VA awards $20.1M contract for surgical implants to ERA HEALTH LLC, a sole-source purchase order

Contract Overview

Contract Amount: $20,112 ($20.1K)

Contractor: ERA Health LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-07-03

Contract Duration: 91 days

Daily Burn Rate: $221/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPLANT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76109

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20,111.81 to ERA HEALTH LLC for work described as: IMPLANT Key points: 1. The contract value is $20.1 million. 2. ERA HEALTH LLC is the sole awardee. 3. The contract is a purchase order with a firm fixed price. 4. The period of performance is 91 days. 5. The award is for Surgical Appliance and Supplies Manufacturing.

Value Assessment

Rating: questionable

The contract value of $20.1 million for a 91-day period suggests a high per-unit cost or significant scope. Without benchmarks for similar surgical implant contracts, it's difficult to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending and the efficient use of taxpayer funds.

Public Impact

Veterans may experience disruptions in access to necessary surgical implants if pricing is not competitive. The lack of competition could set a precedent for future sole-source awards in this category. Transparency in the justification for a sole-source award is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited competition
Short performance period for high value

Positive Signals

Addresses a specific need for surgical implants

Sector Analysis

The award falls under the Surgical Appliance and Supplies Manufacturing sector. Spending in this sector can vary widely based on technological advancements and specific medical needs. Benchmarks are difficult without more detailed product information.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which limits opportunities for them.

Oversight & Accountability

The sole-source justification requires rigorous oversight to ensure it was truly necessary and that pricing is fair. Accountability for the lack of competition rests with the contracting agency.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated pricing
Limited oversight on sole-source justification
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20,111.81 to ERA HEALTH LLC. IMPLANT

Who is the contractor on this award?

The obligated recipient is ERA HEALTH LLC.

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 $20,111.81.

What is the period of performance?

Start: 2026-04-03. End: 2026-07-03.

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

The justification for a sole-source award typically involves a critical need, lack of available sources, or a national emergency. For this contract, the VA would need to provide documentation detailing why only ERA HEALTH LLC could fulfill the requirement within the specified timeframe and scope, ensuring no other vendor could meet the demand.

How was the price determined to be fair and reasonable without competitive bidding?

Without competition, the VA must rely on other methods to determine price reasonableness. This could include comparing prices to previous contracts for similar items, using historical pricing data, or conducting market research to establish a price range. The agency must document its findings to justify the negotiated price.

What is the potential impact on veteran healthcare access if the implants are overpriced or of suboptimal quality due to lack of competition?

An overpriced contract diverts funds that could be used for other veteran services, potentially impacting overall healthcare availability. Suboptimal quality could lead to adverse health outcomes for veterans, requiring further medical intervention and increasing long-term healthcare costs. The VA must ensure quality and value despite the sole-source award.

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: 4428 OVERTON CREST ST, FORT WORTH, TX, 76109

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,112

Exercised Options: $20,112

Current Obligation: $20,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline