VA awards $900K task order for laboratory testing services to Quest Diagnostics in Indiana

Contract Overview

Contract Amount: $90,000 ($90.0K)

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: $247/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EVANSVILLE OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47715

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $90,000 to QUEST DIAGNOSTICS INCORPORATED for work described as: EVANSVILLE OY4 TASK ORDER - REFERRAL LABORATORY TESTING SERVICES FOR VISN 15 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under an existing contract, indicating a need for ongoing services. 3. The fixed-price contract type helps manage cost certainty for the government. 4. The duration of the task order is one year, suggesting a need for short-to-medium term services. 5. The service falls under the Medical Laboratories NAICS code, a common area for federal procurement. 6. The awardee, Quest Diagnostics, is a large, established provider in the laboratory testing sector.

Value Assessment

Rating: good

The contract value of $900,000 for one year of referral laboratory testing services appears reasonable given the nature of the services. Benchmarking against similar contracts for laboratory testing services across the Department of Veterans Affairs (VA) would provide a more precise value assessment. However, as a task order under a larger contract, the pricing is likely pre-negotiated and subject to established rates. The firm fixed-price structure provides cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the competition type suggests a robust process aimed at achieving fair market prices. This approach generally leads to better price discovery and value for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Veterans in VISN 15 will benefit from access to essential referral laboratory testing services. The contract ensures the continuity of critical diagnostic services for patient care within the VA healthcare system. Services will be delivered in Indiana, impacting veterans and potentially healthcare support staff in that region. The contract supports the VA's mission to provide comprehensive healthcare to its beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The duration of one year may necessitate future re-competition, leading to potential administrative overhead.
Dependence on a single task order for a critical service could pose a risk if the contractor underperforms.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
The use of a firm fixed-price contract provides cost certainty.
Quest Diagnostics is a well-established provider with a known track record in laboratory services.

Sector Analysis

The medical laboratory services sector is a critical component of the healthcare industry, providing essential diagnostic testing. Federal agencies, particularly the Department of Defense and the Department of Veterans Affairs, are significant purchasers of these services to support military personnel and veterans. The market is characterized by both large national providers like Quest Diagnostics and numerous smaller regional laboratories. Spending in this sector is driven by healthcare demand, technological advancements in testing, and government healthcare initiatives.

Small Business Impact

There is no indication that this task order included a small business set-aside. As a delivery order under a larger contract, the subcontracting opportunities for small businesses would depend on the terms of the prime contract and the specific needs of Quest Diagnostics. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and the relevant program officials within the Department of Veterans Affairs. The contract is firm fixed-price, which simplifies financial oversight. Accountability is managed through performance standards outlined in the task order and the prime contract. Transparency is generally maintained through contract databases like SAM.gov, although specific performance metrics are not publicly detailed.

Related Government Programs

VA Medical Care Programs
VA Laboratory Services
Federal Supply Schedule (FSS) Contracts
Healthcare Services Procurement

Risk Flags

Vendor Performance Risk
Price Escalation Risk
Contract Management Overhead

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $90,000 to QUEST DIAGNOSTICS INCORPORATED. EVANSVILLE 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 $90,000.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the historical spending by the VA on referral laboratory testing services?

The Department of Veterans Affairs (VA) consistently allocates significant funding towards laboratory services to support its vast network of healthcare facilities and patient care. While specific figures for 'referral laboratory testing services' alone are not readily available in aggregated public data, the VA's overall spending on medical supplies and services, which includes laboratory diagnostics, runs into billions of dollars annually. For instance, in recent fiscal years, the VA has spent upwards of $5 billion on medical services and supplies. Task orders like the one awarded to Quest Diagnostics represent a portion of this larger spending, often utilized when in-house capabilities are insufficient or specialized testing is required. Analyzing historical spending trends for similar task orders or broader laboratory service contracts within VISN 15 or across the VA could provide context on the volume and value of such services procured over time.

How does the pricing of this task order compare to similar contracts for laboratory testing?

Benchmarking the pricing of this $900,000, one-year task order for referral laboratory testing services against similar contracts is challenging without access to detailed pricing structures and specific service volumes. However, the award to Quest Diagnostics, a major national provider, under full and open competition suggests that the pricing is likely competitive within the market for such services. Firm fixed-price contracts generally aim to align costs with market rates. To conduct a thorough comparison, one would need to analyze the per-test costs or cost-per-patient for specific assays performed, benchmarked against other VA contracts, Medicare reimbursement rates for similar tests, or pricing from other large commercial laboratory providers. The value proposition is also tied to the reliability and turnaround time of the services provided, which are not captured in the dollar amount alone.

What are the potential risks associated with this contract?

Several potential risks are associated with this contract. Firstly, there's a risk of vendor performance issues; Quest Diagnostics, despite its size, could experience disruptions in service delivery, quality control failures, or delays in reporting results, which could impact patient care. Secondly, reliance on a single vendor for referral testing, even if competitively sourced, carries a risk of price escalation in future contract renewals if competition diminishes or market conditions change unfavorably. Thirdly, there's an administrative risk associated with managing the contract, ensuring compliance with terms, and overseeing performance. Finally, if the contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, there's a risk that the underlying IDIQ contract itself may not be structured optimally for long-term value or may face future challenges.

What is Quest Diagnostics' track record with the federal government, particularly the VA?

Quest Diagnostics has a significant and long-standing relationship with the federal government, including the Department of Veterans Affairs (VA). They are a major provider of laboratory testing services across various federal agencies. Their track record includes numerous contracts for diagnostic testing, often awarded through competitive processes. While specific performance metrics for individual contracts are not always publicly detailed, their continued success in securing federal contracts suggests a generally positive performance history and ability to meet government requirements. However, like any large contractor, they may have faced occasional performance issues or contract disputes on specific awards, which would be documented in federal contract databases and agency performance reviews. A deeper dive into their contract history would reveal the scope and nature of their federal engagements.

How does this contract fit into the VA's broader strategy for healthcare delivery?

This task order fits into the VA's broader strategy by ensuring that veterans have access to necessary diagnostic laboratory services, even when the VA's internal laboratory capacity is insufficient or specialized testing is required. The VA aims to provide comprehensive, high-quality healthcare, and diagnostic testing is a fundamental component of that. By utilizing external providers like Quest Diagnostics through competitively awarded task orders, the VA can maintain flexibility, manage costs, and ensure timely access to a wide range of tests. This approach allows the VA to focus its internal resources on core services while leveraging commercial expertise for specialized or high-volume referral testing, ultimately supporting the goal of providing efficient and effective care to veterans across its network.

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: $90,000

Exercised Options: $90,000

Current Obligation: $90,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25522D0028

IDV Type: IDC

Timeline