VA awards $1.64M for Audiology Room to E3 Diagnostics, Inc. under a non-competitive contract

Contract Overview

Contract Amount: $164,360 ($164.4K)

Contractor: E3 Diagnostics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-08-31

Contract Duration: 143 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AUDIOLOGY ROOM

Place of Performance

Location: ARLINGTON HEIGHTS, COOK County, ILLINOIS, 60004

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $164,360 to E3 DIAGNOSTICS, INC. for work described as: AUDIOLOGY ROOM Key points: 1. The contract value is $1.64 million for an audiology room. 2. E3 Diagnostics, Inc. is the sole awardee. 3. The contract was not competed under the Simplified Acquisition Procedures (SAP). 4. The award is for surgical and medical instrument manufacturing. 5. The contract duration is 143 days.

Value Assessment

Rating: questionable

The contract value of $1.64 million for an audiology room appears high without further justification. Benchmarking against similar contracts for audiology suites or specialized medical equipment is necessary to assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED UNDER SAP,' indicating a limited competition approach. This method may not have explored all available market options, potentially impacting price discovery and value for taxpayers.

Taxpayer Impact: The lack of full and open competition raises concerns about whether the government received the best possible price for this audiology room.

Public Impact

Veterans will benefit from a new audiology room, potentially improving access to hearing healthcare services. The award to a single vendor may limit options for future audiology room procurements. The specific capabilities and equipment included in the audiology room are not detailed, impacting public understanding of the value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price reasonableness.
Lack of detail on contract scope and deliverables.
Short contract duration for a significant equipment purchase.

Positive Signals

Addresses a specific need for audiology services for veterans.
Awarded to a company specializing in medical instruments.

Sector Analysis

The Department of Veterans Affairs is procuring specialized medical equipment. Spending in the Surgical and Medical Instrument Manufacturing sector can vary widely based on technological advancements and specific healthcare needs.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement or had an opportunity to compete.

Oversight & Accountability

The 'NOT COMPETED UNDER SAP' designation warrants further review to ensure proper justification and adherence to procurement regulations for limited competition.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential overpricing due to limited competition.
Lack of transparency regarding the justification for limited competition.
Insufficient detail on the scope of work and deliverables.
Short contract duration may not reflect the full lifecycle needs of an audiology room.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $164,360 to E3 DIAGNOSTICS, INC.. AUDIOLOGY ROOM

Who is the contractor on this award?

The obligated recipient is E3 DIAGNOSTICS, 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 $164,360.

What is the period of performance?

Start: 2026-04-10. End: 2026-08-31.

What specific equipment and services are included in the $1.64 million audiology room to justify the cost?

The provided data lacks specifics on the audiology room's contents. A detailed breakdown of diagnostic equipment, furniture, installation, and any associated services would be needed to assess the value proposition. Without this, it's difficult to determine if the $1.64 million is commensurate with the delivered goods and services.

What were the specific circumstances that led to a limited competition award for this audiology room?

The contract was 'NOT COMPETED UNDER SAP,' suggesting a limited competition approach. The justification for this limited competition, such as a specific urgent need, unique capability of E3 Diagnostics, or a prior relationship, is not provided. Understanding this rationale is crucial for assessing potential risks to fair pricing and market exploration.

How will the effectiveness of this audiology room be measured to ensure it meets veteran needs?

The effectiveness measurement is not detailed in the provided data. Key performance indicators could include patient satisfaction, turnaround time for appointments, diagnostic accuracy rates, and equipment uptime. The Department of Veterans Affairs should have a plan to track these metrics post-award to ensure the investment yields the intended benefits for veterans.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3333 N KENNICOTT AVE, ARLINGTON HEIGHTS, IL, 60004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $164,360

Exercised Options: $164,360

Current Obligation: $164,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline