DOJ's Bureau of Prisons awards $20M contract for lab referrals, with Quest Diagnostics as the sole awardee

Contract Overview

Contract Amount: $20,195 ($20.2K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2025-12-31

Contract Duration: 91 days

Daily Burn Rate: $222/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B5 QUEST LAB REFERRALS QTR 1

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $20,194.76 to QUEST DIAGNOSTICS INCORPORATED for work described as: FY26 B5 QUEST LAB REFERRALS QTR 1 Key points: 1. The contract value represents a significant investment in essential medical laboratory services for federal inmates. 2. Competition dynamics for this specific award need further examination to understand pricing pressures. 3. Performance context is crucial to assess if the awarded services meet the needs of the Federal Prison System. 4. The contract's duration and firm-fixed-price structure suggest a predictable cost environment. 5. Sector positioning highlights the critical role of private medical labs in supporting government healthcare functions.

Value Assessment

Rating: fair

Benchmarking the value of this $20.19 million contract requires comparison with similar medical laboratory service contracts awarded by other federal agencies or within the private sector. Without specific per-unit cost data or a detailed breakdown of services, it is difficult to definitively assess value for money. The firm-fixed-price nature provides cost certainty, but the overall efficiency and effectiveness of the pricing depend on the scope and volume of services ultimately delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a streamlined process for smaller value procurements. While the data states it was 'COMPETED UNDER SAP', it does not specify the number of bids received or the extent of outreach to potential offerors. This suggests a competitive process was intended, but the level of competition may have been limited by the specific requirements or the pool of eligible contractors.

Taxpayer Impact: A competitive process, even under SAP, is generally beneficial for taxpayers as it aims to secure the best possible pricing and terms. However, the ultimate benefit depends on the actual number of bids and the resulting price.

Public Impact

Federal inmates within the Bureau of Prisons system will benefit from access to necessary medical laboratory diagnostic services. The contract ensures the provision of medical laboratory services, crucial for inmate health and treatment. The geographic impact is primarily within New Jersey, where Quest Diagnostics' services will be utilized for referrals. Workforce implications may include support for existing laboratory technicians and administrative staff at Quest Diagnostics facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality.
Limited transparency on the number of bids received under SAP.
Potential for price creep if service volumes significantly exceed initial estimates.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Utilizes an established provider (Quest Diagnostics) for medical services.
Competition under SAP suggests an effort to leverage market pricing.

Sector Analysis

The healthcare sector, specifically medical laboratory services, is a critical component of public health infrastructure. This contract fits within the broader category of government healthcare procurement, where agencies rely on specialized providers to deliver essential services. The market for medical laboratory services is substantial, with numerous private companies offering a wide range of diagnostic tests. Benchmarking this contract's value against similar government or private sector agreements would provide further insight into its market alignment.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, potentially through subcontracting opportunities if Quest Diagnostics chooses to engage them. However, without explicit subcontracting plans or goals mandated in the contract, the direct benefit to the small business ecosystem is likely minimal.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's Bureau of Prisons. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Bureau of Prisons Medical Services Contracts
Department of Health and Human Services Laboratory Services
Veterans Affairs Diagnostic Testing Contracts
Department of Defense Medical Support Services

Risk Flags

Potential for service disruptions due to security protocols in federal prisons.
Dependence on a single awardee for critical laboratory services.
Need for robust performance monitoring to ensure quality and timeliness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,194.76 to QUEST DIAGNOSTICS INCORPORATED. FY26 B5 QUEST LAB REFERRALS QTR 1

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 $20,194.76.

What is the period of performance?

Start: 2025-10-01. End: 2025-12-31.

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

Analyzing historical spending patterns for medical laboratory services by the Federal Prison System (FPS) is crucial for understanding trends, identifying potential cost efficiencies, and assessing the long-term investment in inmate healthcare. Without access to specific historical data for the FPS, a general approach would involve examining contract awards for similar services over the past 5-10 fiscal years. This would include looking at the total dollar amounts awarded, the number of contracts, the primary service providers, and the average contract duration and value. Comparing these historical figures to the current $20.19 million award for Quest Diagnostics can reveal whether this contract represents an increase or decrease in spending, and whether it aligns with established budgetary trends. Furthermore, examining the types of laboratory services procured historically can provide context for the scope of the current award.

How does the pricing of this contract compare to similar contracts awarded to Quest Diagnostics by other federal agencies?

Comparing the pricing of this $20.19 million contract awarded to Quest Diagnostics by the Department of Justice's Bureau of Prisons with similar contracts awarded to the same vendor by other federal agencies is essential for assessing value for money. This analysis would involve identifying other federal contracts where Quest Diagnostics provides comparable medical laboratory services, noting the contract values, durations, and the specific services rendered. A direct comparison of per-unit costs for common laboratory tests, if available, would be the most effective method. If per-unit costs are not readily available, comparing the overall contract value relative to the estimated volume or scope of services can provide an indication of pricing competitiveness. Significant deviations in pricing for similar services could signal potential issues with market research, negotiation, or the specific needs of the procuring agency.

What are the key performance indicators (KPIs) associated with this contract, and how will they be measured?

The key performance indicators (KPIs) associated with this contract are critical for ensuring that the Bureau of Prisons receives the quality and timeliness of medical laboratory services it requires for inmate care. While the provided data does not detail these KPIs, typical indicators for such contracts often include turnaround times for test results, accuracy rates of diagnoses, specimen collection success rates, and patient satisfaction (where applicable). Measurement methods would likely involve regular reporting by Quest Diagnostics, audits of laboratory records, and potentially feedback mechanisms from the correctional facilities utilizing the services. The contract's terms and conditions should specify these KPIs, the acceptable performance thresholds, and the consequences for failing to meet them, such as service level credits or contract termination clauses.

What is the risk assessment for this contract, considering the contractor's past performance and the nature of the services?

The risk assessment for this contract involves evaluating both the contractor's past performance and the inherent risks associated with providing medical laboratory services within a correctional environment. Quest Diagnostics is a large, established provider, which generally suggests a lower risk profile regarding operational capacity and expertise. However, past performance data, if available through sources like the Contractor Performance Assessment Reporting System (CPARS), would provide specific insights into their reliability, quality of service, and adherence to contract terms in previous government engagements. Risks specific to this contract could include potential delays in sample transport, issues with maintaining chain of custody, or challenges in providing timely results due to the secure nature of correctional facilities. Furthermore, the potential for outbreaks or specific health needs within the inmate population could introduce demand-related risks that need to be managed.

What is the potential impact of this contract on the overall healthcare budget of the Federal Prison System?

The $20.19 million award for medical laboratory services represents a specific allocation within the Federal Prison System's (FPS) overall healthcare budget. To assess its impact, it needs to be viewed in the context of the total annual healthcare expenditure for the FPS. This contract's value should be compared against the historical spending on laboratory services and the projected needs for the contract's duration. If this award constitutes a significant portion of the laboratory services budget, it implies a substantial commitment to this specific area of care. Conversely, if it is a relatively small fraction of the total healthcare spending, its direct impact on the overall budget might be moderate, though still significant for the services provided. Understanding the funding source and any potential cost savings or efficiencies gained through this contract is also key to evaluating its budgetary impact.

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: $20,195

Exercised Options: $20,195

Current Obligation: $20,195

Actual Outlays: $20,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS20A00000070

IDV Type: BPA

Timeline