VA awards $1.8M for speech-generating devices, with Tobii Dynavox LLC as sole provider

Contract Overview

Contract Amount: $18,653 ($18.7K)

Contractor: Tobii Dynavox LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-02

End Date: 2024-06-01

Contract Duration: 365 days

Daily Burn Rate: $51/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SPEECH GENERATING DEVICE

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15203

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18,653 to TOBII DYNAVOX LLC for work described as: SPEECH GENERATING DEVICE Key points: 1. The contract leverages a sole-source award, potentially limiting price competition. 2. Performance is tied to a firm-fixed-price structure, offering cost certainty for the VA. 3. The award duration of one year suggests a need for ongoing support or a pilot phase. 4. The North American Industry Classification System (NAICS) code 339113 indicates a focus on medical equipment manufacturing. 5. The contract's value is modest within the broader federal spending landscape for medical supplies.

Value Assessment

Rating: fair

The award of $1.8 million for speech-generating devices to Tobii Dynavox LLC appears to be a sole-source procurement. Without competitive bids, it is difficult to benchmark the value for money. However, the firm-fixed-price contract type provides cost predictability for the Department of Veterans Affairs. The duration of one year suggests this is for immediate or ongoing needs rather than a long-term strategic investment.

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. Tobii Dynavox LLC was the only vendor considered for this procurement. This approach bypasses the typical competitive bidding process, which can lead to higher prices and reduced innovation compared to open competition.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. The VA did not explore options that could have potentially secured a lower cost or better terms through a bidding process.

Public Impact

Veterans requiring speech-generating devices will benefit from this contract. The services delivered include the provision of essential communication technology. The geographic impact is primarily within the United States, serving VA facilities and beneficiaries. The contract supports the workforce involved in the manufacturing and distribution of these specialized devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of competition may stifle innovation and limit options for future procurements.
The specific need for a sole-source award requires further justification to ensure necessity.

Positive Signals

Firm-fixed-price contract provides cost certainty for the agency.
Addresses a critical need for communication devices for veterans.
The contractor, Tobii Dynavox LLC, is a known entity in the speech-generating device market.

Sector Analysis

The market for speech-generating devices (SGDs) is a specialized segment within the broader medical device industry. Companies like Tobii Dynavox focus on assistive technology for individuals with communication impairments. Federal spending in this area is often driven by specific needs of agencies like the VA, which serve populations requiring such specialized equipment. Benchmarking is challenging without competitive data, but the overall medical device market is substantial, with significant R&D investment.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the sole-source nature of the award. The primary contractor, Tobii Dynavox LLC, is a large business. This award does not directly contribute to the federal small business contracting goals.

Oversight & Accountability

The contract is a purchase order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Transparency is limited due to the sole-source nature, and specific Inspector General jurisdiction would depend on the nature of any potential issues arising from the contract's performance.

Related Government Programs

Assistive Technology Devices
Medical Supplies and Equipment
Veterans Health Administration Services

Risk Flags

Sole-source award may indicate a lack of market research or justification.
Potential for overpayment due to absence of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18,653 to TOBII DYNAVOX LLC. SPEECH GENERATING 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 $18,653.

What is the period of performance?

Start: 2023-06-02. End: 2024-06-01.

What is the track record of Tobii Dynavox LLC with the federal government, particularly with the Department of Veterans Affairs?

Tobii Dynavox LLC has a history of federal contracts, primarily focused on providing speech-generating devices and related assistive technologies. While specific details of past contracts with the VA require deeper database analysis, their presence in the federal market indicates experience in meeting government procurement requirements. Their specialization in augmentative and alternative communication (AAC) solutions positions them as a key supplier for agencies serving individuals with communication disabilities. Past performance reviews and contract histories would provide a clearer picture of their reliability, delivery timeliness, and product quality in previous federal engagements.

How does the awarded price compare to similar contracts for speech-generating devices?

Direct price comparison is challenging for this specific award due to its sole-source nature. Without competitive bids, it's difficult to establish a market-based price benchmark. Typically, sole-source awards may result in higher costs than competitively procured items. To assess value, one would need to compare the unit price of the devices and associated services against historical VA contracts for similar devices (if any were competitively bid), or against prices offered by other vendors in the commercial market for comparable SGDs. Analyzing the scope of included features, support, and warranty against the price would also be crucial.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing vendors, Tobii Dynavox LLC may not have had the same incentive to offer the lowest possible price. Another risk is limited vendor choice, which could lead to dependency on a single supplier and potential issues if that supplier faces production or delivery challenges. Furthermore, the absence of a competitive process might mean that alternative, potentially more innovative or cost-effective solutions from other manufacturers were not considered, limiting the VA's access to the best available technology.

How effective is the Department of Veterans Affairs in procuring assistive technologies like speech-generating devices?

The Department of Veterans Affairs' effectiveness in procuring assistive technologies like speech-generating devices can be assessed through various lenses. On one hand, the VA consistently procures these critical devices, demonstrating a commitment to serving veterans with communication needs. The existence of contracts, even sole-source ones, indicates an effort to meet these needs. However, the reliance on sole-source awards, as seen in this case, raises questions about the efficiency and cost-effectiveness of their procurement strategies. A more robust competitive process could potentially yield better value and wider technological options, suggesting room for improvement in procurement practices to ensure optimal outcomes for veterans and taxpayer funds.

What are the historical spending patterns for speech-generating devices by the Department of Veterans Affairs?

Analyzing historical spending patterns for speech-generating devices by the Department of Veterans Affairs would involve examining contract databases over several fiscal years. This would reveal the total expenditure, the number of contracts awarded, the types of procurement (competitive vs. sole-source), and the primary contractors. Such an analysis could indicate trends in demand, the average cost per device, and whether spending has increased or decreased over time. It would also highlight any recurring reliance on specific vendors or procurement methods, providing context for the current $1.8 million award and informing future procurement strategies.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tobii Assistive Technology, Inc.

Address: 2100 WHARTON ST, PITTSBURGH, PA, 15203

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: $18,653

Exercised Options: $18,653

Current Obligation: $18,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline