VA awards $840K for VISN 6 reference lab testing and courier services to Quest Diagnostics

Contract Overview

Contract Amount: $840,000 ($840.0K)

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: $2.3K/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 $840,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: VISN 6 REFERENCE LAB TESTING AND COURIER SERVICES - OY3 Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 2. The contract is for firm-fixed-price services, providing cost certainty for the government. 3. Services include reference laboratory testing and courier support for VISN 6. 4. The contract duration is one year, with potential for renewal. 5. The awardee, Quest Diagnostics, is a major player in the clinical laboratory services market. 6. The contract value is relatively small, suggesting it may cover a specific set of needs or a limited geographic area within VISN 6.

Value Assessment

Rating: good

The contract value of $840,000 for one year of reference laboratory testing and courier services appears reasonable for the scope. Benchmarking against similar contracts for reference lab services can be challenging due to variations in test volumes, specific assays required, and geographic coverage. However, given Quest Diagnostics' established infrastructure and market position, the pricing is likely competitive within the industry. The firm-fixed-price structure helps manage cost risks for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The use of a BPA Call implies that the underlying BPA was also competed. The specific number of bidders for this call is not provided, but the full and open nature generally promotes competitive pricing and encourages a wider range of potential suppliers to participate.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation from multiple providers.

Public Impact

Veterans within VISN 6 will benefit from access to specialized reference laboratory testing. The contract ensures timely and reliable courier services for the transport of laboratory specimens. This supports the diagnostic and treatment capabilities of VA healthcare facilities in the region. The services contribute to the overall operational efficiency of the VISN 6 healthcare network.

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 ensure robust quality control and turnaround times are consistently met by the contractor.

Positive Signals

Award to a well-established provider with extensive experience in laboratory testing.
Firm-fixed-price contract provides budget certainty.
Full and open competition suggests a competitive award process.

Sector Analysis

The healthcare sector, specifically clinical laboratory services, is a critical component of the U.S. healthcare system. Reference laboratories handle complex or specialized tests that may not be performed in-house by all healthcare providers. The market is characterized by large national players like Quest Diagnostics and LabCorp, as well as regional and specialized labs. Spending in this area is driven by the volume and complexity of diagnostic needs across healthcare systems, including federal agencies like the VA.

Small Business Impact

The provided data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). As a large contract awarded to a major national provider, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on securing essential reference laboratory services through a competitive process.

Oversight & Accountability

The contract is subject to the standard oversight mechanisms of the Department of Veterans Affairs. As a firm-fixed-price award under a BPA Call, the primary oversight will focus on performance, adherence to service level agreements, and accurate billing. The VA's Office of Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Potential for service disruption if contractor performance degrades.
Reliance on a single vendor for critical diagnostic support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $840,000 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 $840,000.

What is the period of performance?

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

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

Historical spending data for reference laboratory and courier services within VISN 6 is not directly available in the provided data. However, the current award of $840,000 for a one-year period suggests a consistent need for these services. To understand historical patterns, one would need to examine prior contract awards for similar services within VISN 6, potentially looking at contracts awarded to Quest Diagnostics or other providers over the past several years. This would reveal trends in contract values, duration, and the specific services procured, helping to contextualize the current award and identify any significant increases or decreases in spending.

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

Directly comparing the awarded price of $840,000 to specific market rates is challenging without a detailed breakdown of the services and volumes included. Quest Diagnostics is a major national provider, and their pricing is generally competitive within the industry. The firm-fixed-price nature of this contract suggests that the VA has negotiated a set price for the anticipated scope of work. Benchmarking would ideally involve comparing the per-test cost or per-specimen cost against other large-scale contracts or publicly available pricing schedules, if accessible. Given the competitive award process, it is reasonable to assume the price reflects a fair market value for the services rendered.

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

Quest Diagnostics has a significant track record of providing laboratory services to various government agencies, including the Department of Veterans Affairs. They are a large, established entity in the clinical diagnostics field. While specific details of their past performance with VA VISN 6 are not provided in this data, their continued ability to win contracts, especially through competitive processes, suggests a generally satisfactory performance history. A deeper dive would involve reviewing past performance evaluations and any documented issues or commendations from previous VA contracts.

What are the key performance indicators (KPIs) for this contract, and how are they monitored?

The key performance indicators (KPIs) for this contract would likely revolve around the accuracy and timeliness of laboratory test results, as well as the reliability and efficiency of the courier services. Specific KPIs might include turnaround times for various test types, specimen integrity upon arrival, courier on-time performance, and overall client satisfaction. Monitoring would typically be conducted by a Contracting Officer's Representative (COR) within the VA, who would review performance reports submitted by Quest Diagnostics, conduct periodic reviews, and potentially perform site visits or audits to ensure compliance with the contract's statement of work and service level agreements.

What is the potential impact of this contract on other laboratory service providers, including small businesses?

This contract, awarded through full and open competition to a large provider like Quest Diagnostics, primarily impacts the competitive landscape by potentially consolidating a portion of VISN 6's reference laboratory needs with one vendor. For other large providers, it represents a missed opportunity. For small businesses, the direct impact is minimal as this contract was not set aside for small businesses, nor does it inherently create subcontracting opportunities. However, the overall market dynamics influenced by such awards can indirectly affect small businesses by shaping pricing expectations and service demands within the broader healthcare laboratory sector.

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: $840,000

Exercised Options: $840,000

Current Obligation: $840,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0020

IDV Type: BPA

Timeline