VA awards $17M contract for talking devices to Tobii Dynavox LLC, a sole manufacturer

Contract Overview

Contract Amount: $17,006 ($17.0K)

Contractor: Tobii Dynavox LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-06-26

Contract Duration: 80 days

Daily Burn Rate: $213/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TALKING DEVICE

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15203

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,005.84 to TOBII DYNAVOX LLC for work described as: TALKING DEVICE Key points: 1. The contract value of $17 million for talking devices represents a significant investment in assistive technology for veterans. 2. The sole source nature of this award raises questions about potential price inflation and limited market exploration. 3. Performance is tied to a fixed-price contract, which can mitigate cost overruns but may limit flexibility. 4. The contract duration of 80 days suggests a focused, short-term need for these specific devices. 5. The primary recipient is the Department of Veterans Affairs, indicating a focus on veteran healthcare and rehabilitation. 6. The North American Industry Classification System (NAICS) code 334111 points to the manufacturing of electronic computers, though the product is a specialized communication device.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the specialized nature of 'talking devices' and the limited competition. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess if $17 million represents fair value. The fixed-price nature offers some cost control, but the lack of competitive bidding prevents a direct comparison of pricing strategies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning only one vendor, Tobii Dynavox LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit the government's ability to explore the full market and potentially secure lower prices through competition.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's purchasing power and potentially reduces the number of devices or services that can be acquired within a given budget.

Public Impact

Veterans requiring communication assistance will benefit from access to advanced talking devices. The contract will facilitate the delivery of essential assistive technology to support the daily lives and rehabilitation of veterans. The primary geographic impact is within the United States, serving veterans nationwide through the VA system. The contract may have implications for specialized manufacturing roles within Tobii Dynavox LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing for taxpayers.
Sole-source award limits opportunities for other vendors to provide similar solutions.
Potential for vendor lock-in if this technology becomes standard without competitive review.

Positive Signals

Addresses a critical need for communication assistance for veterans.
Fixed-price contract offers some cost predictability.
Award to a known entity may imply a level of trust in their product's efficacy.

Sector Analysis

The market for assistive technology, particularly communication devices, is a specialized segment within the broader healthcare and electronics manufacturing sectors. Companies like Tobii Dynavox operate in a niche where technological innovation is key. While the NAICS code suggests electronic computer manufacturing, the actual product is a highly specialized communication aid. Comparable spending benchmarks are difficult to establish without more specific product details and market analysis of similar assistive communication devices.

Small Business Impact

This contract does not appear to involve a small business set-aside, nor is there information suggesting subcontracting opportunities for small businesses. The award is directly to Tobii Dynavox LLC, a company that, based on its specialization, is likely not a small business. This means the direct economic impact on the small business ecosystem from this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified goods within the agreed price. Transparency is limited by the sole-source nature of the award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Care Programs
Assistive Technology Services
Veteran Rehabilitation Programs
Durable Medical Equipment Procurement

Risk Flags

Sole-source award limits competition and potential cost savings.
Lack of detailed justification for sole-source award.
Specialized technology may lead to limited vendor pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,005.84 to TOBII DYNAVOX LLC. TALKING DEVICE

Who is the contractor on this award?

The obligated recipient is TOBII DYNAVOX LLC.

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 $17,005.84.

What is the period of performance?

Start: 2026-04-07. End: 2026-06-26.

What is the specific functionality and intended use of the 'talking devices' being procured?

The 'talking devices' procured under this contract are specialized augmentative and alternative communication (AAC) devices. These devices are designed to assist individuals who have difficulty speaking due to various medical conditions, such as ALS, cerebral palsy, stroke, or traumatic brain injury. They typically function by allowing users to select symbols, words, or phrases on a screen or through other input methods (like eye-tracking, which Tobii Dynavox specializes in), which are then synthesized into spoken words. The primary intended use is to restore or enhance an individual's ability to communicate effectively, thereby improving their quality of life, independence, and social interaction. For veterans, these devices are crucial for rehabilitation and ongoing care.

Why was this contract awarded sole-source, and what alternatives were considered?

The provided data indicates a sole-source award, which means the Department of Veterans Affairs (VA) did not conduct a competitive bidding process. Sole-source justifications typically arise when only one vendor possesses the unique capability, technology, or proprietary product required to meet the government's needs. In the case of specialized assistive technology like advanced eye-tracking communication devices, it's possible that Tobii Dynavox LLC holds patents or has developed technology that is not readily available from other manufacturers. The VA would have had to document a justification for this sole-source award, outlining why competition was not feasible or practicable. Alternatives might have included exploring different types of AAC devices, but if the VA specifically required Tobii Dynavox's unique technology, then other vendors would not be suitable substitutes.

How does the $17 million contract value compare to historical spending on similar devices by the VA or other federal agencies?

Directly comparing the $17 million contract value to historical spending is challenging without specific historical data for identical or highly similar 'talking devices.' However, Tobii Dynavox is a known provider in the AAC market, and their devices can be costly due to advanced technology like eye-tracking. Federal agencies, including the VA and Department of Defense, do procure assistive technologies. A $17 million award for a specific type of device over a defined period (80 days) suggests a significant procurement, potentially for a large cohort of veterans or a high-end model. Without access to detailed historical procurement records for comparable AAC devices, it's difficult to benchmark this specific value definitively. However, the sole-source nature raises a flag for potential overpayment compared to a competitive market.

What are the performance metrics and quality assurance measures for this contract?

As this is a firm fixed-price contract, the primary performance metric is the successful delivery of the specified 'talking devices' according to the contract's terms and conditions, including specifications, quantity, and delivery schedule (by April 7, 2026, with completion by June 26, 2026). Quality assurance would involve the VA's inspection and acceptance of the delivered devices to ensure they meet the required standards and functionality. While specific performance metrics beyond delivery and acceptance are not detailed in the provided data, the VA would likely have procedures for testing the devices and ensuring they function as intended for the veteran users. Any defects or failures to meet specifications could lead to rejection of the goods or other contractual remedies.

What is Tobii Dynavox LLC's track record with the federal government, particularly the VA?

Tobii Dynavox LLC is a recognized manufacturer of eye-tracking and communication technology. While the provided data focuses on this single contract, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal their broader track record. Companies specializing in assistive technology often have existing relationships with agencies like the VA, Department of Defense, and other healthcare providers. Their history with the VA would likely include previous awards for similar devices, potentially on smaller scales or through different contract vehicles. Assessing their overall performance, on-time delivery rates, and past issues would provide further context on their reliability as a federal contractor.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tobii Assistive Technology, Inc.

Address: 1400 CHERRINGTON PKWY BLDG 100, CORAOPOLIS, PA, 15108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,006

Exercised Options: $17,006

Current Obligation: $17,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F421DA

IDV Type: FSS

Timeline