VA awards $250K for vascular implants, highlighting potential for improved patient care

Contract Overview

Contract Amount: $25,000 ($25.0K)

Contractor: Terumo Medical Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $417/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VASCULAR IMPLANT

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25,000 to TERUMO MEDICAL CORP for work described as: VASCULAR IMPLANT Key points: 1. Contract awarded for essential medical supplies, indicating a focus on patient treatment. 2. The award is a purchase order, suggesting a streamlined procurement process for immediate needs. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract is short, implying a need for timely delivery of goods. 5. The specific product category points to a specialized area within medical instruments. 6. The awardee has secured this contract without open competition.

Value Assessment

Rating: fair

The contract value of $250,000 for vascular implants is relatively modest. Without specific benchmarks for this particular type of implant or comparable contracts from other agencies, it's difficult to definitively assess value for money. The firm fixed-price structure provides cost predictability. However, the lack of competition raises questions about whether the government secured the most competitive pricing available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that pricing and terms were likely negotiated directly with Terumo Medical Corp, potentially limiting opportunities for broader market price discovery.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices for taxpayers compared to competitively bid contracts, as the government may not benefit from the cost-saving pressures of an open market.

Public Impact

Veterans will benefit from access to necessary vascular implants, supporting their medical treatment. The contract ensures the availability of specific medical devices crucial for surgical procedures. The primary geographic impact is within New Jersey, where the vendor is located. The contract supports the medical device manufacturing sector, specifically for surgical instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can create dependency on a single supplier.
Limited transparency into the negotiation process for this award.

Positive Signals

Ensures availability of critical medical supplies for veterans.
Firm fixed-price contract provides cost certainty.
Awardee is a known entity in the medical device market.

Sector Analysis

The market for vascular implants is a specialized segment within the broader surgical and medical instrument manufacturing industry. This sector is characterized by high research and development costs, stringent regulatory requirements, and a need for advanced manufacturing capabilities. Spending in this area is driven by healthcare demand, particularly for treating cardiovascular diseases. Comparable spending benchmarks would typically involve analyzing other government contracts for similar implantable devices or looking at the overall market size for vascular implants, which is a multi-billion dollar global industry.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a specific manufacturer, it is unlikely to involve subcontracting opportunities for small businesses unless the prime contractor voluntarily engages them. The direct award mechanism bypasses the typical channels through which small businesses might participate in federal contracting.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the Department of Veterans Affairs' procurement and financial management systems. Accountability is maintained through the contract terms and conditions, including delivery schedules and product specifications. Transparency is limited due to the sole-source nature of the award, with less public visibility into the negotiation and justification process compared to competed contracts. The VA's Office of Inspector General could investigate if any improprieties are suspected.

Related Government Programs

Vascular Grafts
Medical Implants
Surgical Supplies
Department of Veterans Affairs Medical Procurement

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25,000 to TERUMO MEDICAL CORP. VASCULAR IMPLANT

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 $25,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-31.

What is the track record of Terumo Medical Corp in supplying vascular implants to the federal government?

Terumo Medical Corp is a significant player in the medical device industry, known for a range of products including cardiovascular and vascular devices. While this specific award is a purchase order for vascular implants, Terumo has a history of supplying various medical products to government agencies. Analyzing past federal contract databases would reveal the extent and value of their previous awards, including any sole-source or competed contracts. This historical data could provide insights into their reliability, pricing trends, and overall performance in meeting government requirements for similar medical supplies.

How does the pricing of this vascular implant contract compare to similar government awards or market rates?

Benchmarking the pricing for this $250,000 vascular implant contract is challenging without access to detailed pricing data for comparable items. As a sole-source award, direct price comparisons to competitively bid contracts are difficult. To assess value, one would ideally compare the per-unit cost against other VA or Department of Defense contracts for the same or functionally equivalent vascular implants. Market research reports on the average selling price of such implants to healthcare providers could also serve as a benchmark. The firm fixed-price nature offers cost certainty, but the absence of competition means the government may not have achieved the lowest possible price.

What are the primary risks associated with this sole-source award for vascular implants?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the lack of competition. Without multiple bids, the government may not be benefiting from the most cost-effective terms. Another risk is vendor lock-in, where the VA becomes reliant on Terumo Medical Corp for these specific implants, potentially limiting future flexibility and negotiation power. Furthermore, the limited transparency inherent in sole-source procurements can obscure potential issues related to product quality or delivery timelines until they become critical problems. Ensuring adequate oversight and performance monitoring is crucial to mitigate these risks.

How effective is the Department of Veterans Affairs in procuring specialized medical equipment like vascular implants?

The Department of Veterans Affairs (VA) has a complex procurement system designed to acquire a wide range of medical equipment, including specialized items like vascular implants. Their effectiveness can be assessed by examining factors such as contract award timeliness, adherence to budget, product quality, and patient outcomes. While this specific award is a sole-source purchase order, indicating a potentially expedited process for a specific need, the VA also engages in competitive bidding for many of its medical supply contracts. Analyzing the VA's overall spending patterns, contract success rates, and feedback from medical staff regarding the equipment procured would provide a broader picture of their procurement effectiveness in this area.

What are the historical spending patterns for vascular implants by the Department of Veterans Affairs?

Historical spending patterns for vascular implants by the Department of Veterans Affairs (VA) can be analyzed through federal procurement data. This analysis would reveal the total amount spent on these devices over various fiscal years, identify the primary awarding agencies within the VA, and list the major contractors. Understanding these patterns helps in identifying trends, such as increasing or decreasing demand, shifts in preferred suppliers, and the prevalence of sole-source versus competed awards. Such insights are crucial for budget forecasting, strategic sourcing, and identifying potential areas for cost savings or improved competition.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $25,000

Exercised Options: $25,000

Current Obligation: $25,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline