HHS awards $820K for anatomical pathology/clinical lab testing to LabCorp in Montana

Contract Overview

Contract Amount: $596,268 ($596.3K)

Contractor: Laboratory Corporation of America

Awarding Agency: Department of Health and Human Services

Start Date: 2021-01-11

End Date: 2021-09-25

Contract Duration: 257 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BAIHS ANATOMICAL PATHOLOGY/CLINICAL LABORATORY TESTING YEAR 4 OF 5/OPT 2: 09/26/20-09/25/21 BLACKFEET SVC UNIT EST. AMT: $820,000.00

Place of Performance

Location: BROWNING, GLACIER County, MONTANA, 59417

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $596,268.19 to LABORATORY CORPORATION OF AMERICA for work described as: BAIHS ANATOMICAL PATHOLOGY/CLINICAL LABORATORY TESTING YEAR 4 OF 5/OPT 2: 09/26/20-09/25/21 BLACKFEET SVC UNIT EST. AMT: $820,000.00 Key points: 1. The contract is for year 4 of a 5-year period, with an estimated value of $820,000. 2. Laboratory Corporation of America (LabCorp) is the sole awardee. 3. The contract falls under the Medical Laboratories (NAICS 621511) sector. 4. This is a delivery order under a previously awarded contract.

Value Assessment

Rating: fair

The estimated amount for this year is $820,000. The actual amount spent was $596,268.19, indicating potential overestimation or underspending. Benchmarking against similar contracts for anatomical pathology and clinical laboratory testing would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data does not specify the number of bids received or the details of the price discovery mechanism.

Taxpayer Impact: The contract value is relatively modest, and the competition method suggests a reasonable effort to secure fair pricing for taxpayer funds.

Public Impact

Ensures continued access to essential anatomical pathology and clinical laboratory testing services for the Blackfeet Service Unit. Supports the Indian Health Service's mission to provide healthcare to federally recognized Native American tribes. The contract's duration and estimated value suggest a stable, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overestimation of contract value.
Lack of detail on the competitive bidding process.

Positive Signals

Awarded under full and open competition.
Services are essential for healthcare delivery.

Sector Analysis

This contract falls within the Medical Laboratories sector, which is crucial for diagnostic and treatment decisions in healthcare. Spending in this sector can vary significantly based on the scope of services and patient volume.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, Laboratory Corporation of America, is a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting that oversight may be managed at a higher level. Further review of the base contract and any task orders would be needed to assess specific oversight mechanisms.

Related Government Programs

Medical Laboratories
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for overestimation of contract value.
Lack of specific details on competition outcomes.
Limited insight into service utilization vs. estimate.
No information on future contract strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $596,268.19 to LABORATORY CORPORATION OF AMERICA. BAIHS ANATOMICAL PATHOLOGY/CLINICAL LABORATORY TESTING YEAR 4 OF 5/OPT 2: 09/26/20-09/25/21 BLACKFEET SVC UNIT EST. AMT: $820,000.00

Who is the contractor on this award?

The obligated recipient is LABORATORY CORPORATION OF AMERICA.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $596,268.19.

What is the period of performance?

Start: 2021-01-11. End: 2021-09-25.

What was the total number of bids received during the full and open competition for this contract?

The provided data states the contract was awarded under 'FULL AND OPEN COMPETITION,' but it does not specify the number of bids received. To fully assess the competitive landscape and price discovery, obtaining the number of bids and details of the evaluation process would be beneficial.

How does the actual spending of $596,268.19 compare to the estimated amount of $820,000.00 in terms of efficiency?

The actual spending was approximately 72.7% of the estimated amount. This could indicate effective cost management, a conservative estimate, or potentially reduced service utilization. A deeper analysis comparing the scope of services delivered versus the estimate is needed to determine true efficiency.

What is the long-term strategy for ensuring cost-effective laboratory testing services beyond this 5-year contract?

The current data only covers year 4 of a 5-year contract. Information regarding future procurement strategies, potential for re-competition, or consolidation of services is not available. Understanding the long-term plan is crucial for sustained cost-effectiveness and service continuity.

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

Parent Company: Bode Cellmark Forensics Inc.

Address: 358 S MAIN ST STE 458, BURLINGTON, NC, 27215

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

Financial Breakdown

Contract Ceiling: $596,268

Exercised Options: $596,268

Current Obligation: $596,268

Actual Outlays: $72,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSI244201700020C

IDV Type: IDC

Timeline