DOJ's Bureau of Prisons awards $125K for 3-month lab testing extension to Quest Diagnostics

Contract Overview

Contract Amount: $124,693 ($124.7K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-01-01

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: QUEST DIAGNOSTICS FOR VARIOUS LABORATORY TESTING SERVICES, DELIVERY ORDER AGAINST BPA 15BNAS20A00000070 OPTION YEAR 4 (3 MONTH EXTENSION) V797D-70090 PERIOD OF PERFORMANCE: JANUARY 2026 - MARCH 2026 SERVICES.

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $124,692.86 to QUEST DIAGNOSTICS INCORPORATED for work described as: QUEST DIAGNOSTICS FOR VARIOUS LABORATORY TESTING SERVICES, DELIVERY ORDER AGAINST BPA 15BNAS20A00000070 OPTION YEAR 4 (3 MONTH EXTENSION) V797D-70090 PERIOD OF PERFORMANCE: JANUARY 2026 - MARCH 2026 SERVICES. Key points: 1. The contract represents a short-term extension for essential laboratory services, indicating ongoing operational needs. 2. Quest Diagnostics, a large incumbent provider, likely leverages established infrastructure and expertise. 3. The firm-fixed-price contract type suggests predictable costs for the specified period. 4. Limited duration may indicate a transition to a new contract or a need for immediate, short-term support. 5. The award falls under a broader Blanket Purchase Agreement (BPA), suggesting a streamlined procurement process for recurring needs. 6. Focus on laboratory testing highlights critical health support within correctional facilities.

Value Assessment

Rating: fair

This award is for a 3-month extension of existing laboratory testing services, making direct value-for-money comparisons difficult without understanding the full contract scope and historical pricing. The $124,692.86 value for a quarter suggests a moderate cost for essential services. Benchmarking against similar short-term extensions for laboratory services within federal correctional facilities would be necessary for a more precise assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, likely through a pre-established Blanket Purchase Agreement (BPA). While the specific competition details for this delivery order are not provided, the BPA mechanism itself implies that multiple vendors had the opportunity to bid on the underlying agreement. The limited duration of this extension might suggest that the primary competition occurred for the larger BPA, and this is a task order execution.

Taxpayer Impact: Full and open competition, even for a short extension, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government is not locked into a single provider without justification.

Public Impact

Inmates within Bureau of Prisons facilities benefit from access to necessary laboratory testing services. Essential diagnostic and monitoring services are delivered to support inmate health and well-being. The services are geographically focused on facilities managed by the Federal Prison System. The contract supports the operational needs of healthcare staff within the correctional system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration raises questions about long-term strategic sourcing and potential for price increases in subsequent extensions.
Lack of detailed performance metrics for this specific extension makes it difficult to assess service quality beyond incumbent performance.
Reliance on a single vendor for this extension period, even if part of a larger competed BPA, warrants monitoring for potential service disruptions.

Positive Signals

Awarded under a full and open competition BPA, indicating a structured and potentially competitive procurement process.
Firm-fixed-price contract type provides cost certainty for the specified period.
Continuation of services by an established provider suggests continuity of care and operational stability.

Sector Analysis

The healthcare services sector within the federal government is substantial, encompassing a wide range of medical supplies, equipment, and services. Laboratory testing is a critical component, supporting diagnosis, treatment, and monitoring across various agencies, including correctional facilities. Spending in this area is driven by the health needs of federal beneficiaries, such as inmates. Comparable spending benchmarks would involve analyzing other contracts for medical laboratory services awarded to large providers within the federal system, particularly those serving correctional or institutional populations.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Quest Diagnostics, a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific delivery order. The impact on the small business ecosystem is minimal for this particular award, as it appears to be a direct service delivery by the prime contractor.

Oversight & Accountability

Oversight for this contract would fall under the Bureau of Prisons' contracting and program management officials. As a delivery order against a BPA, the underlying BPA likely has established oversight mechanisms. Transparency is facilitated by public contract databases, though specific performance metrics for this short extension may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Laboratory Services
Department of Justice Healthcare Contracts
Medical Laboratory Services Contracts

Risk Flags

Short contract duration may indicate a lack of long-term planning or a temporary solution.
Limited public information on specific performance metrics for this extension.
Potential for price increases in future contract periods if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $124,692.86 to QUEST DIAGNOSTICS INCORPORATED. QUEST DIAGNOSTICS FOR VARIOUS LABORATORY TESTING SERVICES, DELIVERY ORDER AGAINST BPA 15BNAS20A00000070 OPTION YEAR 4 (3 MONTH EXTENSION) V797D-70090 PERIOD OF PERFORMANCE: JANUARY 2026 - MARCH 2026 SERVICES.

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 $124,692.86.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-01.

What is the historical spending trend for laboratory testing services with Quest Diagnostics by the Bureau of Prisons?

Analyzing historical spending data for laboratory testing services with Quest Diagnostics by the Bureau of Prisons is crucial for understanding long-term cost trends and identifying potential price escalations. While this specific award is for a short 3-month extension valued at approximately $125,000, it is part of a larger BPA. To assess historical trends, one would need to examine all delivery orders issued under BPA 15BNAS20A00000070 to Quest Diagnostics, as well as any prior contracts for similar services. This would involve looking at the total annual spending, the number of services procured, and the average cost per service over several fiscal years. Significant year-over-year increases, particularly if not matched by a proportional increase in service volume or complexity, could indicate a need for re-negotiation or enhanced competition. Without access to the full BPA and its order history, a precise historical analysis is not possible, but this extension suggests ongoing reliance and potentially consistent demand.

How does the per-unit cost of laboratory tests under this contract compare to market rates or similar federal contracts?

Determining the per-unit cost of laboratory tests under this contract is challenging without a detailed breakdown of the specific tests ordered and their associated prices. The total award amount of $124,692.86 is for a 3-month period and covers 'various laboratory testing services.' To perform a meaningful comparison, we would need to know the volume and types of tests conducted. If this information were available, it could be benchmarked against the Federal Supply Schedule (FSS) for clinical laboratory services, if applicable, or against pricing from other federal agencies serving similar populations, such as the Department of Veterans Affairs or the Department of Defense. Comparing it to commercial laboratory pricing in New Jersey, where the services are delivered, would also provide context. Given that this is a delivery order against a BPA, the pricing should ideally reflect competitive rates established during the BPA's initial competition. A significant deviation from established benchmarks could signal an issue with pricing or value.

What are the key performance indicators (KPIs) for this contract, and how is Quest Diagnostics' performance being measured?

The provided data does not specify the key performance indicators (KPIs) for this particular delivery order or the overarching BPA. Typically, for laboratory services, KPIs might include turnaround time for test results, accuracy rates, specimen collection success rates, and customer satisfaction (e.g., from medical staff). Performance measurement would likely involve regular reporting by Quest Diagnostics and review by the Bureau of Prisons' contract officers and technical monitors. Given the short 3-month extension period, the focus might be on maintaining existing service levels and ensuring continuity rather than introducing new performance targets. However, the absence of clearly defined and publicly accessible KPIs makes it difficult to independently assess the contractor's performance and the overall effectiveness of the service delivery during this extension period.

What is the risk profile associated with this contract, considering Quest Diagnostics' track record and the nature of the services?

The risk profile for this contract appears to be relatively low to moderate. Quest Diagnostics is a large, established provider of laboratory services with a significant presence in both the commercial and federal sectors, suggesting a generally reliable track record. The services are essential for inmate health, indicating a critical need, but the nature of routine laboratory testing is generally well-understood and standardized. Potential risks could include service disruptions due to unforeseen issues (e.g., equipment failure, staffing shortages), although the short duration of this extension mitigates the impact of long-term disruptions. Another risk could be related to pricing if the extension costs are significantly higher than previous periods or market benchmarks, suggesting potential value-for-money concerns. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. Overall, the primary risks revolve around ensuring consistent quality and timely delivery of essential health services.

How does this contract fit into the broader strategy of the Bureau of Prisons for providing healthcare to inmates?

This contract represents a tactical component within the Bureau of Prisons' (BOP) broader strategy for delivering healthcare to inmates. Laboratory testing is a fundamental diagnostic tool that supports a wide range of medical care, from routine health screenings and disease monitoring to specialized diagnostics. By extending services with Quest Diagnostics, the BOP ensures continuity of care for inmates, preventing gaps in essential health services. This short-term extension might be in place while the BOP finalizes a longer-term strategy or a new competitive procurement for these services. It underscores the BOP's reliance on external providers for specialized medical services, likely to supplement in-house capabilities or to ensure access to a wider range of testing options. The use of a BPA suggests an ongoing effort to streamline procurement for recurring needs like laboratory services.

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: $124,693

Exercised Options: $124,693

Current Obligation: $124,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline