VA awards $21.5M for speech-generating prosthetics, a sole-source purchase order to Control Bionics Inc

Contract Overview

Contract Amount: $21,511 ($21.5K)

Contractor: Control Bionics Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $359/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS SPEECH GENERATING DEVICE

Place of Performance

Location: MILFORD, CLERMONT County, OHIO, 45150

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,510.6 to CONTROL BIONICS INC for work described as: PROSTHETICS SPEECH GENERATING DEVICE Key points: 1. The contract value of $21.5 million for a 60-day period suggests a high per-unit cost or significant service component. 2. As a sole-source award, the lack of competition raises concerns about potential overpricing and limited market exploration. 3. The short duration of the contract (60 days) may indicate an urgent need or a bridge to a future, more comprehensive procurement. 4. The specific product, speech-generating prosthetics, addresses a critical need for veterans with communication impairments. 5. The award to a single vendor, Control Bionics Inc., warrants scrutiny of their unique capabilities and pricing structure. 6. The absence of small business set-asides suggests this contract is not designed to specifically benefit smaller enterprises.

Value Assessment

Rating: questionable

Benchmarking the value of this $21.5 million contract is challenging due to its sole-source nature and short 60-day duration. Without competitive bids, it's difficult to assess if the pricing reflects fair market value for speech-generating prosthetic devices. The high total award for a limited period suggests either a very high per-unit cost for a small number of devices or a significant service/support component that is not detailed. Further analysis would be needed to compare this to similar sole-source procurements for specialized medical equipment.

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 did not conduct a competitive bidding process. This typically occurs when a specific product or service is only available from a single source, or in cases of urgent and compelling need. The lack of competition means that taxpayers did not benefit from the price discovery that typically occurs in an open market, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price. Without competition, there is less pressure on the contractor to offer cost savings.

Public Impact

Veterans with speech impairments, particularly those requiring advanced prosthetic devices, are the primary beneficiaries of this contract. The contract will deliver speech-generating prosthetic devices, aiming to restore or enhance communication capabilities for users. The geographic impact is likely concentrated in areas where VA medical centers and clinics provide services to veterans in Ohio, where the contractor is located. The contract may have implications for the workforce involved in the manufacturing, customization, and support of these specialized devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Short contract duration (60 days) raises questions about the urgency or the long-term strategy for acquiring these devices.
Lack of transparency in the justification for sole-source award requires further investigation.
High total award amount for a short period necessitates a detailed breakdown of costs to ensure value for money.

Positive Signals

Addresses a critical need for veterans with communication disabilities, improving their quality of life.
Procurement of advanced prosthetic technology demonstrates VA's commitment to utilizing cutting-edge solutions.
Potential for improved patient outcomes and rehabilitation for affected veterans.

Sector Analysis

The market for speech-generating devices and prosthetics is a specialized segment within the broader medical device industry. This sector is characterized by innovation, high research and development costs, and often, proprietary technology. Companies in this space focus on assistive technologies that cater to specific medical needs, such as communication disorders resulting from injury or illness. The VA's spending in this area reflects a commitment to providing advanced care for veterans with unique medical requirements, often involving complex technological solutions.

Small Business Impact

This contract does not appear to include any specific small business set-asides. The sole-source nature of the award, combined with the specialized technology involved, suggests that the primary focus was on securing the required product from a specific vendor rather than on promoting small business participation. There is no indication of subcontracting opportunities for small businesses within this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Given it's a purchase order, standard procurement regulations and internal controls would apply. Transparency regarding the justification for the sole-source award and the detailed breakdown of costs would be crucial for effective oversight. The VA's Office of Inspector General may review such awards if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

VA Prosthetics and Sensory Aids Service
Assistive Technology Procurement
Medical Devices for Communication Impairments
Sole-Source Medical Equipment Awards

Risk Flags

Sole-source award without clear justification.
High contract value for a short duration.
Potential for uncompetitive pricing.
Lack of transparency regarding specific product and service details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,510.6 to CONTROL BIONICS INC. PROSTHETICS SPEECH GENERATING DEVICE

Who is the contractor on this award?

The obligated recipient is CONTROL BIONICS 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 $21,510.6.

What is the period of performance?

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

What is the specific justification provided by the VA for awarding this contract on a sole-source basis to Control Bionics Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as the availability of the supply or service from only one responsible source, or when there is an urgent and compelling need that prevents competition. For this contract, the VA would need to document why Control Bionics Inc. is the only viable provider of these speech-generating prosthetic devices and why a competitive process was not feasible or appropriate. This justification is critical for ensuring accountability and demonstrating that the government obtained the best value under the circumstances.

How does the unit cost of these speech-generating prosthetic devices compare to similar products in the market, especially those acquired through competitive means?

Direct comparison of unit costs is difficult without knowing the exact product model and quantity purchased under this $21.5 million, 60-day contract. However, the sole-source nature of this award raises concerns about potential price inflation compared to competitively procured items. If Control Bionics Inc. is the sole provider, their pricing may not be subject to the same downward pressure as it would be in a competitive environment. To assess value, one would need to identify comparable devices from other manufacturers, analyze their pricing structures, and consider the specific features and functionalities offered by Control Bionics Inc. to determine if the price is reasonable for the technology provided.

What is the track record of Control Bionics Inc. in delivering similar prosthetic devices to government agencies or other large healthcare providers?

Information on Control Bionics Inc.'s track record with government agencies or large healthcare providers is not detailed in the provided data. A thorough assessment would require reviewing past performance reviews, contract history, and any reported issues or successes in delivering speech-generating prosthetic devices. Understanding their experience with similar procurements, their ability to meet delivery schedules, and the satisfaction levels of previous clients would be crucial in evaluating the risk associated with this sole-source award. Their history with innovation and support for such specialized medical equipment would also be relevant.

What are the expected performance metrics and outcomes for veterans utilizing these speech-generating prosthetic devices under this contract?

The provided data does not specify the performance metrics or expected outcomes for veterans using these devices. However, the primary goal of speech-generating prosthetic devices is to restore or significantly improve a veteran's ability to communicate. Expected outcomes would likely include enhanced social interaction, improved access to education and employment opportunities, greater independence, and an overall improvement in quality of life. The VA would typically establish service level agreements or performance standards related to device functionality, reliability, and user satisfaction, which would be monitored throughout the contract period.

What is the historical spending pattern of the Department of Veterans Affairs on speech-generating prosthetic devices, and how does this award fit into that pattern?

Historical spending data for speech-generating prosthetic devices by the VA is not provided. This $21.5 million award for a 60-day period is substantial, suggesting either a significant increase in demand, a shift towards more advanced and costly technology, or a large, one-time procurement. Without historical context, it's difficult to determine if this represents a typical expenditure or an anomaly. Analyzing past contracts for similar devices, including their values, durations, and procurement methods, would be necessary to understand the trend and assess the significance of this particular award within the VA's overall spending on assistive technologies.

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: 745 CENTER ST, MILFORD, OH, 45150

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,511

Exercised Options: $21,511

Current Obligation: $21,511

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline