VA awards $82K for T-SPOT.TB testing services to Quest Diagnostics, utilizing full and open competition

Contract Overview

Contract Amount: $82,146 ($82.1K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-12-30

Contract Duration: 455 days

Daily Burn Rate: $181/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: T-SPOT.TB TESTING SERVICES FOR V16 SITES IN JACKSON,MS AND LITTLE ROCK, AR

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $82,145.7 to QUEST DIAGNOSTICS INCORPORATED for work described as: T-SPOT.TB TESTING SERVICES FOR V16 SITES IN JACKSON,MS AND LITTLE ROCK, AR Key points: 1. The contract value of $82,145.70 appears modest, suggesting a focused scope for T-SPOT.TB testing services. 2. Quest Diagnostics, a large established provider, secured this award, indicating a competitive landscape for diagnostic services. 3. The firm-fixed-price contract type suggests predictable costs for the VA, mitigating cost overrun risks. 4. The contract duration of 455 days (approximately 15 months) aligns with typical service-based agreements for ongoing medical needs. 5. The award falls under the Medical Laboratories NAICS code, a significant sector within healthcare services. 6. The geographic focus on Jackson, MS, and Little Rock, AR, indicates a targeted approach to specific VA site needs.

Value Assessment

Rating: good

The contract value of $82,145.70 for T-SPOT.TB testing services is relatively small, making direct comparison to larger contracts difficult. However, for a service covering two specific sites over 15 months, the pricing appears reasonable. Benchmarking against similar regional or national contracts for T-SPOT.TB testing would provide a more precise value assessment, but given the specialized nature and limited scope, the current award seems to represent fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives competitive pricing. This approach suggests the VA sought the best value through a broad solicitation.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that federal dollars are used efficiently. It also promotes transparency and fairness in the contracting process.

Public Impact

Veterans receiving care at VA sites in Jackson, MS, and Little Rock, AR, will benefit from timely and accurate T-SPOT.TB testing. The services delivered are crucial for diagnosing latent tuberculosis infections, supporting public health initiatives within the VA system. The geographic impact is localized to the specified VA facilities in Mississippi and Arkansas. This contract supports the operational needs of the VA's healthcare delivery system, indirectly impacting healthcare professionals working at these sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited data on the number of bidders in the full and open competition makes it difficult to fully assess the extent of price pressure.
The specific performance metrics and quality assurance measures for the T-SPOT.TB testing are not detailed in the provided data.
While Quest Diagnostics is a reputable provider, the long-term implications of relying on a single vendor for this specific service at these locations warrant consideration.

Positive Signals

The use of full and open competition suggests a robust process to identify qualified and competitive vendors.
The firm-fixed-price contract type provides cost certainty for the Department of Veterans Affairs.
Quest Diagnostics is a well-established laboratory provider with a track record in diagnostic testing, implying a level of reliability.

Sector Analysis

The healthcare services sector, particularly diagnostic laboratory services, is a significant area of federal spending. The NAICS code 621511 (Medical Laboratories) encompasses a broad range of testing facilities. Federal agencies like the VA are major consumers of these services to support the health and well-being of beneficiaries. Spending in this sector is driven by the need for accurate and timely diagnostic information to guide patient care and public health efforts. Comparable spending benchmarks would typically involve analyzing per-test costs or contract values for similar diagnostic services across different federal healthcare providers.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The contract was awarded to a large, established provider, Quest Diagnostics.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a firm-fixed-price contract awarded under full and open competition, the primary oversight mechanism focuses on ensuring the delivery of services as specified in the contract terms and conditions. Accountability is maintained through performance monitoring and adherence to the contract schedule. Transparency is generally supported by the public nature of federal contract awards, though specific performance details may be internal. The VA's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Care
Diagnostic Laboratory Services
Public Health Services
Tuberculosis Screening Programs

Risk Flags

Limited competition data
Potential for service disruption
Quality control of diagnostic tests

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $82,145.7 to QUEST DIAGNOSTICS INCORPORATED. T-SPOT.TB TESTING SERVICES FOR V16 SITES IN JACKSON,MS AND LITTLE ROCK, AR

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 $82,145.7.

What is the period of performance?

Start: 2024-10-01. End: 2025-12-30.

What is the historical spending pattern of the VA on T-SPOT.TB testing services, and how does this award compare?

Analyzing the historical spending patterns of the Department of Veterans Affairs (VA) on T-SPOT.TB testing services requires access to detailed procurement databases. Without specific historical data for this particular service, it's challenging to provide a direct comparison. However, the current award of $82,145.70 for a 15-month period suggests a relatively consistent, albeit potentially localized, need for this diagnostic test. If the VA has previously contracted for similar services at other sites or over different periods, comparing the per-unit cost or total contract value would reveal trends. A higher frequency of such awards or increasing contract values over time could indicate a growing demand or a shift in diagnostic protocols. Conversely, a stable or decreasing trend might suggest optimized testing strategies or a plateau in demand. Further analysis would involve querying federal procurement data for all T-SPOT.TB testing contracts awarded by the VA over several fiscal years to establish a comprehensive spending baseline and identify any significant deviations or patterns.

How does the pricing of this T-SPOT.TB testing contract compare to market rates for similar services?

Benchmarking the pricing of this T-SPOT.TB testing contract against market rates requires access to commercial pricing data for similar diagnostic services. T-SPOT.TB tests are specialized blood tests used to detect latent tuberculosis infection. Commercial laboratory pricing for such tests can vary based on geographic location, the specific laboratory performing the test, and the volume of tests ordered. While the contract value of $82,145.70 for approximately 15 months of service at two VA sites provides a total cost, determining the per-unit cost or a comparable rate is essential for a precise market comparison. If the VA negotiated a price per test, that figure could be compared to prices listed by major commercial diagnostic laboratories or reported in industry analyses. Factors such as negotiated volume discounts, administrative overhead, and the inclusion of specimen collection or reporting services in the contract would influence the final comparison. Without specific per-test pricing from the contract, a definitive market comparison is difficult, but the overall contract value suggests a focused service delivery rather than a large-scale, high-volume procurement.

What is Quest Diagnostics' track record with the Department of Veterans Affairs for similar medical laboratory services?

Quest Diagnostics is a major provider of diagnostic testing services and has a significant history of contracting with various federal agencies, including the Department of Veterans Affairs (VA). To assess their track record specifically with the VA for similar medical laboratory services, one would typically review past contract awards, performance evaluations, and any reported issues or successes. Quest Diagnostics has been awarded numerous contracts by the VA over the years for a wide array of laboratory tests and services, often through competitive bidding processes. Their established presence in the healthcare sector and extensive laboratory network suggest a capacity to meet the VA's needs. However, a detailed review of past performance metrics, such as on-time delivery, quality of results, and responsiveness to issues, would be necessary for a comprehensive assessment. The current award indicates that Quest Diagnostics was deemed a suitable and competitive vendor for these specific T-SPOT.TB testing services.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract include service disruptions, quality control issues with the T-SPOT.TB tests, or potential delays in reporting results, which could impact patient care. Given that the contract is for a firm-fixed price, there is a risk of the contractor incurring losses if costs exceed expectations, potentially leading to reduced service quality or attempts to cut corners. Another risk could be the dependency on a single provider for services at these specific locations. Mitigation strategies are likely embedded within the contract's performance standards and the VA's oversight mechanisms. The VA would monitor Quest Diagnostics' adherence to service level agreements, including turnaround times for test results and quality assurance protocols. Regular performance reviews and clear communication channels are crucial for identifying and addressing any emerging issues promptly. The firm-fixed-price structure itself helps mitigate cost overrun risks for the government, provided the scope of work is well-defined and managed.

How does the geographic focus on Jackson, MS, and Little Rock, AR, align with the VA's broader tuberculosis screening strategy?

The geographic focus on Jackson, MS, and Little Rock, AR, for T-SPOT.TB testing services suggests a targeted approach by the VA to address specific needs at these particular sites. This could be driven by various factors, such as a higher prevalence of latent tuberculosis infection among the veteran population served by these facilities, specific public health initiatives in those regions, or the operational requirements of those VA medical centers. The VA's broader tuberculosis screening strategy likely involves a multi-faceted approach that includes screening at various points of care, for specific risk groups, and potentially across different geographic areas based on epidemiological data and resource availability. This contract represents a component of that larger strategy, ensuring that veterans at these two locations have access to necessary diagnostic testing. The localized nature of this award implies that other VA facilities may have different testing arrangements or rely on different diagnostic methods based on their unique circumstances and patient populations.

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: $237,510

Exercised Options: $152,456

Current Obligation: $82,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25622A0017

IDV Type: BPA

Timeline