VA Awards $3.26M for Medical Lab Services to LabCorp, Extending Contract

Contract Overview

Contract Amount: $3,264,999 ($3.3M)

Contractor: Laboratory Corporation of America

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-10

End Date: 2026-06-30

Contract Duration: 355 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EL PASO REFERENCE LABORATORY TESTING SERVICES BRIDGE

Place of Performance

Location: BURLINGTON, ALAMANCE County, NORTH CAROLINA, 27215

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to LABORATORY CORPORATION OF AMERICA for work described as: EL PASO REFERENCE LABORATORY TESTING SERVICES BRIDGE Key points: 1. Contract value of $3.26 million over 355 days. 2. LabCorp is the sole awardee for this delivery order. 3. The contract is for medical laboratory services. 4. Pricing is based on a firm fixed price structure.

Value Assessment

Rating: fair

The firm fixed price contract for medical laboratory services is a delivery order against an existing contract. Without access to the base contract's pricing and historical data, a precise value assessment is difficult. However, the total award amount suggests a moderate scale for this specific order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The use of a delivery order suggests it's part of a larger, pre-competed contract vehicle, which can streamline acquisition but may limit immediate price discovery for this specific task order.

Taxpayer Impact: Taxpayer funds are being used for essential medical laboratory services, with the expectation of competitive pricing achieved through the initial full and open competition.

Public Impact

Ensures continued access to critical medical laboratory testing for veterans. Supports the Department of Veterans Affairs' healthcare mission. Potential for improved health outcomes through timely diagnostic services.

Waste & Efficiency Indicators

Waste Risk Score: 91 / 10

Positive Signals

Sector Analysis

The healthcare sector, particularly medical laboratory services, is a consistent area of government spending. Benchmarks for similar contracts can vary widely based on the scope of services, geographic location, and specific testing panels required. This award falls within the typical range for specialized laboratory support.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The awardee, Laboratory Corporation of America, is a large corporation. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability will be measured by the quality and timeliness of the laboratory services provided, as well as adherence to the firm fixed price agreement.

Related Government Programs

Risk Flags

Tags

medical-laboratories, department-of-veterans-affairs, nc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to LABORATORY CORPORATION OF AMERICA. EL PASO REFERENCE LABORATORY TESTING SERVICES BRIDGE

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 $3.3 million.

What is the period of performance?

Start: 2025-07-10. End: 2026-06-30.

What was the pricing structure and competitive landscape of the base contract from which this delivery order was issued?

The provided data indicates this is a delivery order under a full and open competition. However, the specifics of the base contract's pricing structure and the competitive outcomes of its initial award are not detailed here. Understanding the base contract's terms is crucial for a comprehensive value assessment, as it likely established the framework for pricing and vendor performance.

Are there any performance metrics or quality assurance measures tied to this contract to ensure effective service delivery?

While the contract type is firm fixed price, which incentivizes cost control, the data does not explicitly detail performance metrics or quality assurance clauses. Effective service delivery in medical laboratories typically relies on adherence to strict quality standards, timely reporting, and accuracy. The VA's oversight would be critical in monitoring these aspects to ensure the contract's effectiveness.

What is the historical performance of Laboratory Corporation of America with the Department of Veterans Affairs for similar services?

Historical performance data for Laboratory Corporation of America with the VA is not included in this dataset. Past performance is a key factor in contract awards and can indicate reliability, quality of service, and adherence to terms. A review of previous contracts and performance evaluations would provide valuable insight into the risk associated with this current award.

Industry Classification

NAICS: Health Care and Social AssistanceMedical and Diagnostic LaboratoriesMedical Laboratories

Product/Service Code: MEDICAL SERVICESLABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $4,880,578

Exercised Options: $3,264,999

Current Obligation: $3,264,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D50532

IDV Type: FSS

Timeline

Start Date: 2025-07-10

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2026-02-18

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