VA Awards $5.4M Hearing Aid Contract to Starkey Laboratories Inc. in November 2025

Contract Overview

Contract Amount: $5,401,673 ($5.4M)

Contractor: Starkey Laboratories Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-01

End Date: 2025-11-30

Contract Duration: 29 days

Daily Burn Rate: $186.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: EDEN PRAIRIE, HENNEPIN County, MINNESOTA, 55344

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.4 million to STARKEY LABORATORIES INC for work described as: EXPRESS REPORT: NOVEMBER 2025 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT. Key points: 1. Contract awarded for Electromedical and Electrotherapeutic Apparatus Manufacturing. 2. Starkey Laboratories Inc. is the sole provider for this specific purchase order. 3. The contract value is $5.4 million for a 29-day period. 4. This is a firm fixed price contract, indicating price certainty. 5. The award was made by the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract value of $5.4 million for a 29-day period appears high for a single purchase order of hearing aids. Benchmarking against similar VA contracts for hearing aids is necessary to determine if this pricing is competitive.

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 potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for this $5.4 million award may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Veterans will receive hearing aids through this contract, impacting their quality of life. The sole-source nature of the award raises questions about the best use of taxpayer funds. The Department of Veterans Affairs is responsible for ensuring timely and effective delivery of these essential medical devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
High contract value for a short duration requires scrutiny.
Lack of small business participation noted.

Positive Signals

Contract supports essential healthcare for veterans.
Firm fixed price provides cost certainty for this order.

Sector Analysis

The procurement falls under the Electromedical and Electrotherapeutic Apparatus Manufacturing sector (NAICS 334510). Spending in this sector can vary widely based on specific medical device needs and technological advancements.

Small Business Impact

The data indicates that neither small business nor small disadvantaged business set-asides were utilized for this contract. Further analysis is needed to determine if small businesses could have competed for this requirement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The sole-source nature warrants close monitoring to ensure fair pricing and effective delivery of services to veterans.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition.
Potential for overpayment due to lack of competitive pricing.
High dollar value for a short contract duration.
No small business participation identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.4 million to STARKEY LABORATORIES INC. EXPRESS REPORT: NOVEMBER 2025 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT.

Who is the contractor on this award?

The obligated recipient is STARKEY LABORATORIES 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 $5.4 million.

What is the period of performance?

Start: 2025-11-01. End: 2025-11-30.

What is the justification for the sole-source award of this hearing aid contract, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. For this contract, the VA must have documentation justifying why Starkey Laboratories Inc. was the only viable option. To ensure fair pricing, the VA should have conducted market research and price analysis, comparing proposed costs to historical data or commercial prices, even without formal competition.

How does the $5.4 million cost for a 29-day hearing aid purchase order compare to industry benchmarks for similar procurements?

A direct comparison requires detailed unit cost data and specific product information. However, $5.4 million for a single month's supply of hearing aids, especially if it's for a large number of veterans, could be considered high. Industry benchmarks often focus on per-unit costs for specific models or annual contract values. Without this granular data, it's difficult to definitively assess value, but the high total value for a short period warrants further investigation into the quantity and type of hearing aids procured.

What is the long-term strategy for ensuring competitive procurement of hearing aids for veterans, and how will this sole-source award impact that strategy?

The long-term strategy should involve breaking down requirements into competitively viable packages and conducting thorough market research to identify potential sources. This sole-source award, if it represents a recurring need, might indicate a gap in market research or a failure to foster competition. The VA should actively seek opportunities to compete future hearing aid procurements to leverage market forces and achieve better value for taxpayer dollars.

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: 6700 WASHINGTON AVE S, EDEN PRAIRIE, MN, 55344

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: $5,401,673

Exercised Options: $5,401,673

Current Obligation: $5,401,673

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79125D0008

IDV Type: IDC

Timeline