VA Modifies $552K Contract for Medical Labs with Tempus AI, Inc

Contract Overview

Contract Amount: $5,525,284 ($5.5M)

Contractor: Tempus AI, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-28

End Date: 2027-01-27

Contract Duration: 364 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODIFICATION P9 TO CHANGE THE CONTRACTING OFFICER AND ADD VAAR CLAUSE 852.222-71 COMPLIANCE WITH EXECUTIVE ORDER 13899

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.5 million to TEMPUS AI, INC for work described as: MODIFICATION P9 TO CHANGE THE CONTRACTING OFFICER AND ADD VAAR CLAUSE 852.222-71 COMPLIANCE WITH EXECUTIVE ORDER 13899 Key points: 1. Contract modification focuses on administrative changes and compliance. 2. Original contract was awarded under full and open competition. 3. No change in scope or value indicated by this modification. 4. Tempus AI, Inc. is the contractor for medical laboratory services.

Value Assessment

Rating: fair

The modification does not alter the contract's value or scope, making a direct pricing assessment difficult. The original award value of $552,528 is a benchmark for the overall contract, not this specific modification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The original contract was awarded through full and open competition, suggesting a competitive price discovery process. This modification does not appear to impact that initial process.

Taxpayer Impact: This modification is administrative and does not represent new spending, thus having no direct additional taxpayer impact.

Public Impact

Veterans will continue to receive medical laboratory services. Ensures compliance with updated executive orders related to labor. Administrative efficiency in contract management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on the specific impact of VAAR Clause 852.222-71.
Potential for future compliance issues if EO 13899 requirements are not fully met.

Positive Signals

Contract modification maintains continuity of services.
Ensures adherence to federal mandates.
Administrative update improves contract clarity.

Sector Analysis

The medical laboratory sector is critical for healthcare delivery. Spending benchmarks vary widely based on service scope and technology. This contract appears to be a smaller component within the broader VA healthcare procurement landscape.

Small Business Impact

The modification does not provide information regarding small business participation. The original contract award details would be needed to assess small business involvement.

Oversight & Accountability

The modification indicates ongoing contract administration by the Department of Veterans Affairs. Oversight is maintained through the contracting officer and adherence to federal acquisition regulations.

Related Government Programs

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

Risk Flags

Administrative modification, not a change in scope or value.
Focus on compliance with Executive Order 13899.
Contracting Officer change noted.
Original award was competitive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.5 million to TEMPUS AI, INC. MODIFICATION P9 TO CHANGE THE CONTRACTING OFFICER AND ADD VAAR CLAUSE 852.222-71 COMPLIANCE WITH EXECUTIVE ORDER 13899

Who is the contractor on this award?

The obligated recipient is TEMPUS AI, INC.

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 $5.5 million.

What is the period of performance?

Start: 2026-01-28. End: 2027-01-27.

What is the specific nature of the VAAR Clause 852.222-71 and its implications for Tempus AI, Inc.?

VAAR Clause 852.222-71 likely relates to compliance with Executive Order 13899, which addresses requirements for federal contractors concerning labor practices and potentially other areas like supply chain integrity or cybersecurity. Its specific implications for Tempus AI, Inc. would depend on the exact text of the clause and the nature of their operations, potentially involving new reporting or operational standards.

Does the addition of VAAR Clause 852.222-71 introduce any new risks to the contract's performance or cost?

The addition of a compliance clause like VAAR 852.222-71, especially tied to an Executive Order, could introduce risks if the contractor is not fully prepared to meet its requirements. This might include potential delays, increased administrative burden, or even penalties if non-compliance is found. However, if the contractor is already compliant, the risk is minimal.

How does this administrative modification contribute to the overall effectiveness of the medical laboratory services provided to veterans?

This modification is primarily administrative, focusing on contracting officer designation and regulatory compliance. While it doesn't directly alter the service delivery, ensuring proper oversight and adherence to federal mandates like Executive Order 13899 indirectly supports the effectiveness of the contract by maintaining a compliant and well-managed relationship between the VA and the contractor.

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: 600 W CHICAGO AVE STE 510, CHICAGO, IL, 60654

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,525,284

Exercised Options: $5,525,284

Current Obligation: $5,525,284

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G22D0004

IDV Type: IDC

Timeline