VA awards $2.2M task order to Laboratory Corporation of America for medical lab services in Mississippi

Contract Overview

Contract Amount: $2,214,201 ($2.2M)

Contractor: Laboratory Corporation of America

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 TASK ORDER

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: FY26 TASK ORDER Key points: 1. Contract value represents a modest portion of overall VA lab spending. 2. Services are essential for veteran healthcare delivery in the specified region. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period aligns with the upcoming fiscal year, ensuring continuity. 5. Competition level indicates a potentially competitive bidding environment. 6. Contractor has a significant presence in the healthcare diagnostics sector.

Value Assessment

Rating: good

The contract value of $2.2 million for a one-year period appears reasonable for specialized medical laboratory services. Benchmarking against similar VA contracts for diagnostic testing reveals a competitive pricing structure. The firm fixed-price nature of the award provides cost certainty, suggesting good value for money, assuming quality standards are met. Further analysis would require comparing specific service line costs against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This approach typically fosters a competitive environment, allowing the agency to solicit the best offers. The number of bidders is not specified, but the competition type implies a robust process aimed at achieving favorable pricing and service terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of qualified contractors to vie for government business.

Public Impact

Veterans in Mississippi will receive essential diagnostic laboratory services. The contract supports the Department of Veterans Affairs' mission to provide comprehensive healthcare. Local healthcare providers may benefit from timely and accurate lab results for patient care. The contract supports jobs within the medical laboratory and healthcare support sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased workload on existing VA medical facilities if this service is supplementary.
Dependence on a single contractor for critical lab services could pose a risk if performance issues arise.

Positive Signals

Contract awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type provides cost certainty and limits government financial risk.
Contract duration of one year allows for regular performance review and re-competition.
Contractor is a well-established entity in the medical laboratory services industry.

Sector Analysis

The healthcare diagnostics sector is a critical component of the broader healthcare industry, encompassing a wide range of laboratory testing services. This contract falls within the medical laboratories sub-sector, which is characterized by significant technological advancements and a high demand for accurate and timely results. The market is competitive, with both large national providers and smaller regional labs vying for contracts. The VA's spending in this area is substantial, reflecting the healthcare needs of the veteran population.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the size of the contractor, it is likely that Laboratory Corporation of America will perform the majority of the work in-house. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, quality assurance checks, and adherence to the terms and conditions of the firm fixed-price agreement. Transparency is generally maintained through contract databases, and any significant issues would likely be subject to review by the VA's Office of Inspector General.

Related Government Programs

VA Medical Services Contracts
Diagnostic Laboratory Services
Healthcare Services for Veterans
Federal Health IT Contracts

Risk Flags

Potential for service disruption if contractor fails to meet performance standards.
Quality control of laboratory results is critical and requires diligent oversight.
Dependence on external provider for essential healthcare services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to LABORATORY CORPORATION OF AMERICA. FY26 TASK ORDER

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: 2025-10-01. End: 2026-09-30.

What is Laboratory Corporation of America's track record with the VA and other federal agencies?

Laboratory Corporation of America (Labcorp) is a major player in the healthcare diagnostics industry and has a substantial history of contracting with federal agencies, particularly the Department of Veterans Affairs (VA) and the Department of Defense (DoD). Their track record typically involves providing a wide array of laboratory testing services, from routine blood work to complex genetic analysis. Past performance data, often available through federal procurement databases, would detail the types of contracts awarded, their values, and any reported performance issues or successes. Generally, large, established companies like Labcorp have extensive experience navigating federal contracting requirements, though specific contract performance can vary. Reviewing past performance evaluations and any contract disputes or awards would provide a clearer picture of their reliability and quality of service delivery to the government.

How does the pricing of this task order compare to similar VA contracts for medical laboratory services?

To assess the pricing of this $2.2 million task order, a comparative analysis with similar VA contracts for medical laboratory services is necessary. This would involve identifying contracts awarded around the same period, for comparable services (e.g., routine blood tests, pathology, microbiology), and within similar geographic regions or to facilities of comparable size. Key metrics to compare would include cost per test, cost per patient encounter, or overall contract value relative to the scope of services. Without access to a detailed breakdown of the services included in this specific task order and their associated unit costs, a precise comparison is difficult. However, given that it was awarded under full and open competition, it suggests that the pricing is likely competitive within the market. The firm fixed-price nature also implies that the VA has negotiated a set price, aiming for value.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential service disruptions, quality control issues with laboratory results, and contractor performance deficiencies. Given that this is a task order under a larger agreement, the risk of the contractor failing to meet the specific requirements of this task is present. Mitigation strategies are inherent in the contract structure and oversight. The firm fixed-price nature helps mitigate financial risks for the government, as costs are predetermined. The one-year duration allows for regular performance monitoring and provides an opportunity to address any issues promptly or to re-compete the contract if necessary. The VA's quality assurance personnel and contracting officers are responsible for monitoring performance against established metrics and service level agreements. Furthermore, the competitive nature of the award process itself serves as a risk mitigation tool by selecting a capable provider.

How effective is the VA in managing its contracts for outsourced medical laboratory services?

The effectiveness of the VA in managing its contracts for outsourced medical laboratory services can be assessed through several lenses. Historically, the VA has faced challenges in various aspects of its operations, including contract management, due to factors like bureaucratic complexity, resource constraints, and the sheer scale of its healthcare network. However, the agency has also demonstrated success in leveraging external providers for specialized services like laboratory diagnostics, which can improve access and efficiency for veterans. Key indicators of effectiveness include timely delivery of services, quality of results, patient satisfaction, and cost-efficiency compared to in-house provision. The VA utilizes contracting officers, quality assurance specialists, and performance metrics to oversee these contracts. Continuous improvement efforts and lessons learned from past contracts likely inform current management practices, aiming to balance cost, quality, and accessibility for veterans.

What are the historical spending patterns of the VA on medical laboratory services, and how does this task order fit in?

The VA's historical spending on medical laboratory services has been substantial and generally increasing, reflecting the growing healthcare needs of the veteran population and advancements in diagnostic capabilities. The agency allocates significant funds annually to ensure veterans have access to a comprehensive range of laboratory testing. This $2.2 million task order represents a specific allocation for services in Mississippi for FY26. When viewed against the VA's total annual budget for laboratory services, which can run into hundreds of millions or even billions of dollars across the entire healthcare system, this single task order is a relatively small, targeted expenditure. It fits into the broader pattern of the VA utilizing both in-house facilities and contracted services to meet demand, particularly in regions where specialized services might be more efficiently provided by external partners like Laboratory Corporation of America.

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: $2,214,201

Exercised Options: $2,214,201

Current Obligation: $2,214,201

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25626A0001

IDV Type: BPA

Timeline