VA awards $16.3M purchase order for molded socks to Orthopro of Twin Falls Inc

Contract Overview

Contract Amount: $16,276 ($16.3K)

Contractor: Orthopro of Twin Falls Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-01-27

End Date: 2024-01-27

Contract Duration: 365 days

Daily Burn Rate: $45/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BK MOLDED SOCK

Place of Performance

Location: TWIN FALLS, TWIN FALLS County, IDAHO, 83301

State: Idaho Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,275.89 to ORTHOPRO OF TWIN FALLS INC for work described as: BK MOLDED SOCK Key points: 1. The contract value represents a significant investment in specialized medical supplies. 2. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies. 3. The duration of the contract suggests a need for consistent supply of these items. 4. The specific product category, surgical appliances, indicates a focus on patient care needs. 5. The award to a single vendor may limit opportunities for broader market engagement.

Value Assessment

Rating: fair

Benchmarking the value of this $16.3 million purchase order for molded socks is challenging without specific per-unit cost data or comparisons to similar sole-source contracts. The fixed-price nature provides some cost certainty, but the lack of competition raises questions about whether the government secured the best possible price. Further analysis would require understanding the specific features and complexity of the molded socks and comparing pricing to industry standards for similar custom medical devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means that pricing was negotiated directly with Orthopro of Twin Falls Inc., and there was no opportunity for other suppliers to bid, potentially impacting price discovery.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as alternative vendors were not considered. This could result in a higher cost than if the contract had been openly competed.

Public Impact

Veterans requiring specialized orthopedic footwear will benefit from the provision of these custom molded socks. The contract ensures the availability of essential medical supplies for patient care within the VA system. The geographic impact is primarily within the service areas covered by the Department of Veterans Affairs. The contract supports the operations of Orthopro of Twin Falls Inc., potentially impacting its workforce and local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source awards can limit innovation and vendor diversity.
Absence of detailed per-unit cost data hinders value assessment.

Positive Signals

Ensures a consistent supply of critical medical items for veterans.
Fixed-price contract provides budget predictability.
Award to a specific vendor may indicate specialized capabilities.

Sector Analysis

The market for surgical appliances and supplies is a specialized segment within the broader healthcare manufacturing industry. This contract falls under the North American Industry Classification System (NAICS) code 339113. The demand for such custom medical devices is driven by patient needs and healthcare provider requirements. Benchmarking this contract's value would involve comparing it to other sole-source or competitively awarded contracts for similar custom orthopedic devices, considering factors like material costs, customization complexity, and vendor overhead.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. The award to Orthopro of Twin Falls Inc., a single entity, does not directly contribute to the small business contracting ecosystem through set-asides or mandated subcontracting. Further investigation would be needed to determine if Orthopro itself is a small business and if any of its supply chain involves small businesses.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' procurement and contract management divisions. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified goods. Transparency is limited due to the sole-source nature and the absence of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Supplies
Orthopedic Devices
Surgical Appliances
Medical Equipment Manufacturing

Risk Flags

Sole-source award
Lack of competitive bidding
Limited transparency on pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,275.89 to ORTHOPRO OF TWIN FALLS INC. BK MOLDED SOCK

Who is the contractor on this award?

The obligated recipient is ORTHOPRO OF TWIN FALLS 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 $16,275.89.

What is the period of performance?

Start: 2023-01-27. End: 2024-01-27.

What is the specific type and complexity of the molded socks being procured, and how does this influence the cost?

The provided data does not specify the exact type or complexity of the molded socks. However, as they fall under NAICS code 339113 (Surgical Appliance and Supplies Manufacturing), it can be inferred that these are specialized medical devices, likely custom-fitted or designed to address specific patient orthopedic needs. The complexity could range from simple compression socks to intricate custom-molded inserts or prosthetic liners. Higher complexity, involving custom fitting, specialized materials, and detailed design, would naturally lead to higher per-unit costs compared to off-the-shelf alternatives. Without detailed product specifications, it's difficult to precisely benchmark the cost, but the $16.3 million award over one year suggests a significant volume or a high degree of customization per unit.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), and it is listed as a sole-source award. Agencies typically justify sole-source awards when only one responsible source is available or capable of meeting the requirement. This could be due to proprietary technology, unique manufacturing capabilities, specialized expertise, or urgent and compelling needs where competition is not feasible. For Orthopro of Twin Falls Inc. to be the sole source, they likely possess exclusive rights to a specific manufacturing process, material, or design essential for these particular molded socks, or perhaps they are the only approved provider within the VA's established network for this specific item. A formal justification for other than full and open competition would typically be documented by the agency.

How does the $16.3 million contract value compare to historical spending on similar items by the VA or other federal agencies?

Historical spending data for this specific type of molded sock is not provided. However, a $16.3 million award for a single product line over one year is substantial. To assess its comparability, one would need to analyze past VA contracts for orthopedic supplies, custom medical devices, or similar sole-source procurements. Comparing this to the average price per unit or total annual spending on comparable items across the federal government would provide context. Without such comparative data, it's difficult to definitively state whether this represents an increase or decrease in spending trends or if it aligns with market rates for similar specialized medical goods.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for overpayment due to the lack of competitive pressure. Without competing bids, the government may not be achieving the best possible price for the molded socks. Other risks include vendor lock-in, where the agency becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. There's also a risk that the sole-source vendor may not be as incentivized to innovate or maintain the highest service levels compared to a vendor operating in a competitive market. Furthermore, if the vendor faces financial difficulties or operational issues, it could disrupt the supply chain for these critical medical items.

What is Orthopro of Twin Falls Inc.'s track record with the VA or other federal agencies, particularly regarding sole-source contracts?

The provided data indicates Orthopro of Twin Falls Inc. is the contractor for this $16.3 million purchase order with the Department of Veterans Affairs. To assess their track record, one would need to examine their contract history with the VA and other federal agencies. Key areas to review would include past performance evaluations, any history of contract disputes or terminations, and the frequency and justification of any previous sole-source awards. A history of successful, on-time deliveries and positive performance reviews would mitigate concerns, while a pattern of issues or a high reliance on sole-source awards might raise red flags regarding their overall performance and pricing strategies.

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: 1437 PARKVIEW DR, TWIN FALLS, ID, 83301

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

Financial Breakdown

Contract Ceiling: $16,276

Exercised Options: $16,276

Current Obligation: $16,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline