VA awards $2.3M contract for lab testing services to Quest Diagnostics, utilizing full and open competition
Contract Overview
Contract Amount: $2,337,380 ($2.3M)
Contractor: Quest Diagnostics Incorporated
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-01-01
End Date: 2025-12-31
Contract Duration: 364 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: REFERENCE LAB SEND-OUT TESTING SERVICES FOR LABORATORIES WITHIN VISN 2 NORTH MEDICAL CENTERS
Place of Performance
Location: BUFFALO, ERIE County, NEW YORK, 14215
State: New York Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $2.3 million to QUEST DIAGNOSTICS INCORPORATED for work described as: REFERENCE LAB SEND-OUT TESTING SERVICES FOR LABORATORIES WITHIN VISN 2 NORTH MEDICAL CENTERS Key points: 1. The contract value is $2.34 million for one year of reference lab testing services. 2. Quest Diagnostics Incorporated is the awardee, selected through full and open competition. 3. The primary risk appears to be service disruption or quality issues, though competition should mitigate price risk. 4. The sector is Healthcare, specifically medical laboratories, a critical support function for VA medical centers.
Value Assessment
Rating: good
The award price of $2.34 million for a one-year contract for reference lab services appears reasonable given the scope. Benchmarking against similar VA or other federal contracts for comprehensive lab services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating multiple vendors had the opportunity to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a range of providers to offer their best pricing and service levels.
Public Impact
Ensures continued access to essential laboratory testing for veterans at VISN 2 North medical centers. Supports the operational efficiency of VA medical facilities by outsourcing specialized testing. Potential for improved diagnostic capabilities through specialized reference laboratory services.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Potential for vendor lock-in if performance is consistently excellent.
- Reliance on a single vendor for critical lab services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Clear performance period and defined services.
Sector Analysis
This contract falls within the Healthcare sector, specifically supporting medical laboratories. Spending benchmarks for outsourced laboratory services can vary significantly based on the complexity and volume of tests required.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this procurement. The awardee, Quest Diagnostics, is a large corporation, suggesting limited direct opportunities for small businesses in this specific contract.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The firm fixed price contract and defined delivery order structure provide a framework for accountability, but ongoing performance monitoring is crucial.
Related Government Programs
- Medical Laboratories
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Vendor performance risk
- Service continuity risk
- Quality control of outsourced services
- Potential for price increases in future contract renewals
Tags
medical-laboratories, department-of-veterans-affairs, ny, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.3 million to QUEST DIAGNOSTICS INCORPORATED. REFERENCE LAB SEND-OUT TESTING SERVICES FOR LABORATORIES WITHIN VISN 2 NORTH MEDICAL CENTERS
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 $2.3 million.
What is the period of performance?
Start: 2025-01-01. End: 2025-12-31.
What is the historical performance of Quest Diagnostics with the VA for similar services?
Assessing Quest Diagnostics' past performance with the VA, particularly within VISN 2 or for comparable medical laboratory services, is crucial. Reviewing past contract data, including any quality issues, delivery timeliness, and overall satisfaction, can provide insight into their reliability and ability to meet the demanding requirements of VA healthcare facilities.
How does the per-test cost compare to industry benchmarks for reference laboratory services?
While a specific per-unit cost is not provided, a detailed analysis of the contract's pricing structure against industry benchmarks for reference laboratory services is recommended. This comparison should consider the volume and types of tests anticipated, ensuring the $2.34 million award represents a competitive and cost-effective solution for the VA.
What are the contingency plans if Quest Diagnostics fails to meet service level agreements?
The contract's contingency plans for service failures are critical. Understanding the VA's procedures for addressing performance deficiencies, including potential penalties, corrective action plans, and the process for activating alternative vendors or internal capabilities, is essential to ensure uninterrupted patient care.
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: NEGOTIATED PROPOSAL/QUOTE
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: $2,337,380
Exercised Options: $2,337,380
Current Obligation: $2,337,380
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C24221D0014
IDV Type: IDC
Timeline
Start Date: 2025-01-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-03-02
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