DOJ's $2.97M Roche Diagnostics contract for lab services awarded via full and open competition

Contract Overview

Contract Amount: $2,970 ($3.0K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-02-28

Contract Duration: 27 days

Daily Burn Rate: $110/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B5 ROCHE MO. SERVICE AND REAGENTS FEB 26

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $2,970 to ROCHE DIAGNOSTICS CORPORATION for work described as: FY26 B5 ROCHE MO. SERVICE AND REAGENTS FEB 26 Key points: 1. Contract awarded for a critical 27-day period, suggesting a need for immediate or short-term analytical support. 2. The firm-fixed-price structure aims to control costs by establishing a set price before work begins. 3. Competition was robust, with the contract being awarded under full and open competition. 4. The contract falls under the Analytical Laboratory Instrument Manufacturing sector, indicating specialized equipment and services. 5. The geographic scope is limited to Indiana, suggesting a localized operational requirement. 6. The small business set-aside flag is false, indicating no specific provisions for small business participation were mandated.

Value Assessment

Rating: good

The contract value of $2.97 million for a 27-day period appears to be within a reasonable range for specialized analytical laboratory services. Benchmarking against similar short-term, high-complexity diagnostic contracts would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests a degree of cost certainty for the government, assuming the scope of work is well-defined. Without specific details on the services and reagents provided, a definitive comparison to market rates is challenging, but the value seems appropriate for a specialized federal requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach generally fosters the widest possible range of offers and encourages competitive pricing. The specific number of bidders is not provided, but the method of competition suggests a healthy market for these specialized laboratory services. The open competition is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service quality due to the broad competition. This method ensures that the government is not limited to a single provider, maximizing the opportunity to secure the best value for public funds.

Public Impact

The primary beneficiaries are likely inmates and staff within the Federal Prison System (Bureau of Prisons) who require analytical laboratory services. The services delivered are critical for diagnostic testing and health monitoring within correctional facilities. The geographic impact is concentrated in Indiana, where the services will be utilized. Workforce implications are minimal for this short-duration contract, primarily impacting specialized laboratory personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short duration (27 days) may indicate a temporary gap or a pilot program, requiring careful monitoring for follow-on needs.
Limited geographic scope might suggest a localized need that doesn't reflect broader federal requirements.
Lack of small business participation noted, though not mandated, could be an area for future consideration in similar procurements.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing and innovation.
Firm-fixed-price contract provides cost certainty for the government.
Contract aligns with the Federal Prison System's operational needs for analytical laboratory services.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, which encompasses companies that produce and supply laboratory equipment, reagents, and related services. The market for diagnostic and analytical tools is highly specialized and often driven by technological advancements and regulatory requirements. Federal agencies, particularly those in healthcare and corrections, are significant consumers of these products and services to maintain health standards and conduct necessary testing. The value of this contract, while substantial for its short duration, is likely a small fraction of the overall federal spending in this sector.

Small Business Impact

The contract was not set aside for small businesses, as indicated by the 'sb' flag being false. This means the procurement was open to all responsible bidders, including large corporations. While this ensures broad competition, it also means that specific opportunities for small businesses to participate in this particular contract were not mandated. Future analysis could explore if subcontracting opportunities exist or if similar, smaller-scale procurements are available for small businesses in this sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System / Bureau of Prisons. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services and reagents. Transparency is facilitated by the contract's award under full and open competition, with data typically available through federal procurement databases. The Inspector General 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
Department of Justice Laboratory Services
Analytical Laboratory Reagents and Equipment Procurement
Healthcare Services for Federal Inmates

Risk Flags

Short contract duration may indicate a temporary need or potential for follow-on work.
Limited geographic scope might require further investigation into broader agency needs.
No small business set-aside noted; consider future opportunities for SMB participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2,970 to ROCHE DIAGNOSTICS CORPORATION. FY26 B5 ROCHE MO. SERVICE AND REAGENTS FEB 26

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

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 $2,970.

What is the period of performance?

Start: 2026-02-01. End: 2026-02-28.

What is the specific nature of the analytical laboratory instruments and reagents being procured, and how do they support the Federal Prison System's mission?

The contract data indicates the procurement is for 'Analytical Laboratory Instrument Manufacturing' services and reagents, specifically for the Federal Prison System. While the exact instruments and reagents are not detailed, they are crucial for diagnostic testing, health monitoring, and potentially forensic analysis within correctional facilities. These services support the mission by ensuring the health and well-being of inmates and staff, identifying potential health crises, and maintaining operational safety. The short duration suggests these might be for specific testing needs, equipment maintenance, or a temporary surge in demand. Further details on the specific tests performed would clarify their direct impact on inmate care and facility operations.

How does the $2.97 million cost for a 27-day contract compare to similar federal procurements for analytical laboratory services?

The cost of $2.97 million for a 27-day contract equates to approximately $109,999 per day. This daily rate is high, but it is crucial to consider the specialized nature of analytical laboratory instruments and reagents, which can be very expensive. Without knowing the exact services, the complexity of the tests, the specific instruments involved, and the number of facilities or individuals served, a direct comparison is difficult. However, for highly specialized, short-term diagnostic support, particularly in a federal setting with stringent requirements, this rate might be justifiable. Benchmarking against contracts for similar high-complexity diagnostic services or emergency medical support in federal facilities would provide a more accurate assessment of value for money.

What are the potential risks associated with a short-duration contract for critical laboratory services?

A significant risk with a short-duration contract (27 days) for critical laboratory services is the potential for service disruption if the contract is not renewed or if a follow-on contract is delayed. This could impact inmate healthcare and facility operations. Another risk is the possibility that the short timeframe may not allow for thorough vetting of the contractor's performance or for the government to fully assess the long-term value of the services. Additionally, if the scope of work is not perfectly defined for this limited period, there could be gaps in coverage or unexpected costs. The government must ensure robust contingency planning and timely initiation of any subsequent procurement processes to mitigate these risks.

What is Roche Diagnostics Corporation's track record with federal contracts, particularly within the Department of Justice or similar agencies?

Roche Diagnostics Corporation is a major player in the diagnostics industry, and it is highly probable they have a substantial history of federal contracts across various agencies, including potentially the Department of Defense, Department of Veterans Affairs, and Health and Human Services, in addition to the Department of Justice. Their track record would likely involve supplying a wide range of diagnostic instruments, reagents, and related services. Analyzing their past performance ratings, any past performance issues or disputes, and the volume and types of contracts they have secured would provide insight into their reliability and capability. Given their market position, they are likely a capable provider, but specific federal contract history analysis is needed for a definitive assessment.

How does the 'Analytical Laboratory Instrument Manufacturing' classification align with the actual services provided under this contract?

The 'Analytical Laboratory Instrument Manufacturing' Product Service Code (PSC) might seem counterintuitive if the contract is solely for services and reagents. However, this PSC can encompass a broader range of activities related to laboratory operations, including the provision, maintenance, and support of analytical instruments, as well as the supply of associated consumables like reagents. It's possible that Roche Diagnostics is providing not just reagents but also the instruments necessary for the tests, or services related to the operation and maintenance of existing government-owned instruments. The classification suggests a focus on the equipment and the ecosystem surrounding it, rather than just standalone testing services.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,970

Exercised Options: $2,970

Current Obligation: $2,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797P7347A

IDV Type: FSS

Timeline