VA Awards $25.8M for Custom Surgical Implants to Terumo Medical Corp

Contract Overview

Contract Amount: $25,789 ($25.8K)

Contractor: Terumo Medical Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-05

End Date: 2027-03-05

Contract Duration: 365 days

Daily Burn Rate: $71/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM SURGICAL IMPLANTS

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25,788.77 to TERUMO MEDICAL CORP for work described as: CUSTOM SURGICAL IMPLANTS Key points: 1. Single award to Terumo Medical Corp. for custom surgical implants. 2. Contract duration of 1 year with a total value of $25.8M. 3. No indication of small business participation. 4. Spending is within the Surgical Appliance and Supplies Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $25.8M for a 1-year duration appears high for custom surgical implants, especially without clear justification for the price. Benchmarking against similar contracts for specialized implants is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, suggesting a limited competition approach. This method may not have yielded the best price discovery for the government.

Taxpayer Impact: The lack of robust competition could lead to higher costs for taxpayers.

Public Impact

Veterans will receive custom-fitted surgical implants, improving treatment outcomes. Potential for increased healthcare costs due to limited competition. Terumo Medical Corp. will be the sole provider for this contract period.

Waste & Efficiency Indicators

Waste Risk Score: 71 / 10

Warning Flags

Limited competition
Lack of small business participation
High per-unit cost potential

Positive Signals

Direct support for veteran healthcare needs
Long-term relationship with a known supplier

Sector Analysis

This contract falls under the Surgical Appliance and Supplies Manufacturing sector. Spending in this area is critical for medical advancements and patient care, but often involves specialized, high-cost items.

Small Business Impact

There is no indication that small businesses were involved in this procurement. Opportunities for small business participation in specialized manufacturing sectors like this are often limited.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Ensuring fair pricing and performance through contract management is crucial.

Related Government Programs

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

Risk Flags

Potential for overpayment due to limited competition.
Lack of transparency in pricing.
No small business participation.
Reliance on a single supplier for critical medical devices.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25,788.77 to TERUMO MEDICAL CORP. CUSTOM SURGICAL IMPLANTS

Who is the contractor on this award?

The obligated recipient is TERUMO MEDICAL CORP.

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 $25,788.77.

What is the period of performance?

Start: 2026-03-05. End: 2027-03-05.

What is the specific justification for limiting competition for these custom surgical implants?

The justification for limited competition is not provided in the data. Typically, such limitations are based on unique capabilities, urgent needs, or specific technical requirements that only one source can meet. Further investigation into the VA's procurement file would be necessary to understand the rationale and assess its validity.

How does the $25.8M contract value compare to industry benchmarks for similar custom surgical implant procurements?

Without specific details on the types and quantities of custom implants, direct benchmarking is difficult. However, $25.8M for a single year of custom implants suggests a potentially high cost per unit or a very large volume. A thorough market research report or comparison with other government or commercial contracts for similar specialized medical devices would be needed to assess value.

What measures are in place to ensure the quality and effectiveness of the custom surgical implants provided by Terumo Medical Corp. under this contract?

Standard contract clauses for quality assurance and performance standards would typically be included. The VA would likely have inspection and acceptance procedures for the delivered implants. Monitoring Terumo's compliance with specifications and patient outcomes would be key to ensuring effectiveness.

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: 265 DAVIDSON AVE STE 320, SOMERSET, NJ, 08873

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: $25,789

Exercised Options: $25,789

Current Obligation: $25,789

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline