The Department of Veterans Affairs (VA) is issuing a presolicitation notice for customized prescription hearing aid devices and associated repair services, to be procured from Oticon, Inc. on a sole-source basis. This requirement aims to enhance clinical availability and standardize pricing for these services for eligible veterans and Department of Defense (DoD) members. The procurement is justified under federal regulations allowing for non-competitive bids when only one source can meet the agency's needs. Interested vendors may submit capability statements within 30 days of this notice, but the decision to allow competition is at the VA's discretion. This initiative reflects the VA's commitment to providing specialized healthcare solutions tailored to the unique needs of veterans, while ensuring compliance with procurement regulations.
The Department of Veterans Affairs (VA) seeks to establish a noncompetitive contract with Oticon, Inc. for customized (prescription) hearing aids and repair services as part of its national Hearing Aid Program. This action is justified under Title 41 U.S.C. § 3304(a)(1), allowing for "other than full and open competition" due to the unique qualifications of Oticon products. The contract will be a single-award firm-fixed price indefinite delivery/indefinite quantity (IDIQ) arrangement, set for five years, following a long-standing procurement history in the hearing aid market.
The VA's strategy has shifted from competitive procurement to a sole-source approach, based on market changes favoring proprietary electronic devices over analog ones. Extensive market research indicates that only five major manufacturers, including Oticon, can meet the VA's stringent requirements and ensure compliance with Trade Agreements Act and FDA regulations. The anticipated contract's value is based on rigorous analysis, ensuring pricing fairness and reasonableness.
Engagement with industry partners will continue, with the VA exploring new entrants to enhance competition for future acquisitions. This initiative reflects the VA's commitment to providing optimal hearing aid solutions for Veterans while maintaining a robust procurement process aligned with federal guidelines.