VA Awards $270K for Laboratory Testing Services to Quest Diagnostics Under Full and Open Competition
Contract Overview
Contract Amount: $270,000 ($270.0K)
Contractor: Quest Diagnostics Incorporated
Awarding Agency: Department of Veterans Affairs
Start Date: 2026-06-01
End Date: 2027-05-31
Contract Duration: 364 days
Daily Burn Rate: $742/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MARION OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15
Place of Performance
Location: MARION, WILLIAMSON County, ILLINOIS, 62959
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $270,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: MARION OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15 Key points: 1. The Department of Veterans Affairs (VA) awarded a $270,000 contract for referral laboratory testing services. 2. Quest Diagnostics Incorporated secured the contract, indicating a competitive bidding process. 3. The contract duration is one year, with services for VISN 15. 4. The spending falls within the Medical Laboratories sector (NAICS 621511).
Value Assessment
Rating: good
The contract value of $270,000 for one year of laboratory testing services appears reasonable given the scope. Benchmarking against similar VA or other federal contracts for specialized laboratory services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive nature of this award is likely to ensure taxpayer funds are used efficiently for essential laboratory services.
Public Impact
Veterans in VISN 15 will receive essential referral laboratory testing services. The award supports a key healthcare function within the VA. Quest Diagnostics, a major provider, will deliver these critical medical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Clear contract duration and scope
- Services directly support veteran healthcare needs
Sector Analysis
This contract falls under the Medical Laboratories sector, which is crucial for diagnostic and treatment pathways in healthcare. Spending in this sector is generally stable, driven by healthcare demand.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if set-asides were considered.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance.
Related Government Programs
- Medical Laboratories
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in despite initial competition
- Limited visibility into small business participation
- Dependence on a single vendor for critical services
Tags
medical-laboratories, department-of-veterans-affairs, il, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $270,000 to QUEST DIAGNOSTICS INCORPORATED. MARION OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15
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 $270,000.
What is the period of performance?
Start: 2026-06-01. End: 2027-05-31.
What is the typical cost range for similar referral laboratory testing services for a VISN of this size?
Determining the typical cost range requires detailed analysis of contract vehicles, specific test panels, volume, and geographic location. Benchmarking against historical VA contracts for VISN 15 or comparable VISNs, as well as commercial contracts for similar services, would be necessary. Factors like turnaround time requirements and specialized testing capabilities also influence pricing, making a precise benchmark challenging without more granular data.
What are the potential risks associated with relying on a single vendor for specialized laboratory testing services?
Relying on a single vendor, even if selected through competition, carries risks such as potential service disruptions due to unforeseen issues with the vendor (e.g., staffing shortages, equipment failure, or financial instability). It could also limit the VA's ability to leverage new technologies or more cost-effective solutions if they emerge. Maintaining strong oversight and performance metrics is crucial to mitigate these risks.
How effectively does this contract contribute to the overall healthcare mission of VISN 15?
This contract directly supports the healthcare mission by ensuring access to necessary referral laboratory testing services, which are fundamental for diagnosis, treatment monitoring, and patient care within VISN 15. By outsourcing these services, the VA can potentially focus internal resources on direct patient care and specialized in-house capabilities, thereby enhancing the overall efficiency and effectiveness of healthcare delivery to veterans.
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: $270,000
Exercised Options: $270,000
Current Obligation: $270,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C25522D0028
IDV Type: IDC
Timeline
Start Date: 2026-06-01
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-04-08
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