VA awards $5.7M for neurostimulators to Medtronic USA Inc. under sole-source contract

Contract Overview

Contract Amount: $57,437 ($57.4K)

Contractor: Medtronic USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-04-06

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEUROSTIMULATOR

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57,437.05 to MEDTRONIC USA INC for work described as: NEUROSTIMULATOR Key points: 1. Contract awarded to Medtronic USA Inc. for neurostimulators. 2. The Department of Veterans Affairs is the procuring agency. 3. The contract is valued at $5,743,705. 4. The contract was not competed, raising potential value concerns. 5. The sector is Surgical Appliance and Supplies Manufacturing.

Value Assessment

Rating: questionable

The contract value of $5.7M for neurostimulators appears significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar devices from other manufacturers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had submitted bids.

Taxpayer Impact: The lack of competition could lead to inflated prices, meaning taxpayers may be paying more than necessary for these neurostimulators.

Public Impact

Veterans may receive advanced neurostimulator technology. Potential for higher costs due to lack of competition. Reliance on a single supplier could impact future availability or pricing. The Department of Veterans Affairs prioritizes specific medical needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
No indication of market research to justify sole-source.
Potential for overpayment due to lack of competitive bidding.

Positive Signals

Ensures supply of critical neurostimulator technology for veterans.
Direct award to established supplier may ensure quality and reliability.

Sector Analysis

The Surgical Appliance and Supplies Manufacturing sector is characterized by innovation and specialized production. Spending in this area often reflects advancements in medical technology and patient care needs.

Small Business Impact

This contract was awarded to a large corporation, Medtronic USA Inc. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA conducted adequate market research and that the pricing is fair and reasonable. Oversight is needed to confirm the necessity of a non-competitive award.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on market research
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57,437.05 to MEDTRONIC USA INC. NEUROSTIMULATOR

Who is the contractor on this award?

The obligated recipient is MEDTRONIC USA 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 $57,437.05.

What is the period of performance?

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

What was the justification for awarding this contract on a sole-source basis, and was market research conducted to confirm no other viable suppliers exist?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the VA followed federal acquisition regulations. However, thorough market research is crucial to ensure no other qualified vendors could meet the need, thereby maximizing value for taxpayers.

How does the per-unit cost of these neurostimulators compare to similar devices procured competitively by other federal agencies or healthcare providers?

Benchmarking the per-unit cost against similar neurostimulators procured competitively is essential for assessing value. If this contract's pricing is significantly higher than market averages or other government contracts, it suggests potential overpayment. A detailed cost analysis or comparison with publicly available pricing data would be necessary to determine if the $5.7M award represents a fair price.

What is the long-term impact on the VA's ability to procure neurostimulators if they rely on a single supplier, particularly regarding price increases and supply chain disruptions?

Long-term reliance on a sole-source supplier can create vulnerabilities. The VA might face escalating prices over time as Medtronic faces less competitive pressure. Furthermore, supply chain disruptions affecting Medtronic could directly impact the VA's ability to obtain these critical devices, potentially affecting veteran care.

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

Solicitation ID: 36C26326Q0523

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Medtronic Public Limited Company

Address: 710 MEDTRONIC PKWY, MINNEAPOLIS, MN, 55432

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $57,437

Exercised Options: $57,437

Current Obligation: $57,437

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline