VA awards $11.5M contract for artificial limbs to Willamette Orthotics & Prosthetics, LLC

Contract Overview

Contract Amount: $11,462 ($11.5K)

Contractor: Willamette Orthotics & Prosthetics, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-08

End Date: 2024-09-07

Contract Duration: 365 days

Daily Burn Rate: $31/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ARTIFICIAL LIMB

Place of Performance

Location: SALEM, MARION County, OREGON, 97301

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11,461.87 to WILLAMETTE ORTHOTICS & PROSTHETICS, LLC for work described as: ARTIFICIAL LIMB Key points: 1. Contract Value: $11.5 million over one year. 2. Sole Provider: Willamette Orthotics & Prosthetics, LLC is the sole provider. 3. Sector: Healthcare (Surgical Appliance and Supplies Manufacturing). 4. Risk: Potential risk due to lack of competition.

Value Assessment

Rating: fair

Pricing is difficult to assess without competitive benchmarks. The firm fixed price contract for a year suggests a set rate, but the absence of competition raises questions about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to higher taxpayer costs for artificial limbs.

Public Impact

Veterans may experience continuity of care with a familiar provider. Potential for higher costs due to lack of competitive bidding. Ensures supply of essential medical devices for veterans. Limited transparency on pricing due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 31 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures supply of critical medical devices
Potential for specialized provider expertise

Sector Analysis

This contract falls within the Healthcare sector, specifically surgical appliance and supplies manufacturing. Spending in this area is critical for veteran care, and benchmarks often focus on the cost-effectiveness of durable medical equipment.

Small Business Impact

The awardee is a Limited Liability Company (LLC), and it is not indicated if they are a small business. Further analysis would be needed to determine the impact on small businesses in this sector.

Oversight & Accountability

The Department of Veterans Affairs is responsible for this award. Oversight should focus on ensuring the quality of the artificial limbs and the reasonableness of the price, especially given the sole-source nature of the contract.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for price gouging
Limited transparency on pricing
No small business set-aside identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11,461.87 to WILLAMETTE ORTHOTICS & PROSTHETICS, LLC. ARTIFICIAL LIMB

Who is the contractor on this award?

The obligated recipient is WILLAMETTE ORTHOTICS & PROSTHETICS, 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 $11,461.87.

What is the period of performance?

Start: 2023-09-08. End: 2024-09-07.

What is the justification for the sole-source award of this artificial limb contract?

The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Further investigation into the VA's procurement file would be necessary to understand the specific rationale.

What is the potential risk to the government in terms of pricing for this sole-source contract?

The primary risk to the government in terms of pricing for this sole-source contract is the absence of competitive pressure. Without competing bids, there is a reduced incentive for the contractor to offer the lowest possible price. The government may end up paying more than it would in a competitive environment, potentially leading to inefficient use of taxpayer funds.

How does the lack of competition impact the effectiveness of this contract in meeting veteran needs?

While a sole-source award can ensure continuity of care and potentially leverage specialized expertise from a known provider, the lack of competition might indirectly affect effectiveness if it leads to complacency or inflated costs that divert resources from other critical veteran services. However, if Willamette Orthotics & Prosthetics, LLC is the sole provider of high-quality, specialized limbs, the effectiveness for the end-user (veteran) could remain high.

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: 2420 GREAR ST NE, SALEM, OR, 97301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,462

Exercised Options: $11,462

Current Obligation: $11,462

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline