VA awards $1.95M for eye gaze prosthetics, highlighting a sole-source purchase for specialized medical supplies

Contract Overview

Contract Amount: $19,469 ($19.5K)

Contractor: Eyegaze Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-01

Contract Duration: 30 days

Daily Burn Rate: $649/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS - EYEGAZE

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19,469 to EYEGAZE INC. for work described as: PROSTHETICS - EYEGAZE Key points: 1. The contract value of $1.95 million for a 30-day period suggests a high per-unit cost for specialized prosthetics. 2. A sole-source award indicates a lack of competitive bidding, potentially limiting price negotiation and value for money. 3. The short duration of the contract (30 days) may point to urgent need or a pilot program, requiring further investigation. 4. The specific NAICS code 339113 covers Surgical Appliance and Supplies Manufacturing, placing this within a niche industrial sector. 5. The award is managed by the Department of Veterans Affairs, indicating a focus on serving the veteran population. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to small businesses.

Value Assessment

Rating: questionable

The contract value of $1.95 million for a single month of service for eye gaze prosthetics appears exceptionally high. Without comparable contract data for similar specialized prosthetic devices, it is difficult to benchmark the value definitively. However, the sole-source nature of the award raises concerns about whether the VA secured the most competitive pricing. The short duration also makes it challenging to assess long-term value or potential for cost savings through bulk purchasing or longer-term agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, EYEGAZE INC., was solicited. This approach is typically used when a unique product or service is required, or in cases of urgent and compelling need. The lack of competition means that the VA did not benefit from multiple bids, which could have driven down the price or offered alternative solutions. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a bidding process, there is a risk that the price is not reflective of fair market value, potentially leading to less efficient use of public funds.

Public Impact

Veterans requiring advanced eye gaze prosthetic devices will benefit from this contract, enabling improved communication and interaction. The services delivered are specialized prosthetic supplies, crucial for individuals with specific medical needs. The geographic impact is primarily within California, where the contractor is located, though the ultimate beneficiaries are veterans nationwide. This contract supports specialized manufacturing within the medical device sector, potentially impacting a small, highly skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about price competitiveness and potential for overpayment.
Short contract duration (30 days) may indicate an inefficient procurement strategy or an inability to secure longer-term solutions.
Lack of transparency in the justification for sole-source procurement could hide potential issues.
High dollar amount for a short period warrants scrutiny regarding the necessity and cost-effectiveness of the supplies.

Positive Signals

Ensures provision of critical, specialized prosthetic devices to veterans in need.
Direct award to a specific manufacturer suggests a potentially unique or highly specialized product meeting specific VA requirements.
Contract is managed by the Department of Veterans Affairs, indicating a commitment to serving the veteran community.

Sector Analysis

The market for specialized prosthetics, particularly advanced assistive technologies like eye gaze systems, is a niche segment within the broader medical device industry. This sector is characterized by high research and development costs, stringent regulatory requirements, and often, limited competition due to the specialized nature of the technology. Spending in this area is driven by medical necessity and technological advancements aimed at improving patient quality of life. Comparable spending benchmarks are difficult to establish without more specific product details, but the overall medical device manufacturing sector is substantial, with significant government procurement.

Small Business Impact

The contract details indicate that this was not a small business set-aside. The sole-source nature of the award further suggests that opportunities for small businesses to participate, either as prime contractors or through subcontracting, may have been limited or non-existent. Without specific subcontracting plans mandated, the direct impact on the small business ecosystem for this particular award is likely minimal, unless EYEGAZE INC. itself is a small business and utilizes other small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency regarding the justification for the sole-source award is crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of this contract.

Related Government Programs

VA Medical Equipment Procurement
Assistive Technology for Disabled Veterans
Surgical Appliance and Supplies Manufacturing Contracts
Sole-Source Medical Device Awards

Risk Flags

Sole-source award without clear justification.
High cost for a short-duration contract.
Lack of competitive bidding.
Potential for non-competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19,469 to EYEGAZE INC.. PROSTHETICS - EYEGAZE

Who is the contractor on this award?

The obligated recipient is EYEGAZE 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 $19,469.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-01.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis to EYEGAZE INC.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified based on factors such as the existence of only one responsible source, urgent and compelling need, or specific government-unique requirements that cannot be met by other sources. For this contract, the VA would need to have documented why EYEGAZE INC. was the only viable option for providing these specific eye gaze prosthetics within the required timeframe. Without this documentation, it is impossible to fully assess the appropriateness of the sole-source designation and its potential impact on price and competition.

How does the $1.95 million cost for a 30-day supply of eye gaze prosthetics compare to market rates or similar VA contracts?

The provided data does not contain sufficient information to benchmark the $1.95 million cost for a 30-day supply of eye gaze prosthetics against market rates or similar VA contracts. Eye gaze systems can vary significantly in complexity, features, and associated services (e.g., calibration, training, maintenance), leading to wide price ranges. A 30-day supply for such a high value suggests either an extremely high per-unit cost for individual devices or potentially includes associated services, support, or a large quantity of units. To perform a meaningful comparison, details on the specific product, quantity, and included services would be necessary, along with data from other sole-source or competitively awarded contracts for similar assistive technologies.

What are the specific types and quantities of eye gaze prosthetics being procured under this contract?

The data provided indicates the procurement is for 'PROSTHETICS - EYEGAZE' and identifies the contractor as 'EYEGAZE INC.'. However, it does not specify the exact types, models, or quantities of eye gaze prosthetic devices being purchased. This level of detail is crucial for understanding the nature of the need, assessing the appropriateness of the sole-source award, and evaluating the cost-effectiveness of the procurement. Without knowing the specific product specifications and the number of units required, it is challenging to determine if the $1.95 million value is justified.

What is the track record of EYEGAZE INC. in providing prosthetic devices to the federal government or other healthcare providers?

The provided data identifies EYEGAZE INC. as the contractor but does not offer details on their specific track record, such as past performance ratings, previous federal contracts, or client testimonials. To assess the contractor's reliability and capability, a review of their history would be necessary. This would typically involve examining contract performance databases, looking for any past issues or successes, and understanding their experience specifically with eye gaze technology and prosthetic devices. A strong track record could lend some confidence to the award, even if sole-source, but it does not negate the need for competitive pricing.

Are there any planned follow-on contracts or extensions for this eye gaze prosthetic supply, and if so, what is the anticipated procurement strategy?

The current data pertains to a single purchase order with an expiration date of May 1, 2026, lasting only 30 days. There is no information available regarding planned follow-on contracts or extensions. Given the short duration and sole-source nature, it is unclear whether this represents an immediate, one-time need or the beginning of a longer-term requirement. If it is a recurring need, the VA's strategy for future procurements should ideally involve exploring competitive options to ensure better value for taxpayers, unless a continued justification for sole-source exists.

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: 10363A DEMOCRACY LN, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $19,469

Exercised Options: $19,469

Current Obligation: $19,469

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline