VA awards $902K for VISN 6 lab testing and courier services, extending existing BPA

Contract Overview

Contract Amount: $902,470 ($902.5K)

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: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $902,470.02 to QUEST DIAGNOSTICS INCORPORATED for work described as: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - ADD COURIER SERVICES. Key points: 1. Contract value represents an increase to an existing Blanket Purchase Agreement (BPA), indicating potential for expanded services. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The contract duration of 364 days aligns with typical service contract lengths. 5. The primary contractor, Quest Diagnostics Incorporated, is a known entity in the medical laboratory sector. 6. The service falls under the Medical Laboratories NAICS code, a standard classification for such services.

Value Assessment

Rating: good

The contract value of $902,470.02 for 364 days of courier and lab testing services appears reasonable given the scope. While specific benchmarks for this exact combination of services are difficult to ascertain without more granular data, Quest Diagnostics is a major provider in the field. The firm-fixed-price structure helps manage cost overruns. Further analysis would require comparing unit costs for specific tests and courier routes against industry standards and other government contracts for similar services.

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 environment. This approach is generally favored to ensure the government receives the best possible pricing and service through market forces.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices and encouraging innovation among bidders, leading to more cost-effective service delivery.

Public Impact

Veterans in VISN 6 will benefit from continued access to essential laboratory testing and courier services. The contract ensures the timely transport of medical specimens and delivery of test results. Services are geographically focused within VISN 6, which covers a significant portion of New Jersey. The contract supports the operational needs of VA healthcare facilities within the VISN.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased reliance on a single large provider for critical lab services.
Need to monitor service quality and delivery timeliness to ensure patient care is not impacted.
Geographic scope of VISN 6 may present logistical challenges for courier services.

Positive Signals

Award to an established provider with existing infrastructure for lab testing and courier services.
Firm-fixed-price contract provides budget predictability.
Extension of an existing BPA suggests successful past performance and established working relationship.

Sector Analysis

The healthcare sector, specifically medical laboratories and diagnostic services, is a critical component of the US economy. This contract falls within the broader healthcare services industry, which is characterized by significant government spending, particularly through agencies like the Department of Veterans Affairs. The market for laboratory testing is competitive, with both large national providers like Quest Diagnostics and smaller regional players. Government contracts in this space often focus on ensuring access to essential services for specific populations, such as veterans.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside. This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this award notice, but typically large prime contractors are encouraged to utilize small businesses where feasible.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs, specifically the VISN 6 administration responsible for managing healthcare services. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and quality assurance reports may not be publicly accessible.

Related Government Programs

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

Risk Flags

Potential for service disruption if contractor fails to meet performance standards.
Dependence on a single large provider for critical services.
Need for ongoing monitoring of pricing against market rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $902,470.02 to QUEST DIAGNOSTICS INCORPORATED. VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - ADD COURIER SERVICES.

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 $902,470.02.

What is the period of performance?

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

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

Historical spending data for VISN 6 laboratory testing and courier services prior to this award is not detailed in the provided information. However, this award is an "ADD COURIER SERVICES" to an existing BPA, suggesting that laboratory testing services were already covered under the BPA. The base value of the BPA and its previous spending would provide context for the scale of operations. Analyzing past awards under this BPA, including their values, durations, and any modifications, would reveal trends in spending and service utilization. Without access to the BPA's complete history, it's difficult to establish a precise spending pattern, but the addition of courier services indicates an evolving need or an expansion of the existing agreement's scope.

How does the pricing of this contract compare to similar VA contracts for laboratory testing and courier services?

A direct comparison of pricing for this specific contract ($902,470.02 for 364 days) to similar VA contracts requires access to a database of comparable awards with detailed service descriptions and pricing structures. However, the contract is with Quest Diagnostics, a major national provider, and is a firm-fixed-price award under full and open competition. This suggests that the pricing is likely competitive within the market for such services. To perform a robust comparison, one would need to benchmark unit costs for specific laboratory tests and courier routes against other VA contracts awarded in similar geographic regions (New Jersey) or to other large diagnostic providers. The addition of courier services to an existing lab testing BPA implies a potential cost-saving or efficiency gain by consolidating services under one agreement.

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

The provided award data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract involving laboratory testing and courier services, typical KPIs would likely include turnaround times for test results, specimen collection and delivery timeliness, accuracy rates for laboratory tests, and contractor responsiveness to service requests. SLAs would define the acceptable thresholds for these KPIs and potential remedies or penalties for non-performance. The Department of Veterans Affairs would have established these metrics within the Blanket Purchase Agreement (BPA) and its subsequent modifications to ensure the quality and reliability of essential healthcare support services for veterans.

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

Quest Diagnostics Incorporated 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 initiatives. This specific award is an addition to an existing Blanket Purchase Agreement (BPA), which implies a prior contractual relationship and likely satisfactory performance under that agreement. A comprehensive review of Quest Diagnostics' past performance with the VA would involve examining previous contract awards, their values, durations, any reported issues or disputes, and overall performance evaluations. Their continued engagement with the VA suggests a generally positive and reliable working relationship.

What is the potential impact of this contract on small businesses in the New Jersey region?

The provided award details do not indicate any specific small business set-aside provisions or subcontracting goals for this contract. The contract is with Quest Diagnostics, a large corporation, and the award notice does not mention any requirements for them to subcontract portions of the work to small businesses. Therefore, the direct impact on small businesses in New Jersey from this specific contract award is likely minimal, unless Quest Diagnostics voluntarily engages small businesses for support services not detailed in the award. The primary beneficiaries are the large prime contractor and potentially its direct suppliers. Without explicit subcontracting plans or set-aside requirements, small businesses may not see direct opportunities stemming from this particular award.

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: $902,470

Exercised Options: $902,470

Current Obligation: $902,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0020

IDV Type: BPA

Timeline