HHS awards $30M hearing aid task order to Starkey Laboratories Inc. for Indian Health Service

Contract Overview

Contract Amount: $30,000 ($30.0K)

Contractor: Starkey Laboratories Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-06

End Date: 2030-04-30

Contract Duration: 1,485 days

Daily Burn Rate: $20/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEARING AID TASK ORDER FOR PAWNEE

Place of Performance

Location: EDEN PRAIRIE, HENNEPIN County, MINNESOTA, 55344

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30,000 to STARKEY LABORATORIES INC for work described as: HEARING AID TASK ORDER FOR PAWNEE Key points: 1. Value for money is difficult to assess without a competitive benchmark. 2. The contract was not competed, raising questions about price discovery. 3. Risk indicators are moderate, given the firm-fixed-price structure. 4. Performance context is limited to the duration of the delivery order. 5. This contract falls within the electromedical and electrotherapeutic apparatus manufacturing sector.

Value Assessment

Rating: fair

The total award amount is $30 million over approximately 4 years. Without a competitive bidding process, it is challenging to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides some cost certainty, but the absence of competition prevents a robust value-for-money assessment. Further analysis would require understanding the specific services and equipment provided and comparing them to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under a previously established contract, and the data indicates it was 'NOT COMPETED' for this specific task order. This suggests a sole-source or limited competition approach for this particular award. The lack of open competition means that multiple bidders were not solicited, potentially limiting price discovery and the opportunity for the government to secure the most favorable terms.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a bidding process.

Public Impact

Beneficiaries include Native American individuals receiving services through the Indian Health Service. Services delivered likely involve the provision and maintenance of hearing aids. Geographic impact is primarily within the service areas of the Indian Health Service. Workforce implications may include roles in audiology, medical supply, and administrative support within IHS facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in the procurement process due to non-competitive award.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Award to an established entity (Starkey Laboratories Inc.) may indicate reliability.

Sector Analysis

This contract falls under the electromedical and electrotherapeutic apparatus manufacturing sector, specifically related to hearing devices. The market for hearing aids is substantial, with significant spending by both government agencies and private consumers. This contract represents a portion of the federal government's investment in healthcare technology and services for specific populations, such as those served by the Indian Health Service.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that small businesses were not specifically targeted for this contract, and the prime contractor, Starkey Laboratories Inc., is likely a large business. There is no information on subcontracting plans for small businesses within this specific task order.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited due to the non-competitive nature of the award, but contract awards are generally reported in federal procurement databases.

Related Government Programs

Indian Health Service Medical Equipment Procurement
Department of Health and Human Services Hearing Health Programs
Federal Contracts for Medical Devices

Risk Flags

Non-competitive award raises concerns about price reasonableness.
Lack of transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30,000 to STARKEY LABORATORIES INC. HEARING AID TASK ORDER FOR PAWNEE

Who is the contractor on this award?

The obligated recipient is STARKEY LABORATORIES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $30,000.

What is the period of performance?

Start: 2026-04-06. End: 2030-04-30.

What is the track record of Starkey Laboratories Inc. with federal contracts, particularly with the Indian Health Service?

Starkey Laboratories Inc. has a history of federal contracting, though specific details regarding their work with the Indian Health Service (IHS) require deeper database analysis. Generally, companies in the medical device sector often secure contracts for supplying equipment and services to government health agencies. A review of federal procurement data would reveal the volume and nature of their past awards, including any prior engagements with IHS or similar healthcare providers within the Department of Health and Human Services (HHS). This would help assess their experience, past performance, and reliability in fulfilling government requirements. Without specific historical data on their IHS contracts, it's presumed they possess the necessary qualifications given this award.

How does the $30 million award compare to historical spending on hearing aids by the Indian Health Service?

To compare the $30 million award to historical IHS spending on hearing aids, one would need to access historical procurement data for the IHS specifically for hearing aids and related services over several fiscal years. This analysis would involve identifying previous contracts awarded for similar items, their values, and durations. A significant increase or decrease in spending could indicate changes in program needs, pricing trends, or the scope of services provided. Without access to this historical data, it is difficult to ascertain whether this $30 million award represents a typical, increased, or decreased level of investment for hearing aid provisions within the IHS.

What are the specific risks associated with a non-competed contract of this magnitude?

The primary risk associated with a non-competed contract of this magnitude is the potential for inflated pricing and reduced value for money. When a contract is not competed, the government foregoes the opportunity to solicit bids from multiple vendors, which typically drives down costs through competition. This can lead to the government paying more than necessary for the goods or services. Additionally, a lack of competition can reduce the incentive for the awarded contractor to innovate or provide exceptional service, as there is no immediate threat of losing business to competitors. Transparency is also reduced, making it harder for oversight bodies and the public to verify the fairness of the price and terms.

What is the expected effectiveness of this contract in improving hearing health outcomes for IHS beneficiaries?

The effectiveness of this contract in improving hearing health outcomes for IHS beneficiaries hinges on several factors beyond the award itself. These include the quality and appropriateness of the hearing aids provided, the availability of audiology services for fitting and follow-up, patient adherence to treatment, and the overall integration of hearing health into the IHS's broader healthcare services. While the contract provides the necessary funding for the procurement of hearing aids, its success in achieving positive health outcomes depends on the comprehensive delivery of care. The firm-fixed-price nature ensures the availability of the devices, but the ultimate impact on beneficiaries' quality of life will be influenced by the clinical and support services surrounding the device provision.

Are there any known issues or concerns with Starkey Laboratories Inc.'s past performance in delivering medical devices to government agencies?

Assessing Starkey Laboratories Inc.'s past performance requires a detailed review of federal contract databases, such as the Federal Procurement Data System (FPDS) or the General Services Administration (GSA) databases. These systems often contain performance evaluations and records of any disputes, contract terminations, or corrective actions related to previous government contracts. Without direct access to and analysis of these specific records for Starkey Laboratories Inc., it is not possible to definitively state whether there are known issues or concerns. However, government agencies typically conduct pre-award reviews of contractor past performance, especially for significant awards, to mitigate risks.

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: $30,000

Exercised Options: $30,000

Current Obligation: $30,000

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