VA awards $4M for Reference Laboratory Services to Laboratory Corporation of America
Contract Overview
Contract Amount: $3,999,362 ($4.0M)
Contractor: Laboratory Corporation of America
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-03-01
End Date: 2027-02-28
Contract Duration: 1,460 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: REFERENCE LABORATORY SERVICES
Place of Performance
Location: BURLINGTON, ALAMANCE County, NORTH CAROLINA, 27215
Plain-Language Summary
Department of Veterans Affairs obligated $4.0 million to LABORATORY CORPORATION OF AMERICA for work described as: REFERENCE LABORATORY SERVICES Key points: 1. The Department of Veterans Affairs (VA) has awarded a contract valued at $3,999,362.42 for reference laboratory services. 2. Laboratory Corporation of America is the sole awardee for this contract. 3. The contract spans from March 1, 2023, to February 28, 2027, with a duration of 1460 days. 4. This contract falls under the Medical Laboratories (NAICS 621511) sector. 5. The contract type is Firm Fixed Price, indicating a set price for the services.
Value Assessment
Rating: fair
The contract value of approximately $4 million over four years suggests a moderate level of spending for reference laboratory services. Without specific per-unit cost data or benchmarks for similar VA contracts, a precise pricing assessment is difficult. However, the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a broad range of potential bidders and can lead to competitive pricing. The award type is a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to bid, potentially driving down prices and ensuring the government receives the best value.
Public Impact
Veterans will receive essential medical laboratory services through this contract. The contract ensures continuity of care for medical diagnostics. The duration of the contract provides stability in service provision. Geographic coverage is specified as North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for benchmarking.
- Limited insight into the competitive landscape beyond 'full and open'.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type for cost certainty.
- Long-term duration ensures service continuity.
Sector Analysis
The Medical Laboratories sector (NAICS 621511) encompasses a wide range of diagnostic testing services. Spending in this sector can vary significantly based on the complexity and volume of tests required. This contract's value of approximately $4 million appears moderate for a multi-year federal contract of this nature.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs, which has established oversight mechanisms for its procurement processes. The use of full and open competition suggests adherence to standard procurement regulations, but specific oversight details for this delivery order are not provided.
Related Government Programs
- Medical Laboratories
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of detailed cost breakdown.
- Limited information on specific services rendered.
- No explicit mention of small business utilization.
- Potential for price creep if not managed effectively.
Tags
medical-laboratories, department-of-veterans-affairs, nc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $4.0 million to LABORATORY CORPORATION OF AMERICA. REFERENCE LABORATORY SERVICES
Who is the contractor on this award?
The obligated recipient is LABORATORY CORPORATION OF AMERICA.
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 $4.0 million.
What is the period of performance?
Start: 2023-03-01. End: 2027-02-28.
What is the specific range of reference laboratory services covered under this contract?
The contract specifies 'REFERENCE LABORATORY SERVICES' but does not detail the specific tests or panels included. This information would typically be found in the statement of work or contract line item details. Understanding the scope is crucial for assessing the value and necessity of the $4 million award.
How does the per-unit cost of these reference laboratory services compare to industry benchmarks or other government contracts?
Without specific per-unit cost data (e.g., cost per test), a direct comparison is not possible. The 'fair' rating reflects this lack of granular pricing information. Benchmarking would require access to the detailed pricing structure within the contract to evaluate cost-effectiveness against similar services.
What is the VA's process for ensuring the quality and timeliness of services provided by Laboratory Corporation of America under this contract?
The VA typically employs quality assurance surveillance plans (QASPs) and performance metrics to monitor contractor performance. For reference laboratory services, this would likely involve tracking turnaround times, accuracy rates, and adherence to clinical standards. Contract officers and technical monitors are responsible for ensuring compliance.
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
Solicitation ID: 36C25023Q0091
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bode Cellmark Forensics Inc.
Address: 231 MAPLE AVE, BURLINGTON, NC, 27215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,999,362
Exercised Options: $3,999,362
Current Obligation: $3,999,362
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: V797D50532
IDV Type: FSS
Timeline
Start Date: 2023-03-01
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-02-17
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