DOJ's $400K contract for inmate diagnostic testing at FCC Oakdale awarded to Quest Diagnostics for FY26

Contract Overview

Contract Amount: $40,000 ($40.0K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DIAGNOSTIC LABORATORY TESTING SERVICES FOR THE INMATE POPULATION AT FCC OAKDALE FOR FY26. BPA 15BNAS26A00000038 PERIOD OF PERFORMANCE - OPTION 1 - APRIL 2026

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $40,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: DIAGNOSTIC LABORATORY TESTING SERVICES FOR THE INMATE POPULATION AT FCC OAKDALE FOR FY26. BPA 15BNAS26A00000038 PERIOD OF PERFORMANCE - OPTION 1 - APRIL 2026 Key points: 1. The contract value of $400,000 for a one-month period suggests a focus on essential services rather than extensive testing. 2. Quest Diagnostics, a large established provider, likely offers economies of scale, but competition dynamics will be key to value. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance context is limited to a single month, making long-term value assessment difficult. 5. This contract falls within the broader healthcare services sector, specifically medical laboratories. 6. The contract's limited duration and specific location suggest a targeted need within the Bureau of Prisons. 7. The absence of small business set-aside indicates the contract was not specifically structured to benefit smaller enterprises.

Value Assessment

Rating: good

The contract value of $400,000 for a one-month period for diagnostic laboratory services appears reasonable for a federal correctional facility. Benchmarking against similar contracts for inmate healthcare services within the Bureau of Prisons would provide a more precise value assessment. However, given the specialized nature of diagnostic testing, the price is likely competitive for the services rendered. The firm-fixed-price contract type helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and encourages vendors to offer their best terms. The open competition suggests that the Bureau of Prisons sought to ensure it received a fair market price for the diagnostic services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces, ensuring that federal funds are used efficiently.

Public Impact

Inmates at FCC Oakdale will benefit from access to necessary diagnostic laboratory testing services. The services delivered will support the healthcare and well-being of the inmate population. The geographic impact is localized to FCC Oakdale in New Jersey. The contract supports the operational needs of the Federal Prison System by ensuring essential medical services are available.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited performance period (one month) makes it difficult to assess long-term value and contractor performance trends.
Lack of specific details on the scope of services within the BPA call could lead to unforeseen needs or scope creep if not managed carefully.
Reliance on a single provider for a critical service like diagnostic testing could pose a risk if the provider experiences disruptions.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely secured favorable pricing.
Firm-fixed-price contract type provides cost certainty and mitigates the risk of budget overruns for the government.
Quest Diagnostics is a well-established provider in the diagnostic services market, implying a level of reliability and expertise.

Sector Analysis

This contract falls within the Healthcare sector, specifically the Medical Laboratories sub-sector. The market for diagnostic laboratory services is substantial, driven by healthcare providers, research institutions, and government agencies. Federal agencies, particularly those managing correctional facilities, represent a consistent demand for these services. Benchmarks for similar contracts would typically consider per-test costs, panel pricing, and turnaround times, which are influenced by the volume and complexity of tests required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a full and open competition, it was available to all responsible sources. While Quest Diagnostics is a large corporation, the lack of a small business set-aside means that opportunities for smaller, specialized labs to compete for this specific service were not explicitly created through this contract vehicle. Subcontracting opportunities are not detailed but would depend on Quest Diagnostics' internal policies and the specific needs of the BPA call.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice, specifically the Federal Prison System/Bureau of Prisons. The firm-fixed-price nature of the contract simplifies some aspects of oversight by focusing on delivery of services rather than cost management. Accountability is ensured through the contract terms and performance expectations. Transparency is generally maintained through federal procurement databases, though specific performance metrics and quality assurance reports may not be publicly detailed.

Related Government Programs

Federal Prison System Healthcare Services
Bureau of Prisons Medical Supplies and Services
Inmate Health Services Contracts
Diagnostic Laboratory Services Contracts

Risk Flags

Limited Performance Period
Potential for Service Disruption
Lack of Detailed Scope of Work in Summary Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $40,000 to QUEST DIAGNOSTICS INCORPORATED. DIAGNOSTIC LABORATORY TESTING SERVICES FOR THE INMATE POPULATION AT FCC OAKDALE FOR FY26. BPA 15BNAS26A00000038 PERIOD OF PERFORMANCE - OPTION 1 - APRIL 2026

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 $40,000.

What is the period of performance?

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

What is the historical spending pattern for diagnostic laboratory services at FCC Oakdale or similar Bureau of Prisons facilities?

Historical spending data for diagnostic laboratory services at FCC Oakdale or similar Bureau of Prisons facilities is not directly available in the provided data. However, the current contract's value of $400,000 for a one-month period (FY26 option) suggests an annualized potential spend of approximately $4.8 million if this were a recurring annual contract of similar scope. To establish a pattern, one would need to analyze historical BPA calls or contracts for this facility or comparable institutions over several fiscal years. This analysis would reveal trends in service utilization, cost per test or per inmate, and the frequency of contract awards. Understanding past spending is crucial for budget forecasting and identifying potential cost efficiencies or escalations over time. Without this historical context, it is difficult to definitively assess if the current award represents a significant increase or decrease in spending for these essential services.

How does the per-unit cost of diagnostic tests under this contract compare to market rates or other federal contracts?

The provided data does not include specific per-unit costs for diagnostic tests, only the total contract value ($400,000) for a one-month period. Therefore, a direct comparison of per-unit costs is not possible. To perform this analysis, one would need access to the detailed pricing structure within the BPA call, including the specific tests ordered and their associated prices. Benchmarking would involve comparing these prices against established federal supply schedules (e.g., through GSA), pricing from other government contracts for similar services at different correctional facilities, or commercial price lists from major diagnostic providers. Factors such as volume discounts, the specific mix of tests required, and geographic location can significantly influence per-unit costs. Without this granular data, assessing the value-for-money on a per-unit basis remains speculative.

What is Quest Diagnostics' track record with the Bureau of Prisons or other federal agencies for similar services?

Quest Diagnostics Incorporated is a large, established provider of diagnostic information services. While specific contract details with the Bureau of Prisons (BOP) are not provided in the current data, it is highly probable that a company of this size has a history of serving federal agencies, including potentially the BOP or other Department of Justice components. Their track record would typically involve providing a wide range of laboratory testing services. A thorough assessment would require reviewing federal procurement databases (like FPDS or SAM.gov) for past awards to Quest Diagnostics by the BOP and other relevant agencies, examining performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and looking for any past issues related to quality, timeliness, or billing. Their extensive experience in the commercial healthcare market suggests a capacity to meet federal requirements, but agency-specific performance is the key indicator.

What are the primary diagnostic tests or services covered under this contract?

The provided data specifies 'DIAGNOSTIC LABORATORY TESTING SERVICES FOR THE INMATE POPULATION AT FCC OAKDALE' but does not detail the specific types of tests or services included under this particular BPA call. Typically, such contracts for correctional facilities would cover a range of essential diagnostic tests, including but not limited to, routine blood work (e.g., complete blood counts, metabolic panels), urinalysis, infectious disease testing (e.g., HIV, Hepatitis, Tuberculosis), drug screening, and potentially specialized tests based on inmate health needs. The scope would be defined within the BPA call document itself. The $400,000 value for one month suggests a significant volume or a mix of routine and potentially some more complex tests to support the healthcare needs of the inmate population at FCC Oakdale.

What are the potential risks associated with relying on a single provider for inmate diagnostic testing?

Relying on a single provider, even a large one like Quest Diagnostics, for critical inmate diagnostic testing presents several potential risks. Firstly, there's a risk of service disruption due to unforeseen circumstances affecting the provider, such as equipment failure, staffing shortages, or natural disasters impacting their operations. This could lead to delays in essential testing, impacting inmate healthcare and potentially leading to adverse health outcomes. Secondly, a lack of ongoing competition could potentially lead to price increases in future contract renewals if not carefully managed. Thirdly, over-reliance might reduce the incentive for the provider to innovate or offer enhanced services if they perceive no immediate competitive threat. Finally, if the provider fails to meet performance standards, the government has limited immediate alternatives for continuity of care without a lengthy and disruptive re-competition process.

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: $40,000

Exercised Options: $40,000

Current Obligation: $40,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15BNAS26A00000038

IDV Type: BPA

Timeline