VA awards $2.09M for VISN 6 reference lab testing and courier services to Quest Diagnostics

Contract Overview

Contract Amount: $2,092,592 ($2.1M)

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: $5.7K/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: HAMPTON, HAMPTON CITY County, VIRGINIA, 23667

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to QUEST DIAGNOSTICS INCORPORATED for work described as: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3 Key points: 1. Contract awarded through a full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. The duration of the contract is one year, with potential for renewal. 4. The North American Industry Classification System (NAICS) code 621511 indicates services related to medical laboratories. 5. The award is a Blanket Purchase Agreement (BPA) Call, indicating it's a task order under an existing agreement. 6. The contract value is $2,092,592.

Value Assessment

Rating: good

The contract value of $2.09 million for reference laboratory testing and courier services appears reasonable for a one-year duration. Benchmarking against similar contracts for reference lab services across the VA or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government as it caps costs. However, without detailed service level agreements and performance metrics, a definitive assessment of efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 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 nature of the competition suggests that multiple companies likely vied for this contract. This level of competition is generally expected to drive competitive pricing and ensure the government receives fair market value for the services rendered.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the contract was awarded through a process designed to achieve the best possible price and quality, minimizing the risk of overpayment.

Public Impact

Veterans within VISN 6 will benefit from access to essential reference laboratory testing and courier services. The contract ensures the continuity of critical diagnostic services for healthcare providers serving veterans. The services are geographically focused on VISN 6, which serves a specific region of the Veterans Health Administration. 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 performance metrics or service level agreements in the provided data makes it difficult to assess contractor performance risks.
The duration of the contract is relatively short (one year), which may lead to recurring contract administration efforts and potential for price increases upon re-competition.

Positive Signals

The firm-fixed-price contract type transfers cost overrun risk to the contractor.
Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract is a BPA Call, which may indicate established relationships and streamlined ordering processes.

Sector Analysis

The healthcare sector, specifically medical laboratories and diagnostic services, is a significant area of federal spending. This contract falls within the broader category of healthcare services procured by the Department of Veterans Affairs. The market for reference laboratory testing is competitive, with numerous national and regional providers. Federal agencies often leverage large contracts or agreements like BPAs to procure these essential services efficiently.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, Quest Diagnostics, is a large corporation, and it is unlikely that this specific contract would involve significant subcontracting opportunities for small businesses unless initiated by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a BPA Call, it is an order against an existing Blanket Purchase Agreement, implying that the overarching agreement likely has established oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were identified.

Related Government Programs

VA VISN Laboratory Services
Federal Reference Laboratory Contracts
Medical Diagnostic Services Procurement
Healthcare Courier Services Contracts

Risk Flags

Potential for price increases upon re-competition due to short contract duration.
Lack of detailed performance metrics in summary data hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 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 $2.1 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 summary. However, the current award of $2,092,592 for a one-year period (2026-2027) can serve as a baseline for future comparisons. To understand historical patterns, one would need to access the Federal Procurement Data System (FPDS) or similar databases to review prior awards for this specific service within VISN 6, looking at contract values, durations, and awarded contractors over several fiscal years. This would reveal trends in pricing, service scope, and contractor stability.

How does the awarded price compare to market rates for similar reference laboratory testing and courier services?

A precise comparison of the awarded price ($2.09 million) to market rates requires detailed service scope and volume data, which is not fully provided. However, Quest Diagnostics is a major national provider, and their pricing is generally considered competitive within the industry. The firm-fixed-price nature of the contract suggests that the government has negotiated a set price, aiming to align with or beat market benchmarks. Further analysis would involve obtaining unit costs for specific tests and courier services from multiple providers to establish a robust benchmark against which this contract's value can be definitively assessed.

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

The provided summary does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, contracts for reference laboratory testing and courier services would include metrics related to turnaround times for test results, specimen integrity during transport, courier on-time arrival rates, and accuracy of diagnostic reporting. The Department of Veterans Affairs would establish these KPIs to ensure the quality and efficiency of the services provided by Quest Diagnostics. Adherence to these SLAs would be crucial for performance evaluation and potential contract renewal.

What is Quest Diagnostics' track record with the Department of Veterans Affairs and other federal agencies?

Quest Diagnostics is a large, established provider of diagnostic testing services and has a significant history of contracting with various federal agencies, including the Department of Veterans Affairs (VA). While specific details of their past performance on VA contracts are not in this summary, their continued engagement suggests a generally satisfactory performance history. A deeper dive into FPDS data would reveal the number and value of previous contracts awarded to Quest Diagnostics by the VA and other federal entities, along with any reported performance issues or commendations.

What is the potential impact of this contract on small businesses in the laboratory services sector?

This specific contract, awarded under full and open competition with no stated small business set-aside (ss: false, sb: false), is unlikely to have a direct mandated impact on small businesses. Quest Diagnostics, the awardee, is a large corporation. However, the existence of such a significant contract within a VISN could indirectly influence the small business ecosystem. Small businesses might be involved as competitors for future, smaller-scale contracts, or potentially as subcontractors if Quest Diagnostics chooses to engage them. The overall impact depends on the broader contracting strategies employed by the VA and the competitive landscape for laboratory 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: $2,092,592

Exercised Options: $2,092,592

Current Obligation: $2,092,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0020

IDV Type: BPA

Timeline