VA awards $15.2M for hip implants, with 30-day delivery, highlighting surgical supply needs

Contract Overview

Contract Amount: $15,196 ($15.2K)

Contractor: Howmedica Osteonics Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-05-10

Contract Duration: 30 days

Daily Burn Rate: $507/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS - HIP IMPLANT

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15,195.62 to HOWMEDICA OSTEONICS CORP for work described as: PROSTHETICS - HIP IMPLANT Key points: 1. Contract value appears reasonable given the specialized nature of medical devices. 2. Full and open competition suggests a healthy market for these prosthetics. 3. Short performance period indicates a focus on immediate supply needs. 4. The contract aligns with VA's mission to provide comprehensive care to veterans. 5. This award falls within the broader category of medical equipment and supplies.

Value Assessment

Rating: good

The contract value of $15.2 million for hip implants over a 30-day period is within a typical range for such specialized medical devices. Benchmarking against similar VA or Department of Defense contracts for prosthetics would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract helps control costs for the government. The relatively short duration suggests a need for immediate supply rather than a long-term strategic procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the designation suggests a robust market with sufficient suppliers capable of meeting the VA's requirements for hip implants.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality goods and services.

Public Impact

Veterans requiring hip replacement surgery will benefit from timely access to necessary prosthetic devices. The contract ensures the availability of critical surgical supplies for VA medical facilities. The primary geographic impact is within the VA healthcare system, serving veterans nationwide. This contract supports the medical device manufacturing sector and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting the short delivery window.
Ensuring consistent quality across all delivered hip implants is crucial.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Fixed-price contract type helps manage cost certainty.
Clear delivery timeline for essential medical equipment.

Sector Analysis

This contract falls within the Healthcare sector, specifically the medical device and surgical supply sub-sector. The market for orthopedic implants, including hip prosthetics, is substantial and characterized by innovation and specialized manufacturing. The VA's spending in this area is consistent with its role in providing healthcare services to veterans, and comparable spending can be found across other federal agencies and large healthcare systems for similar medical equipment.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of hip implants, it is possible that larger, established manufacturers dominate this market. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain or related services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability measures are typically embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through contract databases like FPDS. Inspector General oversight may be involved if any issues of fraud, waste, or abuse arise.

Related Government Programs

VA Medical Care Programs
Durable Medical Equipment
Surgical and Medical Instruments
Orthopedic Implants

Risk Flags

Short performance period may increase delivery risk.
Potential for limited competition if specialized manufacturing is required.
Dependence on a single awardee for critical medical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15,195.62 to HOWMEDICA OSTEONICS CORP. PROSTHETICS - HIP IMPLANT

Who is the contractor on this award?

The obligated recipient is HOWMEDICA OSTEONICS 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 $15,195.62.

What is the period of performance?

Start: 2026-04-10. End: 2026-05-10.

What is the historical spending pattern for hip implants by the Department of Veterans Affairs?

Analyzing historical spending data for hip implants by the VA is crucial for understanding trends, identifying potential price fluctuations, and assessing the long-term investment in this category. While this specific award is for $15.2 million over a short period, a review of previous years' contracts would reveal the total annual expenditure, the number of awards, and the average contract values. This historical context allows for a more robust comparison of the current award against established benchmarks and can highlight any significant increases or decreases in spending that might warrant further investigation into market dynamics, technological advancements, or changes in veteran healthcare needs.

How does the unit cost of these hip implants compare to similar contracts or market rates?

Determining the unit cost of the hip implants is essential for a precise value-for-money assessment. Without the specific number of units being procured under this $15.2 million contract, a direct unit cost comparison is not possible. However, if the number of units were known, it could be benchmarked against prices paid by other federal agencies (e.g., Department of Defense) or large healthcare systems for comparable implant models. Market research reports on orthopedic implant pricing can also serve as a benchmark. Significant deviations from established market rates, even within a competitive bidding process, could indicate specific product features, urgency of need, or other factors influencing the price.

What are the specific risks associated with the short 30-day performance period for this contract?

The 30-day performance period for this $15.2 million contract for hip implants presents several potential risks. Primarily, there is a risk of supply chain disruptions that could prevent the timely delivery of the required prosthetics, potentially impacting veteran care schedules. The short timeframe may also limit the number of potential bidders, especially if specialized manufacturing or logistics are required, potentially reducing the effectiveness of full and open competition. Furthermore, a compressed delivery schedule could lead to increased shipping costs or necessitate expedited production, which might indirectly affect the overall cost-effectiveness if not managed meticulously. The VA will need robust vendor management to ensure compliance within this tight window.

What is the track record of HOWMEDICA OSTEONICS CORP in fulfilling federal contracts, particularly for medical devices?

Investigating the track record of HOWMEDICA OSTEONICS CORP is vital for assessing the reliability and performance associated with this $15.2 million contract. Information on past performance, including on-time delivery rates, quality compliance, and any history of contract disputes or terminations, would provide valuable insights. Examining their history with the Department of Veterans Affairs and other federal agencies for similar medical devices like hip implants can indicate their capacity to meet the current contract's demands. A positive performance history suggests a lower risk of execution issues, while a history of challenges might warrant closer monitoring and contingency planning by the VA.

How does this contract align with the VA's overall strategy for orthopedic care and medical supply chain management?

This $15.2 million contract for hip implants is a component of the VA's broader strategy to provide comprehensive orthopedic care to veterans. It addresses the immediate need for essential prosthetic devices, ensuring that surgical procedures can proceed as planned. From a supply chain perspective, the short delivery window suggests a focus on just-in-time inventory management or addressing an urgent demand surge. Analyzing this contract in conjunction with other VA procurements for orthopedic services, rehabilitation, and related medical equipment would offer a clearer picture of the agency's strategic approach to managing the full spectrum of veteran orthopedic health needs and ensuring the efficiency and resilience of its medical supply chain.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stryker Corporation

Address: 325 CORPORATE DR, MAHWAH, NJ, 07430

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: $15,196

Exercised Options: $15,196

Current Obligation: $15,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0041

IDV Type: IDC

Timeline