VA awards $476K hearing aid contract to Starkey Laboratories Inc. for January 2026

Contract Overview

Contract Amount: $476,275 ($476.3K)

Contractor: Starkey Laboratories Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-01-31

Contract Duration: 30 days

Daily Burn Rate: $15.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: JANUARY 2026 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT.

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $476,274.99 to STARKEY LABORATORIES INC for work described as: EXPRESS REPORT: JANUARY 2026 DATA - PURCHASE ORDER DATA FOR VA NATIONAL HEARING AID CONTRACT. Key points: 1. Contract awarded for a single month of service, suggesting a short-term need or bridge. 2. Sole-source award indicates a lack of competitive bidding, potentially impacting price. 3. The contract value is relatively small, suggesting it may cover a specific, limited scope. 4. Awarded to a single vendor, Starkey Laboratories Inc., for electromedical apparatus manufacturing. 5. The contract is a firm-fixed-price delivery order, providing cost certainty for the VA.

Value Assessment

Rating: fair

This contract, valued at $476,274.99 for a one-month period, appears to be a specific procurement for electromedical apparatus, likely hearing aids, for the Department of Veterans Affairs. Without comparable contract data for similar short-term, sole-source procurements of this specific item, a precise value-for-money assessment is challenging. However, the fixed-price nature provides cost predictability. The per-unit cost, if calculable, would be a key factor in benchmarking against market rates for similar devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means that the Department of Veterans Affairs did not benefit from a bidding process that could have potentially driven down prices through market forces. The specific justification for the sole-source award is not detailed in the provided data.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to ensure the most cost-effective solution is selected. This limits the government's ability to secure the best possible value.

Public Impact

Veterans will benefit from the provision of electromedical apparatus, likely hearing aids, to meet their healthcare needs. The services delivered are specific to the manufacturing and supply of specialized medical equipment. The geographic impact is centered around the Department of Veterans Affairs' operations, with potential distribution to facilities in Colorado, where the vendor is located. Workforce implications are minimal for this specific contract, primarily affecting the supply chain and logistics for Starkey Laboratories Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings for taxpayers.
Short contract duration (one month) raises questions about long-term planning or potential emergency procurement.
Lack of detailed justification for sole-source award hinders transparency.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Award to an established vendor (Starkey Laboratories Inc.) suggests a known entity for supply.
Contract supports the healthcare needs of veterans through specialized medical equipment.

Sector Analysis

The contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector (NAICS 334510). This sector includes companies that produce medical devices such as diagnostic imaging equipment, patient monitoring systems, and therapeutic devices. The market for hearing aids, a likely component of this contract, is significant, driven by an aging population and increasing awareness of hearing health. This contract represents a small portion of overall federal spending in healthcare technology, focusing on a specific need for the VA.

Small Business Impact

The provided data indicates that small business participation (ss) and set-asides (sb) were not applicable to this contract. Therefore, this award does not appear to have directly benefited small businesses through set-aside provisions. There is no information available regarding subcontracting plans with small businesses. The impact on the small business ecosystem is likely negligible for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and procurement oversight mechanisms. As a delivery order under a larger framework (though not specified here), it would be subject to standard contract administration. Transparency is limited due to the sole-source nature and the short duration. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Procurement
Hearing Health Services
Electromedical Device Manufacturing
Federal Healthcare Contracts

Risk Flags

Sole-source award without clear justification.
Short contract duration may indicate a lack of long-term planning or an emergency situation.
No information on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $476,274.99 to STARKEY LABORATORIES INC. EXPRESS REPORT: JANUARY 2026 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 $476,274.99.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-31.

What is the specific justification for awarding this contract on a sole-source basis to Starkey Laboratories Inc.?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification, such as a unique capability, urgent need, or lack of other qualified sources, is not detailed in the EXPRESS REPORT. Typically, sole-source awards require a justification document (e.g., a Justification and Approval or J&A) to be filed, outlining the rationale. Without this document, it's impossible to definitively assess why competition was bypassed. This lack of transparency can raise concerns about whether the government obtained the best possible value and if alternative solutions were adequately explored.

How does the value of this contract compare to typical VA hearing aid procurements?

This contract is valued at $476,274.99 for a single month of service (January 2026). To compare this to typical VA hearing aid procurements, one would need historical data on similar contracts, ideally for the same or comparable hearing aid devices. Federal procurement databases (like FPDS or SAM.gov) would be the source for such comparisons. If this represents a monthly expenditure, the annual cost could be substantial. However, without knowing if this is a one-time purchase, a recurring need, or a specific type of device, a direct comparison is difficult. The short duration suggests it might be a bridge contract or for a very specific, limited need.

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

The primary risk associated with a sole-source award for medical equipment is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the vendor has less incentive to offer the lowest possible price. Other risks include limited innovation, as the government is not exposed to potentially better or more cost-effective solutions from other manufacturers. Furthermore, sole-source awards can create vendor lock-in, making it difficult to switch to alternative suppliers in the future. There's also a risk of reduced transparency and accountability, as the justification for bypassing competition needs to be robust to ensure fairness and value.

What is Starkey Laboratories Inc.'s track record with the Department of Veterans Affairs?

Starkey Laboratories Inc. is a known manufacturer of hearing aids. To assess their track record specifically with the VA, one would need to examine past contract awards to this vendor from the Department of Veterans Affairs. This would involve searching federal procurement databases for all contracts awarded to Starkey Laboratories Inc. by the VA, noting the types of goods or services provided, the contract values, performance history (if available), and any issues or disputes. A positive track record would indicate reliability and successful past performance, while a history of issues might raise concerns about future performance.

What is the expected performance period and delivery timeline for this contract?

The provided data indicates a contract duration ('dur') of 30 days and specific start ('sd') and end ('ed') dates of 2026-01-01 to 2026-01-31. This signifies that the contract is for a one-month period, covering the entirety of January 2026. As a delivery order, the expectation is that the specified electromedical apparatus (likely hearing aids) will be delivered within this timeframe. The firm-fixed-price nature suggests that the vendor is obligated to provide the goods by the end date for the agreed-upon price, barring any contract modifications or unforeseen circumstances.

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 AVAILABLE FOR COMPETITION

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, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $476,275

Exercised Options: $476,275

Current Obligation: $476,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79126D0019

IDV Type: IDC

Timeline