VA Awards $18M Purchase Order to HANGER, INC. for Surgical Appliances

Contract Overview

Contract Amount: $18,020 ($18.0K)

Contractor: Hanger, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2027-04-01

Contract Duration: 364 days

Daily Burn Rate: $50/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIMB

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50310

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18,019.5 to HANGER, INC. for work described as: LIMB Key points: 1. Significant contract value of $18 million for surgical appliances. 2. Sole-source award to HANGER, INC. raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on the healthcare sector, specifically surgical supplies.

Value Assessment

Rating: questionable

The $18 million award for surgical appliances lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, it's difficult to assess if the pricing is optimal or if taxpayers are receiving the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning HANGER, INC. was the only vendor considered. This significantly limits price discovery and competition, potentially leading to less favorable pricing for the government.

Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a scenario with multiple bids.

Public Impact

Veterans will receive essential surgical appliances, ensuring continuity of care. The award supports a specific manufacturer, HANGER, INC., in the medical supply chain. Taxpayers may bear a higher cost due to the absence of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing
Lack of transparency in price negotiation

Positive Signals

Ensures supply of critical medical devices
Supports established vendor relationship

Sector Analysis

The Department of Veterans Affairs is procuring surgical appliances, a critical component of healthcare services. Spending in this sector is substantial, and competitive procurement is typically sought to ensure cost-effectiveness.

Small Business Impact

This award does not appear to involve small businesses, as it is a sole-source contract with HANGER, INC. Further analysis would be needed to confirm if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the VA obtained fair pricing and fulfilled its procurement obligations. Documentation justifying the sole-source decision is crucial.

Related Government Programs

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

Risk Flags

Sole-source justification
Price reasonableness
Potential for vendor lock-in
Limited market competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18,019.5 to HANGER, INC.. LIMB

Who is the contractor on this award?

The obligated recipient is HANGER, 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 $18,019.5.

What is the period of performance?

Start: 2026-04-02. End: 2027-04-01.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. For this contract, the VA would need to provide specific documentation detailing why HANGER, INC. was the only viable option and why competition was not feasible or would not result in best value.

How can the VA ensure fair pricing without competition?

Even in sole-source situations, the VA can employ several strategies to ensure fair pricing. This includes conducting thorough market research to establish a price reasonableness benchmark, negotiating aggressively based on historical data or industry standards, and potentially seeking independent cost analyses.

What is the long-term impact of sole-source awards on the surgical appliance market?

Repeated sole-source awards can stifle innovation and competition within the surgical appliance market. It may discourage new entrants and allow incumbent sole-source providers to maintain higher prices without the pressure to improve efficiency or offer more competitive terms.

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: SUITE 300, AUSTIN, TX, 78758

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: $18,020

Exercised Options: $18,020

Current Obligation: $18,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline