VA awards $2.7M for VISN 6 lab testing and courier services to Quest Diagnostics

Contract Overview

Contract Amount: $2,712,319 ($2.7M)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to QUEST DIAGNOSTICS INCORPORATED for work described as: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is one year, with a firm-fixed-price structure. 3. The awardee, Quest Diagnostics, is a large, established provider in the medical laboratory sector. 4. The North American Industry Classification System (NAICS) code 621511 points to medical laboratories. 5. The contract is a Blanket Purchase Agreement (BPA) Call, indicating it's a specific order against a pre-existing agreement. 6. The contract is not set aside for small businesses. 7. The contract is being administered by the Department of Veterans Affairs. 8. The contract is for reference lab testing and courier services within VISN 6.

Value Assessment

Rating: good

The contract value of $2.71 million for one year of reference lab testing and courier services appears reasonable given the scope. Benchmarking against similar contracts for large-scale laboratory services across the VA network would provide a more precise value-for-money assessment. However, the firm-fixed-price structure helps control costs for the government. The award to a single, established provider suggests a focus on reliability and established quality standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive process. This level of competition is generally expected to drive favorable pricing and service terms for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a market where providers compete on price and quality, leading to better value.

Public Impact

Veterans within VISN 6 will benefit from access to essential laboratory testing services. The contract ensures the provision of reference laboratory testing, which supports diagnosis and treatment. Courier services are included, facilitating the timely transport of specimens for testing. The services are geographically focused on VISN 6, which covers a specific region of VA healthcare facilities. The contract supports the operational needs of the VA healthcare system, indirectly impacting healthcare professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
No explicit mention of performance metrics or service level agreements within the provided data.
Potential for price increases in future contract periods if not re-competed effectively.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty.
Awardee is a well-established provider with significant experience in laboratory services.
Contract duration of one year allows for periodic review and potential re-competition.

Sector Analysis

The medical laboratory services sector is a critical component of the healthcare industry, providing essential diagnostic and analytical services. This contract falls within the broader healthcare services market, specifically focusing on reference laboratory testing. The market is characterized by a mix of large national providers like Quest Diagnostics and smaller regional or specialized labs. Government contracts for such services are significant, driven by the healthcare needs of federal agencies like the VA and the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large, established provider suggests that the primary focus was on capability and scale rather than small business participation. This means that opportunities for small businesses within this specific contract are likely limited unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through a contracting officer and contract specialists. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the cost. Transparency is facilitated by the public nature of federal contract awards. Specific Inspector General jurisdiction would typically cover the VA's operations, including the effectiveness and integrity of its procurement processes and service delivery.

Related Government Programs

VA VISN Laboratory Services
Federal Healthcare Procurement
Medical Diagnostic Testing Contracts
Courier and Delivery Services for Government

Risk Flags

Potential for service disruption if contractor faces operational issues.
Limited visibility into specific performance metrics and SLAs.
Dependence on a single large provider may reduce future negotiation leverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to QUEST DIAGNOSTICS INCORPORATED. VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3

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 $2.7 million.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending pattern for VISN 6 reference lab testing and courier services?

Historical spending data for VISN 6 reference lab testing and courier services is not directly available in the provided information. However, the current award of $2.71 million for a one-year period (2026-2027) serves as a benchmark for recent spending. To understand historical patterns, one would need to access previous contract awards for similar services within VISN 6, potentially looking at contracts awarded to Quest Diagnostics or other providers over the past several years. Analyzing trends in award values, contract durations, and competition levels would reveal whether spending has increased, decreased, or remained stable, and how the competitive landscape has evolved.

How does the pricing of this contract compare to similar contracts for reference laboratory services?

A direct comparison of pricing for this $2.71 million contract against similar reference laboratory services contracts is challenging without access to detailed pricing structures and specific service volumes for comparable contracts. However, the firm-fixed-price (FFP) award type suggests that the government has negotiated a set price for the defined scope of work, which aids in cost control. Quest Diagnostics is a major national provider, and their pricing is generally competitive within the market for large-scale contracts. A thorough benchmark would involve comparing the per-test costs or per-specimen costs against other large federal or commercial contracts for similar reference lab services, considering factors like geographic scope and turnaround times.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for reference laboratory testing and courier services, typical KPIs would likely include specimen integrity, turnaround time for test results, courier pickup and delivery timeliness, and accuracy of reporting. SLAs would define the acceptable thresholds for these metrics. The Department of Veterans Affairs would have established these requirements within the contract's statement of work to ensure timely and accurate diagnostic support for veterans. Performance would be monitored throughout the contract period.

What is Quest Diagnostics' track record with the Department of Veterans Affairs?

Quest Diagnostics has a significant track record of working with the Department of Veterans Affairs (VA) and other federal agencies. As a large, established provider of diagnostic testing services, they frequently secure contracts to support government healthcare facilities. While specific details of their past performance on VA contracts are not in the provided data, their continued ability to win competitive bids suggests a generally satisfactory performance history. A deeper dive would involve reviewing past performance evaluations and contract histories within the Federal Procurement Data System (FPDS) or similar databases.

What is the potential impact of this contract on the broader healthcare market for laboratory services?

This contract represents a significant award within the federal healthcare procurement space, reinforcing Quest Diagnostics' position as a major player. For the broader healthcare market, it signifies the ongoing reliance of large government entities like the VA on established, large-scale laboratory service providers. It also highlights the competitive dynamics within the sector, where full and open competition is utilized to secure essential services. The contract's value and duration contribute to the overall market size and revenue streams for diagnostic testing providers, influencing investment and operational strategies within the industry.

Are there any specific risks associated with relying on a single provider for these critical services?

Relying on a single provider, even a large and reputable one like Quest Diagnostics, carries inherent risks. These include potential disruptions to service delivery due to unforeseen events (e.g., natural disasters, labor disputes, or internal operational failures) affecting the contractor. There's also a risk of reduced price negotiation leverage in future contract renewals if competition is limited or if the contractor becomes indispensable. Furthermore, over-reliance on one vendor might stifle innovation if alternative solutions or technologies are not explored. The VA would typically mitigate these risks through robust contract management, contingency planning, and potentially maintaining relationships with backup providers.

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: $2,712,319

Exercised Options: $2,712,319

Current Obligation: $2,712,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0020

IDV Type: BPA

Timeline