VA awards $850K for laboratory testing services to Quest Diagnostics, supporting VISN 15

Contract Overview

Contract Amount: $850,000 ($850.0K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2027-05-31

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: COLUMBIA OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15

Place of Performance

Location: COLUMBIA, BOONE County, MISSOURI, 65201

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $850,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: COLUMBIA OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating potential for future task orders. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. The services are essential for medical laboratories, supporting diagnostic capabilities within the VA. 5. The contract duration is one year, allowing for regular reassessment of needs and performance. 6. The geographic focus is Missouri, indicating a specific regional need for these services.

Value Assessment

Rating: good

The contract value of $850,000 for one year of laboratory testing services appears reasonable for the scope of work, especially considering the specialized nature of medical laboratory services. Benchmarking against similar contracts for referral laboratory testing within the Department of Veterans Affairs or other federal agencies would provide a more precise value assessment. However, the firm-fixed-price contract type suggests that the VA has negotiated a set price, which can be advantageous for budget predictability. Without specific per-unit cost data or detailed service level agreements, a definitive value-for-money judgment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service terms to secure the contract. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition that should lead to fair market pricing and a wider selection of qualified providers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through competitive pressure and ensuring that the government secures services from the most capable and cost-effective provider available.

Public Impact

Veterans in VISN 15 will benefit from timely and accurate diagnostic laboratory testing services. The contract ensures the availability of essential medical laboratory services, supporting the VA's healthcare mission. Services are geographically focused on Missouri, directly impacting veterans and healthcare facilities within that region. The contract supports the healthcare workforce by providing necessary diagnostic tools and potentially utilizing specialized laboratory personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased reliance on external labs could impact internal VA lab resource allocation.
Dependence on a single awardee for this task order requires careful performance monitoring.
Scope creep in future task orders could lead to cost overruns if not managed tightly.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty for the VA.
Contract duration of one year allows for periodic review and adaptation.
Quest Diagnostics is a known provider of laboratory services, suggesting established capabilities.

Sector Analysis

The healthcare sector, specifically medical laboratories, is a critical component of the U.S. healthcare system. This contract falls within the broader category of healthcare services, where diagnostic testing plays a pivotal role in patient care and disease management. The market for laboratory services is substantial, with numerous public and private providers. Federal agencies, like the VA, often rely on external laboratory services for specialized testing or to supplement internal capacity, making contracts like this a common occurrence within the sector. Benchmarking would involve comparing this contract's value and terms to other similar laboratory service contracts awarded by federal or large healthcare organizations.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if there are specific subcontracting requirements for small businesses. As a delivery order under a potentially larger contract, the subcontracting opportunities would depend on the terms of the parent contract. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, large contracts for specialized services like laboratory testing can sometimes offer subcontracting avenues for smaller, niche service providers if the prime contractor is mandated or chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for VISN 15. They would monitor performance against the contract terms, including service delivery, quality, and timeliness. The firm-fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally maintained through contract databases like FPDS, which record award details. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Services Contracts
Laboratory Testing Services
Healthcare Diagnostics
VISN Contracts
Federal Health IT

Risk Flags

Potential for service disruption
Data security and privacy concerns
Quality control variations
Turnaround time variability
Price escalation risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $850,000 to QUEST DIAGNOSTICS INCORPORATED. COLUMBIA OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15

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 $850,000.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the historical spending pattern of the Department of Veterans Affairs on referral laboratory testing services, particularly for VISN 15?

Analyzing historical spending on referral laboratory testing for VISN 15 and the VA overall would provide crucial context for the $850,000 award. This includes examining trends in contract values, the number of awards, and the primary contractors over the past several fiscal years. Understanding if this award represents an increase, decrease, or stable level of spending can indicate changes in demand, service scope, or pricing. For instance, a significant increase might suggest growing healthcare needs or a shift towards outsourcing, while a decrease could point to improved internal capabilities or reduced patient volume. Comparing this specific award to the average value of similar contracts awarded by the VA in previous years would also help determine if the current price is competitive and aligned with historical norms.

How does the pricing of this contract compare to similar laboratory testing services procured by other federal agencies or large healthcare systems?

Benchmarking the pricing of this $850,000 contract against similar referral laboratory testing services procured by other federal agencies (e.g., DoD, HHS) or large non-federal healthcare systems is essential for assessing value for money. This comparison should consider the specific types of tests offered, turnaround times, quality metrics, and geographic service areas. If comparable contracts show significantly lower prices for similar services, it could indicate that the VA may not have achieved optimal pricing through this procurement. Conversely, if prices are in line or higher, it might suggest that the VA's negotiated rates are competitive within the broader market. Factors like volume discounts, contract duration, and the specific service-level agreements can influence price variations, so a nuanced comparison is necessary.

What is Quest Diagnostics' track record with the Department of Veterans Affairs and other federal agencies regarding similar laboratory service contracts?

Evaluating Quest Diagnostics' performance history with the VA and other federal entities on similar laboratory service contracts is critical for assessing risk and reliability. This involves reviewing past contract awards, their values, durations, and any reported performance issues, such as quality deficiencies, delivery delays, or disputes. Examining past performance evaluations, if publicly available, can provide insights into their ability to meet contractual obligations. A history of successful contract completions and positive performance reviews would suggest a lower risk profile for this new award. Conversely, a record of significant performance problems or contract terminations could raise concerns about their capacity to deliver the required services effectively and on time for VISN 15.

What are the specific types of laboratory tests included in this contract, and how critical are they to patient care within VISN 15?

The specific laboratory tests covered under this $850,000 contract are fundamental to understanding its impact and value. Referral laboratory testing often includes specialized analyses that may not be performed in-house by VA facilities. Identifying these tests (e.g., complex genetic testing, specialized toxicology, advanced microbiology) and their criticality to patient diagnosis, treatment, and monitoring within VISN 15 is key. If the contract covers essential, high-volume, or highly specialized tests that directly impact patient outcomes and treatment decisions, its importance is magnified. Conversely, if it covers routine or less critical tests, the perceived value might be lower, prompting questions about the necessity of outsourcing versus enhancing internal capabilities.

What are the potential risks associated with relying on an external provider like Quest Diagnostics for essential laboratory services within VISN 15?

Relying on an external provider like Quest Diagnostics for referral laboratory testing introduces several potential risks for VISN 15. These include service disruptions due to the contractor's operational issues, potential delays in test results impacting patient care timelines, and quality control concerns if external lab standards differ from VA internal protocols. There's also a risk of price increases in future contract renewals or task orders, especially if competition diminishes. Furthermore, data security and patient privacy (HIPAA compliance) are paramount when sensitive health information is shared with a third party. The VA must have robust oversight mechanisms in place to mitigate these risks, ensuring consistent quality, timely delivery, and secure data handling throughout the contract period.

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: NEGOTIATED PROPOSAL/QUOTE

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: $850,000

Exercised Options: $850,000

Current Obligation: $850,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25522D0028

IDV Type: IDC

Timeline