Quest Diagnostics awarded $400K for inmate diagnostic services at FCC Oakdale, with a 30-day performance period

Contract Overview

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

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Justice

Start Date: 2026-05-01

End Date: 2026-05-31

Contract Duration: 30 days

Daily Burn Rate: $1.3K/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 2 - MAY 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 2 - MAY 2026 Key points: 1. The contract value of $400,000 for a 30-day period suggests a high per-diem cost for diagnostic services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The short performance period may limit opportunities for comprehensive service evaluation and long-term value assessment. 4. The contract is for diagnostic laboratory testing, a critical support service for correctional facilities. 5. The single-month duration for this BPA call might indicate a need for immediate or surge capacity. 6. Benchmarking against similar correctional facility healthcare contracts would be necessary to assess value.

Value Assessment

Rating: fair

The contract value of $400,000 for a single month of service is substantial, especially considering it's for diagnostic laboratory testing. Without more context on the inmate population size and specific testing requirements, it's difficult to definitively assess value. However, the high dollar amount for a short duration warrants scrutiny. Comparing this to per-diem healthcare costs in similar federal facilities or to private sector laboratory service contracts for comparable volumes would be essential for a thorough value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The use of a Blanket Purchase Agreement (BPA) call indicates that a pre-existing agreement was in place, and this specific call was likely competed among eligible vendors under that BPA.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to cost savings compared to sole-source or limited competition contracts.

Public Impact

Inmates at FCC Oakdale will receive essential diagnostic laboratory testing services. This contract directly supports the healthcare operations of the Federal Prison System. The services are geographically focused on FCC Oakdale in New Jersey. The contract ensures the availability of critical medical diagnostic capabilities within the correctional environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The high cost for a short duration could indicate potential overpricing or inefficient service delivery.
Lack of detail on the number of bidders in the full and open competition limits understanding of the competitive intensity.
The short, one-month performance period might suggest a reactive procurement rather than strategic planning, potentially leading to higher costs.

Positive Signals

Awarding under full and open competition is a positive signal for competitive pricing.
The use of a BPA call suggests a streamlined procurement process for an established need.
Ensuring diagnostic services for inmates is a crucial aspect of correctional healthcare.

Sector Analysis

The healthcare services sector, particularly within government and correctional facilities, relies heavily on specialized providers for diagnostic laboratory testing. This contract falls under the Medical Laboratories (NAICS 621511) industry. The market for these services is competitive, with established national providers like Quest Diagnostics playing a significant role. Benchmarking this contract's value against similar services provided to other federal agencies or state correctional systems would offer further insight into its market positioning.

Small Business Impact

The provided data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements associated with this BPA call. Therefore, this contract does not appear to directly benefit the small business ecosystem in this instance.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. As a BPA call, the underlying BPA likely has established terms and conditions. Accountability would be managed through performance monitoring and adherence to the contract's service level agreements. Transparency is facilitated by the contract award notice, but further details on performance metrics and specific oversight mechanisms would require deeper investigation into the BPA itself.

Related Government Programs

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

Risk Flags

Short Performance Period
High Cost for Duration
Lack of Specific Test Details

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 2 - MAY 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: 2026-05-01. End: 2026-05-31.

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

Analyzing historical spending for diagnostic laboratory services at FCC Oakdale or comparable Bureau of Prisons (BOP) facilities is crucial for context. Without specific historical data for this facility, we can look at broader BOP trends. BOP healthcare spending is significant, and laboratory services are a consistent requirement. Contracts for these services can range from large, multi-year agreements to smaller, task-order-based procurements like this BPA call. Factors influencing historical spending include inmate population size, health status trends, and the specific services contracted (e.g., routine testing, specialized panels, on-site vs. off-site services). A significant increase or decrease in spending compared to previous periods for similar services could indicate changes in operational needs, pricing, or vendor performance. Understanding the historical average cost per inmate for laboratory services would provide a valuable benchmark against the current $400,000 for a 30-day period.

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

Determining the per-unit cost of diagnostic tests under this $400,000, 30-day contract requires access to the specific price list or schedule of services covered by the BPA call. The contract value alone, without knowing the volume and types of tests performed, makes direct per-unit comparison difficult. However, given the contract's duration and value, the implied cost per day is approximately $13,333. If this represents a high volume of tests for a large inmate population, the per-unit cost might be competitive. Conversely, if the volume is low, it could indicate a premium price. To assess this accurately, one would need to compare the negotiated prices for specific tests (e.g., CBC, metabolic panels, specific infectious disease tests) against established federal supply schedules (FSS), other agency contracts (e.g., VA, IHS), or commercial laboratory pricing benchmarks. The fact that it was competed under full and open competition suggests an effort to achieve market-based pricing, but the actual competitiveness depends on the number and quality of bids received.

What is Quest Diagnostics' track record with the Federal Bureau of Prisons or other federal healthcare agencies?

Quest Diagnostics Incorporated is a major provider of diagnostic information services and has a significant track record serving various healthcare entities, including government agencies. Their experience with the Federal Bureau of Prisons (BOP) and other federal healthcare providers like the Department of Veterans Affairs (VA) or Indian Health Service (IHS) is likely extensive. A review of federal procurement databases (e.g., FPDS) would reveal the extent of their past awards, contract performance history, and any reported issues or commendations. Generally, large, established companies like Quest Diagnostics are awarded contracts based on their demonstrated capabilities, existing infrastructure, and competitive pricing. However, it's always prudent to examine past performance evaluations and any contract disputes or terminations to ensure a reliable service provider for critical functions like inmate healthcare.

What are the specific diagnostic tests included in this $400K BPA call, and what is the expected volume?

The provided data for this BPA call (BPA 15BNAS26A00000038) does not specify the exact list of diagnostic tests to be performed or the anticipated volume. The contract is broadly for 'DIAGNOSTIC LABORATORY TESTING SERVICES FOR THE INMATE POPULATION AT FCC OAKDALE.' Typically, such services would encompass a range of tests, including routine blood work (e.g., Complete Blood Count - CBC, Comprehensive Metabolic Panel - CMP), urinalysis, infectious disease screenings (e.g., HIV, Hepatitis), and potentially more specialized tests based on inmate health needs. The $400,000 value for a 30-day period suggests a substantial requirement, implying either a large inmate population requiring frequent testing or a significant number of specialized tests. To fully assess the contract's value and performance, a detailed breakdown of the test menu and projected utilization rates would be necessary.

What are the risks associated with relying on a single-month performance period for essential inmate healthcare services?

Relying on a single-month performance period for essential inmate healthcare services, such as diagnostic laboratory testing, presents several potential risks. Firstly, it could indicate a lack of long-term planning or an inability to secure a longer-term contract, potentially stemming from budget uncertainties or unresolved issues with previous vendors. This short duration may lead to higher per-unit costs as vendors may factor in the administrative overhead of short-term engagements. Secondly, it creates a risk of service disruption if a follow-on contract is not secured promptly, potentially impacting inmate health and safety. Thirdly, it limits the ability to establish a consistent, long-term relationship with a provider, which can foster better service quality and efficiency. Finally, it may signal that the current procurement is a stop-gap measure, possibly due to unforeseen circumstances or a pending larger procurement, which could introduce instability into the healthcare support system.

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