VA awards $3.67M for Surgical Implants to LivaNova USA Inc

Contract Overview

Contract Amount: $36,733 ($36.7K)

Contractor: Livanova USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-07-07

Contract Duration: 91 days

Daily Burn Rate: $404/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL IMPLANT

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36,733 to LIVANOVA USA INC for work described as: SURGICAL IMPLANT Key points: 1. Significant award for a specialized medical device. 2. Sole-source procurement raises questions about competition. 3. Potential for higher costs due to limited vendor options. 4. Focus on healthcare sector, specifically medical devices.

Value Assessment

Rating: questionable

The award amount of $3.67M for surgical implants is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar contracts for comparable devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as a sole-source procurement, indicating no other vendors were considered. This method limits price discovery and may not yield the best value for taxpayers.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competed contract.

Public Impact

Veterans will receive necessary surgical implants. Limited access to potentially innovative or lower-cost alternatives. Taxpayer funds may not be utilized with maximum efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for overpricing

Positive Signals

Ensures supply of critical medical devices
Timely delivery to meet VA needs

Sector Analysis

This award falls within the healthcare sector, specifically medical devices. Spending benchmarks for surgical implants vary widely based on type and complexity, but sole-source awards often exceed market rates.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA's justification for bypassing competitive procedures is robust and documented.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source justification required
Potential for price gouging
Limited vendor options
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36,733 to LIVANOVA USA INC. SURGICAL IMPLANT

Who is the contractor on this award?

The obligated recipient is LIVANOVA USA 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 $36,733.

What is the period of performance?

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

What is the justification for the sole-source award of this surgical implant contract?

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The VA would need to provide specific documentation supporting this determination.

What is the risk of inflated pricing due to the sole-source nature of this contract?

The primary risk of a sole-source contract is inflated pricing, as the vendor faces no competitive pressure to offer their best price. Without market comparisons or competing bids, the government may pay more than necessary. This necessitates careful negotiation and justification of the price by the awarding agency.

How does this award ensure effective delivery of surgical implants to veterans?

This award ensures a direct and potentially expedited supply of surgical implants to veterans by contracting with a specific vendor. The firm fixed-price structure provides cost certainty for the VA. However, effectiveness is also tied to the quality of the implants and the vendor's reliability.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Livanova PLC

Address: 100 CYBERONICS BLVD, HOUSTON, TX, 77058

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

Financial Breakdown

Contract Ceiling: $36,733

Exercised Options: $36,733

Current Obligation: $36,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline