DoD's $25.25M lower extremity prosthetics contract awarded to Medical Center Orthotics and Prosthetics, LLC

Contract Overview

Contract Amount: $25,250,000 ($25.3M)

Contractor: Medical Center Orthotics and Prosthetics, LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-01

End Date: 2013-06-30

Contract Duration: 364 days

Daily Burn Rate: $69.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LOWER EXTREMITY PROSTHETICS - LISTED

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to MEDICAL CENTER ORTHOTICS AND PROSTHETICS, LLC for work described as: LOWER EXTREMITY PROSTHETICS - LISTED Key points: 1. Contract awarded on a sole-source basis, raising questions about price competitiveness. 2. The contract value appears to be within a reasonable range for specialized medical supplies. 3. Performance period of one year suggests a focus on immediate needs rather than long-term strategic sourcing. 4. The contractor's specialization in orthotics and prosthetics aligns with the service requirement. 5. Lack of competition limits opportunities for innovation and cost savings from alternative providers. 6. The firm fixed-price structure provides cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $25.25 million for lower extremity prosthetics over one year is substantial. Benchmarking this against similar contracts is challenging without more specific details on the types and quantities of prosthetics. However, given the specialized nature of custom-fit prosthetics, the price per unit is likely to be high. The firm fixed-price contract offers predictability, but the absence of competition means there's no direct market pressure to ensure the absolute best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of multiple bidders means the government did not benefit from a competitive bidding process, which could have led to lower prices or more innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits the opportunity to discover new or more cost-effective suppliers.

Public Impact

Service members and veterans requiring lower extremity prosthetics will receive necessary medical devices. The contract supports the provision of specialized orthotic and prosthetic services. The primary geographic impact is likely within the regions served by the Department of the Army's medical facilities. The contract supports jobs within the specialized field of prosthetics manufacturing and fitting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Lack of transparency in the justification for sole-source award.
Potential for over-reliance on a single contractor for critical medical supplies.

Positive Signals

Contract awarded to a specialized provider in orthotics and prosthetics.
Firm fixed-price contract provides budget certainty.
Addresses a critical need for medical devices for service members and veterans.

Sector Analysis

The market for medical prosthetics is a specialized segment within the broader healthcare and medical device industry. It involves the design, manufacturing, and fitting of artificial limbs and supportive devices. This contract falls under the Surgical Appliance and Supplies Manufacturing (NAICS 339113) sector. Spending in this area is driven by healthcare needs, including those of military personnel and veterans, and is influenced by technological advancements in materials and design.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. As a sole-source award, it bypasses the typical mechanisms for engaging small businesses through competitive bidding. The impact on the small business ecosystem is likely minimal unless the prime contractor actively seeks small business subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Supplies and Equipment
Prosthetic and Orthotic Devices
Department of Defense Healthcare Services
Veteran Affairs Medical Services

Risk Flags

Sole-source award raises concerns about competition and potential price inflation.
Lack of detailed performance metrics makes it difficult to assess value for money.
Limited public information on the specific justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to MEDICAL CENTER ORTHOTICS AND PROSTHETICS, LLC. LOWER EXTREMITY PROSTHETICS - LISTED

Who is the contractor on this award?

The obligated recipient is MEDICAL CENTER ORTHOTICS AND PROSTHETICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2012-07-01. End: 2013-06-30.

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

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source' action. Typically, sole-source awards are justified when only one responsible source is capable of providing the required goods or services, or when there is a compelling urgency that precludes full and open competition. Without further documentation, such as a Justification and Approval (J&A) document, the specific rationale remains unclear. This could be due to unique technical capabilities of Medical Center Orthotics and Prosthetics, LLC, proprietary technology, or a specific requirement that only they can fulfill. The lack of competition, however, means taxpayers may not have received the benefit of a lower price that could have resulted from a competitive bidding process.

How does the contract value of $25.25 million compare to typical spending on lower extremity prosthetics?

The contract value of $25.25 million for lower extremity prosthetics over a 364-day period is a significant sum. However, comparing it directly to 'typical' spending is difficult without granular data on the specific types, complexity, and quantities of prosthetics procured. Custom-fabricated prosthetics, especially advanced ones, can be very expensive per unit. This contract likely covers a range of devices, from basic to complex, for a substantial number of individuals within the Department of Defense. While the total amount is high, it may be reasonable if it reflects the high cost of specialized medical devices and the volume required by the military. Further analysis would require breaking down the contract by specific prosthetic types and comparing unit costs to market benchmarks.

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

Sole-source awards for essential medical supplies carry several risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive process, potentially resulting in less value for taxpayer money. Secondly, it creates a dependency on a single contractor, which can be problematic if that contractor experiences performance issues, financial instability, or supply chain disruptions. This dependency could jeopardize the timely and consistent availability of critical prosthetics for service members and veterans. Lastly, it limits opportunities for innovation and the adoption of new technologies that might be introduced by other potential suppliers in a competitive environment.

What is the track record of Medical Center Orthotics and Prosthetics, LLC with federal contracts?

The provided data indicates Medical Center Orthotics and Prosthetics, LLC was awarded this specific $25.25 million definitive contract. Further details on their historical federal contracting performance, including past performance ratings, contract modifications, and any past disputes or terminations, are not included in this dataset. A comprehensive assessment of their track record would require accessing broader federal procurement databases (like FPDS-NG or SAM.gov) to review their complete contract history with the government, including awards from other agencies and their performance on those contracts.

How does the firm fixed-price (FFP) contract type impact cost control and risk for this prosthetic contract?

A Firm Fixed Price (FFP) contract type, as used here, is generally favored by the government for its cost control and predictability. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This places the risk of cost overruns squarely on the contractor, Medical Center Orthotics and Prosthetics, LLC. For the government, this means budget certainty. However, if the contractor underestimated costs, they might be incentivized to cut corners on quality or service to maintain profitability, which could be a concern for specialized medical devices. Conversely, if the contractor accurately estimated or underestimated, they bear the financial burden, which could potentially lead to financial distress for the company if not managed well.

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: W91YTZ12R0202

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2421 LINDEN LN, SILVER SPRING, MD, 20910

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,250,000

Exercised Options: $25,250,000

Current Obligation: $25,250,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline