VA awards $11.2M for implant posts, with Buffalo Supply Inc. securing the sole-source contract

Contract Overview

Contract Amount: $11,201 ($11.2K)

Contractor: Buffalo Supply Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $386/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPLANT POST

Place of Performance

Location: LAFAYETTE, BOULDER County, COLORADO, 80026

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11,201.4 to BUFFALO SUPPLY INC. for work described as: IMPLANT POST Key points: 1. The contract's value of $11.2 million for implant posts suggests a significant need for these specialized medical supplies within the VA system. 2. The sole-source nature of this award warrants scrutiny to ensure fair pricing and the absence of competitive alternatives. 3. A single awardee, Buffalo Supply Inc., raises questions about the breadth of market engagement and potential for price optimization. 4. The contract duration of 29 days, despite the substantial dollar amount, indicates a focused, short-term requirement for these specific implant posts. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small business participation. 6. The fixed-price contract type aims to provide cost certainty for the government, but requires careful monitoring of performance.

Value Assessment

Rating: fair

Benchmarking the value of $11.2 million for implant posts is challenging without specific details on the quantity and type of implants. However, for a short-term delivery order, this amount suggests a high unit cost or a large volume requirement. Comparing this to similar VA procurements for orthopedic or surgical implants would be necessary to assess if the pricing is competitive. The sole-source nature also limits the ability to gauge true market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Buffalo Supply Inc., was solicited. This approach is typically used when only one vendor can meet the government's needs, often due to proprietary technology, urgent requirements, or lack of market availability. The limited competition means there was no opportunity for multiple vendors to bid, potentially impacting price discovery and the government's ability to secure the best possible value through competitive bidding.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers if competitive market forces are not leveraged. It is crucial that the VA has thoroughly justified the necessity of a sole-source procurement to ensure funds are used efficiently.

Public Impact

Veterans requiring surgical implants will benefit from the availability of necessary implant posts, supporting their medical treatment and recovery. The services delivered include the provision of specialized surgical hardware essential for various medical procedures. The geographic impact is likely concentrated within VA healthcare facilities that perform surgeries requiring these implant posts. The contract supports the medical supply chain and potentially the manufacturing or distribution workforce involved in producing or delivering these items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of transparency in the justification for sole-source procurement.
Potential for higher costs due to absence of competition.
Short contract duration for a significant dollar amount may indicate an urgent or specific need that could be subject to price fluctuations.

Positive Signals

Contract ensures availability of critical medical supplies for veterans.
Firm fixed-price contract provides cost certainty.
Awardee, Buffalo Supply Inc., is identified, allowing for tracking of performance.

Sector Analysis

The market for surgical implants and related supplies is a critical segment of the healthcare industry, driven by technological advancements and an aging population. This contract falls within the broader medical device manufacturing and distribution sector. Spending in this area by federal agencies like the VA is substantial, reflecting the commitment to providing advanced healthcare to beneficiaries. Comparable spending benchmarks would typically involve analyzing other VA or Department of Defense contracts for similar implantable devices and surgical hardware.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary focus was on fulfilling the requirement directly, rather than using the procurement vehicle to promote small business participation. The impact on the small business ecosystem is therefore likely minimal unless Buffalo Supply Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would include performance monitoring against contract terms and delivery schedules. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this procurement.

Related Government Programs

VA Medical Equipment Procurement
Surgical Implant Contracts
Medical Supply Chain Management
Federal Healthcare Spending

Risk Flags

Sole-source award requires strong justification.
Limited competition may lead to suboptimal pricing.
Short contract duration for a large sum warrants attention.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11,201.4 to BUFFALO SUPPLY INC.. IMPLANT POST

Who is the contractor on this award?

The obligated recipient is BUFFALO SUPPLY 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 $11,201.4.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the specific type and quantity of implant posts being procured under this contract?

The provided data does not specify the exact type or quantity of implant posts. The contract number (339113) and description 'Surgical Appliance and Supplies Manufacturing' are broad. To understand the value proposition, further details on the specific medical application (e.g., orthopedic, dental, cardiovascular) and the number of units required are essential. Without this, it's difficult to assess if the $11.2 million award represents a fair price per unit or a reasonable total cost for the intended purpose.

What is the justification for awarding this contract on a sole-source basis to Buffalo Supply Inc.?

Sole-source awards are typically justified when only one responsible source can satisfy the agency's needs. For this contract, the justification is not provided in the data. Common reasons include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the item is only available from a single source. The Department of Veterans Affairs would need to have documented and approved this justification, likely citing specific technical or market limitations that precluded a competitive solicitation.

How does the $11.2 million contract value compare to historical VA spending on similar implant posts?

Direct comparison of the $11.2 million value to historical VA spending on similar implant posts is not possible with the given data. The data lacks specifics on the product category beyond 'Surgical Appliance and Supplies Manufacturing' and the contract duration is very short (29 days). To perform this comparison, one would need to identify prior VA contracts for the same or highly similar implant posts, noting their award amounts, quantities, and contract types. Analyzing trends in pricing and volume over time would reveal if this award is consistent, higher, or lower than previous procurements.

What performance metrics or quality standards are associated with this contract for Buffalo Supply Inc.?

The provided data does not detail the specific performance metrics or quality standards for Buffalo Supply Inc. However, standard government contracting principles require vendors to meet defined specifications and delivery schedules. For medical supplies, stringent quality controls and adherence to FDA regulations are typically implied or explicitly stated in the contract's Statement of Work (SOW). The VA would likely monitor delivery timeliness, product quality, and compliance with any specified technical requirements to ensure the implants are safe and effective for patient use.

What is the potential impact of this sole-source award on market competition for implant posts in the long term?

A sole-source award, especially if repeated, can stifle long-term market competition. It signals to other potential suppliers that the VA may not be actively seeking competitive bids for these types of products. This can discourage new entrants or smaller companies from developing capabilities or seeking to supply the VA, potentially leading to a less dynamic market and reduced innovation. Over time, this could result in higher prices and fewer choices for the government if the incumbent supplier faces no competitive pressure.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1650 COAL CREEK DR, LAFAYETTE, CO, 80026

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

Financial Breakdown

Contract Ceiling: $11,201

Exercised Options: $11,201

Current Obligation: $11,201

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G23D0073

IDV Type: IDC

Timeline