VA awards $138K contract for phlebotomy services in Puerto Rico to Quest Diagnostics

Contract Overview

Contract Amount: $138,361 ($138.4K)

Contractor: Quest Diagnostics of Puerto Rico Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-12-23

End Date: 2026-04-08

Contract Duration: 1,567 days

Daily Burn Rate: $88/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY22 VIEQUES PHLEBOTOMY SERVICE, BASE.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00921

Plain-Language Summary

Department of Veterans Affairs obligated $138,361.3 to QUEST DIAGNOSTICS OF PUERTO RICO INC for work described as: FY22 VIEQUES PHLEBOTOMY SERVICE, BASE. Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. The contract is for phlebotomy services, a critical component of healthcare delivery. 3. The duration of the contract extends over several years, indicating a stable need. 4. The fixed-price nature of the contract helps in budget predictability. 5. The award was made to a single contractor, Quest Diagnostics. 6. The contract is for services in Puerto Rico, addressing a specific geographic need.

Value Assessment

Rating: good

The contract value of $138,361.30 for a period of approximately 4.3 years (1567 days) appears reasonable for specialized phlebotomy services. Benchmarking against similar contracts for medical laboratories, particularly in a specific geographic region like Puerto Rico, would provide a more precise value assessment. However, given the competitive award and the nature of the service, the pricing is likely aligned with market rates for such essential healthcare support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. While the specific number of bidders is not provided, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayer funds were used efficiently by soliciting multiple bids, leading to a potentially lower price than a sole-source award.

Public Impact

Beneficiaries include veterans in Puerto Rico requiring phlebotomy services. Essential diagnostic support services are delivered through this contract. The geographic impact is focused on Puerto Rico. The contract supports the healthcare workforce by ensuring access to necessary laboratory services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competition intensity.
Geographic concentration of services could pose risks if alternative providers are scarce.
Dependence on a single vendor for a critical service requires robust performance monitoring.

Positive Signals

Awarded through a competitive process, indicating potential for value.
Firm Fixed Price contract provides cost certainty.
Long-term contract (over 4 years) ensures continuity of essential services.
Services are for a specific, critical healthcare need (phlebotomy).

Sector Analysis

The healthcare sector, specifically the provision of medical laboratory services, is a significant area of federal spending. This contract falls under the Medical Laboratories (NAICS 621511) industry. The market for these services is typically characterized by a mix of large national providers and smaller regional laboratories. Federal agencies, particularly the Department of Veterans Affairs, rely heavily on such services to support healthcare for veterans, often in locations where access to civilian facilities may be limited or require specific arrangements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary award went to a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem is likely minimal unless Quest Diagnostics actively engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated by the public availability of contract data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Health Administration Medical Services
Department of Veterans Affairs Laboratory Services
Outpatient Laboratory Services Contracts
Medical Diagnostic Services

Risk Flags

Potential for service disruption due to single vendor reliance.
Limited transparency on specific bidder numbers under SAP.
Geographic concentration of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $138,361.3 to QUEST DIAGNOSTICS OF PUERTO RICO INC. FY22 VIEQUES PHLEBOTOMY SERVICE, BASE.

Who is the contractor on this award?

The obligated recipient is QUEST DIAGNOSTICS OF PUERTO RICO 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 $138,361.3.

What is the period of performance?

Start: 2021-12-23. End: 2026-04-08.

What is the historical spending pattern for phlebotomy services by the Department of Veterans Affairs in Puerto Rico?

Analyzing historical spending for phlebotomy services by the VA in Puerto Rico requires access to detailed procurement databases beyond the provided data. However, the award of this $138,361.30 contract in late 2021 for services extending to April 2026 suggests a recurring need. Typically, agencies like the VA maintain ongoing contracts for essential services like phlebotomy to ensure consistent care for veterans. Without specific historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending compared to previous periods. Factors influencing historical spending could include changes in veteran population, healthcare utilization rates, and the availability of alternative service providers in the region.

How does the per-unit cost of phlebotomy services under this contract compare to national benchmarks?

The provided data does not include specific per-unit cost details for phlebotomy services, making a direct comparison to national benchmarks impossible. The contract value of $138,361.30 is an aggregate amount for the entire contract period and scope, not a breakdown of individual test or collection fees. To perform such a comparison, one would need access to the contract's detailed pricing structure, including the cost per phlebotomy draw or per specific test performed. National benchmarks for phlebotomy services can vary significantly based on geographic location, facility type (e.g., hospital, clinic, independent lab), and the complexity of the tests ordered. Generally, contracted services aim to achieve economies of scale and competitive pricing, but without the granular data, assessing value-for-money on a per-unit basis is speculative.

What is Quest Diagnostics' track record with the Department of Veterans Affairs for similar services?

Quest Diagnostics is a major provider of diagnostic testing services and likely has a significant track record with various federal agencies, including the Department of Veterans Affairs. To assess their specific performance on similar phlebotomy or laboratory service contracts with the VA, a review of past performance evaluations, contract awards, and any reported issues would be necessary. This would involve searching procurement databases for previous contracts awarded to Quest Diagnostics by the VA, examining contract close-out reports, and looking for any past performance information or contractor capability assessments. A positive track record would indicate reliability and quality service delivery, while a history of issues might raise concerns about performance risk for this current contract.

What are the potential risks associated with a single vendor providing phlebotomy services in Puerto Rico?

The primary risk associated with a single vendor, Quest Diagnostics in this case, providing phlebotomy services in Puerto Rico is service disruption. Any operational issues faced by the contractor, such as staffing shortages, equipment failures, or unforeseen events like natural disasters (which are a concern in Puerto Rico), could directly impact the availability of essential phlebotomy services for veterans. This could lead to delays in diagnoses and treatment. Furthermore, a lack of competition for future contract renewals could potentially lead to price increases. Mitigating these risks involves robust contract management by the VA, including close monitoring of performance, maintaining open communication channels, and potentially developing contingency plans or identifying alternative providers in advance.

How does the duration of this contract (over 4 years) impact the VA's flexibility and cost-effectiveness?

The contract duration of approximately 4.3 years (1567 days) provides the Department of Veterans Affairs with service continuity and allows the contractor, Quest Diagnostics, to plan resources effectively. For the VA, a longer-term contract can lead to more stable pricing and reduced administrative burden associated with frequent re-competition. It allows for a deeper integration of services and potentially better performance as the contractor becomes more familiar with the VA's specific needs in Puerto Rico. However, it also reduces the VA's flexibility to switch providers if a better opportunity arises or if performance issues emerge that are not easily rectified. Cost-effectiveness is generally enhanced by longer contracts due to potential volume discounts and reduced transition costs, provided the initial pricing was competitive and performance remains satisfactory throughout the term.

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

Solicitation ID: 36C24821Q1327

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Quest Diagnostics Incorporated

Address: 107 AVE ORTEGON STE 103, GUAYNABO, PR, 00966

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

Financial Breakdown

Contract Ceiling: $178,678

Exercised Options: $138,361

Current Obligation: $138,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline