VA awards $23.8M for Below Knee Prosthetics to Hanger Prosthetics & Orthotics West, Inc

Contract Overview

Contract Amount: $23,785 ($23.8K)

Contractor: Hanger Prosthetics & Orthotics West, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-02

End Date: 2026-04-07

Contract Duration: 217 days

Daily Burn Rate: $110/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS - BELOW KNEE PROSTHETICS

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,784.97 to HANGER PROSTHETICS & ORTHOTICS WEST, INC. for work described as: PROSTHETICS - BELOW KNEE PROSTHETICS Key points: 1. Spending on prosthetics is essential for veteran care, with this contract addressing a critical need. 2. Hanger Prosthetics & Orthotics West, Inc. is a significant player in the prosthetics market. 3. The contract's 'NOT COMPETED' status raises potential concerns about price discovery and value. 4. The sector for surgical appliance and supplies manufacturing is specialized and requires specific expertise.

Value Assessment

Rating: fair

The contract value of $23.8 million over 217 days suggests a significant per-unit cost. Without specific unit counts or detailed pricing breakdowns, it's difficult to benchmark against similar contracts, but the duration and scope imply substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as robust market competition is absent, potentially impacting the government's ability to secure the best value.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential prosthetic devices.

Public Impact

Veterans will receive necessary below-knee prosthetic devices, improving their mobility and quality of life. The contract ensures a supply chain for critical medical equipment for the Department of Veterans Affairs. Potential for increased costs due to non-competitive award could impact overall VA budget allocation for medical supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award justification

Positive Signals

Addresses critical veteran need
Ensures supply of essential medical devices

Sector Analysis

The surgical appliance and supplies manufacturing sector is highly specialized, focusing on devices that aid patient recovery and mobility. Spending benchmarks in this area are often driven by technological advancements and the complexity of custom-fit devices.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were explored or if the prime contractor has small business utilization plans.

Oversight & Accountability

The non-competitive nature of this award warrants close oversight to ensure fair pricing and that the justification for sole-source procurement is robust and documented. Accountability for the expenditure rests with the Department of Veterans Affairs contracting officers.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on award justification
No clear small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,784.97 to HANGER PROSTHETICS & ORTHOTICS WEST, INC.. PROSTHETICS - BELOW KNEE PROSTHETICS

Who is the contractor on this award?

The obligated recipient is HANGER PROSTHETICS & ORTHOTICS WEST, 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 $23,784.97.

What is the period of performance?

Start: 2025-09-02. End: 2026-04-07.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. For this contract, the VA would need to document why competition was not feasible, such as unique capabilities of Hanger Prosthetics & Orthotics West, Inc., or urgent needs. Ensuring fair and reasonable pricing in such cases often involves detailed cost analysis, comparison to historical pricing, or market research to establish a benchmark, even without direct competition.

How does the per-unit cost of these prosthetics compare to industry averages or previous VA contracts for similar items, especially considering the lack of competition?

Without specific unit data and detailed pricing, a direct per-unit cost comparison is challenging. However, the absence of competition inherently increases the risk of the per-unit cost being higher than if the contract were competitively bid. The VA should have conducted a thorough price analysis to validate the reasonableness of the negotiated price against available benchmarks, such as commercial price lists or pricing from other government agencies, to mitigate potential overspending.

What is the expected impact of this contract on veteran access to below-knee prosthetics and the overall quality of care provided?

This contract is intended to ensure continued access to essential below-knee prosthetic devices for veterans, thereby supporting their mobility, independence, and overall quality of life. By awarding this contract, the VA aims to maintain a reliable supply chain for these critical medical devices, preventing disruptions in care. The effectiveness will be measured by veteran satisfaction and clinical outcomes.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hanger, Inc.

Address: 1743 CREEKSIDE DR STE 110, FOLSOM, CA, 95630

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

Financial Breakdown

Contract Ceiling: $23,785

Exercised Options: $23,785

Current Obligation: $23,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline