VA awards $661K for Lab Reference Tests to Laboratory Corporation of America under BPA Call

Contract Overview

Contract Amount: $661,200 ($661.2K)

Contractor: Laboratory Corporation of America

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LAB REFERENCE TESTS

Place of Performance

Location: BURLINGTON, ALAMANCE County, NORTH CAROLINA, 27215

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $661,199.83 to LABORATORY CORPORATION OF AMERICA for work described as: LAB REFERENCE TESTS Key points: 1. Contract awarded to a single, large provider for essential lab services. 2. Spending is concentrated within the Department of Veterans Affairs. 3. Potential for price variation exists due to the BPA Call mechanism. 4. The contract falls under the Medical Laboratories sector.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar, large-scale laboratory service contracts would offer further insight into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a BPA Call, indicating competition occurred at the BPA level. However, the specific call may not have involved broad re-competition, potentially limiting price discovery for this specific task order.

Taxpayer Impact: Taxpayer funds are being used for essential medical laboratory services, with the price determined through a competitive process at the BPA level.

Public Impact

Ensures access to critical laboratory testing for veterans. Supports the operational needs of the Department of Veterans Affairs. Provides a stable revenue stream for Laboratory Corporation of America.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price negotiation on individual BPA calls.
Reliance on a single large vendor for a critical service.

Positive Signals

Firm fixed price contract offers cost predictability.
Awarded under a competitive BPA framework.

Sector Analysis

This contract for medical laboratory services falls within the broader healthcare sector. Spending benchmarks for similar laboratory services can vary significantly based on volume, complexity, and geographic location.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses. The awardee is a large corporation, suggesting limited direct opportunities for small businesses within this specific contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The BPA Call mechanism implies some level of pre-negotiated terms and conditions, but task-order specific oversight is crucial.

Related Government Programs

Medical Laboratories
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Vendor Lock-in
Price Escalation
Service Quality Variability
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $661,199.83 to LABORATORY CORPORATION OF AMERICA. LAB REFERENCE TESTS

Who is the contractor on this award?

The obligated recipient is LABORATORY CORPORATION OF AMERICA.

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 $661,199.83.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical pricing trend for similar lab services under this BPA?

Analyzing historical pricing data for comparable lab services under the existing BPA is crucial. This would reveal if prices have remained stable, increased, or decreased over time, providing a clearer picture of value for money and identifying any potential inflationary pressures or cost-saving efficiencies achieved through the contract.

What is the risk of service disruption if Laboratory Corporation of America faces operational issues?

The risk of service disruption is moderate, given the reliance on a single large provider for essential lab tests. While the contract duration is one year, any significant operational challenges faced by the vendor could impact the VA's ability to provide timely diagnostic services to veterans, necessitating contingency planning.

How effectively does the BPA Call mechanism ensure competitive pricing for this specific service?

The effectiveness of the BPA Call in ensuring competitive pricing depends on the number of vendors invited to bid on each call and the specific requirements. While the overarching BPA was competitively awarded, individual calls might have less robust competition, potentially leading to suboptimal pricing compared to a fully competed task order.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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

Parent Company: Bode Cellmark Forensics Inc.

Address: 231 MAPLE AVE, BURLINGTON, NC, 27215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $661,200

Exercised Options: $661,200

Current Obligation: $661,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24519A0048

IDV Type: BPA

Timeline