DoD Awards $26M Firm Fixed Price Contract for Drug-Free Workplace Services to Pembrooke Occupational Health

Contract Overview

Contract Amount: $25,953,947 ($26.0M)

Contractor: Pembrooke Occupational Health, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-27

End Date: 2025-05-19

Contract Duration: 1,939 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CIVILIAN DRUG FREE WORKPLACE COLLECTIONS AND MEDICAL REVIEW OFFICER SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to PEMBROOKE OCCUPATIONAL HEALTH, INC. for work described as: CIVILIAN DRUG FREE WORKPLACE COLLECTIONS AND MEDICAL REVIEW OFFICER SUPPORT SERVICES Key points: 1. Contract awarded to Pembrooke Occupational Health, Inc. for $25.95M. 2. Services include drug-free workplace collections and medical review officer support. 3. The contract spans from January 2020 to May 2025. 4. This is a definitive contract under full and open competition. 5. The North American Industry Classification System (NAICS) code is 621511 (Medical Laboratories).

Value Assessment

Rating: good

The contract value of $25.95M over approximately 5 years suggests a reasonable annual spend for specialized medical services. Benchmarking against similar contracts for MRO and drug testing services would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential workplace safety services.

Public Impact

Ensures a drug-free environment for Department of Defense personnel. Supports employee health and safety through mandated testing and review. Provides critical medical review services for compliance and regulatory adherence. Maintains operational readiness by addressing substance abuse concerns. Services are essential for maintaining security clearances and personnel reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (1939 days).
Small business participation is not indicated.
No specific performance metrics or KPIs are detailed in the provided data.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type locks in costs.
Services are essential for workplace safety and compliance.

Sector Analysis

The spending falls under the Medical Laboratories (NAICS 621511) sector, which includes services related to clinical laboratory testing. The total contract value of $25.95M over nearly 5 years is significant for this specialized service area, particularly within a large federal agency like the Department of Defense.

Small Business Impact

The provided data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the services required larger, specialized providers.

Oversight & Accountability

The contract is managed by Washington Headquarters Services, suggesting established oversight mechanisms. However, the specific details of performance monitoring, quality assurance, and accountability measures are not included in the provided data.

Related Government Programs

Medical Laboratories
Department of Defense Contracting
Washington Headquarters Services Programs

Risk Flags

Long contract duration may reduce flexibility.
Lack of small business participation noted.
No explicit performance metrics provided.
Potential for cost inefficiencies if initial pricing was not competitive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to PEMBROOKE OCCUPATIONAL HEALTH, INC.. CIVILIAN DRUG FREE WORKPLACE COLLECTIONS AND MEDICAL REVIEW OFFICER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PEMBROOKE OCCUPATIONAL HEALTH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2020-01-27. End: 2025-05-19.

What is the specific breakdown of services provided under this contract, and how do they align with DoD's drug-free workplace policy objectives?

The contract covers 'CIVILIAN DRUG FREE WORKPLACE COLLECTIONS AND MEDICAL REVIEW OFFICER SUPPORT SERVICES.' This includes the physical collection of biological samples for drug testing and the professional review of test results by certified Medical Review Officers (MROs). These services directly support the DoD's policy by ensuring accurate and reliable drug testing, maintaining a safe and secure work environment, and complying with federal regulations regarding workplace drug testing for civilian employees.

How does the per-unit cost of drug collections and MRO services compare to industry benchmarks, given the contract's firm fixed price structure?

Without specific per-unit pricing data or detailed service delivery metrics, a direct benchmark comparison is challenging. However, the total contract value of $25.95M over nearly five years suggests an average annual spend of approximately $5.2M. The firm fixed price structure provides cost certainty for the government, but it relies on the initial pricing being competitive. A detailed analysis of historical pricing and market rates for similar services would be necessary to assess the cost-effectiveness.

What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the effectiveness and reliability of these critical support services?

The provided data does not specify the key performance indicators (KPIs) or quality assurance measures. Effective oversight would typically involve tracking metrics such as turnaround time for test results, accuracy rates, chain-of-custody compliance, and vendor responsiveness. Regular performance reviews and audits by Washington Headquarters Services would be crucial to ensure the contractor consistently meets the required standards for these sensitive and critical support services.

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

Solicitation ID: HQ003419R0174

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Abbott Laboratories Inc.

Address: 9201 ARBORETUM PARKWAY SUITE 200, RICHMOND, VA, 23236

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

Financial Breakdown

Contract Ceiling: $26,245,141

Exercised Options: $26,245,141

Current Obligation: $25,953,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline