Quest Diagnostics to provide laboratory services for FDC Philadelphia inmates in FY26 for $871,410.07

Contract Overview

Contract Amount: $87,141 ($87.1K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $239/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONTRACTOR TO PROVIDE LABORATORY SERVICES FOR INMATE POPULATION AT FDC, PHILADELPHIA FY26

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $87,141.07 to QUEST DIAGNOSTICS INCORPORATED for work described as: CONTRACTOR TO PROVIDE LABORATORY SERVICES FOR INMATE POPULATION AT FDC, PHILADELPHIA FY26 Key points: 1. Contract awarded for essential inmate healthcare services, indicating a focus on public health within correctional facilities. 2. The contract value appears reasonable for specialized laboratory services supporting a specific inmate population. 3. Competition dynamics for this contract need further examination to ensure optimal pricing and value. 4. Performance will be critical to ensure timely and accurate diagnostic results for inmate care. 5. This contract aligns with the Federal Prison System's mission to provide necessary medical services to incarcerated individuals. 6. The fixed-price nature of the contract offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of $871,410.07 for laboratory services at FDC Philadelphia seems aligned with the scope of providing diagnostic testing for an inmate population. Benchmarking against similar contracts for correctional facility healthcare or specialized medical services would provide a more precise value assessment. However, given the specialized nature of the services and the specific location, the price appears to be within a reasonable range for a single year of operation. The firm fixed-price structure also contributes to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process was undertaken. While the specific number of bidders is not provided, SAP is designed to encourage competition for contracts below certain thresholds. The fact that it was competed indicates that multiple vendors had the opportunity to bid, which generally leads to better price discovery and value for the government compared to sole-source awards.

Taxpayer Impact: A competed contract, even under SAP, suggests that taxpayer dollars are being used more efficiently by leveraging market competition to secure services at a fair price.

Public Impact

Inmates at FDC Philadelphia will benefit from access to essential laboratory diagnostic services, contributing to their health and well-being. The services delivered include crucial medical testing required for diagnosis, treatment monitoring, and preventative care within the correctional setting. The geographic impact is localized to Philadelphia, Pennsylvania, serving the specific needs of the Federal Correctional Institution. This contract supports the healthcare workforce within the correctional system by ensuring access to necessary medical support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics (number of bidders) makes it difficult to fully assess the extent of price negotiation.
Potential for increased costs if unforeseen health issues arise within the inmate population requiring extensive testing beyond standard scope.
Dependence on a single contractor for critical health services necessitates robust performance monitoring.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Awarded to a known entity (Quest Diagnostics) which may imply a level of established service quality.

Sector Analysis

The healthcare services sector, particularly within government and correctional facilities, is a significant market. This contract falls under the 'Medical Laboratories' industry classification (NAICS 621511). Spending on inmate healthcare is a critical component of the Bureau of Prisons' budget, aimed at meeting constitutional standards for medical care. Comparable spending benchmarks would involve analyzing contracts for similar laboratory services provided to other federal or state correctional institutions, or to large public health systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, Quest Diagnostics, is a large corporation, and the focus of this award is on securing specialized services rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Prisons (BOP) contracting officer and contract specialists. Performance monitoring will be crucial to ensure the quality, timeliness, and accuracy of laboratory services provided. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Bureau of Prisons Healthcare Contracts
Inmate Medical Services
Diagnostic Laboratory Services
Public Health Services in Correctional Facilities

Risk Flags

Potential for service disruption
Quality control of diagnostic results
Timeliness of test reporting

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $87,141.07 to QUEST DIAGNOSTICS INCORPORATED. CONTRACTOR TO PROVIDE LABORATORY SERVICES FOR INMATE POPULATION AT FDC, PHILADELPHIA FY26

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 $87,141.07.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Quest Diagnostics in providing laboratory services to federal correctional facilities?

Quest Diagnostics is a major provider of diagnostic testing services across the United States, serving a wide range of clients including hospitals, clinics, employers, and government agencies. Their experience with federal correctional facilities would be a key factor in assessing their suitability for this contract. While specific details on their performance with the Bureau of Prisons (BOP) are not provided in this data snippet, their extensive operational footprint suggests they have the capacity and experience to handle such requirements. A deeper dive would involve reviewing past performance evaluations, any documented issues or commendations, and their history of compliance with healthcare regulations and contractual obligations within similar government settings. Their ability to meet stringent turnaround times and maintain quality control in a secure environment is paramount.

How does the awarded amount compare to historical spending for laboratory services at FDC Philadelphia?

The provided data indicates an award amount of $871,410.07 for FY26. To compare this to historical spending, one would need access to historical contract data for laboratory services specifically at FDC Philadelphia. This would involve querying federal procurement databases (like FPDS or USASpending) for previous awards to Quest Diagnostics or other vendors for similar services at this specific facility. Analyzing trends in award amounts, contract durations, and any adjustments or modifications over time would reveal whether the current award represents an increase, decrease, or stable spending pattern. Factors such as inflation, changes in inmate population size, or evolving healthcare needs could explain any variations observed in historical spending.

What are the primary risks associated with this contract and how are they mitigated?

Primary risks include potential service disruptions, quality control issues with test results, and cost overruns if not managed tightly. Service disruptions could arise from staffing shortages at Quest Diagnostics or logistical challenges in transporting samples. Quality control failures could lead to misdiagnoses, impacting inmate health and potentially leading to litigation. Cost overruns are less likely with a firm fixed-price contract but could occur if unforeseen circumstances necessitate additional services not clearly defined. Mitigation strategies include robust performance monitoring by the Bureau of Prisons, clear service level agreements (SLAs) with defined penalties for non-performance, regular quality assurance audits, and maintaining open communication channels with the contractor to address issues proactively. The contractor's established reputation and experience also serve as a risk mitigation factor.

What is the expected effectiveness of these laboratory services in supporting inmate healthcare?

The effectiveness of these laboratory services is expected to be high, as they are fundamental to modern medical diagnosis and treatment. Accurate and timely laboratory results enable healthcare providers within FDC Philadelphia to diagnose illnesses, monitor chronic conditions, assess treatment efficacy, and implement preventative health measures. This directly supports the BOP's mission to provide adequate medical care to the inmate population. The effectiveness will be contingent on the contractor's ability to meet performance standards, including turnaround times for various tests, the range of available tests, and the accuracy of results. A well-functioning laboratory service is a cornerstone of effective healthcare delivery in any setting, including correctional facilities.

Are there any specific performance metrics or KPIs tied to this contract?

While the provided data does not explicitly list Key Performance Indicators (KPIs) or specific performance metrics, contracts of this nature typically include them within the Statement of Work (SOW) or Performance Work Statement (PWS). These metrics commonly focus on turnaround times for different types of laboratory tests (e.g., routine, STAT), accuracy rates, specimen rejection rates, and customer satisfaction (from the perspective of the facility's medical staff). The contract likely stipulates remedies or penalties for failing to meet these performance standards, such as service credit deductions or even termination for default in severe cases. The contracting officer's representative (COR) would be responsible for monitoring these metrics.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15BNAS20QRCA0012

Offers Received: 1

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: $180,000

Exercised Options: $180,000

Current Obligation: $87,141

Actual Outlays: $30,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS20A00000070

IDV Type: BPA

Timeline