VA awards $11.6M for Laboratory Testing Services to Quest Diagnostics, spanning 5 years

Contract Overview

Contract Amount: $11,577,769 ($11.6M)

Contractor: Quest Diagnostics Nichols Institute Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-10-01

End Date: 2012-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Healthcare

Official Description: LABORATORY TESTING SERVICES FOR VISN 1

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.6 million to QUEST DIAGNOSTICS NICHOLS INSTITUTE INC for work described as: LABORATORY TESTING SERVICES FOR VISN 1 Key points: 1. The contract value of $11.6 million over five years suggests a significant need for these services. 2. Quest Diagnostics is a major player in the diagnostics market, indicating substantial competition likely exists. 3. The fixed-price contract type may offer cost certainty but could limit flexibility if needs change. 4. This spending falls within the Medical Laboratories sector, which is crucial for healthcare delivery.

Value Assessment

Rating: good

The contract value of $11.6 million over five years averages approximately $2.3 million annually. This appears reasonable for comprehensive laboratory testing services, though a direct benchmark against similar VA contracts would provide more precise validation.

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: Full and open competition generally benefits taxpayers by ensuring the government receives the best possible value for its spending.

Public Impact

Ensures access to essential laboratory testing for veterans within VISN 1. Supports diagnostic capabilities critical for patient care and treatment planning. Provides continuity of services, minimizing disruption to healthcare operations. Potentially impacts the operational efficiency of VA medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 5 years may not align with rapidly evolving diagnostic technologies.
Fixed-price contract could lead to cost inefficiencies if service requirements fluctuate significantly.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Long-term contract provides service stability for the VA.
Quest Diagnostics is a reputable provider in the field.

Sector Analysis

This contract falls under the Medical Laboratories sector (NAICS 621511). Spending in this sector is vital for healthcare infrastructure, with benchmarks varying based on the scope and volume of services required.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The fixed-price contract type provides a degree of financial accountability, but performance monitoring is crucial to ensure service quality.

Related Government Programs

Medical Laboratories
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration may exceed the pace of technological advancement in laboratory testing.
Fixed-price structure could lead to inefficiencies if demand fluctuates.
Lack of specific small business participation noted.
Potential for vendor lock-in if competition is limited in future renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.6 million to QUEST DIAGNOSTICS NICHOLS INSTITUTE INC. LABORATORY TESTING SERVICES FOR VISN 1

Who is the contractor on this award?

The obligated recipient is QUEST DIAGNOSTICS NICHOLS INSTITUTE INC.

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 $11.6 million.

What is the period of performance?

Start: 2007-10-01. End: 2012-09-30.

What is the specific range of laboratory tests covered under this contract, and how does it compare to standard diagnostic panels?

The contract details do not specify the exact range of laboratory tests. However, given the significant award amount, it likely encompasses a broad spectrum of routine and specialized diagnostic tests necessary for comprehensive patient care within VISN 1. A comparison to standard panels would require access to the contract's statement of work.

What are the potential risks associated with a 5-year fixed-price contract for laboratory services in a rapidly advancing field?

A 5-year fixed-price contract risks obsolescence of testing methodologies and potential cost inefficiencies if service demands change significantly. The VA might overpay if technology advances rapidly, or the contractor could face losses if costs escalate unexpectedly. Continuous performance monitoring and contract modification clauses are essential.

How effectively does this contract ensure the quality and timeliness of laboratory results for veteran care?

Effectiveness hinges on the VA's performance monitoring and the contractor's adherence to service level agreements. Full and open competition suggests a baseline quality expectation was met. However, ongoing oversight is critical to ensure timely delivery and accuracy of results, directly impacting veteran care outcomes.

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: VA-402-07-RP-0021

Offers Received: 4

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Parent Company: Quest Diagnostics Incorporated (UEI: 056354640)

Address: 14225 NEWBROOKDR, CHANTILLY, VA, 20153

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

Financial Breakdown

Contract Ceiling: $11,577,769

Exercised Options: $11,577,769

Current Obligation: $11,577,769

Contract Characteristics

Multi-Year Contract: Yes

Consolidated Contract: Yes

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline