VA awards $18M purchase order for prosthetic limbs to Wisconsin company, bypassing competition

Contract Overview

Contract Amount: $18,042 ($18.0K)

Contractor: Wisconsin Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-07-02

Contract Duration: 91 days

Daily Burn Rate: $198/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETIC LIMB FOR VETERANS MEDICAL NEEDS

Place of Performance

Location: MENASHA, WINNEBAGO County, WISCONSIN, 54952

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18,042.45 to WISCONSIN PROSTHETICS & ORTHOTICS, INC. for work described as: PROSTHETIC LIMB FOR VETERANS MEDICAL NEEDS Key points: 1. The contract value of $18.04 million for prosthetic limbs represents a significant investment in veteran medical needs. 2. The sole-source nature of this award raises questions about potential missed opportunities for competitive pricing and innovation. 3. The short duration of 91 days for this purchase order suggests a need for immediate supply rather than a long-term strategic acquisition. 4. The North American Industry Classification System (NAICS) code 339113 indicates the contractor operates within the Surgical Appliance and Supplies Manufacturing sector. 5. The firm fixed-price contract type aims to provide cost certainty for the government, but the lack of competition limits benchmarking. 6. The award is directed to a single vendor, Wisconsin Prosthetics & Orthotics, Inc., highlighting a concentrated supplier relationship for this specific need.

Value Assessment

Rating: fair

Benchmarking the value of this $18.04 million purchase order is challenging due to its sole-source nature and short duration. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if alternative, more cost-effective solutions were overlooked. The contract is for prosthetic limbs, a critical but specialized medical supply. The price per day of the contract is approximately $198,268, which is high given the 91-day term, but this metric is less meaningful without understanding the specific quantity and type of prosthetics procured.

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 vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The absence of competition means there were no other bidders, and therefore no direct price comparison or negotiation leverage was exercised. This limits the government's ability to explore a wider range of options or secure potentially better pricing through a competitive process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential prosthetic limbs due to the lack of competitive bidding. This sole-source award bypasses the typical market forces that drive down costs and encourage innovation, potentially leading to higher overall expenditures for the government.

Public Impact

Veterans requiring prosthetic limbs will benefit directly from this award, ensuring access to necessary medical devices. The services delivered include the provision of prosthetic limbs, crucial for restoring mobility and quality of life for disabled veterans. The geographic impact is primarily within Wisconsin, where Wisconsin Prosthetics & Orthotics, Inc. is located, though the beneficiaries are veterans nationwide. This contract supports jobs within the surgical appliance and supplies manufacturing sector, specifically at the awarded company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices and reduced value for taxpayer dollars.
Sole-source awards can stifle innovation by not encouraging vendors to develop more cost-effective or advanced solutions.
The short contract duration might indicate a reactive procurement rather than strategic planning for long-term veteran needs.
Limited transparency into the justification for a sole-source award makes it difficult to assess necessity.
Potential for over-reliance on a single supplier, creating vulnerability in the supply chain.

Positive Signals

Ensures timely provision of critical prosthetic limbs to veterans, addressing immediate medical needs.
The firm fixed-price contract provides cost certainty for this specific procurement.
Supports a domestic manufacturer in the surgical appliance and supplies sector.
The Department of Veterans Affairs is fulfilling its commitment to provide medical care to veterans.

Sector Analysis

The Surgical Appliance and Supplies Manufacturing sector (NAICS 339113) encompasses companies that produce artificial limbs, orthopedic devices, and other medical appliances. This contract falls squarely within this industry, addressing a critical need for prosthetic devices. The market for medical supplies is substantial, driven by an aging population and increased demand for healthcare services. While specific spending benchmarks for prosthetic limbs are not readily available, the overall healthcare supply industry sees significant federal investment, particularly through agencies like the VA and DoD.

Small Business Impact

This contract was not competed and there is no indication of a small business set-aside. Therefore, it does not appear to directly benefit small businesses through prime contract awards or subcontracting opportunities related to this specific purchase order. The focus is on a single, established supplier rather than fostering broader participation from the small business ecosystem in this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and contracting offices. As a purchase order, it is subject to standard federal acquisition regulations and internal VA oversight. Transparency regarding the justification for the sole-source award is crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement process or contract execution.

Related Government Programs

VA Medical Care Programs
Prosthetic and Sensory Aids Service (PSAS)
Department of Defense Medical Supplies
Federal Supply Schedule (FSS) for Medical Equipment

Risk Flags

Sole-source award bypasses competition
Limited transparency on justification for sole-source
Potential for non-competitive pricing
Short contract duration may indicate reactive procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18,042.45 to WISCONSIN PROSTHETICS & ORTHOTICS, INC.. PROSTHETIC LIMB FOR VETERANS MEDICAL NEEDS

Who is the contractor on this award?

The obligated recipient is WISCONSIN PROSTHETICS & ORTHOTICS, 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 $18,042.45.

What is the period of performance?

Start: 2026-04-02. End: 2026-07-02.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source is available, or in cases of urgent and compelling need. Without the official justification document, it is impossible to definitively assess the validity of the sole-source determination. This lack of transparency is a common concern with sole-source awards, as it limits the public's ability to understand why competition was bypassed and whether taxpayer funds are being used efficiently.

How does the price of this contract compare to similar prosthetic limb procurements by the VA or other federal agencies?

Direct price comparison is difficult without knowing the exact specifications, quantity, and type of prosthetic limbs procured under this $18.04 million purchase order. The data indicates a firm fixed-price contract for 91 days, with a total award of $18,042.45, which averages to approximately $198,268 per day. However, this daily figure is not a meaningful cost benchmark for prosthetic limbs themselves. To conduct a proper comparison, one would need to analyze historical data for similar prosthetic devices, considering factors like complexity, materials, and customization. The sole-source nature of this award further complicates benchmarking, as there is no competitive pricing data available from this specific procurement.

What is the track record of Wisconsin Prosthetics & Orthotics, Inc. in fulfilling government contracts, particularly for the VA?

The provided data does not include information on the track record of Wisconsin Prosthetics & Orthotics, Inc. in fulfilling government contracts. To assess their performance history, one would typically review contract databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A thorough review would be necessary to understand their reliability, quality of products/services, and adherence to contract terms in previous government engagements, especially with the Department of Veterans Affairs.

What are the potential risks associated with awarding a significant contract for essential medical supplies on a sole-source basis?

Awarding a significant contract for essential medical supplies on a sole-source basis carries several risks. Firstly, it can lead to higher costs for taxpayers, as the absence of competition removes the downward pressure on pricing that competitive bidding provides. Secondly, it may limit access to innovative solutions or alternative products that other vendors might offer. Thirdly, it can create a dependency on a single supplier, potentially leading to supply chain vulnerabilities if that supplier faces production issues or goes out of business. Finally, it raises concerns about fairness and transparency in the procurement process, potentially undermining public trust.

How does this contract align with the VA's broader strategy for providing prosthetic and orthotic care to veterans?

This $18.04 million purchase order for prosthetic limbs appears to be a tactical procurement to meet an immediate or short-term need, rather than a strategic, long-term acquisition. The VA's broader strategy for prosthetic and orthotic care likely involves a mix of competitive contracts, Federal Supply Schedule (FSS) agreements, and potentially in-house capabilities to ensure comprehensive and cost-effective services. The sole-source nature and short duration of this specific award suggest it might be filling a gap or responding to an urgent requirement within the larger framework of veteran healthcare provision. Further analysis would require understanding the VA's overall budget and procurement plans for prosthetic services.

What is the historical spending pattern for prosthetic limbs by the Department of Veterans Affairs?

The provided data does not offer historical spending patterns for prosthetic limbs by the Department of Veterans Affairs. To analyze this, one would need to access historical contract databases and aggregate spending data for relevant NAICS codes (like 339113) and product/service descriptions related to prosthetic limbs over several fiscal years. This would reveal trends in spending, identify major contractors, and highlight any significant fluctuations or changes in procurement strategies. Understanding historical spending is crucial for context, identifying potential cost savings, and assessing the efficiency of current procurement practices.

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: 1105 WITTMANN DR, MENASHA, WI, 54952

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

Financial Breakdown

Contract Ceiling: $18,042

Exercised Options: $18,042

Current Obligation: $18,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline