VA awards $50.6M for prosthetics implants, with OJH Services Inc. securing the sole-source contract

Contract Overview

Contract Amount: $50,645 ($50.6K)

Contractor: OJH Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-06-26

Contract Duration: 84 days

Daily Burn Rate: $603/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROSTHETICS:IMPLANT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78240

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50,644.82 to OJH SERVICES, INC. for work described as: PROSTHETICS:IMPLANT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of 84 days is relatively short for a significant award. 3. Focus on prosthetics implants suggests a critical need for veteran healthcare. 4. The firm-fixed-price structure aims to control costs, but competition is key. 5. OJH Services, Inc. is the sole provider, raising questions about market alternatives. 6. Geographic location in Texas may indicate regional supply chain considerations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and short duration. Without competitive bids, it's difficult to ascertain if the $50.6 million represents a fair market price for the prosthetics implants. The firm-fixed-price contract type provides cost certainty for the government, but the lack of competition means potential savings from a bidding process are foregone. Further analysis would require comparing the unit costs to similar VA or DoD contracts for comparable prosthetic devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning OJH Services, Inc. was the only vendor considered. The justification for this approach is not provided in the data, but it typically implies a lack of available competition or a specific, unique capability held by the sole provider. This significantly limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding processes, potentially leading to higher overall spending for the same goods or services.

Public Impact

Veterans requiring prosthetic implants will receive necessary medical devices. The contract supports the Department of Veterans Affairs' mission to provide healthcare. The services are likely delivered within Texas, impacting the regional healthcare supply chain. Employment in the surgical appliance and supplies manufacturing sector may be supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Short contract duration (84 days) may indicate an urgent need or a stop-gap measure, requiring future competitive procurements.
Lack of transparency on the justification for sole-source award.
Limited data on OJH Services, Inc.'s track record with VA contracts of this scale.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on prosthetics implants directly addresses critical veteran healthcare needs.
Contract award ensures continuity of supply for essential medical devices.

Sector Analysis

The surgical appliance and supplies manufacturing sector (NAICS 339113) is a critical component of the healthcare industry, providing essential devices for patient recovery and quality of life. This contract for prosthetics implants falls within this specialized area. The market for medical devices, particularly prosthetics, is often characterized by high research and development costs, regulatory hurdles, and a need for specialized manufacturing capabilities. Spending in this sector can vary significantly based on technological advancements and the specific needs of healthcare providers like the VA.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal, as the award went to a single, presumably larger, entity. Future procurements might offer opportunities for small businesses if competition is opened up and subcontracting goals are established.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and procurement offices. Given it's a purchase order, standard administrative oversight would apply. The firm-fixed-price nature of the contract helps in cost control, but the sole-source aspect necessitates careful review of the justification and performance monitoring to ensure value for money. Transparency could be enhanced by publicly detailing the rationale for the sole-source award and performance metrics.

Related Government Programs

VA Medical Care
Prosthetic and Sensory Aids Service
Medical Supplies Procurement
Veteran Health Services

Risk Flags

Sole-source award
Limited competition
Short contract duration
Lack of historical performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50,644.82 to OJH SERVICES, INC.. PROSTHETICS: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 $50,644.82.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-26.

What is the specific justification for awarding this contract on a sole-source basis to OJH Services, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or when a compelling urgency exists that precludes competition. For prosthetics implants, this could be due to proprietary technology, unique manufacturing capabilities, or a critical, immediate need where no other vendor could fulfill the requirement within the necessary timeframe. Without the official justification document, it is impossible to definitively state the reasons behind this procurement approach. Further investigation would involve reviewing the contract file and any associated justifications submitted by the Department of Veterans Affairs.

How does the awarded amount of $50.6 million compare to historical spending on similar prosthetic implants by the VA?

Direct comparison of the $50.6 million award to historical spending on similar prosthetic implants is difficult without more granular data on the specific types and quantities of implants included in this contract. The provided data only gives a total award amount and a short duration (84 days). To perform a meaningful historical comparison, one would need to analyze past VA contracts for comparable prosthetic devices, considering factors such as the specific implant type (e.g., knee, hip, limb), material, manufacturer, and the volume purchased. Additionally, adjustments for inflation and changes in technology over time would be necessary. A preliminary assessment suggests that $50.6 million for an 84-day period is a substantial amount, underscoring the importance of understanding the scope and necessity of these implants.

What are the potential risks associated with a sole-source award for critical medical supplies like prosthetics?

Sole-source awards for critical medical supplies like prosthetics carry several potential risks. Firstly, the absence of competition can lead to inflated prices, meaning taxpayers may pay more than necessary for these essential items. Secondly, it can stifle innovation and discourage new vendors from entering the market or developing competing products, as there is no guaranteed opportunity to supply the government. Thirdly, it creates a dependency on a single supplier, which can be problematic if that supplier experiences production issues, quality control problems, or financial instability. This dependency could lead to supply chain disruptions, impacting the care provided to veterans. Finally, without competitive benchmarking, it is harder to ensure the government is receiving the best value and quality available.

What is the expected performance period and delivery timeline for these prosthetics implants?

The contract has a specified performance period from April 3, 2026, to June 26, 2026, resulting in a duration of 84 days. This relatively short timeframe suggests that the contract may be for immediate needs, a specific project, or potentially a bridge contract until a longer-term, competitively awarded contract is in place. The firm-fixed-price nature indicates that OJH Services, Inc. is obligated to deliver the specified prosthetics implants within this period at the agreed-upon price. The exact delivery schedule within this window would typically be detailed in the purchase order's line items or delivery clauses.

Does OJH Services, Inc. have a significant track record with the Department of Veterans Affairs for supplying prosthetics?

The provided data does not offer a comprehensive history of OJH Services, Inc.'s contracts with the Department of Veterans Affairs, specifically regarding prosthetics. While this award indicates they are a supplier, it does not reveal the extent or scale of their previous work with the VA. To assess their track record, one would need to examine historical contract databases for awards made to OJH Services, Inc. by the VA, looking at the types of products supplied, the value of those contracts, and their performance history (e.g., on-time delivery, quality compliance). A lack of readily available historical data for this specific product category could be a point of concern, especially given the sole-source nature of this current award.

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: 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: $50,645

Exercised Options: $50,645

Current Obligation: $50,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline