VA Awards $2.3M Hearing Aid Contract to Starkey Laboratories Inc. in December 2025

Contract Overview

Contract Amount: $2,318,651 ($2.3M)

Contractor: Starkey Laboratories Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2025-12-31

Contract Duration: 30 days

Daily Burn Rate: $77.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: DECEMBER 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 $2.3 million to STARKEY LABORATORIES INC for work described as: EXPRESS REPORT: DECEMBER 2025 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT. Key points: 1. Contract awarded for electromedical apparatus manufacturing. 2. Starkey Laboratories Inc. is the sole awardee. 3. The contract is for a 30-day period. 4. This is a delivery order under an existing contract. 5. The award value is approximately $2.3 million.

Value Assessment

Rating: fair

The award value of $2.3M for a 30-day period appears high for a single delivery order. Benchmarking against similar hearing aid procurements is needed to assess value.

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.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these hearing aids, impacting taxpayer funds.

Public Impact

Veterans will receive hearing aid services. Potential for higher costs due to sole-source award. Limited transparency on the justification for sole-source.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Short contract duration
Lack of competition

Positive Signals

Award to established company
Addresses a specific need

Sector Analysis

This contract falls under the Electromedical and Electrotherapeutic Apparatus Manufacturing sector. Spending in this sector can vary widely based on technological advancements and specific healthcare needs.

Small Business Impact

There is no indication that small businesses were involved in this specific procurement, as it was a sole-source award.

Oversight & Accountability

Further review is needed to understand the justification for the sole-source award and ensure proper oversight was applied.

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
Limited transparency on justification
Short contract duration may indicate urgency or a stop-gap measure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to STARKEY LABORATORIES INC. EXPRESS REPORT: DECEMBER 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 $2.3 million.

What is the period of performance?

Start: 2025-12-01. End: 2025-12-31.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be necessary to determine the specific rationale.

How does the per-unit cost of these hearing aids compare to similar procurements, especially those that were competed?

Without a per-unit cost breakdown and comparative data from competed contracts for similar hearing aids, it is impossible to assess the cost-effectiveness. The total award value for a short duration suggests a potentially high per-unit cost, warranting further analysis against market benchmarks.

What is the long-term impact on veteran hearing aid access and quality given this sole-source award?

A sole-source award for a short duration may not guarantee long-term access or quality improvements. While it meets an immediate need, it bypasses the competitive process that could drive innovation and better pricing, potentially impacting future access and affordability for veterans.

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: $2,318,651

Exercised Options: $2,318,651

Current Obligation: $2,318,651

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