Veterans' Eyewear Contractor Accused of Price Gouging, Low-Quality Products

PDS Consultants, a company supplying eyewear to veterans, is facing allegations of lowballing prices to win a VA contract and then making up that money on the backs of veterans through higher prices for upgrades and aggressive sales tactics.

PDS Consultants, a Kentucky-based company run by U.S. veterans, secured a five-year contract in November 2022 to manufacture eyewear and provide other optician services for the Department of Veterans Affairs (VA) VISN 7 network. However, allegations have surfaced that the company's low-price bid was a bait-and-switch tactic to increase profits.

According to sources close to the situation, PDS Consultants bid less than $10 million for the contract, significantly lower than its competitors. This low price was allegedly used to undercut established providers like Superior Optical and Carter-Lambert, who bid around $30 million and $40 million, respectively.

Veterans' Eyewear Contractor Accused of Price Gouging, Low-Quality Products

Once PDS took over VISN 7, many former Superior Optical employees found themselves working for the new contractor. Subsequent reports revealed that PDS employees felt pressured to upsell veterans and meet unrealistic sales goals.

In the months that followed, Fox News Digital received numerous messages from individuals close to PDS Consultants and the VA alleging that the company was making up for its low-price bid by overcharging veterans. These sources requested anonymity for fear of retaliation.

Veterans' Eyewear Contractor Accused of Price Gouging, Low-Quality Products

One source likened the way PDS won the contract to a "bait-and-switch," noting that the company offered lenses for as low as $1, a price deemed unsustainable. "Well, you got to make that money up in some way," the source said, implying that PDS upsells and upgrades products to recoup its losses.

Court filings show that PDS proposed asymmetric or "unbalanced" pricing, where some products were offered well below market rate and others well above it. This strategy is designed to hide the true cost of services and potentially overcharge the government.

Veterans' Eyewear Contractor Accused of Price Gouging, Low-Quality Products

Despite concerns raised by the contracting officer regarding "significantly understated" and "significantly overstated" prices, these unbalanced prices were not deemed an "unacceptable risk of overpayment by the taxpayer."

Allegations extend beyond pricing issues. Sources claim that under PDS' stewardship, the quality of eyeglasses plummeted. Veterans reported receiving poorly crafted, broken, and misprescribed glasses, along with excessive delivery times.

Veterans' Eyewear Contractor Accused of Price Gouging, Low-Quality Products

Free and affordable options for frames and lenses were also reportedly reduced, with PDS offering substandard brands and charging higher prices for upgrades. Veterans complained of paying more out of pocket as a result.

The VA Press Secretary initially denied receiving complaints about PDS Consultants, but a source contradicted this, stating that the VA had received more complaints after the company took over VISN 7 than in all 10 years of the previous contractors combined.

When contacted again, the VA acknowledged Veteran complaints but did not provide specific details. The VA emphasized that contractors face accountability for failing to meet standards and that termination may result.

PDS Vice President Rob Yopps defended the company's performance, stating that veteran owners are proud to serve and that the contract has yielded taxpayer savings. However, he declined to comment on the low-price bid strategy.

Superior Optical has filed a lawsuit against the VA, protesting the awarding of the contract to PDS. Oral arguments are scheduled for late July.

The allegations against PDS Consultants raise concerns about the VA's procurement process and the quality of care veterans receive. It highlights the importance of transparency, accountability, and ensuring that veterans' needs are prioritized.