HHS awards $45.6M for Serology Testing Services to Laboratory Corporation of America under full and open competition
Contract Overview
Contract Amount: $45,611,627 ($45.6M)
Contractor: Laboratory Corporation of America
Awarding Agency: Department of Health and Human Services
Start Date: 2020-10-30
End Date: 2022-03-05
Contract Duration: 491 days
Daily Burn Rate: $92.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: SEROLOGY TESTING SERVICES
Place of Performance
Location: BURLINGTON, ALAMANCE County, NORTH CAROLINA, 27215
Plain-Language Summary
Department of Health and Human Services obligated $45.6 million to LABORATORY CORPORATION OF AMERICA for work described as: SEROLOGY TESTING SERVICES Key points: 1. Contract awarded to a single large business, Laboratory Corporation of America. 2. The contract value of $45.6M is for 491 days of service. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The service falls under the Medical Laboratories sector (NAICS 621511).
Value Assessment
Rating: good
The contract value of $45.6M for 491 days suggests a daily rate of approximately $92,895. This appears reasonable given the nature of specialized serology testing services.
Cost Per Unit: $92,895 per day
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 process generally leads to better price discovery and potentially more competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price for the required services.
Public Impact
Ensures availability of critical serology testing services for public health initiatives. Supports the CDC's mission in disease surveillance and outbreak response. Provides essential laboratory capacity for diagnostic testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (491 days), potentially requiring re-competition soon.
- No explicit mention of small business participation, though competition was full and open.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Clear contract type (firm fixed price) provides cost certainty.
- Services are critical for public health infrastructure.
Sector Analysis
The contract falls within the Medical Laboratories sector, which provides diagnostic and testing services. Spending in this sector is crucial for public health infrastructure and disease monitoring.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business set-asides or participation in this particular award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. Oversight would involve monitoring the performance and adherence to the firm fixed price contract terms.
Related Government Programs
- Medical Laboratories
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for vendor lock-in if services are highly specialized.
- Dependence on a single large provider for critical services.
- Need to monitor contract performance closely to ensure quality and timeliness.
- Lack of explicit small business participation noted.
Tags
medical-laboratories, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $45.6 million to LABORATORY CORPORATION OF AMERICA. SEROLOGY TESTING SERVICES
Who is the contractor on this award?
The obligated recipient is LABORATORY CORPORATION OF AMERICA.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $45.6 million.
What is the period of performance?
Start: 2020-10-30. End: 2022-03-05.
What is the historical spending trend for serology testing services by the CDC?
Analyzing historical spending trends for serology testing services by the CDC is crucial for understanding if this $45.6M award represents an increase, decrease, or stable level of investment. It helps contextualize the current award against past procurement patterns and identify potential shifts in demand or program priorities.
How does the per-unit cost benchmark compare to similar serology testing contracts?
Benchmarking the per-unit cost of $92,895 per day against similar serology testing contracts is essential for assessing value for money. If this rate is significantly higher than comparable contracts, it could indicate potential overpricing or unique service requirements that warrant further investigation.
What is the potential impact of contract consolidation on market competition for serology testing services?
Evaluating the impact of consolidating serology testing services under a single large awardee like Laboratory Corporation of America is important. While full and open competition was used, understanding if this trend limits future opportunities for smaller or specialized providers is key to maintaining a robust and competitive market.
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: 75D301-20-R-68127
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 531 S SPRING ST, 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: $47,916,380
Exercised Options: $47,916,380
Current Obligation: $45,611,627
Actual Outlays: $13,516,409
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-10-30
Current End Date: 2022-03-05
Potential End Date: 2022-03-05 00:00:00
Last Modified: 2024-11-19
More Contracts from Laboratory Corporation of America
- Covid-19 LAB Testing — $32.3M (Department of Health and Human Services)
- Sars-Cov-2 Spheres Baseline Genomic Sequencing — $27.9M (Department of Health and Human Services)
- Reference LAB Testing for Visn 19 — $5.5M (Department of Veterans Affairs)
- Reference LAB Testing for Visn 19 — $5.0M (Department of Veterans Affairs)
- Reference Laboratory Testing Option Extension Funding — $5.0M (Department of Veterans Affairs)
View all Laboratory Corporation of America federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →