VA Awards $9.28M Task Order to Quest Diagnostics for Medical Labs Amid Active Solicitation

Contract Overview

Contract Amount: $9,277,729 ($9.3M)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-01

End Date: 2025-09-30

Contract Duration: 213 days

Daily Burn Rate: $43.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FOR REF LAB BRIDGE WHILE SOLIITATION IS CURRENTLY ACTIVE TO AVOID SERVICE DISRUPTION.

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.3 million to QUEST DIAGNOSTICS INCORPORATED for work described as: TASK ORDER FOR REF LAB BRIDGE WHILE SOLIITATION IS CURRENTLY ACTIVE TO AVOID SERVICE DISRUPTION. Key points: 1. Quest Diagnostics secures a significant task order valued at $9.28M. 2. The award is not competed, raising questions about price discovery. 3. Potential risk of service disruption is mitigated by this bridge contract. 4. The healthcare sector, specifically medical laboratories, is the focus.

Value Assessment

Rating: questionable

The $9.28M task order for medical laboratory services appears to be a bridge contract. Without a competitive process, it's difficult to assess if the pricing is optimal compared to similar contracts in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, likely due to the need to avoid service disruption while a primary solicitation is active. This limited competition may have impacted the government's ability to secure the best possible price.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the lack of competition, although service continuity is maintained.

Public Impact

Ensures continuity of essential medical laboratory services for veterans. Avoids potential disruption during the active solicitation process for a larger contract. Supports ongoing healthcare operations within the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment without competitive bidding
Short-term nature of the contract

Positive Signals

Ensures service continuity
Addresses immediate need

Sector Analysis

This task order falls within the healthcare sector, specifically medical laboratories. Spending in this area is critical for patient care. Benchmarks for similar services would typically be established through competitive bidding.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific task order. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs awarded this task order. Oversight should focus on the justification for the limited competition and the pricing compared to market rates once the primary solicitation is awarded.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for non-competitive pricing
Reliance on a single vendor for critical services
Short contract duration may limit long-term planning benefits

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.3 million to QUEST DIAGNOSTICS INCORPORATED. TASK ORDER FOR REF LAB BRIDGE WHILE SOLIITATION IS CURRENTLY ACTIVE TO AVOID SERVICE DISRUPTION.

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 $9.3 million.

What is the period of performance?

Start: 2025-03-01. End: 2025-09-30.

What is the justification for awarding this task order on a limited/non-competed basis, and what steps were taken to ensure a fair and reasonable price?

The justification for a limited or non-competed award typically stems from urgent needs or the desire to maintain continuity of essential services while a broader solicitation is underway. To ensure a fair and reasonable price, the agency should have conducted market research, reviewed historical pricing data, and potentially negotiated with the contractor based on established benchmarks or cost analysis, even without full and open competition.

What are the risks associated with awarding a bridge contract like this, particularly regarding potential cost overruns or reduced service quality?

The primary risk with bridge contracts is the potential for inflated costs due to the lack of competitive pressure. Contractors may be less incentivized to offer their best pricing. Additionally, while service continuity is the goal, there's a risk that the contractor may not be as focused on optimal service delivery as they would be under a long-term, competed contract, potentially impacting quality if not closely monitored.

How will the effectiveness of this task order be measured, especially considering it's a temporary measure to bridge an active solicitation?

The effectiveness of this task order will be measured by its ability to seamlessly maintain essential medical laboratory services without interruption until the primary, competed contract is awarded and operational. Key metrics will include service uptime, turnaround times for tests, adherence to quality standards, and user satisfaction from the VA. Post-award, a comparison of its cost and performance against the new contract will also provide an effectiveness assessment.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $9,277,729

Exercised Options: $9,277,729

Current Obligation: $9,277,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24725D0027

IDV Type: IDC

Timeline