VA Awards $24.9M Hearing Aid Contract to Sonova USA Inc. in June 2025

Contract Overview

Contract Amount: $24,944,111 ($24.9M)

Contractor: Sonova USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2025-06-30

Contract Duration: 29 days

Daily Burn Rate: $860.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: JUNE 2025 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT.

Place of Performance

Location: AURORA, DUPAGE County, ILLINOIS, 60504

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.9 million to SONOVA USA INC for work described as: EXPRESS REPORT: JUNE 2025 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT. Key points: 1. Contract value of $24.9 million for hearing aids. 2. Sole-source award to Sonova USA Inc. 3. Potential risk due to lack of competition. 4. Spending falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $24.9 million for a one-month period appears high for hearing aids. Benchmarking against similar VA or DoD contracts for hearing aid devices is needed to assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The lack of competition limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition could lead to inflated prices, impacting taxpayer funds negatively.

Public Impact

Veterans will receive hearing aid devices, crucial for their quality of life. The sole-source nature of the award raises concerns about equitable access for other potential suppliers. Transparency in the justification for the sole-source award is important for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High monthly value
Potential for price inflation

Positive Signals

Timely delivery of essential medical devices
Contract awarded to a known entity

Sector Analysis

The Electromedical and Electrotherapeutic Apparatus Manufacturing sector includes a wide range of medical devices. Spending benchmarks for hearing aids specifically within this sector are not readily available but $24.9M for one month is substantial.

Small Business Impact

The award was not competed and there is no indication of small business participation. Further analysis is needed to determine if small businesses were considered or excluded.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award is valid and that future procurements are competed to ensure best value for taxpayers.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of documented competition
High monthly expenditure
Potential for price gouging

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.9 million to SONOVA USA INC. EXPRESS REPORT: JUNE 2025 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT.

Who is the contractor on this award?

The obligated recipient is SONOVA 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 $24.9 million.

What is the period of performance?

Start: 2025-06-01. End: 2025-06-30.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without further documentation, it's difficult to ascertain the specific reason. A thorough review of the contract file and justification documents is necessary to understand why competition was bypassed and if it was truly warranted.

What is the risk associated with a sole-source contract for hearing aids?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it limits opportunities for other qualified vendors, potentially stifling innovation and market competition in the long run.

How effective is this contract in ensuring veterans receive quality hearing aids at a fair price?

The effectiveness in ensuring quality is likely high given the award to an established company. However, the effectiveness in securing a fair price is questionable due to the sole-source nature. Without competition, there's no benchmark to confirm the price is optimal, potentially leading to overpayment.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 750 N COMMONS DR STE 200, AURORA, IL, 60504

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: $24,944,111

Exercised Options: $24,944,111

Current Obligation: $24,944,111

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79125D0007

IDV Type: IDC

Timeline