DOJ's $583K lab test contract with Quest Diagnostics for FCI Cumberland shows fair pricing and strong competition

Contract Overview

Contract Amount: $58,343 ($58.3K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-01-15

End Date: 2026-09-30

Contract Duration: 258 days

Daily Burn Rate: $226/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: QUEST DIAGNOSTICS FY-26 LAB TESTS FOR FCI CUMBERLAND 15BNAS26A00000038 V797D70090

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $58,343 to QUEST DIAGNOSTICS INCORPORATED for work described as: QUEST DIAGNOSTICS FY-26 LAB TESTS FOR FCI CUMBERLAND 15BNAS26A00000038 V797D70090 Key points: 1. The contract leverages a firm-fixed-price structure, providing cost certainty for the government. 2. Full and open competition suggests a healthy market for these medical laboratory services. 3. The contract duration is relatively short, aligning with specific operational needs. 4. The geographic location in New Jersey may indicate a focus on regional correctional facilities. 5. The North American Industry Classification System (NAICS) code 621511 points to a specialized service sector.

Value Assessment

Rating: good

The contract value of $583,430 for lab tests appears reasonable given the scope and duration. Benchmarking against similar contracts for correctional facility medical services would provide a more precise value-for-money assessment. However, the firm-fixed-price nature of the award suggests that the government has negotiated a set price, which can be advantageous in controlling costs. Without specific per-unit data, a direct comparison is challenging, but the overall award amount seems within a justifiable range for the services described.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This competitive process is crucial for ensuring that the government receives the best possible pricing and quality of services. The specific number of bidders is not provided, but the designation implies a robust bidding environment, which generally leads to more favorable terms for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where providers compete on price and quality, ultimately driving down costs and improving service delivery.

Public Impact

Inmates at FCI Cumberland will benefit from access to essential medical laboratory testing services. The services provided are critical for diagnosis, treatment monitoring, and overall healthcare management within the correctional facility. The contract's geographic impact is localized to Cumberland, New Jersey, serving the specific needs of that facility. The contract supports jobs within the medical laboratory sector, potentially including technicians, phlebotomists, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality assurance details in the provided data.
Potential for increased demand or unforeseen medical needs at the facility impacting service delivery.
Dependence on a single contractor for critical health services could pose a risk if issues arise.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded under full and open competition, suggesting competitive pricing.
Contract duration is aligned with specific needs, avoiding long-term commitments.
Specialized service (medical laboratories) is contracted to an experienced provider.

Sector Analysis

The healthcare services sector, particularly within correctional facilities, requires specialized medical laboratory support. This contract falls under the broader category of healthcare services, specifically diagnostic laboratory testing. The market for these services is competitive, with numerous providers capable of meeting the stringent requirements of government contracts. Benchmarking against other federal contracts for similar services at correctional institutions would reveal cost efficiencies and service level agreements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses and the contractor, Quest Diagnostics Incorporated, is a large corporation. There is no explicit information regarding subcontracting opportunities for small businesses within this award. Therefore, the direct impact on the small business ecosystem appears minimal unless subcontracting plans are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is facilitated through federal procurement databases where contract awards are published. The Inspector General's office for the Department of Justice would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Potential for security risks in handling inmate health data.
Operational challenges unique to correctional facility environments.
Need for stringent quality control and turnaround time adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $58,343 to QUEST DIAGNOSTICS INCORPORATED. QUEST DIAGNOSTICS FY-26 LAB TESTS FOR FCI CUMBERLAND 15BNAS26A00000038 V797D70090

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 $58,343.

What is the period of performance?

Start: 2026-01-15. End: 2026-09-30.

What is the historical spending pattern for medical laboratory services at FCI Cumberland?

Historical spending data for medical laboratory services specifically at FCI Cumberland is not directly available in the provided snippet. However, understanding past expenditures would involve reviewing previous contracts awarded to Quest Diagnostics or other vendors for similar services at this facility or comparable Bureau of Prisons (BOP) institutions. Analyzing trends in contract values, service volumes, and pricing over several fiscal years would reveal if the current $583,430 award represents an increase, decrease, or stable expenditure. This historical context is crucial for assessing whether the current contract offers value for money and if there have been significant shifts in the cost or scope of services required.

How does the per-unit cost of lab tests under this contract compare to other federal facilities?

The provided data does not include specific per-unit costs for individual lab tests, making a direct comparison to other federal facilities challenging. The contract value of $583,430 is an aggregate amount for the period. To perform a per-unit cost comparison, one would need access to the detailed pricing structure within the contract, outlining the cost for each specific laboratory test (e.g., CBC, urinalysis, specific antibody tests). Without this granular data, it's impossible to benchmark against other federal contracts or market rates for individual tests. Future analysis should aim to obtain this detailed pricing information to assess cost-effectiveness.

What is Quest Diagnostics' track record with the Department of Justice or Bureau of Prisons?

Quest Diagnostics Incorporated is a major provider of diagnostic testing services and likely has a significant track record with various government agencies, including potentially the Department of Justice (DOJ) and the Bureau of Prisons (BOP). A thorough assessment would involve reviewing federal procurement databases (like FPDS or SAM.gov) for past awards to Quest Diagnostics by the DOJ/BOP, examining contract performance evaluations (e.g., CPARS reports), and looking for any past disputes, terminations, or significant performance issues. Their extensive experience in the healthcare sector suggests a capability to meet contract requirements, but a detailed review of their specific performance history with the relevant agencies is necessary for a complete understanding.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract or the methods used for measuring performance. Typically, contracts for medical laboratory services would include KPIs related to turnaround time for test results, accuracy rates, specimen collection protocols, reporting timeliness, and customer satisfaction (e.g., responsiveness to facility staff). The contract's performance would likely be monitored by the Bureau of Prisons' contracting officer's representative (COR) or a designated program manager, who would review performance reports submitted by Quest Diagnostics and potentially conduct site visits or audits to ensure compliance with the Statement of Work (SOW) and quality standards.

Are there any specific risks associated with contracting lab services for a federal correctional institution?

Yes, there are specific risks associated with contracting lab services for a federal correctional institution. These include potential security risks related to specimen handling and transport, ensuring chain of custody, and preventing unauthorized access to sensitive inmate health information, which is protected under HIPAA. Operational risks involve managing fluctuating demand due to inmate population changes or health outbreaks, ensuring timely service delivery under potentially challenging facility conditions, and maintaining consistent quality of service. Furthermore, there's a risk of contractor non-compliance with stringent federal regulations and BOP policies, requiring robust oversight and performance management to mitigate these challenges.

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: $58,343

Exercised Options: $58,343

Current Obligation: $58,343

Actual Outlays: $9,543

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline