Quest Diagnostics awarded $20.8M for lab testing services, highlighting a competitive bidding process

Contract Overview

Contract Amount: $20,839 ($20.8K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-04-30

Contract Duration: 119 days

Daily Burn Rate: $175/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: QUEST DIAGNOSTICS FY26 FPC BRYAN LAB TESTING

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $20,839.47 to QUEST DIAGNOSTICS INCORPORATED for work described as: QUEST DIAGNOSTICS FY26 FPC BRYAN LAB TESTING Key points: 1. The contract value represents a significant investment in essential medical laboratory services for federal correctional facilities. 2. The 'Full and Open Competition' indicates a robust bidding environment, potentially leading to favorable pricing. 3. The short duration of the contract (119 days) suggests a need for immediate or short-term service delivery. 4. The fixed-price contract type offers cost certainty for the government, mitigating budget risks. 5. The award to a single contractor, Quest Diagnostics, warrants a review of performance and potential future competition. 6. The North American Industry Classification System (NAICS) code 621511 points to specialized medical laboratory services.

Value Assessment

Rating: good

Benchmarking the $20.8 million value against similar federal contracts for medical laboratory services requires detailed analysis of scope and duration. However, the firm fixed-price structure suggests predictable costs. Without specific per-unit data or comparison to other federal lab contracts, a precise value-for-money assessment is challenging, but the competitive award mechanism is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service terms. The number of bidders is not specified, but the open competition is a strong signal of market engagement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers for its needs.

Public Impact

Inmates within the Federal Prison System will benefit from access to essential medical laboratory testing services. The services provided are critical for diagnosis, treatment monitoring, and overall healthcare management within correctional facilities. The contract's geographic impact is focused on New Jersey, where the services will be delivered. The contract supports the healthcare workforce within the medical laboratory sector, potentially through Quest Diagnostics' existing personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance.
The short contract duration could indicate a need for re-competition or potential service gaps if not managed effectively.
Reliance on a single vendor for a critical service like lab testing, even if competitively awarded, can pose future risks if not monitored.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm fixed-price contract type provides budget certainty and cost control for the government.
Quest Diagnostics is a well-established provider of laboratory services, suggesting a degree of reliability.

Sector Analysis

The medical laboratory services sector is a critical component of the healthcare industry, providing essential diagnostic testing. This contract falls within the broader healthcare services market, which is characterized by technological advancements and a constant demand for accurate and timely results. Federal spending in this area supports public health initiatives and ensures access to care for specific populations, such as federal inmates. Comparable spending benchmarks would typically involve analyzing the per-test cost or cost per patient for similar services across different federal agencies or healthcare providers.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). Therefore, there are no direct implications for small business set-asides. However, Quest Diagnostics, as a large prime contractor, may engage small businesses as subcontractors, though this is not detailed in the award information. The impact on the broader small business ecosystem would depend on whether Quest Diagnostics utilizes small business suppliers or partners for any aspect of service delivery.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice and the Federal Prison System. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is facilitated by the contract's award under full and open competition, making the process publicly visible. 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 Healthcare Services
Department of Justice Medical Services Contracts
Medical Laboratory Services for Federal Agencies
Inmate Healthcare Services

Risk Flags

Potential for service disruption if contractor faces operational issues.
Risk of quality control failures in laboratory testing.
Short contract duration may necessitate rapid re-procurement.
Dependence on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,839.47 to QUEST DIAGNOSTICS INCORPORATED. QUEST DIAGNOSTICS FY26 FPC BRYAN LAB TESTING

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 $20,839.47.

What is the period of performance?

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

What is the historical spending by the Federal Prison System on medical laboratory services, and how does this award compare?

Analyzing historical spending requires access to detailed budget and contract databases for the Federal Prison System (FPS). Generally, the FPS, as part of the Department of Justice, allocates significant funds to healthcare for inmates, which includes laboratory services. This $20.8 million award for FY26 represents a specific allocation for a defined period. To compare, one would need to aggregate prior year spending on similar lab testing contracts, considering factors like contract duration, scope of services, and inflation. Without historical data, it's difficult to definitively state if this award is higher or lower than average, but it signifies a substantial investment in this fiscal year. The competitive nature of the award suggests an effort to secure value within the allocated budget.

How does the per-unit cost of services under this contract benchmark against industry standards or other federal contracts?

The provided data does not include specific per-unit costs (e.g., cost per test). Therefore, a direct benchmark against industry standards or other federal contracts is not possible with the given information. To perform such an analysis, detailed pricing breakdowns from the contract, including the cost for individual tests or panels, would be necessary. Benchmarking would involve comparing these unit costs to published rates from commercial laboratories, rates negotiated by other government agencies (like the VA or DoD), or historical data from the FPS itself. The firm fixed-price nature of the contract implies that the unit costs were negotiated upfront, but their competitiveness can only be assessed with comparative data.

What is Quest Diagnostics' track record with federal contracts, particularly within the Department of Justice or similar healthcare procurements?

Quest Diagnostics Incorporated is a major provider of diagnostic testing services and likely holds numerous federal contracts across various agencies. A comprehensive review of their track record would involve searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or issues. Their experience with the Department of Justice or the Federal Prison System specifically would be a key indicator of their suitability for this contract. Generally, large, established companies like Quest Diagnostics tend to have extensive experience, but a detailed analysis of their performance on similar contracts is crucial for assessing risk and value.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential service disruptions if Quest Diagnostics faces operational issues, quality control failures in testing, or price increases in future contract renewals. Given the short duration, there's also a risk of discontinuity if the subsequent procurement is delayed. Mitigation strategies typically involve robust contract management by the Federal Prison System, including regular performance reviews, quality assurance checks, and clear communication channels. The firm fixed-price structure mitigates budget overrun risks. For future procurements, ensuring timely re-competition and potentially diversifying the vendor pool can further reduce risks.

How does the 'Full and Open Competition' process for this contract ensure fair pricing and maximize taxpayer value?

Full and Open Competition ensures fair pricing and maximizes taxpayer value by allowing any qualified vendor to bid on the contract. This broad participation increases the likelihood of receiving multiple competitive offers, driving down prices as vendors vie for the award. It also encourages innovation and efficiency as contractors seek to differentiate themselves. The process typically involves a detailed solicitation outlining requirements, a period for questions and proposals, and an objective evaluation based on pre-defined criteria (e.g., price, technical capability, past performance). This transparency and competition prevent price gouging and ensure the government secures services at the best possible market rate.

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: $20,839

Exercised Options: $20,839

Current Obligation: $20,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline