VA awards $31.8M for prosthetics, with Medtronic USA Inc. securing a sole-source purchase order

Contract Overview

Contract Amount: $31,829 ($31.8K)

Contractor: Medtronic USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-18

End Date: 2026-04-01

Contract Duration: 104 days

Daily Burn Rate: $306/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS - SPINE IMPLANT

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31,828.93 to MEDTRONIC USA INC for work described as: PROSTHETICS - SPINE IMPLANT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The purchase order is for a duration of 104 weeks, indicating a medium-term need. 3. The contract is for prosthetics, specifically spine implants, a critical medical supply. 4. The agency is the Department of Veterans Affairs, serving a specific demographic. 5. The North American Industry Classification System (NAICS) code is 339113 for Surgical Appliance and Supplies Manufacturing. 6. The contract type is Firm Fixed Price, providing cost certainty for the agency.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without competitive data. However, the fixed-price nature provides some cost predictability for the VA. The specific product category (spine implants) suggests a high-value, specialized item where pricing can vary significantly based on technology and features. Further analysis would require comparing unit costs to similar VA or DoD procurements for comparable prosthetic devices, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or in the interest of economy and efficiency. The lack of competition means that the VA did not benefit from multiple vendors bidding and potentially offering lower prices. The rationale for this sole-source award would need to be examined to understand why other potential suppliers were not considered.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This could lead to higher overall spending for the same or similar medical supplies compared to a competed contract.

Public Impact

Veterans will benefit from access to necessary prosthetic spine implants. The services delivered include the provision of specialized medical devices. The geographic impact is primarily within California, where the contractor is located. This contract supports the manufacturing and supply chain for critical medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification could hide inefficiencies.
Dependence on a single supplier for critical medical devices poses supply chain risk.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
Contract addresses a critical need for prosthetic spine implants for veterans.
Longer contract duration (104 weeks) ensures continuity of supply.

Sector Analysis

The medical device manufacturing sector, particularly for surgical implants, is characterized by high R&D investment, stringent regulatory requirements, and significant market concentration among a few key players. Companies like Medtronic are leaders in this space. Spending in this category is driven by an aging population, advancements in medical technology, and the increasing demand for specialized treatments. The VA's spending on prosthetics falls within this high-value, specialized segment of the healthcare industry.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large corporation, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on securing a specialized product from an established manufacturer.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the terms of the Firm Fixed Price purchase order, ensuring delivery of specified prosthetic devices. Transparency is limited due to the sole-source nature, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Prosthetic Devices
Medical Supplies
Spinal Implants
Department of Veterans Affairs Medical Procurement

Risk Flags

Sole-source award
Potential for inflated pricing
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31,828.93 to MEDTRONIC USA INC. PROSTHETICS - SPINE IMPLANT

Who is the contractor on this award?

The obligated recipient is MEDTRONIC USA 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 $31,828.93.

What is the period of performance?

Start: 2025-12-18. End: 2026-04-01.

What is the historical spending by the VA on prosthetic spine implants, and how does this award compare?

Historical spending data for prosthetic spine implants specifically by the VA is not readily available in a consolidated public format. However, the Department of Veterans Affairs consistently allocates significant funds towards medical supplies and equipment to serve its veteran population. In fiscal year 2023, the VA reported spending billions on healthcare services and supplies. This $31.8 million award for spine implants represents a substantial investment in a specialized area of prosthetics. Without granular historical data on this specific product category, a direct comparison is difficult, but it indicates a significant procurement likely driven by specific patient needs and technological requirements for spinal support and reconstruction.

What is the justification for this contract being awarded on a sole-source basis?

The justification for a sole-source award typically stems from specific circumstances where only one vendor can meet the agency's needs. For medical devices like prosthetic spine implants, this could be due to proprietary technology, unique product specifications, existing compatibility requirements with previously implanted devices, or a lack of other qualified manufacturers capable of meeting the technical requirements within the necessary timeframe. The Department of Veterans Affairs would have a formal justification document outlining these reasons, often citing Federal Acquisition Regulation (FAR) 6.302. Without access to this specific justification, it's presumed that Medtronic USA Inc. is the only viable source for these particular spine implants, possibly due to patents, unique design, or integration with existing patient records and surgical protocols.

How does the pricing of these prosthetic spine implants compare to market rates or other government contracts?

Directly comparing the pricing of these prosthetic spine implants is challenging without specific unit cost data and detailed product specifications. As this is a sole-source award, a competitive benchmark is absent. However, prosthetic spine implants are generally high-cost medical devices due to the advanced materials, complex design, and extensive research and development involved. Pricing can vary significantly based on the type of implant (e.g., fusion devices, artificial discs, instrumentation), the materials used, and the specific surgical application. To assess value, one would need to compare the per-unit cost against similar sole-source awards by the VA or other federal agencies for comparable devices, or against pricing data from Group Purchasing Organizations (GPOs) if available, while accounting for any unique specifications.

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

A primary risk associated with sole-source awards for critical medical supplies is the lack of competitive pressure, which can lead to higher prices than might be achieved through open competition. This can result in increased costs for the government and, by extension, taxpayers. Another significant risk is supply chain vulnerability; reliance on a single supplier can create dependencies, making the agency susceptible to disruptions caused by the supplier's production issues, financial instability, or geopolitical events. Furthermore, without competition, there may be less incentive for the sole-source provider to innovate or offer improved product versions. Ensuring robust contract management and performance monitoring becomes crucial to mitigate these risks.

What is Medtronic USA Inc.'s track record with the Department of Veterans Affairs and other federal agencies?

Medtronic USA Inc. is a major global medical technology company with a substantial history of supplying medical devices, including prosthetics and implants, to various federal agencies, most notably the Department of Veterans Affairs and the Department of Defense. They have a broad portfolio of products used in surgical, cardiovascular, and neuromodulation procedures. Their track record with the VA likely includes numerous contracts, both competed and sole-source, for a wide range of medical equipment. Analyzing their past performance, including contract compliance, delivery timeliness, and any past disputes or quality issues, would provide context for this current award. Publicly available contract databases often show extensive award histories for large suppliers like Medtronic.

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

Solicitation ID: 36C261-26-AP-1866

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Medtronic Public Limited Company

Address: 710 MEDTRONIC PKWY, MINNEAPOLIS, MN, 55432

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $31,829

Exercised Options: $31,829

Current Obligation: $31,829

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline