DOJ awards $53K for lab testing, extending existing BPA for 3 months

Contract Overview

Contract Amount: $53,197 ($53.2K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $1.8K/day

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 15BNAS26A00000038 (3 MONTH EXTENSION) V797D-70090 PERIOD OF PERFORMANCE: APRIL 2026 SERVICES.

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $53,197.36 to QUEST DIAGNOSTICS INCORPORATED for work described as: QUEST DIAGNOSTICS FOR VARIOUS LABORATORY TESTING SERVICES, DELIVERY ORDER AGAINST BPA 15BNAS26A00000038 (3 MONTH EXTENSION) V797D-70090 PERIOD OF PERFORMANCE: APRIL 2026 SERVICES. Key points: 1. Contract value is relatively small, suggesting a specific, limited need. 2. Performance period is short, indicating a temporary or bridging requirement. 3. Fixed-price contract type helps control costs for the government. 4. Full and open competition was used, allowing for broad market participation. 5. Contractor has a history with the government, indicated by BPA usage. 6. Geographic location of service is New Jersey.

Value Assessment

Rating: good

The contract value of approximately $53,000 for a three-month extension is modest. Given the nature of laboratory testing services, which can vary widely in cost per test, a direct per-unit cost comparison is difficult without more specific service details. However, the fixed-price nature of the contract provides cost certainty. The extension of an existing BPA suggests that pricing was likely established through a prior competitive process, and this extension is likely at pre-negotiated rates, which is generally a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The use of a BPA call suggests that the underlying Blanket Purchase Agreement was itself competitively awarded, and this delivery order falls under those established terms. The level of competition for the BPA would have influenced price discovery.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by ensuring a wide range of providers can offer their services.

Public Impact

Services benefit the Federal Prison System, likely supporting inmate health and safety. Laboratory testing services are delivered, crucial for medical diagnosis and monitoring. Geographic impact is localized to New Jersey, where services are rendered. Workforce implications are minimal, likely involving existing laboratory personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a need for more stable, long-term solutions.
Limited public information on specific testing services provided.
Reliance on a single contractor for this specific BPA call.

Positive Signals

Use of a competitively awarded BPA streamlines future ordering.
Fixed-price contract provides cost predictability.
Contract extension indicates satisfactory performance under the existing BPA.

Sector Analysis

The healthcare sector, specifically medical laboratories (NAICS 621511), is a critical component of public health infrastructure. This contract falls within the broader federal spending on healthcare services for government personnel and beneficiaries. The market for laboratory testing is diverse, with numerous private and public providers. Federal agencies often utilize large IDIQs or BPAs to procure these services efficiently, leveraging pre-negotiated terms and conditions from a competitive process.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of laboratory services and the size of the award, it is possible that larger, established laboratory providers are the primary participants in such contracts. Further analysis would be needed to determine if small businesses have opportunities within the broader BPA or if subcontracting is utilized.

Oversight & Accountability

The contract is a delivery order against a Blanket Purchase Agreement (BPA), suggesting that the initial BPA underwent a competitive process and established terms. Oversight would typically be managed by the contracting officer and program officials within the Department of Justice's Federal Prison System. Transparency is facilitated by contract databases, but specific performance metrics and detailed service delivery reports are often internal. 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
Laboratory Testing Services Contracts

Risk Flags

Short-term extension may indicate a need for a more permanent solution.
Limited detail on specific services impacts value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $53,197.36 to QUEST DIAGNOSTICS INCORPORATED. QUEST DIAGNOSTICS FOR VARIOUS LABORATORY TESTING SERVICES, DELIVERY ORDER AGAINST BPA 15BNAS26A00000038 (3 MONTH EXTENSION) V797D-70090 PERIOD OF PERFORMANCE: APRIL 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 $53,197.36.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the historical spending trend for laboratory testing services by the Federal Prison System?

Analyzing historical spending on laboratory testing by the Federal Prison System (FPS) is crucial for understanding budget allocation and identifying potential trends or anomalies. While specific data for this exact delivery order is limited to its current value, broader trends can be inferred from overall FPS healthcare expenditures. The FPS, as part of the Bureau of Prisons (BOP), manages healthcare for a large inmate population, necessitating significant investment in diagnostic services. Historically, spending in this area has been substantial, driven by the need for routine screenings, specialized tests, and disease management. Factors such as inmate population size, health profiles, and the availability of in-house versus contracted services influence these costs. Examining multi-year spending reports from the BOP or DOJ can reveal patterns in the utilization and cost of laboratory services, highlighting whether spending has increased, decreased, or remained stable, and whether this is due to changes in service volume, pricing, or contract vehicles.

How does the pricing of this contract compare to similar laboratory testing contracts awarded by other federal agencies?

Benchmarking the pricing of this $53,197.36 contract against similar laboratory testing services procured by other federal agencies requires access to detailed pricing data for comparable services. Laboratory testing encompasses a vast array of procedures, each with its own market rate. This contract is a delivery order against a BPA, suggesting that the pricing was established during the competitive bidding for the BPA itself. Without knowing the specific tests ordered and their quantities, a direct per-unit comparison is challenging. However, general market intelligence suggests that federal agencies often leverage large-volume contracts and competitive bidding to secure favorable rates. If this contract's pricing aligns with or is better than rates seen in other large federal healthcare procurements (e.g., through the VA or DOD), it indicates good value. Conversely, if rates appear significantly higher than benchmarks for similar tests, it might warrant further investigation into the necessity of the specific services or the competitiveness of the BPA's original award.

What are the specific risks associated with extending a Blanket Purchase Agreement for laboratory services?

Extending a Blanket Purchase Agreement (BPA) for laboratory services carries several potential risks. One primary risk is that the pricing established during the original BPA competition may no longer reflect current market rates, potentially leading to overpayment if market prices have decreased. Another risk is the potential for scope creep or the ordering of services not originally envisioned in the BPA's scope, which could lead to unforeseen costs. Furthermore, a prolonged reliance on a single BPA without re-competition could stifle innovation and reduce the incentive for the incumbent contractor to maintain optimal service levels or competitive pricing. There's also a risk that the contractor's capabilities or compliance standards may have diminished over time, which might not be fully captured during a simple extension. Regular performance reviews and market analysis are essential to mitigate these risks.

What is the track record of Quest Diagnostics Incorporated in fulfilling federal contracts for laboratory services?

Quest Diagnostics Incorporated is a major provider of diagnostic testing services and has a significant history of contracting with the U.S. federal government across various agencies, including the Department of Defense, Department of Veterans Affairs, and others. Their track record generally indicates a capacity to handle large volumes of testing and to meet federal requirements for quality, turnaround times, and reporting. Federal contract databases often show numerous awards to Quest Diagnostics for a wide range of laboratory services. While specific performance details for every contract are not always public, their continued presence as a federal contractor suggests a generally satisfactory performance history. However, as with any large contractor, there may be instances of past performance issues or disputes on specific contracts that would require deeper investigation into individual contract histories.

How does the use of a BPA for laboratory testing impact the Bureau of Prisons' ability to manage its healthcare budget?

The use of a Blanket Purchase Agreement (BPA) for laboratory testing can significantly impact the Bureau of Prisons' (BOP) ability to manage its healthcare budget. A well-structured BPA, typically established through full and open competition, allows the agency to pre-negotiate pricing, terms, and conditions for a range of services. This provides a degree of budget predictability and cost control, as orders placed under the BPA are generally at established rates, reducing the need for individual contract actions for each testing requirement. It streamlines the procurement process, leading to administrative savings. However, the effectiveness in budget management also depends on the scope of the BPA, the competitiveness of the initial award, and ongoing monitoring to ensure that the contracted services remain cost-effective compared to market alternatives and that the volume of services ordered aligns with budgetary allocations.

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

Solicitation ID: 15BNAS20QRCA0012

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: $53,197

Exercised Options: $53,197

Current Obligation: $53,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline