VA awards $11.2M for wheeled mobility prosthetics, highlighting a sole-source procurement for Sunrise Medical

Contract Overview

Contract Amount: $11,254 ($11.3K)

Contractor: Sunrise Medical (US) LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-22

End Date: 2022-03-22

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS WHEELED MOBILITY Q300 M MPC SEDEO PRO

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11,253.62 to SUNRISE MEDICAL (US) LLC for work described as: PROSTHETICS WHEELED MOBILITY Q300 M MPC SEDEO PRO Key points: 1. The contract value of $11.2 million for prosthetics indicates significant investment in mobility aids. 2. A sole-source award suggests limited market competition or specific contractor capabilities. 3. The absence of competition may lead to higher prices compared to a fully competed contract. 4. The contract's duration of zero days implies a one-time purchase or immediate fulfillment. 5. The focus on wheeled mobility prosthetics addresses a critical need for veterans. 6. The award to Sunrise Medical (US) LLC positions them as a key supplier in this niche.

Value Assessment

Rating: fair

The contract value of $11.2 million for prosthetics is a substantial amount for a single purchase order. Without comparable sole-source awards or benchmark data for similar wheeled mobility devices, a precise value-for-money assessment is challenging. However, the lack of competition inherently raises concerns about potential overpricing compared to what might be achieved in a more open market. The fixed-price nature of the contract provides some cost certainty, but the overall value is difficult to ascertain without further context on the specific devices procured and their market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs identified Sunrise Medical (US) LLC as the only capable source for the required prosthetics. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the opportunity for multiple vendors to offer their products, potentially impacting price discovery and overall cost-effectiveness for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to higher overall expenditures for these essential medical devices.

Public Impact

Veterans requiring wheeled mobility prosthetics will benefit from access to specialized equipment. The services delivered include the provision of advanced prosthetic devices to enhance mobility. The geographic impact is likely nationwide, serving veterans across the United States. This contract supports the manufacturing and supply chain for specialized medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source nature limits opportunities for other qualified small or large businesses.
Absence of a competitive process reduces transparency in pricing.

Positive Signals

Addresses a critical need for mobility aids for veterans.
Ensures access to specialized prosthetic devices.
Award to a known entity (Sunrise Medical) may indicate reliability.

Sector Analysis

The market for prosthetics and orthotics is a specialized segment within the broader healthcare manufacturing industry. This contract falls under the Surgical Appliance and Supplies Manufacturing (NAICS 339113) sector. The global prosthetics market is substantial, driven by an aging population, rising incidence of chronic diseases, and advancements in prosthetic technology. Federal agencies, particularly the VA, are significant purchasers of these devices to serve the veteran population. Benchmarking this specific contract's value is difficult without detailed product specifications and market pricing for comparable advanced wheeled mobility systems.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Sunrise Medical (US) LLC, a potentially larger entity, suggests that small businesses may not have been primary participants in this specific procurement. Further analysis would be needed to determine if subcontracting opportunities exist within Sunrise Medical's operations for this contract.

Oversight & Accountability

The primary oversight for this contract would fall under the Department of Veterans Affairs' procurement and contracting offices. As a purchase order, it is subject to standard federal acquisition regulations and internal VA policies. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement process or contract execution.

Related Government Programs

VA Prosthetic and Sensory Aids Service
Department of Defense Medical Equipment Procurement
Medicare/Medicaid Durable Medical Equipment Coverage

Risk Flags

Sole-source award limits price competition.
Lack of transparency in procurement process.
Potential for higher costs due to absence of bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11,253.62 to SUNRISE MEDICAL (US) LLC. PROSTHETICS WHEELED MOBILITY Q300 M MPC SEDEO PRO

Who is the contractor on this award?

The obligated recipient is SUNRISE MEDICAL (US) LLC.

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 $11,253.62.

What is the period of performance?

Start: 2022-03-22. End: 2022-03-22.

What specific types of wheeled mobility prosthetics were procured under this $11.2 million contract?

The provided data indicates the contract is for 'PROSTHETICS WHEELED MOBILITY Q300 M MPC SEDEO PRO'. This suggests the procurement is for advanced powered wheelchairs or mobility devices, likely from Sunrise Medical's Sedeo Pro product line, which often includes customizable seating and advanced control systems for individuals with complex mobility needs. The 'Q300 M' designation might refer to a specific model or configuration. Without access to the detailed contract line item details or product specifications, the exact configuration and features of the procured devices remain unspecified in the summary data. Understanding the specific technological capabilities and intended use of these devices is crucial for a comprehensive value assessment.

Why was this contract awarded on a sole-source basis to Sunrise Medical (US) LLC?

The data explicitly states the contract type as 'NOT COMPETED' and the award is 'sole-source'. This implies that the Department of Veterans Affairs determined that Sunrise Medical (US) LLC was the only responsible source capable of providing the required wheeled mobility prosthetics. Justifications for sole-source awards typically include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when only one source is available. For this specific contract, the VA would have had to document why other manufacturers could not meet the requirements for the 'Q300 M MPC SEDEO PRO' devices, potentially due to specific design, integration, or performance characteristics that only Sunrise Medical could provide at that time.

How does the $11.2 million award compare to historical VA spending on similar mobility devices?

The provided data does not include historical spending patterns for similar devices. To assess this, one would need to analyze past VA contracts for powered wheelchairs and advanced mobility aids, ideally from the same or similar product lines, over several fiscal years. Comparing the $11.2 million figure against the total annual spending on such equipment would provide context on whether this represents a significant increase, decrease, or stable level of investment. Additionally, examining the number of units procured and the average cost per unit in historical contracts would be essential for a meaningful comparison and to identify any trends in pricing or volume.

What are the potential risks associated with a sole-source award for essential veteran medical equipment?

Sole-source awards for essential medical equipment like wheeled mobility prosthetics carry several risks. Primarily, the lack of competition can lead to inflated prices, meaning taxpayers may be paying more than necessary for these devices. It also reduces the incentive for the sole provider to innovate or improve service quality, as there is no direct competitive pressure. Furthermore, it creates a dependency on a single supplier, which can be problematic if that supplier faces production issues, financial instability, or decides to discontinue the product line. This dependency can disrupt the supply of critical equipment to veterans.

What is Sunrise Medical's track record with the Department of Veterans Affairs?

The provided data indicates a single purchase order awarded to Sunrise Medical (US) LLC by the VA. This suggests a direct relationship, but does not provide a comprehensive track record. To assess their overall performance, one would need to examine a broader history of contracts awarded to Sunrise Medical by the VA, including contract values, types (e.g., sole-source vs. competed), performance reviews, and any past issues or disputes. A longer history of awards and successful contract completions would indicate a more established and reliable relationship, while a history of issues might raise concerns about their capacity or performance.

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: 2842 N BUSINESS PARK AVE, FRESNO, CA, 93727

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: $11,254

Exercised Options: $11,254

Current Obligation: $11,254

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline