VA Ratifies $375K Quest Diagnostics Invoice for Medical Lab Services in FY25

Contract Overview

Contract Amount: $375,217 ($375.2K)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-10

End Date: 2025-12-10

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY25 RATIFICATION OF QUEST OUTSTANDING INVOICE AT VA CENTRAL CALIFORNIA HEALTHCARE SYSTEM.

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93703

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $375,217.25 to QUEST DIAGNOSTICS INCORPORATED for work described as: FY25 RATIFICATION OF QUEST OUTSTANDING INVOICE AT VA CENTRAL CALIFORNIA HEALTHCARE SYSTEM. Key points: 1. Quest Diagnostics holds a significant contract for essential medical laboratory services. 2. The contract is not competed, raising questions about price discovery and value. 3. Potential risks include lack of competitive pressure on pricing and service quality. 4. The IT sector is not directly involved; this falls under Healthcare services.

Value Assessment

Rating: questionable

The contract value of $375,217.25 for a single year of service needs benchmarking against similar medical laboratory contracts. Without competition, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may lead to higher prices than if multiple vendors were bidding.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially resulting in a less optimal use of resources.

Public Impact

Veterans will continue to receive essential diagnostic testing services. The lack of competition could impact the long-term cost-effectiveness of these services. Transparency in the procurement process is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited vendor options

Positive Signals

Ensures continued service delivery
Specific need for diagnostic services

Sector Analysis

This contract falls under the Healthcare sector, specifically for medical laboratory services. Benchmarks for similar services often show significant price variations based on contract scope and competition.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The focus appears to be on a large, established provider.

Oversight & Accountability

The VA is responsible for ensuring fair pricing and effective service delivery. Oversight is needed to confirm the necessity of non-competitive awards and to explore future competitive opportunities.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for price inflation
Limited vendor choice
Single year duration may indicate a stop-gap measure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $375,217.25 to QUEST DIAGNOSTICS INCORPORATED. FY25 RATIFICATION OF QUEST OUTSTANDING INVOICE AT VA CENTRAL CALIFORNIA HEALTHCARE SYSTEM.

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 $375,217.25.

What is the period of performance?

Start: 2025-12-10. End: 2025-12-10.

What is the justification for not competing this contract, and how does the VA ensure fair pricing without competition?

The justification for not competing this contract is not provided in the data. The VA typically relies on specific exceptions to full and open competition, such as urgency or unique capabilities. Ensuring fair pricing without competition often involves historical pricing analysis, independent government cost estimates, or price negotiation techniques, though these are less effective than market competition.

What are the risks associated with a non-competed contract for essential medical services?

The primary risks include paying a higher price than necessary due to the absence of competitive pressure, potentially receiving lower quality service if the vendor faces no threat of losing business, and a lack of innovation that might come from a competitive market. It also limits opportunities for other qualified vendors to serve the VA.

How does this contract contribute to the overall effectiveness of healthcare delivery for veterans?

This contract ensures the continued availability of critical diagnostic laboratory services, which are fundamental to accurate medical diagnosis and effective treatment planning for veterans. Consistent access to these services is vital for maintaining the health and well-being of the veteran population served by the VA.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $375,217

Exercised Options: $375,217

Current Obligation: $375,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline