JA FY26 REF LAB BRIDGE_A1_Redacted.pdf

This is a Justification and Approval (J&A) document for other than full and open competition (>SAT) for a federal contract opportunity.

The Department of Veterans Affairs seeks to establish a five-month Firm Fixed Price Purchase Order (FFP-PO) with an optional two-month extension for reference laboratory testing of all esoteric tests to support the VISN 7 Network Office Medical Facilities in Georgia, South Carolina, and Alabama. The incumbent provider, Quest Diagnostics, Inc., currently delivers these services and supplies. The performance period runs from April 1, 2026, to October 31, 2026, with an additional optional two-month extension period. Required services include reference laboratory testing, esoteric test services, consultation services, and transportation of clinical laboratory specimens to the contractor's laboratory. The justification invokes 41 USC §3304(a)(1)—Only One Responsible Source—as the statutory authority, asserting that due to the specialized and highly unique nature of these services, only Quest Diagnostics can provide the necessary services at the required quality level. Market research conducted in February 2025 identified only two prominent large businesses capable of performing these services at the VISN 7 volume level. The acquisition is characterized as a bridge contract to prevent service disruptions while a new long-term Indefinite Delivery Indefinite Quantity (IDIQ) contract (RFP 36C24724R0031, closed June 26, 2025) undergoes final review stages. Quest Diagnostics has extended discounted pricing from the prior solicitation, lower than current pricing, which will remain valid until the new long-term contract is established. The Contracting Officer determined the anticipated cost to be fair and reasonable based on GSA contract pricing and open market comparisons.