VA awards $254,500 for Aortic Balloon Prosthetics to Terumo Medical Corp

Contract Overview

Contract Amount: $25,450 ($25.4K)

Contractor: Terumo Medical Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-05-06

Contract Duration: 30 days

Daily Burn Rate: $848/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS - AORTIC BALLOON

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25,450 to TERUMO MEDICAL CORP for work described as: PROSTHETICS - AORTIC BALLOON Key points: 1. High-value contract for critical medical device. 2. Sole supplier identified, raising competition concerns. 3. Potential for price escalation due to limited competition. 4. Sector: Healthcare - Medical Devices.

Value Assessment

Rating: fair

Pricing is based on a firm-fixed-price contract. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar aortic balloon prosthetics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying a premium for this essential medical supply.

Public Impact

Ensures availability of critical medical devices for veterans. Potential for increased healthcare costs if pricing is not optimized. Highlights reliance on specific manufacturers for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Warning Flags

Lack of competition
Potential for price overruns

Positive Signals

Ensures supply of critical medical device
Clear contract duration

Sector Analysis

The medical device sector, particularly for specialized prosthetics like aortic balloons, often faces challenges with limited competition due to high R&D costs and regulatory hurdles. Benchmarks are difficult without comparable sole-source data.

Small Business Impact

This contract does not appear to involve small businesses, as it was awarded directly to a large corporation. Opportunities for small business participation in this specific procurement are not evident.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The lack of competition warrants close monitoring of contract performance and pricing to ensure value for money.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of price competition
Potential for price inflation
Limited market visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25,450 to TERUMO MEDICAL CORP. PROSTHETICS - AORTIC BALLOON

Who is the contractor on this award?

The obligated recipient is TERUMO MEDICAL 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 $25,450.

What is the period of performance?

Start: 2026-04-06. End: 2026-05-06.

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

The justification for a sole-source award needs to be thoroughly documented. It typically involves situations where only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible or practical.

How will the VA ensure fair pricing without competitive bidding?

The VA should employ robust price analysis techniques, including comparing the proposed price to historical prices paid for the same or similar items, analyzing cost data if available, and consulting market research to establish a reasonable price. Independent government cost estimates can also be a valuable tool.

What is the long-term strategy for sourcing this critical medical device?

The agency should explore strategies to foster competition for future procurements, such as market research to identify potential new suppliers, encouraging industry engagement, or considering alternative product specifications that might allow for broader participation. This could lead to better pricing and supply chain resilience.

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-3204

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 265 DAVIDSON AVE STE 320, SOMERSET, NJ, 08873

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: $25,450

Exercised Options: $25,450

Current Obligation: $25,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline