VA awards $2.2M contract for medical lab services to Quest Diagnostics in California
Contract Overview
Contract Amount: $2,206,613 ($2.2M)
Contractor: Quest Diagnostics Incorporated
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-04-01
End Date: 2025-09-30
Contract Duration: 547 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: REFERENCE LAB
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161
Plain-Language Summary
Department of Veterans Affairs obligated $2.2 million to QUEST DIAGNOSTICS INCORPORATED for work described as: REFERENCE LAB Key points: 1. Contract awarded to Quest Diagnostics for medical laboratory services. 2. The contract is valued at $2.2 million over its duration. 3. Services will be provided in California. 4. The contract type is Firm Fixed Price. 5. This is a delivery order under an existing contract.
Value Assessment
Rating: fair
The contract value of $2.2 million for medical laboratory services appears reasonable given the duration and scope. Benchmarking against similar contracts for lab services would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for the best value for the government.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for the essential medical laboratory services.
Public Impact
Ensures continued access to essential medical laboratory services for veterans. Supports healthcare delivery within the Department of Veterans Affairs network. Potential for improved patient outcomes through timely diagnostic testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for critical services.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Supports a critical government function (veteran healthcare).
Sector Analysis
Medical laboratory services fall under the healthcare sector, specifically supporting diagnostic testing. Spending benchmarks for this sector vary widely based on service volume and complexity, but this contract appears to be of moderate value for the specified duration.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and accurate delivery of medical laboratory services. Standard oversight mechanisms should be in place to monitor performance and compliance.
Related Government Programs
- Medical Laboratories
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in if competition was limited in the past.
- Reliance on a single provider for critical diagnostic services.
- Need for ongoing monitoring of service quality and cost-effectiveness.
- Uncertainty regarding small business participation.
Tags
medical-laboratories, department-of-veterans-affairs, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.2 million to QUEST DIAGNOSTICS INCORPORATED. REFERENCE LAB
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 $2.2 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-09-30.
What is the specific scope of services included in this $2.2 million contract?
The provided data identifies the North American Industry Classification System (NAICS) code as 621511 for Medical Laboratories. This suggests the contract covers a range of diagnostic testing and laboratory analysis services. However, the precise list of tests, volume expectations, and specific reporting requirements would be detailed in the contract's statement of work, which is not included here.
How does the per-unit cost of common lab tests under this contract compare to market rates?
Without specific per-unit cost data for individual lab tests, a direct comparison to market rates is not possible. The contract is a delivery order under a larger agreement, and the pricing structure would be defined within that master agreement. A detailed analysis would require access to the contract's pricing details and a benchmark against similar government or commercial contracts for the same tests.
What mechanisms are in place to ensure the quality and timeliness of the laboratory services provided by Quest Diagnostics?
The Department of Veterans Affairs typically employs quality assurance surveillance plans (QASPs) and performance metrics to monitor contractor performance. While not detailed in the provided summary, the contract likely includes clauses for service level agreements, turnaround times for test results, and quality control standards. The VA contracting officer's representative (COR) would be responsible for overseeing adherence to these standards.
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
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: $2,206,613
Exercised Options: $2,206,613
Current Obligation: $2,206,613
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C26219D0001
IDV Type: IDC
Timeline
Start Date: 2024-04-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-03-17
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