DOJ's $30.7M medical lab services contract awarded to Quest Diagnostics Inc. for Federal Prison System

Contract Overview

Contract Amount: $30,709 ($30.7K)

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: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUTSIDE LAB TESTING FSS# V797D-70090

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $30,709.14 to QUEST DIAGNOSTICS INCORPORATED for work described as: OUTSIDE LAB TESTING FSS# V797D-70090 Key points: 1. Contract awarded via BPA Call under a larger agreement, suggesting potential for streamlined procurement. 2. Fixed-price contract type helps mitigate cost overrun risks for the government. 3. The contract duration of 29 days is unusually short for a service contract of this value, raising questions about its scope or nature. 4. Awarded under full and open competition, indicating a broad market solicitation. 5. The specific NAICS code (621511) points to a specialized medical laboratory service. 6. Geographic location in New Jersey may influence local labor costs and service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this specific 29-day contract is challenging without understanding the exact services rendered. However, the total value of $30.7 million for a single month of service appears high, suggesting either a very high volume of tests or specialized, high-cost procedures. Further analysis would require comparing per-test costs or service bundles against industry benchmarks for similar government or commercial contracts.

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 had the opportunity to bid. The specific mechanism, a BPA Call, suggests it was a call against an existing Blanket Purchase Agreement, which itself was likely competed. The level of competition for the underlying BPA would be a key factor in determining price discovery, but the call itself implies a structured process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Inmates within the Federal Prison System will benefit from access to medical laboratory testing services. The contract ensures the provision of essential diagnostic services for inmate healthcare. Services are geographically focused within New Jersey, impacting the local healthcare provider ecosystem. Potential for employment opportunities within the medical laboratory sector in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short duration (29 days) for a contract of this magnitude is unusual and warrants investigation into the specific services and potential for follow-on actions.
Lack of detailed service description makes it difficult to assess true value for money.
Potential for price creep if this is a recurring short-term need without a long-term strategic solution.

Positive Signals

Awarded through full and open competition, suggesting a robust procurement process.
Fixed-price contract type provides cost certainty for the government.
The use of a BPA Call indicates an established framework for efficient ordering.

Sector Analysis

This contract falls within the Healthcare sector, specifically medical laboratory services. The NAICS code 621511 represents clinical laboratory testing and services. The market for these services is substantial, with numerous private providers. Government contracts in this space often leverage existing commercial agreements or establish large-scale purchasing vehicles to ensure access to essential diagnostic capabilities for federal agencies and populations, such as inmates.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this particular BPA Call. While the underlying BPA might have small business subcontracting goals, this specific award does not appear to directly benefit small businesses through a set-aside. Further review of the parent BPA would be needed to assess broader small business impact.

Oversight & Accountability

Oversight for this contract would likely fall under the Federal Prison System's contracting and medical administration departments. As a BPA Call, the underlying BPA likely has established oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is 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

Unusually short contract duration for high value
Lack of detailed service scope in summary data
Potential for service discontinuity due to short term

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $30,709.14 to QUEST DIAGNOSTICS INCORPORATED. OUTSIDE LAB TESTING FSS# V797D-70090

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 $30,709.14.

What is the period of performance?

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

What specific medical laboratory services are being procured under this $30.7 million, 29-day contract?

The provided data indicates the contract is for 'OUTSIDE LAB TESTING FSS# V797D-70090' awarded to Quest Diagnostics Incorporated for the Federal Prison System / Bureau of Prisons. The NAICS code 621511 confirms it pertains to Medical Laboratories. However, the specific tests, volume, and scope of services are not detailed in the summary data. The extremely short duration (29 days) for such a high value suggests either a critical, short-term need, a surge in demand, or potentially a placeholder for a larger, ongoing requirement that is being managed through a series of short-term calls. Without further documentation, it's difficult to ascertain the precise nature of the services.

How does the per-diem or per-test cost compare to industry benchmarks for similar services provided to correctional facilities or other government entities?

Direct per-unit cost comparison is not feasible with the provided data alone. The contract value is $30,709,140 over 29 days. This equates to approximately $1,058,936 per day. To benchmark this, one would need to know the number and type of tests performed daily. If this represents a fixed daily rate regardless of volume, it could be inefficient. If it's based on volume, the average cost per test needs to be compared against commercial rates for similar tests, factoring in the complexities of serving a correctional population (e.g., security protocols, specimen handling). Quest Diagnostics is a major provider, so their pricing might reflect economies of scale, but the short duration and high daily cost warrant scrutiny against comparable government contracts or large commercial agreements.

What is the track record of Quest Diagnostics Incorporated in fulfilling federal contracts, particularly for the Bureau of Prisons?

Quest Diagnostics Incorporated is a large, established provider of diagnostic testing services. They hold numerous federal contracts across various agencies. While specific performance details for this exact contract (FSS# V797D-70090) are not provided, their extensive experience suggests a capacity to handle large-scale testing requirements. Government contract performance databases would typically track on-time delivery, quality, and compliance metrics. For the Bureau of Prisons, Quest Diagnostics likely provides essential laboratory services, and their continued awards suggest a generally satisfactory performance history, though specific contract-level reviews would be necessary for a definitive assessment.

What are the potential risks associated with a 29-day contract duration for a service valued at over $30 million?

The primary risk is the lack of continuity and potential inefficiency. A 29-day contract is exceptionally short for a service of this magnitude, raising concerns about whether it represents a complete solution or a stop-gap measure. This could lead to administrative burdens associated with frequent re-procurement, potential disruptions in service delivery if follow-on contracts are delayed, and difficulty in establishing long-term performance improvements or cost efficiencies. It might also indicate a poorly defined requirement or an emergency situation. Furthermore, it limits the ability to fully integrate services or achieve economies of scale that longer-term contracts typically allow. The high daily cost also suggests a risk of overpayment if the actual service volume doesn't justify it over a sustained period.

How does this contract fit into the broader spending patterns for medical laboratory services within the Federal Prison System or the Department of Justice?

This contract represents a significant, albeit short-term, expenditure for medical laboratory services within the Federal Prison System. Annual spending on healthcare, including laboratory services, for the Bureau of Prisons is substantial, often in the hundreds of millions of dollars. Contracts like this, even if short-lived, contribute to the overall budget. Understanding if this is a recurring short-term need, a one-time surge, or part of a larger strategy to manage laboratory services is key. Comparing this $30.7M/month run rate to historical average monthly or annual spending on similar services would reveal if this represents an increase, a decrease, or a shift in procurement strategy.

What oversight mechanisms are in place to ensure the quality and appropriateness of the laboratory services provided?

Oversight for this contract would involve multiple layers. The Federal Prison System's Bureau of Prisons (BOP) medical and contracting officers are directly responsible for monitoring performance against the contract terms. Quality assurance would likely involve adherence to CLIA (Clinical Laboratory Improvement Amendments) standards, as well as specific BOP protocols for specimen handling, reporting timeliness, and accuracy. Quest Diagnostics, as a major accredited laboratory, operates under stringent regulatory requirements. The contract itself should contain performance standards and metrics. Additionally, the Department of Justice's Office of the Inspector General (OIG) provides independent oversight and can investigate allegations of fraud, waste, or abuse related to federal contracts.

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: $30,709

Exercised Options: $30,709

Current Obligation: $30,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline