Batteries, Cell Type, Various Sizes and Types - Hearing Aids and Other Medical Devices
Waiver type - Procurement: Nonavailability
Agency: VETERANS AFFAIRS, DEPARTMENT OF (3600) • Product Service Code (PSC) : 6135 | Last Modified: 06/17/2025
Procurement Summary
The Department of Veterans Affairs (VA) Denver Logistics Service (DLS) and Office of Connected Care have identified cell batteries of various sizes and types for continuous reordering as an ongoing requirement. The VA's DLS is a national distribution center which procures, stocks, and distributes batteries directly to VA clinics, medical centers, and eligible Veterans directly. The DLS has been providing batteries to VA hospitals and clinics, eligible Veterans, and other Government agencies since at least 1999. The types of batteries in this requirement are needed to power a wide variety of medical and other quality of life medical devices the VA provides to eligible Veterans including rechargeable and non-rechargeable, lithium, alkaline, zinc-air, nickel-metal-hydride (NIMH), and silver oxide batteries in a wide variety of form. The types of batteries included in this requirement are readily available in the commercial market, as commercial off-the-shelf (COTS) items that are widely used for applications other than the Government’s needs. All the various types of batteries in this requirement fit the definition of commercial items as set forth at FAR 2.101. Additionally, pursuant to the other than full and open competition authority set forth in Federal Acquisition regulation (FAR) 6.302-5, Authorized Or Required By Statute, this procurement will be a sole source award pursuant to 41 U.S.C. 3304(a)(5), the VA is required to procure seventeen (17) of the twenty-five (25) battery types included in this battery requirement from the AbilityOne Procurement List (PL). Furthermore, in accordance with Veterans Affairs Acquisition Manual (VAAM) M808.002-70(a), which states: "Priorities for use of mandatory Government sources - AbilityOne procedures, states: "As a result of Public Law 116-155, certain covered products and services on the AbilityOne Procurement List must be procured in accordance with Veterans Affairs Acquisition Regulation (VAAR) 808.002(a)(1)(iv) and (a)(2)." Pursuant to FAR 8.704(a) states: “41 U.S.C. chapter 85 requires the Government to purchase supplies or services on the Procurement List, at prices established by the Committee, from AbilityOne participating nonprofit agencies if they are available within the period required.” This procurement action is a follow-on effort to the current five (5) battery FFP-IDIQ contracts, which all expire on August 31, 2025. The period of performance for this procurement will start on September 01, 2025 and run through August 31, 2030 if all option periods are exercised. The robust market research (e.g., both past and present iterations) has repeatedly shown there are no small business manufacturers of the battery types included in this requirement. All known companies that manufacture batteries described in this requirement are large, international businesses of which only three (3) of the large business manufactures are known to produce end products from a WTO-GPA designated country. The goal of this acquisition is to award one Firm-Fixed-Price (FFP), Indefinite Delivery - Indefinite Quantity (IDIQ) contract to the designated Central Nonprofit Agency (CNA) selected by the AbilityOne Committee through their program management representatives at Source America to supply the seventeen (17) battery types of this requirement currently listed on the AbilityOne Procurement List.
Waiver Rationale Summary
This multi-procurement waiver is to be issued pre-award due to the receipt of proposals offering only China made products and all other battery types are end-products of the United Kingdom or Germany. The batteries in this requirement are not manufactured in the United States. The outsourcing of battery manufacturing operations from the United States to Europe is complete and now the industry is trending toward relocating battery manufacturing operations to China to avoid the rising costs associated with European labor rates and the compliance costs related to hazardous material disposal and environmental regulations. The global battery market is a very mature market that is projected to grow significantly from 2025 to 2030, driven by the increasing demand for battery powered medical equipment and the expansion of automation and electrification of equipment. Emerging technologies are driving the needs for various types of batteries. The various battery types include lithium-ion, lead acid, nickel-based, and others. Known for their high energy density and long lifespans, lithium-ion batteries hold 44% of the market share in 2024. Battery manufacturing was driven overseas due to the implementation of domestic regulations before the previous battery procurement cycle in 2020 and domestic battery manufacturing is unlikely to return prior to 2030. Market research indicated there are no known domestic battery manufacturers. Market research indicated the battery market is dominated by a handful of large international businesses. Batteries are manufactured all over the world with production in countries including Malaysia, Indonesia, Taiwan, China, Japan, Germany, Belgium, Mexico, Switzerland, the United Kingdom. The major battery manufacturers in the industry are Energizer (United Kingdom), Duracell (Germany and Belgium), and Varta Microbattery (Germany). There are no known cell battery manufacturers is the United States.
No
Yes
PENDING
BATTERIES, NONRECHARGEABLE
335912 - Primary Battery Manufacturing
06/17/2025
36C79125R0004
Post-solicitation
Between 3 and 5 years
Multi-procurement Waiver
VETERANS AFFAIRS, DEPARTMENT OF