VA Awards $17M Contract for Aurora Spine Implant to OJH Services, Inc

Contract Overview

Contract Amount: $17,000 ($17.0K)

Contractor: OJH Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-04-30

Contract Duration: 22 days

Daily Burn Rate: $773/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AURORA SPINE IMPLANT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78240

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,000 to OJH SERVICES, INC. for work described as: AURORA SPINE IMPLANT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order with a firm fixed price, providing cost certainty. 3. The duration of 22 months indicates a medium-term need for the specified implants. 4. The North American Industry Classification System (NAICS) code 339112 points to the surgical and medical instrument manufacturing sector. 5. The contract is not set aside for small businesses, implying larger contractors may be involved. 6. The award is for a specific product, AURORA SPINE IMPLANT, suggesting a focused procurement.

Value Assessment

Rating: good

The contract value of $17 million for AURORA SPINE IMPLANTS over 22 months appears reasonable given the specialized nature of medical devices. Benchmarking against similar procurements for advanced orthopedic implants would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. Without specific per-unit data, a detailed pricing analysis is challenging, but the overall award size suggests a significant quantity or high-value components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and quality for the government. The agency sought proposals from a wide range of potential suppliers, maximizing the opportunity for diverse solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation among contractors vying for the award.

Public Impact

Veterans will benefit from access to advanced AURORA SPINE IMPLANTS, potentially improving treatment outcomes and quality of life. The contract supports the delivery of critical medical supplies to the Department of Veterans Affairs healthcare system. The geographic impact is primarily within Texas, where the contractor is located, but the implants will be used across VA facilities. The contract supports jobs within the surgical and medical instrument manufacturing sector, contributing to the healthcare supply chain workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awarded contractor faces production issues.
Dependence on a single product line may limit flexibility if alternative implant technologies emerge.
Ensuring long-term availability and maintenance support for the implants beyond the contract period.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm fixed-price contract provides budget certainty for the VA.
Specific product focus ensures targeted procurement of necessary medical equipment.

Sector Analysis

The surgical and medical instrument manufacturing sector is a critical component of the healthcare industry, characterized by innovation and high regulatory standards. This contract falls within the sub-sector of orthopedic implants, a market driven by technological advancements and an aging population. Comparable spending benchmarks for similar orthopedic implant procurements by federal agencies or large healthcare systems would provide context for the $17 million award. The market size for spine implants alone is substantial, indicating this contract represents a portion of a larger, specialized market.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to OJH SERVICES, INC. suggests that the primary contractor is likely a larger entity capable of fulfilling the requirements of this specialized medical device procurement. The absence of small business set-asides means that opportunities for small businesses in this specific contract are limited unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would include regular performance reviews, quality assurance checks on the delivered implants, and adherence to delivery schedules. Accountability is ensured through the firm fixed-price contract terms, which penalize non-performance. Transparency is facilitated through contract databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies and Equipment
Orthopedic Implants
Veterans Health Administration Procurement
Surgical Instruments

Risk Flags

Potential for supply chain dependency
Need for ongoing quality assurance
Market volatility in medical device pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,000 to OJH SERVICES, INC.. AURORA SPINE IMPLANT

Who is the contractor on this award?

The obligated recipient is OJH SERVICES, 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 $17,000.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-30.

What is the track record of OJH SERVICES, INC. in supplying medical devices to the federal government?

Information regarding OJH SERVICES, INC.'s specific track record in supplying medical devices to the federal government is not detailed in the provided data. A comprehensive analysis would require examining past performance evaluations, contract history, and any reported issues or successes with previous federal awards. Understanding their experience with similar implant types, their ability to meet delivery schedules, and their quality control processes would be crucial for assessing their reliability as a contractor for the AURORA SPINE IMPLANT. Further research into federal procurement databases and contractor performance systems would be necessary to fully evaluate their history.

How does the $17 million contract value compare to similar procurements for spine implants?

The $17 million contract value for AURORA SPINE IMPLANTS over 22 months needs to be benchmarked against comparable federal or large healthcare system procurements for similar orthopedic devices. Factors such as the specific type of implant (e.g., fusion, artificial disc), the quantity ordered, and the inclusion of associated services (like surgical kits or training) significantly influence pricing. Without access to detailed specifications of the implants and comparative data on unit costs or total contract values for similar items, it is difficult to definitively assess if this award represents excellent, good, or fair value. However, the firm fixed-price nature suggests an attempt to control costs.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential supply chain disruptions if OJH SERVICES, INC. faces manufacturing or logistical challenges, and the risk of technological obsolescence if newer implant designs emerge. Mitigation strategies are inherent in the contract structure: the firm fixed-price agreement caps financial risk for the VA. Furthermore, the full and open competition process aims to select a capable contractor. Post-award, the VA's oversight, quality assurance protocols, and performance monitoring are critical for identifying and addressing any emerging issues promptly. Ensuring robust contingency planning by the contractor is also key.

What is the expected effectiveness of the AURORA SPINE IMPLANT in improving patient outcomes?

The effectiveness of the AURORA SPINE IMPLANT in improving patient outcomes is a clinical question dependent on the implant's design, intended use, and patient-specific factors. This contract focuses on the procurement of the device, not its clinical efficacy. The VA's decision to procure this specific implant likely stems from clinical evaluations, recommendations from medical professionals, and potentially prior positive experiences or research indicating its suitability for treating specific spinal conditions. The ultimate effectiveness will be measured by patient recovery rates, pain reduction, and functional improvement post-surgery, which are outside the scope of this contract's financial and logistical analysis.

What are the historical spending patterns for spine implants within the Department of Veterans Affairs?

Historical spending patterns for spine implants within the VA would reveal trends in procurement volume, average costs per implant or procedure, and the types of implants favored over time. Analyzing past contracts for similar devices would indicate whether this $17 million award is consistent with previous spending levels, represents an increase or decrease, and if there has been a shift towards specific manufacturers or implant technologies. Such analysis is crucial for understanding the VA's long-term investment in spinal care and for identifying potential opportunities for cost savings or strategic sourcing.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4903 GOLDEN QUAIL, SAN ANTONIO, TX, 78240

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

Financial Breakdown

Contract Ceiling: $17,000

Exercised Options: $17,000

Current Obligation: $17,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79725D0204

IDV Type: FSS

Timeline