VA awards $20.25M for prosthetics, but limited competition raises cost concerns

Contract Overview

Contract Amount: $20,251 ($20.3K)

Contractor: Ortho PRO Associates, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-08-06

Contract Duration: 122 days

Daily Burn Rate: $166/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS - LIMB

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20,250.7 to ORTHO PRO ASSOCIATES, INC for work described as: PROSTHETICS - LIMB Key points: 1. Contract awarded via purchase order, indicating a streamlined but potentially less competitive process. 2. The firm fixed-price contract type offers cost certainty for the government. 3. The contract duration of 122 days is relatively short, suggesting a focused need. 4. The North American Industry Classification System (NAICS) code 339113 points to specialized medical equipment manufacturing. 5. The award was made to a single contractor, Ortho Pro Associates, Inc. 6. The contract is not subject to small business set-asides. 7. The contract is for prosthetics, specifically limb prosthetics, serving veterans' needs.

Value Assessment

Rating: fair

Benchmarking the value for this specific prosthetic limb contract is challenging without more detailed service descriptions or comparable contract data. However, the award of $20.25 million for a 122-day period suggests a significant per-diem or per-unit cost. The lack of competition means there's no direct market comparison to assess if this price is optimal. Further analysis would require understanding the specific types and quantities of prosthetics procured and comparing them to industry standards and historical VA spending on similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' method, indicating a sole-source or limited competition scenario. The data does not specify the number of bidders, but the 'NOT COMPETED' designation strongly implies only one source was considered or available. This approach bypasses the standard competitive bidding process, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution, as there was no opportunity for multiple vendors to bid and drive down prices through a competitive process.

Public Impact

Veterans requiring prosthetic limbs will benefit from the services and supplies provided under this contract. The contract ensures the availability of essential prosthetic devices for medical treatment and rehabilitation. The geographic impact is primarily within Nevada, where the contractor is located, but the ultimate beneficiaries are veterans nationwide. The contract supports the healthcare sector by ensuring access to specialized medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher prices than a fully competed contract.
Lack of transparency in the sole-source award process can obscure potential inefficiencies.
Reliance on a single contractor could create supply chain risks if the contractor faces operational issues.

Positive Signals

The firm fixed-price contract provides budget certainty for the Department of Veterans Affairs.
The award to Ortho Pro Associates, Inc. ensures a specific provider for prosthetic needs.
The contract is for essential medical supplies, directly supporting veteran healthcare.

Sector Analysis

The prosthetics and artificial limb manufacturing sector is a specialized segment within the broader medical device industry. This contract falls under NAICS code 339113, Surgical Appliance and Supply Manufacturing. The market is characterized by high technical expertise, regulatory oversight, and a significant portion of demand driven by government healthcare programs like the VA. Spending in this sector is often influenced by advancements in medical technology and the aging veteran population requiring rehabilitative services.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit subcontracting goals for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. While the prime contractor may engage small businesses in their supply chain, there are no direct set-aside provisions or mandated subcontracting plans evident from the provided data.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a purchase order, it falls under the VA's procurement regulations and internal controls. Transparency is limited due to the sole-source award. Accountability would be managed through contract performance monitoring and payment processes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Care
Prosthetic and Sensory Aids Service
Medical Equipment and Supplies
Veteran Health Administration

Risk Flags

Limited Competition
Sole-Source Award
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20,250.7 to ORTHO PRO ASSOCIATES, INC. PROSTHETICS - LIMB

Who is the contractor on this award?

The obligated recipient is ORTHO PRO ASSOCIATES, 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 $20,250.7.

What is the period of performance?

Start: 2026-04-06. End: 2026-08-06.

What is the historical spending pattern for prosthetic limb services by the Department of Veterans Affairs?

Analyzing historical spending patterns for prosthetic limb services by the VA is crucial for understanding trends and identifying potential cost efficiencies or escalations. While specific data for this contract is limited, the VA generally allocates significant resources to its Prosthetic and Sensory Aids Service to meet the needs of veterans. Past spending would likely show fluctuations based on veteran population demographics, technological advancements in prosthetics, and policy changes. A comprehensive review would involve examining annual reports, budget allocations, and contract databases over several fiscal years to identify average contract values, the number of contracts awarded, and the types of prosthetics procured. This historical context helps in evaluating whether the current $20.25 million award for a 122-day period represents a typical investment or an outlier, and whether spending has increased or decreased over time.

How does the pricing of this contract compare to similar prosthetic limb contracts awarded by other federal agencies?

Comparing the pricing of this $20.25 million contract for prosthetic limbs to similar awards by other federal agencies is essential for assessing value for money. However, such a comparison is difficult without detailed information on the specific types, quantities, and quality of prosthetics being procured. Agencies like the Department of Defense (DoD) also procure medical supplies, and their contract vehicles might offer different pricing structures. A robust comparison would involve identifying contracts with comparable scope, duration, and product specifications, and then analyzing the per-unit costs or overall contract values. The 'NOT COMPETED' status of this VA contract further complicates direct price benchmarking, as competitive bids often drive down costs. Without access to detailed pricing breakdowns and comparable contract data, it's challenging to definitively state if this contract's pricing is favorable or not.

What are the specific risks associated with awarding a large contract for essential medical supplies on a sole-source basis?

Awarding a large contract, such as this $20.25 million for prosthetics, on a sole-source basis carries several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures of a bidding process. Secondly, it reduces transparency and makes it harder to ensure the government is receiving the best value for taxpayer money. Thirdly, it creates a dependency on a single contractor, which can pose supply chain risks; if the contractor experiences production issues, financial instability, or quality control problems, the supply of essential prosthetic limbs to veterans could be severely disrupted. Finally, sole-source awards can sometimes indicate a lack of market research or planning, potentially missing opportunities to engage a broader range of qualified suppliers.

What is the track record of Ortho Pro Associates, Inc. in fulfilling government contracts, particularly for prosthetic devices?

Evaluating the track record of Ortho Pro Associates, Inc. is crucial for understanding their capability and reliability in fulfilling this $20.25 million contract for prosthetic limbs. Information on their past performance with government contracts, especially within the Department of Veterans Affairs or other agencies, would provide insights into their delivery history, quality of products, and adherence to contract terms. A review of federal procurement databases (like FPDS or SAM.gov) could reveal previous awards, contract values, and any performance evaluations or disputes. A strong track record would suggest a lower risk for this current contract, while a history of issues might warrant closer scrutiny and more robust oversight from the VA to mitigate potential performance problems.

How does the duration of this contract (122 days) align with the typical lifecycle and replacement needs for prosthetic limbs?

The contract duration of 122 days (approximately 4 months) for prosthetic limbs is relatively short and suggests a specific, perhaps immediate, need rather than a long-term supply agreement. Prosthetic limbs themselves can have lifespans ranging from several years to over a decade, depending on the type, materials, patient usage, and technological advancements. This short contract duration might indicate it's for a specific batch of devices, repairs, or a bridge contract while a larger, more comprehensive procurement is being planned. It raises questions about whether this short-term award is the most efficient approach for managing the ongoing needs of veterans for prosthetic devices, or if it's part of a larger, phased acquisition strategy. Understanding the intended use and the VA's long-term strategy for prosthetic provision is key to assessing the appropriateness of this duration.

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

Parent Company: Hanger, Inc.

Address: 11400 N KENDALL DR STE 100, MIAMI, FL, 33176

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

Financial Breakdown

Contract Ceiling: $20,251

Exercised Options: $20,251

Current Obligation: $20,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline