VA awards $6.9M for laboratory testing, courier, and phlebotomy services to Quest Diagnostics

Contract Overview

Contract Amount: $6,900,000 ($6.9M)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $19.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PRIMARY REFERENCE LABORATORY TESTING / COURIER SERVICES / PHLEBOTOMY

Place of Performance

Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.9 million to QUEST DIAGNOSTICS INCORPORATED for work described as: PRIMARY REFERENCE LABORATORY TESTING / COURIER SERVICES / PHLEBOTOMY Key points: 1. Quest Diagnostics, a large established provider, secured this contract. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The firm fixed-price contract type aims to control costs for the government. 4. The duration of 364 days indicates a short-term need or a bridge to a larger, long-term solution. 5. The award value of $6.9M falls within a moderate spending range for this type of service. 6. The contract is for laboratory testing, courier services, and phlebotomy, essential for patient care.

Value Assessment

Rating: good

The award value of $6.9M for a 364-day period for primary reference laboratory testing, courier services, and phlebotomy appears reasonable given the scope. While specific per-unit cost benchmarks are not provided in the data, the firm fixed-price structure suggests an effort to manage costs. Comparing this to similar contracts would require access to a broader dataset of VA or other agency procurements for these specific services. However, the established nature of Quest Diagnostics as a provider may indicate competitive pricing within the market for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source but may not involve the extensive documentation of full and open competition for larger contracts. The data indicates two bids were received, suggesting a moderate level of competition for this procurement. The SAP process aims to streamline acquisition for purchases below certain thresholds, balancing efficiency with competition.

Taxpayer Impact: The competition, while not at the highest level, likely provided the VA with a competitive price for these essential laboratory services, benefiting taxpayers by avoiding inflated costs.

Public Impact

Veterans will benefit from continued access to essential laboratory testing, courier, and phlebotomy services. The services provided are critical for diagnosis, treatment monitoring, and overall healthcare delivery within the VA system. The geographic impact is focused on Connecticut, where the services will be delivered. This contract supports the operational needs of the Department of Veterans Affairs healthcare facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased reliance on a single large provider for critical services.
Need to ensure robust quality control and turnaround times are maintained throughout the contract period.

Positive Signals

Quest Diagnostics is a well-established provider with extensive experience in laboratory services.
The firm fixed-price contract type helps to control costs and provides budget certainty.
The competition, even under SAP, indicates that multiple vendors were interested in providing these services.

Sector Analysis

The healthcare sector, specifically clinical laboratory and diagnostic services, is a critical component of the U.S. healthcare system. This contract falls under the Medical Laboratories (NAICS 621511) industry. The market for these services is substantial, with significant government and private sector spending. Benchmarking this contract's value would involve comparing it to other federal or state contracts for similar reference laboratory and courier services, as well as private sector pricing, which can vary widely.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and does not specify any small business set-aside. Quest Diagnostics Incorporated is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. As a purchase order awarded under SAP, the level of formal oversight might be less intensive than for larger, more complex contracts. However, the VA has established processes for monitoring contractor performance and ensuring compliance with the terms of the purchase order. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Services Contracts
Federal Laboratory Testing Services
Healthcare Courier Services
Diagnostic Services Procurement

Risk Flags

Potential for service disruption
Data security and privacy concerns
Quality control and turnaround time assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.9 million to QUEST DIAGNOSTICS INCORPORATED. PRIMARY REFERENCE LABORATORY TESTING / COURIER SERVICES / PHLEBOTOMY

Who is the contractor on this award?

The obligated recipient is QUEST DIAGNOSTICS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the historical spending pattern of the Department of Veterans Affairs for primary reference laboratory testing, courier services, and phlebotomy?

Analyzing historical spending patterns for these specific services by the Department of Veterans Affairs (VA) would require a deep dive into federal procurement databases like FPDS-NG or USASpending.gov. Generally, the VA, as a large healthcare provider, consistently spends significant amounts on laboratory services, diagnostic testing, and associated logistics to support its vast network of medical centers and clinics. Spending can fluctuate based on patient volume, new medical technologies, and shifts in healthcare delivery models. Contracts for these services are often awarded through competitive processes, including full and open competition and simplified acquisition procedures, with durations varying from short-term needs to multi-year agreements. Understanding past spending levels, including the number of awards, average contract values, and incumbent contractors, provides crucial context for evaluating the current award's value and necessity.

How does the per-unit cost of services under this contract compare to other VA contracts or market rates?

The provided data does not include specific per-unit cost breakdowns for the services rendered under this $6.9 million contract with Quest Diagnostics. To perform a meaningful comparison, one would need access to detailed pricing schedules from this contract and comparable contracts awarded by the VA or other federal agencies for similar laboratory testing, courier, and phlebotomy services. Market rates can be benchmarked against data from industry reports, commercial price lists (if available), and analyses of private sector contracts. Without this granular data, assessing whether the per-unit costs are competitive or represent good value for money is challenging. The firm fixed-price nature of the contract suggests an attempt to establish predictable costs, but the actual efficiency of these costs hinges on the negotiated unit prices.

What is Quest Diagnostics' track record with the federal government, particularly the Department of Veterans Affairs?

Quest Diagnostics Incorporated is a major player in the healthcare diagnostics industry and has a significant history of contracting with various federal agencies, including the Department of Veterans Affairs (VA). Their track record typically involves providing a wide array of laboratory testing services. Federal procurement databases would reveal the extent and nature of their past awards, including contract values, performance history, and any past performance issues or commendations. For the VA specifically, Quest Diagnostics likely holds numerous contracts across different regions and facilities, supporting the healthcare needs of veterans. A thorough review would involve examining contract performance ratings, any disputes or claims, and the overall satisfaction levels reported by VA contracting officers on previous engagements.

What are the potential risks associated with relying on Quest Diagnostics for these critical healthcare services?

Potential risks associated with relying on Quest Diagnostics for critical healthcare services include service disruptions due to unforeseen events (e.g., natural disasters, labor disputes, or pandemics), potential for price increases in future contract renewals, and dependency on a single large provider which could limit flexibility. There's also the risk of data security breaches, given the sensitive nature of patient information handled. Ensuring consistent quality of service across all locations and maintaining timely turnaround for test results are paramount. Furthermore, if the contract is not structured with appropriate performance metrics and remedies, the government might face challenges in holding the contractor accountable for deficiencies. The concentration of services with one large entity could also reduce opportunities for smaller, specialized providers.

How does the $6.9M award compare in size and scope to typical VA procurements for similar services?

The $6.9 million award for a 364-day period for primary reference laboratory testing, courier services, and phlebotomy is a substantial, but not exceptionally large, procurement for the Department of Veterans Affairs (VA). The VA operates a vast healthcare system and frequently procures a wide range of medical supplies and services. Contracts for laboratory services can range from smaller, localized agreements to massive, multi-year, multi-billion dollar Indefinite Delivery/Indefinite Quantity (IDIQ) contracts covering entire regions or national networks. This particular award, competed under Simplified Acquisition Procedures (SAP), suggests it falls within a specific spending band intended for efficiency, likely serving a defined geographic area or a specific set of facilities within Connecticut. It represents a significant investment but is likely one of many such contracts the VA manages to ensure comprehensive healthcare delivery.

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: 36C241Q0194_Q1

Offers Received: 2

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: $6,900,000

Exercised Options: $6,900,000

Current Obligation: $6,900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline