VA Awards $3.8M Contract to Quest Diagnostics for North Texas Lab Services
Contract Overview
Contract Amount: $3,788,693 ($3.8M)
Contractor: Quest Diagnostics Incorporated
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-03-01
End Date: 2026-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: REFERENCE LAB CONTRACT FOR NORTH TEXAS VA FACILITY
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75216
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $3.8 million to QUEST DIAGNOSTICS INCORPORATED for work described as: REFERENCE LAB CONTRACT FOR NORTH TEXAS VA FACILITY Key points: 1. Quest Diagnostics secured a significant contract for essential medical laboratory services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price structure provides cost certainty for the VA. 4. This award highlights the ongoing need for reliable diagnostic services within the VA system.
Value Assessment
Rating: good
The contract value of $3.8M over five years appears reasonable given the scope of services for a VA facility. Benchmarking against similar large-scale laboratory contracts would provide further insight into its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for essential medical services.
Public Impact
Veterans in North Texas will have continued access to critical diagnostic testing. The contract supports a major healthcare provider, Quest Diagnostics, contributing to the broader healthcare industry. This award ensures the operational continuity of laboratory services at the North Texas VA facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition
- Firm fixed price contract type
- Long-term contract providing stability
Sector Analysis
The healthcare sector, particularly medical laboratories, is a critical component of government healthcare spending. This contract aligns with the VA's mission to provide comprehensive care to veterans, reflecting typical spending patterns for essential medical services.
Small Business Impact
The data indicates this contract was not set aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices are expected to ensure accountability and performance.
Related Government Programs
- Medical Laboratories
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of specific performance metrics
- Absence of detailed per-unit cost data for benchmarking
- Potential for uncaptured small business subcontracting opportunities
Tags
medical-laboratories, department-of-veterans-affairs, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.8 million to QUEST DIAGNOSTICS INCORPORATED. REFERENCE LAB CONTRACT FOR NORTH TEXAS VA FACILITY
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 $3.8 million.
What is the period of performance?
Start: 2021-03-01. End: 2026-02-28.
What is the projected per-unit cost for common laboratory tests under this contract?
The provided data does not include specific per-unit costs for individual tests. To assess value effectively, a detailed breakdown of test volumes and their associated prices would be necessary. This information is crucial for comparing the contract's pricing against industry benchmarks and identifying potential cost savings or overspending.
What are the key performance indicators (KPIs) for this contract and how is performance being monitored?
The contract details do not specify the key performance indicators (KPIs) or the monitoring mechanisms in place. Effective oversight requires clearly defined metrics for turnaround time, accuracy, and service quality, along with a robust system for tracking and reporting on Quest Diagnostics' performance against these KPIs.
How does the pricing compare to similar contracts awarded by other federal agencies or private healthcare providers for comparable laboratory services?
Without access to detailed pricing structures and service level agreements for comparable contracts, a direct comparison is difficult. However, the fact that it was awarded under full and open competition suggests a degree of market validation. A deeper analysis would involve benchmarking against publicly available data or conducting market research on similar service contracts.
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
Solicitation ID: 36C25721Q0172
Offers Received: 3
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: $3,872,870
Exercised Options: $3,788,693
Current Obligation: $3,788,693
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-01-28
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