DOJ's $20,000 contract for lab services in West Virginia awarded to Quest Diagnostics Inc

Contract Overview

Contract Amount: $20,000 ($20.0K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-04-30

End Date: 2026-04-30

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 LAB SERVICES JANUARY-APRIL

Place of Performance

Location: ALDERSON, GREENBRIER County, WEST VIRGINIA, 24910

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $20,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: FY26 LAB SERVICES JANUARY-APRIL Key points: 1. The contract value is relatively small, suggesting a localized or specific need for services. 2. Quest Diagnostics is a major player in the clinical laboratory sector, indicating a potentially competitive bidding process. 3. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration is short, allowing for periodic reassessment of needs and vendor performance. 5. The specific location (West Virginia) may indicate a targeted service requirement for a particular facility or population.

Value Assessment

Rating: good

The contract value of $20,000 is modest. Without specific details on the volume or type of lab services required, a direct comparison to similar contracts is challenging. However, for routine or specialized lab services, this amount appears reasonable for a defined period and location. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This typically leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the competition type implies a robust process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives competitive pricing and a wider range of service options, preventing potential overspending that could occur with less competitive solicitations.

Public Impact

Inmates within the Federal Prison System in West Virginia will benefit from access to necessary medical laboratory services. The contract ensures the provision of medical laboratory testing, crucial for diagnosis, treatment, and monitoring of health conditions. The geographic impact is limited to West Virginia, specifically serving the needs of federal correctional facilities in that state. The contract supports the healthcare workforce within the medical laboratory sector by engaging a service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements in the provided data.
Limited visibility into the exact types and volume of lab tests required, making value assessment difficult.
Potential for increased costs if the scope of services expands beyond initial expectations.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps control costs.
Quest Diagnostics is a reputable provider in the lab services industry.
Short contract duration allows for flexibility and reassessment.

Sector Analysis

The healthcare sector, specifically clinical laboratory services, is a critical component of the broader healthcare industry. This contract falls under the sub-sector of medical laboratories (NAICS 621511). The market for laboratory testing services is substantial, driven by healthcare demand, diagnostic needs, and preventative care. Government agencies, including the Department of Justice, are significant purchasers of these services to support various populations, such as inmates.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (SS: false, SB: false). As a BPA Call, it's possible that larger contracts or master agreements might have small business subcontracting plans, but this specific call-out does not appear to be directly targeted at small businesses. Further analysis would be needed to determine if Quest Diagnostics has any subcontracting obligations with small businesses for this service.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Prison System / Bureau of Prisons within the Department of Justice. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services at the agreed-upon price. Transparency is facilitated by the contract award process, which was full and open competition. The Inspector General for the Department of Justice would have jurisdiction for any investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Bureau of Prisons Healthcare Services
Department of Justice Medical Contracts
Clinical Laboratory Services Contracts
Federal Inmate Healthcare

Risk Flags

Limited scope of services detailed
No specific performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,000 to QUEST DIAGNOSTICS INCORPORATED. FY26 LAB SERVICES JANUARY-APRIL

Who is the contractor on this award?

The obligated recipient is QUEST DIAGNOSTICS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $20,000.

What is the period of performance?

Start: 2026-04-30. End: 2026-04-30.

What is the typical cost range for similar medical laboratory services contracts awarded by the Federal Prison System?

Determining a precise cost range for similar contracts is challenging without more specific data on the volume and types of tests. However, contracts for laboratory services can vary significantly based on scope. For instance, a large-scale contract covering a broad range of tests for an entire facility might run into hundreds of thousands or even millions of dollars annually. Smaller, more localized contracts, like this $20,000 award for a specific period and location, are likely for more limited services or a smaller patient population. Benchmarking would require comparing the price per test or per patient encounter against industry standards and other government contracts for comparable services within the same geographic region or for similar institutional settings.

What is Quest Diagnostics' track record with federal government contracts, particularly within the Department of Justice?

Quest Diagnostics is a major national provider of diagnostic testing services and has a history of contracting with various federal agencies, including the Department of Defense and the Department of Veterans Affairs, for healthcare and laboratory services. While specific details on their contracts with the Department of Justice are not readily available in this dataset, their extensive experience in the healthcare sector suggests a capacity to meet federal requirements. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal the full scope and performance history of their federal awards, including any potential issues or commendations.

How does the firm fixed-price contract type mitigate risks for the government in this scenario?

The firm fixed-price (FFP) contract type is advantageous for the government as it establishes a ceiling on the total cost of the contract. The contractor, Quest Diagnostics, assumes the risk of cost overruns. This means that regardless of the actual costs incurred by the contractor to provide the lab services, the government will pay the agreed-upon fixed price. This structure provides budget certainty and protects the government from unexpected increases in labor, materials, or other direct costs associated with delivering the services. It incentivizes the contractor to manage their own costs efficiently to maximize profit.

What are the potential implications of this contract being a BPA Call rather than a standalone contract?

This contract is a 'BPA Call,' meaning it is a task order issued against a Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition method that allows federal agencies to streamline the process of obtaining a wide variety of commercial items and services from qualified sources. When a BPA is in place, individual calls or orders against it, like this one, can be issued more rapidly and with less administrative burden than establishing a new contract from scratch. This suggests that a broader agreement for lab services may already exist, and this $20,000 award represents a specific, smaller need being fulfilled under that existing framework.

What is the significance of the specific location (West Virginia) for this laboratory services contract?

The designation of West Virginia (WV) as the service location strongly suggests that this contract is intended to fulfill the laboratory needs of a federal correctional facility or facilities within that state. The Federal Prison System operates institutions across the country, and contracts for services like healthcare are often localized to ensure timely and efficient delivery. This specific award indicates a requirement for lab services directly tied to the inmate population or staff health within the Bureau of Prisons' operational footprint in West Virginia, rather than a broader, nationwide service agreement.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 PLAZA DR, SECAUCUS, NJ, 07094

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,000

Exercised Options: $20,000

Current Obligation: $20,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline