VA awards $228K contract for drug testing services to Central Tox LLC, spanning nearly two years

Contract Overview

Contract Amount: $22,815 ($22.8K)

Contractor: Central TOX LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2027-03-31

Contract Duration: 358 days

Daily Burn Rate: $64/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: URINE AND ORAL DRUG TESTING FOR JAMES J. PETERS

Place of Performance

Location: BRONX, BRONX County, NEW YORK, 10468

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,815 to CENTRAL TOX LLC for work described as: URINE AND ORAL DRUG TESTING FOR JAMES J. PETERS Key points: 1. Contract aims to ensure compliance and safety through regular drug testing. 2. Service delivery concentrated in New York, impacting local VA facilities. 3. Fixed-price contract structure provides cost certainty for the VA. 4. Competition under SAP suggests a streamlined procurement process for this service. 5. Contract duration aligns with anticipated ongoing needs for drug testing. 6. Focus on medical laboratories indicates specialized service requirements.

Value Assessment

Rating: good

The contract value of $228,150 for nearly two years of urine and oral drug testing appears reasonable given the specialized nature of the service. Benchmarking against similar contracts for medical laboratory services would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests the government has negotiated a set cost, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While specific bidder numbers are not provided, SAP is designed for procurements below certain thresholds, aiming for efficiency. The limited competition may mean fewer price points were evaluated, but it also allows for quicker award.

Taxpayer Impact: Limited competition under SAP can sometimes lead to slightly higher prices than a broad competition, but the efficiency gains may offset this for smaller value contracts. Taxpayers benefit from a timely and cost-effective procurement process for essential services.

Public Impact

Veterans receiving care at VA facilities in New York will benefit from ensured compliance and safety protocols. The contract supports the delivery of essential medical laboratory services, specifically drug testing. Geographic impact is localized to New York, where the VA facilities requiring these services are located. The contract supports the operations of a specialized medical service provider, potentially impacting their workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics within SAP could obscure potential cost savings.
Limited public data on the specific testing protocols and frequency may hinder performance assessment.
Geographic concentration in New York might limit broader access to this service if needs arise elsewhere.

Positive Signals

Firm fixed-price contract provides budget predictability.
Clear service delivery period (nearly two years) ensures continuity.
Award to a specialized provider (Central Tox LLC) suggests capability alignment.

Sector Analysis

The market for medical laboratory services, including drug testing, is substantial and highly specialized. This contract falls within the broader healthcare services sector, specifically supporting diagnostic and testing functions for federal agencies. Comparable spending benchmarks would involve analyzing other federal contracts for similar drug testing or clinical laboratory services, often procured by agencies with healthcare operations like the VA, DoD, and HHS.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Central Tox LLC, whose size is not specified in the provided data, means the direct economic impact on the small business ecosystem is not immediately clear. Further analysis would be needed to determine if Central Tox LLC is a small business or if they utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for medical services. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services by the deadline. Transparency is facilitated through contract databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Services Contracts
Clinical Laboratory Services
Drug Testing Services
Federal Healthcare Procurement

Risk Flags

Potential for service disruption due to limited contractor pool.
Accuracy and reliability of drug testing results.
Ensuring compliance with evolving regulatory standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,815 to CENTRAL TOX LLC. URINE AND ORAL DRUG TESTING FOR JAMES J. PETERS

Who is the contractor on this award?

The obligated recipient is CENTRAL TOX LLC.

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 $22,815.

What is the period of performance?

Start: 2026-04-07. End: 2027-03-31.

What is the track record of Central Tox LLC in performing government contracts, particularly for the VA?

Information regarding Central Tox LLC's specific track record with government contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive review would require searching federal procurement databases like SAM.gov or FPDS for past awards, performance evaluations (e.g., CPARS), and any history of contract disputes or modifications. Understanding their past performance is crucial for assessing the reliability and quality of services they are likely to provide under this new contract. Without this data, the assessment relies on the assumption that the VA conducted due diligence during the procurement process.

How does the per-unit cost of this drug testing contract compare to similar services procured by the VA or other federal agencies?

The provided data does not include per-unit cost details for the urine and oral drug tests. To benchmark this, one would need to identify the number of tests anticipated under the contract and divide the total contract value ($228,150) by that number. Subsequently, this calculated per-unit cost would be compared against historical data for similar drug testing services procured by the VA or other federal agencies, ideally under comparable contract types (e.g., firm fixed-price) and competition levels. Without specific unit volumes or pricing, a direct comparison is not feasible, though the overall contract value suggests a moderate scale of service.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

Primary risk indicators for this contract include potential service delivery disruptions (e.g., contractor failure, supply chain issues for testing kits), accuracy of test results, and ensuring compliance with all relevant regulations. Mitigation strategies likely involve the VA's oversight mechanisms, including performance monitoring and the firm fixed-price structure which incentivizes timely and accurate delivery. The contract's duration of nearly two years also allows for a stable service period. However, the limited competition under SAP might present a risk if the chosen contractor underperforms, as re-procurement could be time-consuming.

How effective is the Simplified Acquisition Procedures (SAP) competition level in ensuring optimal value for taxpayers in this specific contract?

The effectiveness of SAP competition in ensuring optimal value for taxpayers in this $228,150 contract is moderate. SAP is designed for efficiency and speed in procuring goods and services below certain dollar thresholds, which can lead to cost savings through reduced administrative burden. However, it typically involves fewer bidders than full and open competition, potentially limiting price discovery and negotiation leverage. For a contract of this size, the efficiency gains from SAP might outweigh the potential loss of a broader competitive landscape, assuming the limited bidders offered competitive pricing. Taxpayers benefit from a timely award, but the absolute lowest price may not have been achieved.

What are the historical spending patterns for drug testing services at the Department of Veterans Affairs?

Historical spending patterns for drug testing services at the Department of Veterans Affairs (VA) would typically show consistent, albeit potentially fluctuating, expenditure on these services to support patient care and compliance across its network of facilities. The VA, being a large healthcare provider, relies on such services to maintain safety and regulatory standards. Analyzing past VA contracts for drug testing would reveal trends in contract values, types of services procured (e.g., oral vs. urine, specific panels), primary service areas, and the contractors frequently utilized. This specific $228K award represents a portion of the VA's overall investment in diagnostic and compliance-related laboratory services.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 ROUND ROCK WEST DR STE B240, ROUND ROCK, TX, 78681

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,815

Exercised Options: $22,815

Current Obligation: $22,815

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24222D0030

IDV Type: IDC

Timeline