VA awards $49.7M contract for surgical implants to Novocure Inc., with a 91-day performance period

Contract Overview

Contract Amount: $49,749 ($49.7K)

Contractor: Novocure Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-07-01

Contract Duration: 91 days

Daily Burn Rate: $547/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL IMPLANT

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,748.73 to NOVOCURE INC for work described as: SURGICAL IMPLANT Key points: 1. The contract value represents a significant investment in medical supplies for the VA. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and access to necessary medical devices. 3. The short performance period suggests a need for immediate or time-sensitive supply of these implants. 4. Performance context will be key to understanding the VA's specific requirements and Novocure's ability to meet them. 5. The sector for electromedical and electrotherapeutic apparatus manufacturing is highly specialized and regulated.

Value Assessment

Rating: fair

Benchmarking the value of this $49.7 million contract for surgical implants is challenging without more specific details on the quantity and type of implants. However, the contract's duration of 91 days suggests a high per-day expenditure, which warrants scrutiny. Comparing this to similar, longer-term contracts for bulk implant procurement would provide better insight into whether this represents a fair price for the goods and services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that Novocure Inc. was selected suggests they offered the best value proposition among the bidders. The level of competition, while not specified in terms of the number of bidders, is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods and services.

Public Impact

Veterans will benefit from access to necessary surgical implants, improving their healthcare outcomes. The contract ensures the supply of critical medical devices for surgical procedures within VA facilities. The geographic impact is likely concentrated around VA medical centers that perform surgeries requiring these implants. Workforce implications may include increased demand for surgical staff and support personnel at these facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a reactive procurement rather than strategic long-term planning.
Lack of detail on specific implant types makes value assessment difficult.
Potential for price fluctuations if this is a recurring need not secured through longer-term agreements.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Novocure Inc. is a known entity in the medical device sector.
Clear performance period (91 days) provides defined expectations.

Sector Analysis

This contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector (NAICS 334510). This is a specialized industry focused on devices that use electrical energy for medical diagnosis or treatment. The market size for surgical implants is substantial, driven by an aging population and advancements in medical technology. This contract represents a specific procurement within the broader healthcare supply chain, highlighting the VA's reliance on specialized manufacturers for critical medical equipment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary focus of this award is on the prime contractor, Novocure Inc. The impact on the broader small business ecosystem would depend on whether Novocure utilizes small businesses in its supply chain for components or services related to these surgical implants.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment terms. Transparency is facilitated through contract award databases, though specific details regarding the implants themselves may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Equipment Procurement
Surgical Supplies Contracts
Medical Device Manufacturing
Electromedical Apparatus

Risk Flags

Short performance period may indicate urgency or potential for supply chain issues.
Lack of detailed product specification makes value-for-money assessment difficult.
Contract value is high for a short duration, requiring careful cost analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,748.73 to NOVOCURE INC. SURGICAL IMPLANT

Who is the contractor on this award?

The obligated recipient is NOVOCURE 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 $49,748.73.

What is the period of performance?

Start: 2026-04-01. End: 2026-07-01.

What is Novocure Inc.'s track record with the Department of Veterans Affairs for similar surgical implant contracts?

Information regarding Novocure Inc.'s specific track record with the Department of Veterans Affairs for surgical implant contracts is not detailed in the provided data. To assess their track record, one would need to examine historical contract awards between Novocure and the VA, looking at factors such as past performance ratings, delivery timeliness, and any documented issues or successes. A review of federal procurement databases and VA performance evaluation reports would be necessary to provide a comprehensive answer. Without this historical data, it's difficult to gauge their established reliability and effectiveness in fulfilling VA requirements for similar medical devices.

How does the $49.7 million contract value compare to the typical cost of surgical implants procured by the VA or other federal agencies?

The $49.7 million contract value for surgical implants is substantial, but a direct comparison to typical costs is difficult without knowing the specific types and quantities of implants. Federal agencies often procure medical supplies through various mechanisms, including large-scale, long-term contracts, group purchasing organizations, and individual delivery orders. The value of this contract, spread over a 91-day period, suggests a high volume or high-cost per unit. Benchmarking would require analyzing contracts for comparable implant categories (e.g., orthopedic, cardiovascular) from agencies like the Defense Health Agency or GSA, considering factors like unit price, volume discounts, and contract duration to determine if this award represents a competitive market rate.

What are the primary risks associated with a short, 91-day performance period for surgical implants?

A primary risk associated with a short, 91-day performance period for surgical implants is the potential for supply chain disruptions or stockouts if demand exceeds projections or if the contractor faces unforeseen production or delivery issues. This short timeframe may also indicate a less strategic procurement, potentially leading to higher per-unit costs compared to longer-term agreements that allow for bulk purchasing and better price negotiation. Furthermore, it could necessitate frequent re-competition, increasing administrative burden and potentially leading to gaps in supply if the next award is delayed. Ensuring timely delivery and availability of critical medical devices within such a compressed window is paramount for patient care.

What is the expected effectiveness of these surgical implants in improving patient outcomes for veterans?

The expected effectiveness of these surgical implants in improving patient outcomes for veterans is directly tied to the specific type of implant being procured and the medical conditions it is intended to treat. Surgical implants range widely, from orthopedic joint replacements to cardiovascular devices and neurosurgical tools, each designed to restore function, alleviate pain, or correct defects. Assuming the implants are appropriate for the intended patient population and are utilized correctly by medical professionals, they are expected to contribute positively to recovery, mobility, and overall quality of life for veterans. The VA's selection of Novocure Inc. implies that these implants meet established medical efficacy standards.

How does this contract align with the VA's overall spending patterns for medical devices and surgical supplies?

This $49.7 million contract for surgical implants aligns with the VA's consistent and significant spending on medical devices and surgical supplies, which are essential components of healthcare delivery. The VA is one of the largest healthcare providers in the U.S., and its budget reflects substantial investment in pharmaceuticals, equipment, and consumables. While this specific award is for a defined period and product category, it represents a portion of the VA's broader strategy to ensure its medical facilities are equipped to provide comprehensive care. Analyzing historical VA spending data for similar categories would reveal trends and the relative magnitude of this particular contract within the overall medical supply budget.

What are the potential implications of this contract on the market for electromedical and electrotherapeutic apparatus?

This contract, valued at $49.7 million, can have several implications for the market of electromedical and electrotherapeutic apparatus. Firstly, it signifies a significant demand from a major federal agency, potentially boosting Novocure Inc.'s revenue and market position within this niche. Secondly, the full and open competition aspect suggests that other manufacturers in this sector were aware of and potentially bid on this opportunity, fostering a competitive environment that can drive innovation and efficiency. The success of Novocure in fulfilling this contract could also influence future procurement decisions by the VA and other healthcare providers, potentially setting benchmarks for pricing, quality, and delivery. It highlights the importance of this sector in supporting national healthcare infrastructure.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 COMMERCE WAY, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $49,749

Exercised Options: $49,749

Current Obligation: $49,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79723D0016

IDV Type: FSS

Timeline