DOJ's $37.1M Quest Diagnostics Contract for Medical Lab Services Awarded to Quest Diagnostics Inc
Contract Overview
Contract Amount: $37,109 ($37.1K)
Contractor: Quest Diagnostics Incorporated
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $102/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: QUEST DIAGNOSTICS LABS TRM FY2026
Place of Performance
Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094
Plain-Language Summary
Department of Justice obligated $37,108.68 to QUEST DIAGNOSTICS INCORPORATED for work described as: QUEST DIAGNOSTICS LABS TRM FY2026 Key points: 1. The contract is a sole-source award to Quest Diagnostics Inc. for medical laboratory services. 2. The total value is $37.1 million over one year. 3. The contract is for services supporting the Federal Prison System / Bureau of Prisons. 4. The contract type is Firm Fixed Price. 5. The award was not competed under Simplified Acquisition Procedures (SAP).
Value Assessment
Rating: fair
The contract value of $37.1 million for one year of medical laboratory services appears high without competitive benchmarking. Pricing needs to be assessed against industry standards for similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract may result in the government paying more than necessary for these essential medical laboratory services.
Public Impact
Inmates in federal prisons will continue to receive essential medical laboratory services. The contract ensures continuity of care for a vulnerable population. Taxpayers may be overpaying due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High contract value without clear justification.
- Potential for overpayment due to lack of competition.
Positive Signals
- Ensures continuity of essential medical services for inmates.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
Medical laboratory services are crucial for healthcare delivery, particularly within correctional facilities. Benchmarks for similar government contracts are essential to assess value for money, especially in sole-source awards.
Small Business Impact
This contract was awarded to a large corporation, Quest Diagnostics Inc., and does not appear to include provisions for small business participation.
Oversight & Accountability
Oversight is needed to ensure Quest Diagnostics Inc. provides quality services at a fair price, despite the sole-source award. The Bureau of Prisons should monitor performance and costs closely.
Related Government Programs
- Medical Laboratories
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
Tags
medical-laboratories, department-of-justice, nj, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $37,108.68 to QUEST DIAGNOSTICS INCORPORATED. QUEST DIAGNOSTICS LABS TRM FY2026
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 $37,108.68.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis instead of competing it?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation into the contract file would be required to determine the specific rationale used by the Department of Justice.
How does the per-unit cost of these lab services compare to industry benchmarks or previously awarded government contracts?
Without specific per-unit cost data and access to industry benchmarks or historical government contract pricing for similar services, a direct comparison is not possible. The 'N/A' for 'cpu' indicates this benchmark is not readily available in the provided data. A detailed cost analysis would be necessary to determine if the pricing is competitive.
What mechanisms are in place to ensure the effectiveness and quality of the medical laboratory services provided under this sole-source contract?
While the contract is sole-source, the Department of Justice and the Bureau of Prisons should have performance standards and quality assurance procedures outlined in the contract. Regular monitoring, performance reviews, and adherence to established medical protocols are critical to ensure the effectiveness and quality of the services rendered to inmates.
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: NOT 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: $37,109
Exercised Options: $37,109
Current Obligation: $37,109
Actual Outlays: $30,573
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 15BNAS20A00000070
IDV Type: BPA
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-10
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