VA awards $12K for prosthetic limb components, raising questions about competition and value

Contract Overview

Contract Amount: $12,081 ($12.1K)

Contractor: Columbia Basin Prosthetics & Orthotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-02

End Date: 2023-12-02

Contract Duration: 365 days

Daily Burn Rate: $33/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BK CUSTOM ARTIFICIAL LIMB L5301 LEFT BK MOLD SOCKET SACH FT ENDO

Place of Performance

Location: WALLA WALLA, WALLA WALLA County, WASHINGTON, 99362

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12,080.8 to COLUMBIA BASIN PROSTHETICS & ORTHOTICS, INC. for work described as: BK CUSTOM ARTIFICIAL LIMB L5301 LEFT BK MOLD SOCKET SACH FT ENDO Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Limited competition may lead to above-market pricing. 3. Single award for prosthetic components suggests a niche or specialized need. 4. Contract duration of one year provides limited long-term performance data. 5. Geographic focus on Washington state may indicate regional demand. 6. Small business participation is not explicitly detailed in this award.

Value Assessment

Rating: questionable

The award of $12,080.80 for prosthetic limb components appears to be for a specific item, L5301 left BK mold socket. Without a competitive bidding process, it is difficult to benchmark the pricing against similar contracts or market rates. The fixed-price nature of the contract provides some cost certainty, but the lack of competition raises concerns about whether the VA secured the best possible value for these specialized supplies. Further analysis would require comparing this price to industry benchmarks for similar custom prosthetic components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures, indicating a sole-source or limited competition award. The absence of multiple bidders means there was no opportunity for price negotiation or comparison among different suppliers. This approach is often used when a specific product or service is required from a single source, but it bypasses the benefits of a competitive market that typically drives down costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective pricing for these essential prosthetic components, potentially leading to higher overall spending for the VA.

Public Impact

Veterans in Washington state requiring specific prosthetic limb components will benefit from this award. The contract delivers custom-molded sockets for left below-knee prosthetic limbs. The geographic impact is concentrated in Washington state, serving local veterans. The contract supports the specialized manufacturing and fitting services within the prosthetics and orthotics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs.
Sole-source award limits transparency in pricing.
Potential for overpayment due to absence of market-driven price discovery.

Positive Signals

Award addresses a specific need for prosthetic components for veterans.
Fixed-price contract provides cost certainty for the awarded amount.
Contract supports a specialized medical supply provider.

Sector Analysis

The contract falls within the Surgical Appliance and Supplies Manufacturing sector (NAICS 339113), a niche within the broader healthcare manufacturing industry. This sector produces medical devices and equipment, including prosthetics and orthotics. Spending in this area is driven by the healthcare needs of the population, particularly veterans in this case. Benchmarking would involve comparing the cost of similar custom prosthetic components across different healthcare providers and government agencies.

Small Business Impact

The data indicates this contract was not awarded to a small business, nor does it appear to have a small business set-aside. There is no information provided regarding subcontracting opportunities for small businesses within this award. Therefore, the direct impact on the small business ecosystem for this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses for support services or components.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. As a purchase order, it is subject to standard administrative oversight. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General investigation related to this particular contract, but the VA OIG generally oversees all VA spending for fraud, waste, and abuse.

Related Government Programs

VA Prosthetics and Sensory Aids Service
Department of Defense Medical Supplies
Medicare/Medicaid Durable Medical Equipment

Risk Flags

Sole-source award lacks competitive justification.
Potential for above-market pricing due to limited competition.
Lack of transparency in pricing and vendor selection.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12,080.8 to COLUMBIA BASIN PROSTHETICS & ORTHOTICS, INC.. BK CUSTOM ARTIFICIAL LIMB L5301 LEFT BK MOLD SOCKET SACH FT ENDO

Who is the contractor on this award?

The obligated recipient is COLUMBIA BASIN 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 $12,080.8.

What is the period of performance?

Start: 2022-12-02. End: 2023-12-02.

What is the track record of COLUMBIA BASIN PROSTHETICS & ORTHOTICS, INC. with the VA?

Information regarding the specific track record of COLUMBIA BASIN PROSTHETICS & ORTHOTICS, INC. with the Department of Veterans Affairs is not detailed in the provided data. To assess their track record, one would need to review past contract awards, performance evaluations, and any reported issues or successes. A comprehensive review would involve searching VA contract databases and performance management systems for this vendor. Without this historical data, it's difficult to gauge their reliability and past performance in delivering similar prosthetic and orthotic services or supplies to the VA or other government agencies. This lack of readily available performance history further underscores the need for careful consideration when awarding sole-source contracts.

How does the $12,080.80 award compare to market rates for similar prosthetic components?

The provided data does not include specific market rate comparisons for the L5301 left BK mold socket. As this was a sole-source award, direct price comparison is challenging. To benchmark this value, one would need to research pricing for similar custom-molded prosthetic sockets from other manufacturers or suppliers serving the VA or the general market. Factors influencing price include material costs, customization complexity, labor for fitting and fabrication, and overhead. Without access to competitive bids or industry pricing surveys for this specific component (L5301), it's impossible to definitively state whether $12,080.80 represents a fair market price or an above-market rate. The lack of competition inherently limits the ability to ascertain the best value.

What are the primary risks associated with this sole-source award?

The primary risks associated with this sole-source award are related to cost and competition. Firstly, the lack of competition means the VA may be paying a higher price than if the contract had been competed, potentially leading to inefficient use of taxpayer funds. Secondly, there's a risk of vendor lock-in, where the VA becomes dependent on a single supplier, potentially reducing leverage in future negotiations. Thirdly, without competitive pressure, there might be less incentive for the contractor to innovate or improve service quality. Finally, the absence of multiple bids makes it harder to assess the overall value proposition and ensure the government is receiving optimal quality and service for the price paid.

How effective is the VA in procuring prosthetic and orthotic devices through competitive means?

The Department of Veterans Affairs generally aims to procure prosthetic and orthotic devices through competitive means to ensure value for money. They utilize various contracting vehicles, including competitive solicitations under Federal Acquisition Regulation (FAR) Part 15 and simplified acquisition procedures for smaller dollar amounts. However, like any large organization, the VA may encounter situations where sole-source or limited-competition awards are deemed necessary due to unique requirements, specialized technology, or urgent needs. The effectiveness of their competitive procurement can be gauged by analyzing the number of bids received on similar contracts, the price differences between awarded contracts and initial estimates, and any reported instances of protest or disputes. While the VA strives for competition, the occurrence of sole-source awards like this one suggests that exceptions are made, necessitating ongoing scrutiny of justification and pricing.

What is the historical spending pattern for prosthetic limb components by the VA?

Historical spending patterns for prosthetic limb components by the Department of Veterans Affairs are substantial, reflecting the significant number of veterans requiring such devices. The VA's Prosthetics and Sensory Aids Service manages a large budget dedicated to providing a wide range of prosthetic and orthotic services and supplies. Annual spending can fluctuate based on veteran population needs, technological advancements in prosthetics, and overall healthcare appropriations. While specific figures for 'L5301 left BK mold socket' are not publicly detailed in aggregate historical spending reports, the VA consistently allocates significant resources to this category. Analyzing broader VA spending on durable medical equipment and prosthetic devices would reveal a consistent and considerable investment in supporting veterans' mobility and quality of life through these essential supplies.

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: 919 W MAIN ST, WALLA WALLA, WA, 99362

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

Financial Breakdown

Contract Ceiling: $12,081

Exercised Options: $12,081

Current Obligation: $12,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline