DOJ's $70K contract for medical lab services awarded to Quest Diagnostics Inc. for 3 months

Contract Overview

Contract Amount: $70,000 ($70.0K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $787/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL LABORATORY TESTING SERVICES THREE (3) MONTH BRIDGE WITH 3 1-MONTH OPTIONS UNDER BLANKET PURCHASE AGREEMENT (BPA) 15BNAS26A00000038

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $70,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: MEDICAL LABORATORY TESTING SERVICES THREE (3) MONTH BRIDGE WITH 3 1-MONTH OPTIONS UNDER BLANKET PURCHASE AGREEMENT (BPA) 15BNAS26A00000038 Key points: 1. The contract value appears reasonable for a short-term bridge contract for essential medical laboratory services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is short, indicating a potential need for a longer-term solution or transition. 4. The fixed-price contract type helps manage cost certainty for the government. 5. The award is a BPA Call, suggesting it's part of a larger existing agreement. 6. The contractor, Quest Diagnostics, is a major player in the medical laboratory sector.

Value Assessment

Rating: good

This contract for $70,000 over three months for medical laboratory testing services appears to be a fair price for a short-term bridge. Given the limited duration and the nature of the services, direct comparisons to larger, long-term contracts may not be appropriate. However, the value seems aligned with the scope of providing essential diagnostic services to the Federal Prison System.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple qualified vendors could have participated. The specific number of bidders is not provided, but the method of competition implies a degree of market engagement.

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

Public Impact

Inmates within the Federal Prison System in New Jersey will benefit from continued access to essential medical laboratory testing services. The services provided are critical for diagnosis, treatment monitoring, and overall healthcare management for the inmate population. The geographic impact is focused on facilities within New Jersey. The contract supports the operational needs of the Bureau of Prisons by ensuring continuity of care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a need for a more permanent solution, potentially leading to future contract actions.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality beyond the contractor's general reputation.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
Contractor is a well-established provider of medical laboratory services.
Fixed-price contract type provides cost certainty.

Sector Analysis

The medical laboratory testing services sector is a critical component of the healthcare industry, providing essential diagnostic information. This contract falls within the broader healthcare services market, specifically focusing on clinical laboratory services. The market is characterized by established national providers and specialized regional labs. Spending in this sector by federal agencies is consistent, driven by the healthcare needs of various populations, including federal employees, military personnel, and inmates.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. As a result, the direct impact on the small business ecosystem for this specific award is likely minimal. However, larger prime contractors like Quest Diagnostics may engage small businesses in their broader supply chain, though this is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Prison System's contracting officers and program managers within the Department of Justice. Accountability is maintained through the terms of the Blanket Purchase Agreement (BPA) Call and the firm fixed-price nature of the award. Transparency is generally facilitated through contract databases like FPDS, where award details are reported.

Related Government Programs

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

Risk Flags

Short-term nature of the contract may indicate a gap in long-term planning.
Potential for higher per-unit costs due to limited duration.
Dependence on a single contractor for essential services during the bridge period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $70,000 to QUEST DIAGNOSTICS INCORPORATED. MEDICAL LABORATORY TESTING SERVICES THREE (3) MONTH BRIDGE WITH 3 1-MONTH OPTIONS UNDER BLANKET PURCHASE AGREEMENT (BPA) 15BNAS26A00000038

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 $70,000.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the historical spending pattern for medical laboratory services by the Federal Prison System?

Historical spending data for medical laboratory services by the Federal Prison System (FPS) reveals a consistent need for these essential diagnostics. While specific figures fluctuate year-to-year based on inmate population, health trends, and contract vehicles, the FPS regularly procures laboratory testing to support healthcare delivery within its facilities. This includes routine testing, specialized diagnostics, and emergency services. The use of Blanket Purchase Agreements (BPAs) and subsequent BPA Calls, as seen in this award, is a common strategy to streamline procurement for recurring needs like laboratory services, suggesting a history of utilizing such mechanisms to ensure continuity of care and manage costs effectively over time.

How does the cost of this contract compare to similar medical laboratory service contracts for federal correctional facilities?

Comparing the cost of this $70,000, three-month bridge contract to other federal correctional facility contracts requires careful consideration of scope, duration, and specific services. This award is for a limited period and likely covers a defined set of tests for a specific population in New Jersey. Larger, multi-year contracts for comprehensive laboratory services at federal facilities might have higher total dollar values but could also represent a lower per-diem or per-test cost due to economies of scale and longer-term commitments. Without detailed service level agreements and volume data for this specific BPA Call, a precise benchmark is challenging. However, for a short-term bridge, the value appears proportionate to the expected service delivery.

What is Quest Diagnostics' track record with federal government contracts, particularly within correctional healthcare?

Quest Diagnostics Incorporated is a major national provider of diagnostic information services and has a significant track record of contracting with various U.S. federal agencies, including those involved in healthcare and correctional services. Their experience often includes providing a wide range of laboratory testing services to support health and wellness programs, disease screening, and treatment monitoring. While specific details of their past performance within the Federal Bureau of Prisons (BOP) or other correctional systems are not detailed in this award notice, their established presence in the healthcare sector suggests they possess the infrastructure and expertise to meet the demands of such environments. Government contract databases would typically provide more granular performance history and past award details.

What are the potential risks associated with a short-term bridge contract for essential medical services?

Short-term bridge contracts for essential medical services, like this one for laboratory testing, carry several potential risks. Primarily, there's the risk of service disruption if a longer-term solution isn't secured before the bridge expires, impacting inmate care. There's also the potential for higher per-unit costs compared to longer-term, competitively bid contracts, as vendors may price bridge contracts with a premium due to the limited duration and uncertainty. Furthermore, frequent short-term awards can indicate a lack of strategic planning or delays in the procurement process for a permanent solution, leading to administrative burden and potentially less favorable pricing over time. Ensuring continuity of care and avoiding price gouging are key concerns.

How does the 'Full and Open Competition' designation impact the value and quality of services received?

The designation of 'Full and Open Competition' is a positive indicator for the value and quality of services received. It means that the contract opportunity was advertised broadly, allowing any responsible source to submit a bid. This process typically fosters a competitive environment where multiple companies vie for the contract, driving down prices and encouraging higher quality service offerings to win the bid. For taxpayers, it increases the likelihood of obtaining services at a fair market price. For the agency, it expands the pool of potential providers, increasing the chances of finding a vendor that best meets the specific requirements, potentially leading to better performance outcomes and innovation.

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: $70,000

Exercised Options: $70,000

Current Obligation: $70,000

Actual Outlays: $10,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline