VA awards $17.6M for below-knee prosthetics, highlighting potential value concerns with sole-source procurement

Contract Overview

Contract Amount: $17,650 ($17.7K)

Contractor: Donn & Doff Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-14

End Date: 2026-04-09

Contract Duration: 207 days

Daily Burn Rate: $85/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 $17,650.31 to DONN & DOFF INC for work described as: PROSTHETICS - BELOW KNEE PROSTHETICS Key points: 1. The contract's value of $17.6 million for prosthetics suggests a significant investment in veteran care. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and limited market engagement. 3. A single awardee for prosthetic supplies may indicate a lack of robust competition, potentially impacting cost-effectiveness. 4. The duration of 207 days for this purchase order is relatively short, suggesting a need for ongoing procurement. 5. The contract's focus on below-knee prosthetics addresses a specific, critical need within the veteran population. 6. The absence of small business set-aside flags raises questions about opportunities for smaller specialized suppliers.

Value Assessment

Rating: questionable

Benchmarking the value of this $17.6 million contract for prosthetics is challenging without comparable sole-source awards. However, the lack of competition inherently limits the government's ability to secure the best possible pricing. The fixed-price nature of the award provides some cost certainty, but the absence of competitive bids means there's no external validation of whether this price represents fair market value. Further analysis would require comparing unit costs to similar prosthetics procured competitively or through other channels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, DONN & DOFF INC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., urgent need, unique capabilities), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most cost-effective solution, as the government did not leverage competition to drive down prices. This could result in a higher overall expenditure for these essential prosthetic devices.

Public Impact

Veterans requiring below-knee prosthetic devices will benefit from this contract, ensuring access to necessary medical equipment. The services delivered include the provision of prosthetics, crucial for mobility and quality of life for amputees. The contract is geographically focused within California, where the vendor is located, impacting local supply chains. This contract supports the workforce within the medical device manufacturing sector, specifically in prosthetic appliance production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source awards can limit innovation by excluding other potential suppliers.
Dependence on a single supplier could create supply chain risks.
Transparency in pricing is reduced without competitive bids.

Positive Signals

Ensures a specific need for prosthetics is met for veterans.
Fixed-price contract offers some budget predictability.
Direct award can expedite delivery of critical supplies.

Sector Analysis

The market for surgical appliances and supplies (NAICS 339113) is specialized, focusing on the manufacturing of medical devices. This contract for below-knee prosthetics falls within this sector, which is characterized by technological advancements and stringent regulatory requirements. The Department of Veterans Affairs is a significant purchaser of such goods, aiming to provide comprehensive care to its beneficiaries. Benchmarking this contract's value against the broader medical device manufacturing sector would require detailed cost breakdowns and comparisons with similar prosthetic devices.

Small Business Impact

The contract was not competed and did not include a small business set-aside. This indicates that opportunities for small businesses to supply these specific prosthetic devices through this particular procurement vehicle were not prioritized. While the prime contractor, DONN & DOFF INC, is not specified as large or small, the lack of set-aside means potential subcontracting opportunities for small businesses in this specialized manufacturing area may be limited or at the discretion of the prime.

Oversight & Accountability

Oversight for this purchase order will primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to internal review and potentially external audits if flagged. Transparency is limited due to the non-competitive nature, but contract performance and delivery would be monitored against the terms of the purchase order. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Equipment Procurement
Medicare/Medicaid Prosthetics Coverage
Veterans Health Administration Medical Supplies

Risk Flags

Sole-source award may indicate lack of competition.
Potential for higher costs due to non-competitive nature.
Supply chain risk associated with single vendor dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,650.31 to DONN & DOFF INC. PROSTHETICS - BELOW KNEE PROSTHETICS

Who is the contractor on this award?

The obligated recipient is DONN & DOFF 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 $17,650.31.

What is the period of performance?

Start: 2025-09-14. End: 2026-04-09.

What is the typical pricing structure for below-knee prosthetics procured by the VA through competitive means?

Determining the typical pricing structure for below-knee prosthetics procured competitively by the VA requires access to historical contract data and detailed product specifications. Competitive solicitations often lead to a range of pricing based on the complexity of the prosthetic, materials used, customization required, and the specific components (e.g., socket, pylon, foot). Prices can vary significantly, from a few thousand dollars for basic models to tens of thousands for advanced, highly customized options. Without specific comparable contracts for this award, it's difficult to benchmark the $17.6 million value. However, the absence of competition in this sole-source award suggests that the government may not have achieved the most favorable pricing achievable through a competitive process, potentially leading to a higher per-unit cost than might be seen in a bid environment.

What are the specific justifications for awarding this contract on a sole-source basis?

The provided data indicates this contract was awarded as 'NOT COMPETED,' which typically implies a sole-source justification. Common reasons for sole-source awards include situations where only one responsible source is available, urgent and compelling needs that preclude full and open competition, or when a specific brand-name product is required and only one vendor can provide it. For prosthetics, potential justifications could involve unique technological capabilities of DONN & DOFF INC, a critical and immediate need for specific devices that only they can supply within the required timeframe, or a lack of other qualified manufacturers capable of meeting the VA's technical specifications. The specific justification would be documented in the contract file and is crucial for assessing the appropriateness of the sole-source award.

How does the $17.6 million contract value compare to the VA's overall spending on prosthetics?

The $17.6 million allocated for below-knee prosthetics represents a significant portion of the VA's budget for such devices. To contextualize this, one would need to examine the VA's historical spending data on prosthetics and orthotics. The VA's Prosthetic and Sensory Aids Service manages a substantial budget aimed at providing a wide array of assistive devices to veterans. This single contract, while substantial, is likely one of many procurements for various prosthetic needs. Analyzing the VA's total annual expenditure on prosthetics would reveal whether this $17.6 million award is typical, high, or low relative to overall demand and budget allocation for these critical medical supplies.

What are the potential risks associated with a sole-source award for essential medical supplies like prosthetics?

Sole-source awards for essential medical supplies like prosthetics carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be obtained through a competitive bidding process, meaning taxpayers could be overpaying for these devices. Secondly, it can foster a dependence on a single supplier, creating vulnerabilities in the supply chain. If DONN & DOFF INC experiences production issues, delivery delays, or financial instability, the VA's ability to procure necessary prosthetics could be severely impacted. Thirdly, it limits the government's ability to benefit from innovation and technological advancements that might be offered by other potential suppliers in the market. Finally, without competitive pressure, there may be less incentive for the sole provider to optimize efficiency or offer superior customer service.

What is the track record of DONN & DOFF INC in supplying prosthetics to the federal government?

Information regarding the specific track record of DONN & DOFF INC in supplying prosthetics to the federal government is not detailed in the provided data. To assess their performance, one would need to review their past federal contract awards, including contract values, performance ratings, and any history of disputes or contract terminations. A thorough analysis would involve checking databases like SAM.gov for previous awards and performance evaluations. Understanding their history with the VA and other federal agencies would provide insight into their reliability, quality of products, and ability to meet delivery schedules, which are critical factors when evaluating a sole-source awardee for essential medical equipment.

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

Address: 2102 CIVIC CENTER DR, REDDING, CA, 96001

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

Financial Breakdown

Contract Ceiling: $17,650

Exercised Options: $17,650

Current Obligation: $17,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline