VA awards $720K for VISN 6 reference lab testing and courier services to Quest Diagnostics

Contract Overview

Contract Amount: $720,000 ($720.0K)

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: $2.0K/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 $720,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3 Key points: 1. Contract awarded through a competitive process, suggesting potential for fair pricing. 2. The contract duration of one year with a firm-fixed-price structure limits cost uncertainty. 3. Focus on reference laboratory testing indicates a need for specialized diagnostic capabilities. 4. The award to a single contractor, Quest Diagnostics, warrants scrutiny for potential price impacts. 5. Geographic coverage for VISN 6 (New Jersey) is a key operational parameter. 6. The contract type (BPA Call) suggests it's part of a larger framework agreement.

Value Assessment

Rating: good

The contract value of $720,000 for one year of reference laboratory testing and courier services appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for reference lab services within the Department of Veterans Affairs (VA) would provide a more precise value-for-money assessment. However, the firm-fixed-price structure helps control costs. The absence of detailed performance metrics in the provided data makes a definitive assessment of efficiency challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature suggests that the VA sought to leverage market forces to obtain favorable pricing and service terms. This approach generally leads to better price discovery and a wider selection of qualified providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through vendor rivalry and encourages innovation. It ensures that the government is not locked into a single provider, allowing for potential savings and better service quality over time.

Public Impact

Veterans within VISN 6 (New Jersey) will benefit from access to essential reference laboratory testing services. The contract ensures the provision of critical diagnostic testing and associated courier services. The geographic impact is focused on New Jersey, serving the VA facilities and patient population within that region. The contract supports the healthcare infrastructure of the VA, indirectly impacting healthcare professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
Potential for price increases in future contract renewals if competition is not sustained.
Dependence on a single contractor for critical reference lab services could pose a risk if service levels decline.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the duration of the award.
Quest Diagnostics is a well-established provider of laboratory services, suggesting a degree of reliability.

Sector Analysis

Reference laboratory testing is a critical component of the healthcare sector, providing specialized diagnostic services that are often beyond the capabilities of in-house hospital labs. The market for these services is competitive, with numerous national and regional providers. This contract fits within the broader VA strategy to outsource specialized medical services to ensure quality and efficiency, leveraging external expertise for specific diagnostic needs.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal, as the award was made to a large, established corporation. Future solicitations could explore opportunities for small business participation, particularly in courier services or specialized testing niches.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within VISN 6. Performance monitoring would be crucial to ensure Quest Diagnostics meets the service level agreements and quality standards. Transparency is facilitated by the public nature of contract awards, but detailed operational oversight mechanisms are internal to the VA.

Related Government Programs

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

Risk Flags

Potential for service disruption if contractor faces operational issues.
Need for ongoing performance monitoring to ensure quality and timeliness.
Reliance on a single vendor for critical lab services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $720,000 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 $720,000.

What is the period of performance?

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

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

Historical spending data for reference laboratory testing and courier services within VISN 6 is not directly available in the provided contract details. However, the award of a new contract suggests a continued need for these services. To understand historical patterns, one would need to analyze past VA contracts for similar services within VISN 6, looking at award amounts, durations, and incumbent contractors. This would reveal trends in service utilization, cost fluctuations, and the competitive landscape over time. Without this historical context, it's difficult to assess if the current $720,000 award represents an increase, decrease, or stable level of spending for these essential services.

How does the per-unit cost of testing under this contract compare to industry benchmarks?

Determining the precise per-unit cost of testing under this contract is challenging without a detailed breakdown of the services and their associated volumes. The contract value is a total award amount, not itemized by specific tests or courier trips. To compare with industry benchmarks, one would need to obtain a schedule of rates or unit prices from Quest Diagnostics for the specific tests and services covered. This information is typically proprietary or part of the competitive bidding process. Benchmarking would then involve comparing these rates against published price lists from other reference laboratories or aggregated data from similar government contracts, considering factors like test complexity, turnaround time, and geographic service area.

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

Quest Diagnostics is a major provider of diagnostic testing services and has a significant track record with various government agencies, including the Department of Veterans Affairs. While specific details of their past performance on VA contracts are not provided here, their selection for this VISN 6 award suggests they met the VA's requirements and demonstrated capability. A thorough assessment would involve reviewing past performance evaluations, any documented issues or commendations on previous VA contracts, and their overall experience in providing reference laboratory and courier services to large healthcare networks. Their established presence in the market generally indicates a capacity to handle such requirements.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) for this specific award. However, for reference laboratory and courier services, typical KPIs would likely include turnaround times for test results, specimen integrity during transport, accuracy of test results, service availability (e.g., 24/7 for critical tests), and responsiveness of courier services. The contracting officer and program managers within VISN 6 would be responsible for monitoring these KPIs throughout the contract period to ensure Quest Diagnostics is meeting its obligations and providing high-quality services to veterans.

What is the potential risk associated with relying on a single contractor for these critical services?

The primary risk associated with relying on a single contractor, even one as established as Quest Diagnostics, is service disruption. This could stem from unforeseen events such as natural disasters affecting their facilities, labor disputes, or internal operational failures. Another risk is a potential decline in service quality or price increases in future contract renewals if competition is not robust. To mitigate these risks, the VA would typically implement strong contract oversight, maintain open communication channels with the contractor, and potentially develop contingency plans or identify alternative providers for critical services.

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: $720,000

Exercised Options: $720,000

Current Obligation: $720,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0020

IDV Type: BPA

Timeline