VA awards $2.17M for Lab Testing and Analysis Services to Laboratory Corporation of America

Contract Overview

Contract Amount: $2,172,021 ($2.2M)

Contractor: Laboratory Corporation of America

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LAB TESTING AND ANALYSIS SERVICES

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39531

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to LABORATORY CORPORATION OF AMERICA for work described as: LAB TESTING AND ANALYSIS SERVICES Key points: 1. Contract value of $2.17M for a 1-year period. 2. Laboratory Corporation of America is the awarded vendor. 3. The contract was awarded under full and open competition. 4. Services fall under the Medical Laboratories NAICS code (621511).

Value Assessment

Rating: good

The contract value appears reasonable for the scope of lab testing and analysis services. Benchmarking against similar contracts for medical laboratory services would provide a more definitive assessment of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process is expected to yield a fair price for taxpayers, maximizing value for the services rendered.

Public Impact

Ensures continued access to essential medical laboratory services for veterans. Supports the Department of Veterans Affairs' healthcare mission. Provides a stable vendor for critical diagnostic testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years.
Dependence on a single vendor for critical services.

Positive Signals

Awarded under full and open competition.
Clear contract period and defined services.

Sector Analysis

The healthcare sector, particularly medical laboratories, is a critical component of public health infrastructure. Spending in this area is driven by demand for diagnostic testing, which is essential for patient care and disease management.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in the subcontracting process.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, suggesting established oversight mechanisms. The use of a BPA Call indicates a streamlined process, but requires diligence in monitoring performance and pricing.

Related Government Programs

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

Risk Flags

Potential for price escalation.
Dependence on a single vendor.
Need for ongoing performance monitoring.
Limited visibility into subcontracting opportunities for small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to LABORATORY CORPORATION OF AMERICA. LAB TESTING AND ANALYSIS 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 $2.2 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical pricing trend for similar lab services awarded by the VA?

Analyzing historical pricing data for comparable laboratory testing and analysis services awarded by the Department of Veterans Affairs is crucial. This would involve comparing the current contract's per-unit costs and overall value against previous awards for similar scopes of work, considering factors like inflation, service volume, and specific testing panels to ascertain if the current pricing represents a fair market value and demonstrates cost-effectiveness over time.

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

Understanding the key performance indicators (KPIs) established for this contract is vital for assessing service quality and effectiveness. This includes examining metrics such as turnaround time for test results, accuracy rates, and client satisfaction. Robust monitoring mechanisms by the VA are necessary to ensure Laboratory Corporation of America consistently meets these KPIs, thereby safeguarding the quality of care provided to veterans and justifying the expenditure.

Are there any potential risks associated with the sole-source nature of the BPA call, despite the initial full and open competition?

While the initial award was under full and open competition, the use of a BPA Call might imply a specific vendor was pre-selected or that subsequent calls could be less competitive if not managed carefully. Risks could include a lack of ongoing price pressure if competition is not re-established for future calls, potential vendor lock-in, and ensuring that the scope of services remains aligned with evolving needs without re-competition.

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

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: $2,332,021

Exercised Options: $2,332,021

Current Obligation: $2,172,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25625A0009

IDV Type: BPA

Timeline