VA Awards $300K Contract for Reference Lab Testing and Courier Services to Quest Diagnostics

Contract Overview

Contract Amount: $300,000 ($300.0K)

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: $824/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 $300,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3 Key points: 1. Contract value is $300,000 over one year. 2. Quest Diagnostics, a large provider, is the incumbent. 3. Potential risk of limited competition due to specialized services. 4. Spending falls within the Medical Laboratories sector.

Value Assessment

Rating: good

The contract value of $300,000 for one year appears reasonable for reference lab testing and courier services. Benchmarking against similar contracts would provide a more definitive assessment, but the price seems aligned with industry standards for such specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential laboratory services.

Public Impact

Ensures continued access to critical laboratory testing for veterans. Supports timely medical diagnoses and treatment plans. Maintains essential courier services for sample transport.

Waste & Efficiency Indicators

Waste Risk Score: 82 / 10

Positive Signals

Full and open competition utilized.
Clear contract end date.
Services essential for veteran care.

Sector Analysis

The Medical Laboratories sector (NAICS 621511) encompasses a wide range of diagnostic testing services. This $300,000 contract is a relatively small expenditure within this sector, likely representing a specific regional need for reference lab services.

Small Business Impact

The data indicates that small businesses were not specifically prioritized or awarded this contract, as the incumbent is a large corporation. Further analysis would be needed to determine if small businesses were excluded or simply did not bid.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure proper execution and accountability.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in if competition is not sustained.
Dependence on a single provider for critical services.
Need for ongoing price benchmarking against market rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $300,000 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 $300,000.

What is the period of performance?

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

What is the historical pricing trend for these services with Quest Diagnostics?

Historical pricing data for this specific contract or similar services from Quest Diagnostics would be crucial for a thorough value assessment. Understanding if prices have increased, decreased, or remained stable over time can reveal cost-efficiency trends and potential areas for negotiation or concern.

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

While awarded under full and open competition, reliance on a single provider, even if incumbent, can pose risks. These include potential price increases in future solicitations, service disruptions if the provider faces operational issues, and a reduced incentive for innovation if competition is not consistently robust.

How effectively does this contract support the VA's overall mission for veteran healthcare delivery?

This contract directly supports the VA's mission by ensuring veterans have access to necessary laboratory diagnostic services and the logistical support (courier services) to facilitate timely results. Its effectiveness is tied to the reliability, quality, and turnaround time of the services provided by Quest Diagnostics.

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: $300,000

Exercised Options: $300,000

Current Obligation: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0020

IDV Type: BPA

Timeline