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U.S. Manufacturer Loses Veterans Administration Contract to China

Sep15

SPRING VALLEY, CA. – TV Ears, Inc. manufactures the number one selling wireless TV headset system in the country. Known for its full page ads of a happy couple with the headline, “TV Ears Saved My Marriage,” TV Ears products are sold nationwide through audiologists, major retailers, and its website. Now in over two million homes, TV Ears enjoys a loyal, growing customer base of people who have benefited from its products.

George Dennis, CEO and founder of TV Ears, has faced many challenges in growing his company since 1998, and, as every entrepreneur in America knows, the past few years have been especially challenging.  “We are proud to be a company that manufactures products in the United States,” said Dennis. “We take great pride in our products and service, and do all we can to grow our business.”

Earlier this year, TV Ears had an opportunity to bid on a five year contract offered by the Veterans Administration (VA) in the Assistive Listening and Alerting Devices category. On May 24th, TV Ears was notified that although it was the only Trade Agreements Act compliant company (out of ten companies that submitted bids it was the only one with manufacturing in the United States), it would not be receiving the contract. Instead, the contract would be awarded to a German company whose product is manufactured in China. At that time the VA’s only explanation to TV Ears was that its product was “technically unacceptable.” However, the same letter stated that the past performance of the TV Ears product had been found to be “highly acceptable” by the VA.

On May 31st the VA sent the Company a debriefing letter in which it purported to give the Company a detailed explanation of the technical deficiencies of the TV Ears product. The VA’s rendition of “detailed explanation” was one sentence that stated that the product has “poor sound quality,” a “high frequency hum,” and a “narrow line of sight.” In this letter the VA also said, in effect, that it didn’t matter to the VA that the Company’s product was the only product submitted that was made in the United States.

“TV Ears, Inc. has always manufactured a portion of its products in China and a portion of its products in the United States,” explained Dennis. “The product put up for the VA bid, however, is entirely manufactured in the United States. If TV Ears were awarded the bid,  it would have been the catalyst to moving all the company’s manufacturing back to the United States.”

The bid awarded by the VA to the German company was $2,943,734 higher than the TV Ears bid. At a time when the U.S. economy is in trouble and the unemployment rate of U.S. workers is the major issue to the average American,  Dennis said he does not believe that this is how U.S. taxpayer money should be spent. “What was most disheartening was that as an American entrepreneur I felt that we were in the best position to supply this product to the Veterans,” said Dennis. “Why shouldn’t an American manufacturer take precedence over foreign products?”

Within days, Dennis sent a letter of protest to the Deputy Assistant Secretary for Acquisition and Logistics at the Risk Management Team, Department of Veterans Affairs “disputing the claims made in the technical evaluation, challenging the methodology used in the testing process, and respectfully requesting that the Deputy Assistant Secretary for Acquisition and Logistics retest the technical aspects of TV Ears and rule upon its acceptability.”

Dennis’ letter went on to say, “It is inconceivable that TV Ears’ assistive listening device is technically unacceptable. TV Ears is the number one selling TV amplification product in the United States. TV Ears sells hundreds of thousands of units per year and has over 2 million loyal customers.”

“For years, our award winning, doctor recommended, AARP approved, Better Business A+ rated product has been sold by such world class retailers as Costco, Radio Shack, QVC, and Amazon. By selling our product continuously for a number of years, these companies are irrefutable evidence that our product works as advertised, is technically acceptable to them, and is supported by our customer service personnel,” said Dennis.

In addition, Dennis explained that TV Ears’ products are also strongly supported by audiologists throughout the country, including audiologists from the VA. “How is it,” asked Dennis, “that in the same letter that notified us that TV Ears would not be receiving the VA contract, the VA also pointed out that our product had received a ‘highly acceptable’ performance rating from the VA? What changed?”

On June 28th, Dennis’ letter of protest was initially denied by the Procurement Analyst at the Department of Risk Management & Compliance because it was faxed instead of mailed and therefore received through “unofficial means.” Because of this, Dennis was told he was not in compliance with the Alternate Protest Procedure and that he would need to submit further proof of compliance.  The Company’s protest letter had been faxed to the VA by the office of Congressman Duncan Hunter of San Diego.

On August 23rd, the Deputy Assistant Secretary for Logistics and Affairs acknowledged receiving the letter of protest and responded to Dennis. In part, the letter he received read, “Federal Acquisition Regulation (FAR) 33.103 requires a protest include a detailed statement of the legal and factual grounds of the protest. It also states failure to substantially comply with these requirements in a timely fashion may be grounds for dismissal.” The letter ended by telling Dennis that if he disagreed with this decision he could file an appeal with the General Accountability Office (GAO).

“It makes no sense to me that our government is buying products from other countries, with our tax dollars, when we can provide better quality at a lower cost and keep Americans working,” said Dennis.

The Company filed its appeal with the GAO on September 2nd. In its appeal the Company stated that the VA did not provide the Company with a single technical explanation for why the TV Ears product was found to be technically unacceptable. The VA has until October 1st to file a response to the Company’s appeal to the GAO. The GAO must render its decision within 100 days of September 2nd.

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By: tvears
Comments (36)
Posted in: TV Ears
Tagged as: American manufacturer, General Accountability Office, TV Ears, VA, Veterans Administration

36 Responses for U.S. Manufacturer Loses Veterans Administration Contract to China

  1. Jim Dower on September 16, 2011 at 1:30 pm

    …typical U.S. Gov’t. behavior.

    Reply ↓
  2. Ronnie Kaplan on September 16, 2011 at 1:57 pm

    I am a veteran of ww2 and have equiped three TVs with TV Ears and been very happy with their performance for three years now. The act of accepting bids from other countries over the USA seems to be common pradtice with that bunch in DC.

    Reply ↓
  3. Frank Branca on September 16, 2011 at 2:06 pm

    This is an absolutely incredible situation. While I am sure the VA has its “reasons” for the decision, I am also certain that the last country we need to continue to support is China.

    What in the name of God is wrong with the people at the VA? It would be one thing if the Chinese product was cheaper, but according to the information TV Ears provided, they don’t even have that excuse. Even if they have great reasons, it doesn’t matter. We need a government that understands more than handouts.

    This BS infuriates me and I have contacted my US Representative and have requested a response from him.

    Reply ↓
  4. George Hall on September 16, 2011 at 2:27 pm

    and we wonder why our economy is in such dire straits……unbelieveable!!!!

    Reply ↓
  5. Paul on September 16, 2011 at 2:55 pm

    OK, so it’s typical of our ‘government’. So what can be done about it. How about removing ‘tenure’ from anyone having authority to spend more than (pick a $$ amount). If upon review of purchase or receiving a written request for for information leading to the decision to purchase outside the US mfg of product or service, THAT PERSON would be subject to fines, dismissal and jail if fraud is proven.

    Come on congress, keep US money in the US…

    Reply ↓
  6. William Rader on September 16, 2011 at 3:28 pm

    I have been using TV Ears for several years. I am satisfied with the quality of the sound. My only complaint is that the ear buds don’t hold up very long and the headphone stems tend to break at the end near the receiver after extended period of use. I have never had a problem with the transmitters. I have replaced headphones several times though. I am currently using headphones that I repaired myself due to breakage. You should improve the durability of the headphones.

    Reply ↓
  7. Rich Anderson on September 16, 2011 at 3:51 pm

    The fact that this is made in the US will have zero affect on the outcome. The Government has very specific regulations on how you can protest this and you MUST follow these regulations. Writing to your representative will do no good as they cannot alter the ruling. I have worked for the Government for over 30 years and agree there is way too much red tape. Unfortunately, you have to follow their rules or just not protest at all.

    Reply ↓
  8. Jim Mulhearn on September 16, 2011 at 3:53 pm

    I would respectfully request that someone, tmaybe the jJustice Dept, look into the holdings of the people that made this decision. I would not be surprised if they found either a conflict of interest or a case of financial iregularities that result in someone connected with the winning company and someone on the VA Dept that mad e the decision. This is the way it is done in Washington, why should anyone be surprised. As far as the politicians go, they are in things like this up to their neck so don’t look to them for help either.

    Reply ↓
  9. Elaine Gajarsky on September 16, 2011 at 4:25 pm

    I just mailed your letter with my comments to Marco Rubio, Senator from Florida. It is disgraceful that our
    own government agencies will not buy American.

    Reply ↓
  10. Noel Christoff on September 16, 2011 at 5:13 pm

    I have a pair and couldn’t be without them-they are great.

    May I suggest finding a way to get local Vet groups to support you , by having them petition the VA on your behalf—
    maybe giving a few discounted sets for trial?

    Reply ↓
  11. Ray Miles on September 16, 2011 at 5:20 pm

    There are certain senators that will actively work against buying American because they are in the pockets of certain other groups that control them. What we really need are changes in personnel in Washington. Thes kinds of problems are only the tip of the iceberg for our failing economy. We have no future if we let them get away with things like this.

    Reply ↓
  12. Ray Miles on September 16, 2011 at 5:27 pm

    It is past due time to start making these kinds of bold statement to bring to light all the underhanded dealing that go on behind closed doors. The american people should be made aware of just how so many people in Washington become very wealthy. This is no accident, and is the only reason many people run for election, or are easily turned once there by the glitter of special interests.

    Reply ↓
  13. Jim Wiatt on September 16, 2011 at 6:00 pm

    I have two sets of TV Ears and couldn’t be happier with them!! I also have been in manufacturing for 33 years (retired in 1985) and have seen our manufacturing ability vanish to foreign countries. If we had been in this situation in 1941 we would have lost W W II.

    Reply ↓
  14. JOHN M. GOLDEN on September 16, 2011 at 6:01 pm

    I immeditely sent emails to Senator Nelson(D) and Senator Rubio (R) of Florida advising them they needed to intercede. If not, then please, let’s just fly the Chinese flag in front of the Capital. It would make our forefathers who founded this great country of ours roll over in their graves. Now more than ever I truly understand the 12% approval rating our congress got on this mornings news.

    Reply ↓
  15. ann thurman on September 16, 2011 at 6:29 pm

    I did contact the white house and our representtive, and requested a response. I still have heard a word from either.. thanks

    Reply ↓
  16. Joe on September 16, 2011 at 7:36 pm

    Naturally! We(the US) borrowed so many BILLIONS of $$ from China, we HAVE to do something to pay it back.SO…..why not make it so that we buy more products from China….even if they are INFERIOR.? Our government doesn’t stop & think, “BUY US= more jobs, MORE jobs = more consumer spending (cars, clothing, housing,etc.), more taxes paid, improved economy,etc.. ALLOW it to go elsewhere(out of the country) = LESS jobs, less spending, less ,less,less, + INFERIOR QUALITY PRODUCT. BUT politicians & their buddies can’t get a kick back for letting the manufacturing to elsewhere.

    LOVE MY TV EARS!!

    Reply ↓
  17. Roz Warner on September 16, 2011 at 8:29 pm

    why can’t the us government buy from USA?

    1) On Labor Day TV Ears sent out an email to its customers that in part discussed how the Veterans Administration (VA) had denied a contract to TV Ears for a wireless headset system that was to be made in America, choosing a company whose product is made in China instead.

    2) MLK statue made in China
    3) Obama’s buses made in Canada.

    What is going on????

    Reply ↓
  18. William Irwin on September 16, 2011 at 8:38 pm

    The VA story on TV ears is pathetic and saddening to me. I am a Vet that has been using th Loma Linda branch in Loma Linda. In getting answers from various departments there on my status there I recieved different apposing answers regarding my status. I finally got very discusted at there ambivilence and I am paying them off to get them off my back. The medical staff there is from every country in th world which is fine, I suppose, but I think they should stick with American products as much as possible. Please stay in there face Dennis. Bill Irwin

    Reply ↓
  19. Ivan Fiscus on September 16, 2011 at 9:04 pm

    I have a set of TV Ears and are really pleased with them. I am an US Airforce veteran and Jet mechanic and lost my high pitch hearing. TV Ears works better than my $6000 hearing aids. I read your bout with the veterans affairs, and responded by trying to reach my State Representitive, but to no avail. Claims because of the high rate of email, that he was unable to hear mine. But I agree, that while they tell us to buy American out of one side of their mouths, they go behind the taxpayers back and deal with a Company buying Chinese junk……Stinks………..

    Reply ↓
  20. santa magyar on September 16, 2011 at 9:41 pm

    When Obama said he was going to create his Jobs program – he didn’t say where – unfortunately this happens too many times. The government should use American made products – but they are harder and harder to find. I am going to contact my congressman and state my feelings. Since I am a user of TV Ears – it is all the more fristrating.

    Reply ↓
  21. Eric Stillwaugh on September 16, 2011 at 11:00 pm

    I’am Canadian and have tried many different head sets and have not found one to compare to T V ears .They are comfortable light,and above all I can hear the TV far better not missing half of what the people are saying,I use mine all the time.

    Thanks
    Eric

    Reply ↓
  22. Patricia Gayler on September 17, 2011 at 12:35 am

    My husband is on his 3rd set of TV Ears. They have been the best thing ever in keeping my sanity. The TV
    used to be so loud you could hear it blocks away. He would probably still have his 1st set, if he were more
    careful with them. Now he can have it as loud as he wants and I can have the volume on the TV turned down
    to ‘normal’ without insulting my ear drums.
    I think it’s a downright shame that TV Ears didn’t get the contract. Enough of this farming everything out of
    the county, no wonder unemployment is so high!

    Reply ↓
  23. Emily on September 17, 2011 at 2:15 am

    I contacted my Representative and my Senators. I was disturbed by this news. Totally unacceptable. I love my TV Ears, and I am not hard of hearing. It’s a well made product, and affordable.

    Reply ↓
  24. wayne maryanski on September 17, 2011 at 11:51 am

    The only way to put a stop to this B.S. is vote them all out, do not vote for any incumbents!! Talk with your votes, they will get the message!!

    Reply ↓
  25. Donna Covington on September 17, 2011 at 12:43 pm

    I am completely satisfied after 3 sets of this product over several years as well as the service from individuals I have dealt with. I am apalled that the company is being denied this contract to supply VA because our politics in US now seems to favor sending business out of the country while pretending to do what I can to create jobs here. This is so depressing on so many fronts EVERY DAY!

    To TV Ears: please simplify your form to contact legislators. I have done this several times on other legislation but your contact system is not working and hard to use. I cannot make it work correctly onyour web site but have had no problems with other similar efforts. You deserve better from this legal/refulatory sysyem. Please make your site easier to use.

    Thanks!

    Reply ↓
  26. Doris Falls on September 17, 2011 at 8:50 pm

    WE SHOULD ALL BE COMPLAINING ABOUT THIS!!!! MADE IN AMERICA AND LESS EXPENSIVE VERSUS CHINESE??
    GO FIGURE!!!!!!!!!!!!!

    Reply ↓
  27. Ed Tezekjian on September 17, 2011 at 9:31 pm

    My TV Ears has been a blessing and it is the second set we purchased. The ear buds have lasted at least one year with proper maintenance.
    I recently had a problem with the transmitter and called your Technical Service dept. They responded immediately with a quick fix at no charge.
    We find that TV Ears is a first class company and we wish you luck in your endevours with the government bid.

    Reply ↓
  28. Mario on September 18, 2011 at 3:23 am

    It is Hearth Broken wthat this goes on in this country, with the jobs being exported to China, and that is just plain greed, but the guilty people and group of this criminal unpatriotic are the Republicans and the Chamber of Commerce, they are selling the United States out by getting millions of Dollars from Lobbyists paid by this companies who even get subsidy from them to move out, Shame on this People that are destroying the American Dreem and the United States of America

    Reply ↓
  29. greg geoghagan on September 19, 2011 at 9:35 pm

    I have had my tv ears for over 3 years and I love them. Why would we not want to use this product which has proven to perform

    Reply ↓
  30. Allen Charles on September 22, 2011 at 2:52 am

    This scenario is exactly the kind of issue that makes middle income citizens in this country despise our leadership. It’s sick to hear both Republican’s and Democrat’s talk about American Jobs and have this kind of crap going on behind the rhetoric. There’s probably some rich CEO behind the company that won the contract for China who has in’s with the government. The average citizen is not interested in making the affluent more affluent. We need company leaders that are thinking of how to employ more workers in the US instead of lining their own pockets. I wrote to my two senators in Missouri (one Rep and one Dem) and received the same old rhetoric. Neither one said they would contact the VA about this specific instance. That’s what I want to happen. If we can get enough American citizens behind this one little company, maybe, just maybe, we can make our leadership understand that we want American companies to win government contracts.

    Reply ↓
  31. Blossom Sanger on September 24, 2011 at 3:55 am

    I wrote to my 2 senators about this—–and will also write to the VA

    Reply ↓
  32. Mike Bowen on September 27, 2011 at 8:12 pm

    Recently, the Veterans Administration awarded a surgical mask contract to Mexican made masks over my company’s American made masks. Our price was close. Due to the VA’s shortsightedness, thirty more Americans will stay unemployed and the VA may not have a mask supply during the next pandemic.

    My company is the only major mask maker still in the US. Everyday, we work to wake up the US healthcare industry to the fact that the US mask supply was recently outsourced and may not be available during future pandemics. See our story at http://www.prestigeameritech.com

    America has brought a knife to a global gunfight. We cannot win against slave labor and dollar-an-hour employees. Educate the American workforce all you want – in the end we lose to cheap labor. We must buy American before it’s too late.

    Mike Bowen
    Vice President
    Prestige Ameritech

    Reply ↓
  33. Lori B on September 28, 2011 at 1:36 am

    I hope you get your case heard below is what I sent to my Representative and Senator’s from Nevada
    Sir,
    I know you are a BIG support of Veterans so I wanted to contact you. Why is a German company that produces its products in China being given a VA contract over a company that produces products in the US putting Americans to work. The bid awarded by the VA to the German company was $2,943,734 higher than the TV Ears bid. TV Ears should be allowed to make any corrections needed to its product. Please walk your talk and require the VA to support AMERICA.
    For more details of what I am referencing please go to http://tvearsblog.com/2011/09/u-s-manufacturer-loses-veterans-administration-contract-to-china/ or contact George Dennis, CEO and founder of TV Ears. I have a TV Ears product in my home and to coin the company catch phrase It has saved my marriage.
    Thank you for your time

    Reply ↓
  34. LYDIA CORNELL on November 9, 2011 at 10:22 pm

    This really burns me up!! I will contact my reps and veterans I work with as well. My best friend is a US Army LT. Col veteran and Fed Criminal atty.
    Luv xo
    Lydia

    Reply ↓
  35. tvears on September 16, 2011 at 5:12 pm

    Mark,

    Thank you for your response. One package of TV Ears tips are designed to last up to one year. If there is anything that we can do for you to improve your TV Ears experience please call our customer service department at 1-866-611-9934.

    Thank you.

    Reply ↓
  36. Fran Green on September 16, 2011 at 8:55 pm

    While my 80+ year old mother is very happy with TV Ears, one package of ear tips does not last up to one year. It is more like half a year. Your own packaging notes that the ear tips should be replaced every 30 – 60 days, and with 5 sets (10 tips), the absolute best you are going to do is 10 months, not 12. While you say “one package of TV Ears tips are designed to last up to one year,” it is false.

    As far as the US Government not awarding the contract to TV Ears, to me this is unacceptable, however, with statements like that noted above, I am not too sure of the credibility of what was stated in the bid. Perhaps everything is as it should have been, but of course, I, nor anyone else has any way of knowing that.

    By the way, while the stores you note in your missive do carry TV Ears, none seem willing to carry the replacement parts. Is there a reason for this? Buying though the mail is a bit inconvenient, as my mother does not have a computer, and talking on the phone is troublesome too, due to lack of hearing.

    Reply ↓

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