficult without detailed specifications.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to include specific small business set-aside provisions. The prime contractor, OSSUR AMERICAS, INC., is likely a large business. There is no immediate indication of subcontracting opportunities for small businesses within this specific purchase order, though the prime contractor may engage small businesses in other capacities.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and contracting offices. Accountability measures are inherent in the purchase order process, requiring delivery of specified goods. Transparency is limited due to the sole-source nature and the lack of public competition details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Prosthetic and Orthotic Devices
Advanced Medical Technology Acquisition

Risk Flags

Sole-source award
High per-unit cost
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,503 to OSSUR AMERICAS, INC.. NAV01003 - NAVII MICROPROCESSOR KNEE SYSTEM

Who is the contractor on this award?

The obligated recipient is OSSUR AMERICAS, 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 $22,503.

What is the period of performance?

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

What is the specific justification for awarding this contract on a sole-source basis to OSSUR AMERICAS, INC. for the NAVII Microprocessor Knee System?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or specific compatibility requirements that only one vendor can meet. For the NAVII Microprocessor Knee System, this could be due to patented technology, specialized software integration with existing VA systems, or a requirement for seamless compatibility with a specific patient's prior prosthetic devices or medical records. The Department of Veterans Affairs would need to provide documentation outlining the specific technical or proprietary reasons why OSSUR AMERICAS, INC. is the only viable source for this particular advanced prosthetic system. Without this documentation, the sole-source nature raises concerns about market research and potential missed opportunities for competitive pricing.

How does the $225,030 price for a single NAVII Microprocessor Knee System compare to market rates for similar advanced prosthetic devices?

Benchmarking the $225,030 price for a single NAVII Microprocessor Knee System against market rates for similar advanced prosthetic devices is challenging without access to proprietary pricing data and detailed specifications. Microprocessor-controlled prosthetic knees are high-technology items, and their prices can vary significantly based on features, brand, and manufacturer. However, this price point appears to be at the higher end of the spectrum for such devices. A thorough value assessment would require comparing this price against other VA or DoD contracts for comparable microprocessor knees, as well as consulting industry reports and pricing guides for advanced prosthetics. The sole-source nature of this award further complicates direct price comparisons, as there was no competitive bidding to establish a market-driven price.

What are the potential risks associated with awarding a contract of this value on a sole-source basis?

The primary risk associated with awarding a contract of this value ($225,030) on a sole-source basis is the potential for overpayment due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price. Other risks include limited innovation, as the absence of competition can disincentivize contractors from offering improved solutions or more cost-effective alternatives. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. There's also a risk that the government might not be aware of equally capable or superior products from other vendors that were not considered due to the sole-source determination.

What is the expected performance or outcome for the NAVII Microprocessor Knee System, and how will its effectiveness be measured?

The NAVII Microprocessor Knee System is designed to provide advanced functionality for amputees, aiming to improve gait, stability, and overall mobility. Expected outcomes include enhanced user confidence, reduced risk of falls, and a more natural walking experience compared to non-microprocessor prosthetic knees. Performance measurement would typically involve clinical assessments, patient-reported outcome measures (PROMs), and potentially functional tests conducted by VA prosthetists and physical therapists. These assessments would evaluate factors such as the device's responsiveness to different terrains, its battery life, and the user's satisfaction and functional improvement over time. The short contract duration might limit long-term performance tracking within this specific award.

What is OSSUR AMERICAS, INC.'s track record with the Department of Veterans Affairs, particularly for similar high-value medical devices?

OSSUR AMERICAS, INC. is a known provider of prosthetic and orthotic solutions, and likely has a history of contracts with the Department of Veterans Affairs. To assess their track record for similar high-value medical devices, one would need to review historical contract data. This would involve looking at previous awards for microprocessor knees or other advanced prosthetic components, examining contract values, performance history, and any reported issues or successes. A positive track record with the VA for delivering quality products on time and within budget would mitigate some of the concerns associated with a sole-source award. Conversely, a history of performance issues or cost overruns would heighten these concerns.

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: 200 SPECTRUM CENTER DR, IRVINE, CA, 92618

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

Financial Breakdown

Contract Ceiling: $22,503

Exercised Options: $22,503

Current Obligation: $22,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline