DHS awards $1.69M for drug testing, with Quest Diagnostics securing the contract

Contract Overview

Contract Amount: $168,692 ($168.7K)

Contractor: Quest Diagnostics Clinical Laboratories, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-05

End Date: 2027-04-04

Contract Duration: 1,460 days

Daily Burn Rate: $116/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DRUG TESTING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $168,691.65 to QUEST DIAGNOSTICS CLINICAL LABORATORIES, INC. for work described as: DRUG TESTING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days indicates a long-term need for these services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The North American Industry Classification System (NAICS) code 621999 points to specialized health care services. 5. The contract is for delivery order, implying it's part of a larger indefinite-delivery contract vehicle. 6. The award to a single vendor, Quest Diagnostics, warrants a review of pricing and performance.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the broader contract it belongs to or the specific services rendered. However, the total award amount of $1.69 million over approximately four years suggests a moderate annual spend. Further analysis would require comparing unit prices for specific drug tests against market rates and other government contracts for similar services. The fixed-price nature provides some cost certainty, but the overall value proposition depends on the efficiency and quality of the services provided by Quest Diagnostics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the most advantageous offer. The open competition suggests that the government sought to leverage market forces to obtain the best possible pricing and terms for drug testing services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure cost-effective services and prevent inflated pricing that might occur in a less competitive environment.

Public Impact

The U.S. Secret Service benefits from reliable and accessible drug testing services for its personnel. Ensures compliance with federal regulations and agency policies regarding drug-free workplaces. Services are delivered within the District of Columbia, impacting federal employees in the nation's capital. Supports the operational readiness and integrity of the Secret Service by maintaining a drug-free workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
Potential for vendor lock-in if this delivery order is part of a larger, sole-source IDIQ.
Limited transparency on the number of bidders and the evaluation criteria used.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Fixed-price contract type helps control costs and manage budget predictability.
Long contract duration suggests a stable and ongoing requirement, potentially leading to economies of scale.

Sector Analysis

The healthcare services sector, particularly ambulatory health care, is vast and includes specialized services like diagnostic testing. This contract falls under the 'All Other Miscellaneous Ambulatory Health Care Services' category (NAICS 621999). The market for drug testing services is competitive, with numerous private and public providers. Government contracts in this space often focus on reliability, speed, and compliance with strict regulatory standards. Benchmarking would involve comparing pricing for specific tests against national averages and other federal contracts.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. While Quest Diagnostics is a large corporation, the implications for the broader small business ecosystem are minimal unless there are subcontracting requirements not detailed here. Further investigation into subcontracting plans would be needed to assess any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The U.S. Secret Service, as the end-user agency, would also have oversight responsibilities for service delivery. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Drug-Free Workplace Programs
Department of Homeland Security Personnel Services
U.S. Secret Service Operational Support
Ambulatory Health Care Services Contracts
Government-wide Acquisition Contracts (GWACs) for Health Services

Risk Flags

Performance Risk: Potential for service quality issues or delays.
Long-Term Relevance: Need for services may change over the contract's duration.
Vendor Lock-in: If part of a larger IDIQ, limited future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $168,691.65 to QUEST DIAGNOSTICS CLINICAL LABORATORIES, INC.. DRUG TESTING SERVICES

Who is the contractor on this award?

The obligated recipient is QUEST DIAGNOSTICS CLINICAL LABORATORIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $168,691.65.

What is the period of performance?

Start: 2023-04-05. End: 2027-04-04.

What is the historical spending pattern for drug testing services by the U.S. Secret Service or DHS?

Analyzing historical spending on drug testing services by the U.S. Secret Service or the broader Department of Homeland Security (DHS) is crucial for understanding the context of this $1.69 million award. Without access to specific historical data, we can infer trends based on agency size and mission requirements. Agencies with large workforces, particularly those in law enforcement or security like the Secret Service, typically have ongoing needs for drug testing to ensure personnel integrity and compliance with federal mandates. Spending can fluctuate based on policy changes, increased screening requirements, or the number of personnel undergoing testing. Comparing this $1.69 million award over four years (approximately $422,500 annually) to previous years' expenditures would reveal whether this represents an increase, decrease, or stable level of investment in these services. It would also help identify if there have been shifts in contracting strategies, such as moving from multiple smaller contracts to a larger, consolidated award like this delivery order.

How does the pricing of this contract compare to similar drug testing services procured by other federal agencies?

Comparing the pricing of this $1.69 million contract for drug testing services to similar procurements by other federal agencies is essential for assessing value for money. This requires access to a database of federal contract awards and the ability to filter for comparable services (e.g., same NAICS code, similar scope of work, fixed-price contracts). Key metrics for comparison would include the cost per individual test, cost per panel, and any associated administrative or reporting fees. Factors such as geographic location, turnaround time requirements, and the volume of tests can significantly influence pricing. If this contract's unit prices are higher than the average for comparable services across other agencies, it could indicate potential overpayment or less competitive pricing. Conversely, if prices are lower, it suggests effective negotiation or a highly competitive bidding process. Without specific unit pricing data from this award and comparable contracts, a definitive benchmark cannot be established, but the methodology for such a comparison involves detailed price analysis.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) tied to this $1.69 million drug testing services contract. However, for a contract of this nature and duration (four years), robust performance standards are typically expected. These would likely include metrics related to turnaround time for test results (e.g., 24-48 hours for standard tests), accuracy rates of testing, specimen collection procedures, chain of custody protocols, and reporting timeliness. SLAs might also define the availability of testing personnel and facilities, as well as response times for urgent testing needs. The U.S. Secret Service would rely on these metrics to ensure the reliability and effectiveness of the drug testing program. The absence of this information in the summary data limits a full assessment of the contractor's accountability and the contract's overall effectiveness in meeting the agency's needs.

What is the track record of Quest Diagnostics in fulfilling federal contracts for health services, particularly drug testing?

Quest Diagnostics is a major provider of diagnostic testing services and has a significant presence in the healthcare sector. As such, it is highly probable that they have fulfilled numerous federal contracts, including those for drug testing, across various agencies. Evaluating their track record would involve reviewing their past performance ratings on federal contract databases (like the Federal Procurement Data System - FPDS), looking for any past performance issues, contract disputes, or awards for exceptional performance. Specific to drug testing, their experience would likely encompass a wide range of testing methodologies, compliance with regulations like the Department of Transportation (DOT) standards, and experience with government-specific requirements. A positive track record with previous federal contracts would suggest a lower risk associated with this current award, while a history of performance issues might raise concerns about the reliability and quality of services provided.

What is the risk assessment associated with this contract, considering its value, duration, and competition level?

The risk assessment for this $1.69 million drug testing services contract involves several factors. The value, while substantial, is moderate for a four-year federal contract, suggesting a manageable financial risk. The duration of four years (1460 days) indicates a long-term commitment, which carries inherent risks related to potential changes in agency needs, technology, or market pricing over time. The competition level, being 'full and open,' generally lowers the risk of inflated pricing and suggests the government sought competitive offers. However, the lack of information on the number of bidders and specific evaluation criteria means the degree of competitive pressure is not fully known. Risks could also stem from the contractor's performance reliability, potential for service disruptions, or the complexity of ensuring compliance with all relevant regulations. The fixed-price contract type mitigates cost overrun risk for the government. Overall, the risks appear moderate, with performance and long-term relevance being key areas to monitor.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL 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: 1201 S COLLEGEVILLE RD, COLLEGEVILLE, PA, 19426

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

Financial Breakdown

Contract Ceiling: $273,498

Exercised Options: $168,692

Current Obligation: $168,692

Actual Outlays: $86,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0423D0020

IDV Type: IDC

Timeline