VA awards $16.9M for custom speech devices, with limited competition raising price discovery concerns

Contract Overview

Contract Amount: $16,906 ($16.9K)

Contractor: Tobii Dynavox LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $46/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM SPEECH GENERATING DEVICE

Place of Performance

Location: CORAOPOLIS, ALLEGHENY County, PENNSYLVANIA, 15108

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,905.84 to TOBII DYNAVOX LLC for work described as: CUSTOM SPEECH GENERATING DEVICE Key points: 1. The contract for custom speech generating devices represents a significant investment in assistive technology for veterans. 2. Limited competition for this award may have impacted the final negotiated price. 3. The fixed-price contract structure shifts some performance risk to the contractor. 4. The duration of the contract suggests a sustained need for these specialized devices. 5. The award falls within the Surgical Appliance and Supplies Manufacturing sector. 6. The Department of Veterans Affairs is the primary agency procuring these critical devices.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific per-unit cost data or comparisons to similar VA procurements for custom speech devices. The total award of $16.9 million over approximately one year indicates a substantial investment. However, the lack of competitive bidding means it's difficult to definitively assess if the price achieved represents optimal value for money compared to what might have been obtained in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the simplified acquisition procedures, suggesting it may have been awarded through a limited source justification or a specific exception. The data indicates it was 'NOT COMPETED UNDER SAP', which often implies a sole-source or limited competition scenario. Without more details on the specific justification, it's hard to ascertain the exact number of bidders or the extent of market research conducted. This limited competition raises questions about price discovery and potential cost efficiencies.

Taxpayer Impact: The limited competition for this essential technology means taxpayers may not have benefited from the most competitive pricing possible. Without a robust bidding process, there's a risk that the final cost is higher than it would be in a fully open market scenario.

Public Impact

Veterans requiring custom speech generating devices will benefit from access to advanced assistive technology. The services delivered include the provision and likely customization of specialized communication aids. The geographic impact is national, serving veterans across the United States through the VA system. Workforce implications may include specialized technicians for device setup and support within the VA or through contractor channels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Lack of transparency in the procurement process hinders full value assessment.
Potential for vendor lock-in if alternative solutions are not explored.

Positive Signals

Addresses a critical need for veterans with communication impairments.
Fixed-price contract provides cost certainty for the agency.
Long-term contract duration suggests a stable supply of essential devices.

Sector Analysis

The procurement falls within the broader healthcare technology and medical supplies sector, specifically focusing on assistive communication devices. This niche market involves specialized manufacturers and suppliers. Comparable spending benchmarks would typically involve analyzing other government contracts for similar custom-designed assistive technologies, considering factors like device complexity, customization levels, and support services. The overall market for speech-generating devices is growing, driven by technological advancements and increasing awareness of assistive technology needs.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a 'NOT COMPETED UNDER SAP' award, it's possible that the primary contractor, TOBII DYNAVOX LLC, is a large business. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the supply chain or service delivery for these custom devices.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency could be enhanced by making the justification for limited competition publicly available and detailing the market research conducted. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Assistive Technology Programs
Veterans Health Administration Medical Supplies
Durable Medical Equipment Procurement
Communication Aids and Devices

Risk Flags

Limited competition may result in higher costs.
Lack of detailed justification for limited competition.
Potential for non-optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,905.84 to TOBII DYNAVOX LLC. CUSTOM 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 $16,905.84.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the typical cost per unit for custom speech generating devices provided by Tobii Dynavox to other entities?

Determining the precise per-unit cost for custom speech generating devices from Tobii Dynavox is complex due to the highly individualized nature of these products. Costs can vary significantly based on the specific features, software, hardware configurations, and level of customization required for each user. While Tobii Dynavox is a leading provider, their pricing structures are often proprietary and negotiated based on specific contract terms. To establish a benchmark, one would need to compare this VA contract's total value against the number of devices procured and their estimated complexity. Publicly available data on per-unit costs for custom devices is scarce, but general market research suggests that advanced speech-generating devices can range from several thousand to tens of thousands of dollars each, depending on the sophistication and customization.

What specific justification was provided for not competing this contract under Simplified Acquisition Procedures (SAP)?

The provided data states the contract was 'NOT COMPETED UNDER SAP'. Simplified Acquisition Procedures (SAP) are typically used for purchases below the simplified acquisition threshold (currently $250,000). Awards exceeding this threshold generally require more formal competitive processes. If this contract, valued at $16.9 million, was not competed under SAP, it implies it was either competed using full and open procedures (though the 'limited' competition designation contradicts this) or, more likely, was awarded under specific exceptions to full and open competition, such as sole-source justification, other exceptions outlined in the Federal Acquisition Regulation (FAR), or potentially through a specific contract vehicle that limits competition. A detailed review of the contract file and any associated Justification for Other than Full and Open Competition (JOFOC) would be necessary to understand the precise reason for the procurement approach.

How does the $16.9 million award compare to historical VA spending on similar assistive communication devices?

To assess how the $16.9 million award compares to historical VA spending, one would need to analyze past contract awards for speech-generating devices and other assistive communication technologies procured by the Department of Veterans Affairs. This would involve searching federal procurement databases (like FPDS or USASpending) for similar contract actions over several fiscal years. Key metrics to compare would include the total dollar value of similar contracts, the number of devices procured, the contract duration, and the specific types of devices. Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for these critical assistive technologies. The current award's duration of approximately one year (ending March 31, 2027) suggests a significant annual expenditure if it were to be renewed.

What are the potential risks associated with a 'limited' competition award for specialized medical equipment?

A 'limited' competition award for specialized medical equipment like custom speech generating devices carries several potential risks. Firstly, it can lead to higher prices for taxpayers because the lack of robust competition reduces the incentive for vendors to offer their best pricing. Secondly, it may limit the government's access to the full range of available technologies or innovative solutions if only a few vendors are considered. Thirdly, there's a risk of vendor lock-in, where the government becomes overly reliant on a single or limited number of suppliers, potentially hindering future flexibility and cost-saving opportunities. Finally, without a transparent and competitive process, it can be more challenging to ensure that the selected vendor and product are truly the best fit for the intended users' needs and offer optimal value for money.

What is the track record of Tobii Dynavox LLC as a federal contractor, particularly with the VA?

Tobii Dynavox LLC has a significant track record as a federal contractor, particularly in providing assistive technology solutions. As a prominent company in the eye-tracking and speech-generating device market, they have likely secured numerous contracts with various government agencies, including the Department of Veterans Affairs (VA), Department of Defense, and others serving individuals with disabilities. Their history with the VA would likely involve providing custom and off-the-shelf communication devices to veterans. Analyzing their past performance would involve reviewing contract awards, delivery performance ratings, any past performance issues or disputes, and their overall history of fulfilling government requirements. A positive track record suggests reliability and capability, while a history of issues might warrant closer scrutiny.

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: 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: $16,906

Exercised Options: $16,906

Current Obligation: $16,906

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline