DoD's $64.4M ECWCS Kit contract awarded to Atlantic Diving Supply, Inc. shows fair value with 3 bidders

Contract Overview

Contract Amount: $64,395,260 ($64.4M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-23

End Date: 2010-09-16

Contract Duration: 570 days

Daily Burn Rate: $113.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GEN III ECWCS KIT:

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH (CITY) County, VIRGINIA, 23452

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $64.4 million to ATLANTIC DIVING SUPPLY, INC. for work described as: GEN III ECWCS KIT: Key points: 1. The contract demonstrates a competitive landscape with three bidders, suggesting a reasonable price discovery process. 2. While the contract value is substantial, the firm-fixed-price structure provides cost certainty for the government. 3. The award to Atlantic Diving Supply, Inc. indicates a focus on established suppliers within the defense sector. 4. Performance duration of 570 days suggests a moderate-term need for these specialized apparel items. 5. The absence of small business set-aside flags potential missed opportunities for smaller enterprises in this procurement. 6. The contract falls under 'Other Apparel Accessories and Other Apparel Manufacturing,' a niche within the broader defense supply chain.

Value Assessment

Rating: fair

The contract value of $64.4 million for GEN III ECWCS Kits appears reasonable given the duration and the competitive nature of the award. Benchmarking against similar, large-scale apparel procurements for military use would provide a more precise value assessment. The firm-fixed-price contract type limits the government's exposure to cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders suggests a healthy level of competition, which typically leads to more competitive pricing and better value for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a market-driven price, preventing potential overpayment that could occur with less competitive solicitations.

Public Impact

The primary beneficiaries are U.S. military personnel who will receive the Extended Cold Weather Clothing System (ECWCS) kits. These kits provide essential cold-weather protection, enhancing soldier readiness and operational effectiveness in diverse climates. The services delivered include the manufacturing and supply of specialized apparel designed for extreme cold conditions. The geographic impact is widespread, as the kits will be distributed to military units across various operational theaters. Workforce implications include employment within the apparel manufacturing sector, particularly at Atlantic Diving Supply, Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation could limit innovation and broader economic impact.
Reliance on a single prime contractor for a significant value contract warrants close monitoring of performance and supply chain integrity.

Positive Signals

Firm-fixed-price contract provides cost predictability for the Department of Defense.
Full and open competition suggests a robust market response and potential for competitive pricing.
Award to an established entity like Atlantic Diving Supply, Inc. may indicate a reliable supplier with proven capabilities.

Sector Analysis

The apparel manufacturing sector, particularly for specialized military gear, is a critical component of the defense industrial base. This contract for ECWCS kits represents a significant procurement within this niche, supporting the operational readiness of the armed forces. The market for such specialized clothing is influenced by defense budgets, technological advancements in materials, and geopolitical demands. Comparable spending benchmarks would involve analyzing other large-scale procurements for military uniforms and protective gear.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through indirect subcontracting channels, if any. The absence of a set-aside may limit the direct economic benefit to the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, quality standards, and delivery schedules. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to meet cost targets. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Military Clothing and Textiles
Tactical Apparel Procurement
Cold Weather Gear Contracts
Department of Defense Supply Chain Management

Risk Flags

Potential for supply chain vulnerabilities
Quality control of specialized materials
Contractor performance risk
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.4 million to ATLANTIC DIVING SUPPLY, INC.. GEN III ECWCS KIT:

Who is the contractor on this award?

The obligated recipient is ATLANTIC DIVING SUPPLY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $64.4 million.

What is the period of performance?

Start: 2009-02-23. End: 2010-09-16.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling large defense apparel contracts?

Atlantic Diving Supply, Inc. has a history of securing and fulfilling defense contracts, including those for apparel and related equipment. While specific details on past performance for ECWCS kits of this magnitude are not provided in the summary data, their award suggests they met the necessary criteria for capability and reliability. A deeper dive into their contract history, including any past performance reviews or awards for similar items, would offer a more comprehensive understanding of their track record. Their presence in the market indicates experience in navigating the complexities of government procurement and military specifications.

How does the per-unit cost of these ECWCS kits compare to similar procurements or market rates?

The provided data does not include a per-unit cost breakdown, making a direct comparison difficult. The total contract value of $64.4 million over a 570-day period for an unspecified number of kits prevents a precise per-unit calculation. To assess value, one would need to know the quantity of kits procured and compare that to historical data for similar ECWCS generations or comparable cold-weather gear from other military branches or allied nations. Without this granular data, the value proposition remains qualitative, based on the competitive award and fixed-price structure.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential supply chain disruptions affecting timely delivery, quality control issues with specialized cold-weather materials, and contractor performance under the firm-fixed-price structure. Mitigation strategies likely involve robust oversight by the DCMA, adherence to strict military specifications, and performance incentives/penalties outlined in the contract. The competitive award process itself mitigates some risk by selecting a contractor deemed capable. However, the long-term performance and potential for cost growth if specifications change would remain areas for ongoing monitoring.

How effective has the Department of Defense been in procuring essential cold-weather gear through competitive bidding?

The Department of Defense generally leverages competitive bidding for essential procurements like cold-weather gear, as demonstrated by this contract's 'full and open competition' status. This approach aims to ensure best value and fair pricing for taxpayers. Historical data across various DoD procurements suggests that competitive processes, when well-managed, are effective in driving down costs and ensuring quality. However, effectiveness can vary based on market dynamics, the complexity of the item, and the number of capable bidders. Occasional sole-source or limited competition awards may indicate market limitations or urgent needs.

What has been the historical spending trend for ECWCS kits or similar cold-weather apparel by the Department of Defense?

Historical spending on ECWCS kits and similar cold-weather apparel by the DoD is likely substantial and fluctuates based on global deployments, troop levels, and modernization programs. The GEN III ECWCS represents an evolution of previous systems, implying ongoing investment in cold-weather capabilities. Analyzing past contracts for GEN I and GEN II ECWCS, as well as other specialized cold-weather uniforms, would reveal spending trends. Factors such as the number of generations, upgrades, and the scale of procurements over time would indicate a consistent, albeit variable, demand for such essential gear.

What is the significance of the 'Other Apparel Accessories and Other Apparel Manufacturing' NAICS code in the context of defense spending?

The NAICS code 315999, 'Other Apparel Accessories and Other Apparel Manufacturing,' signifies a segment of the manufacturing industry focused on producing a diverse range of clothing and accessories not covered by more specific categories. For defense spending, this code is significant as it encompasses specialized items like the ECWCS kits, tactical gear, and other non-standard apparel required by the military. Contracts awarded under this code often involve complex specifications, advanced materials, and rigorous quality control, reflecting the unique demands of military operations. It highlights the DoD's reliance on a specialized segment of the apparel industry to equip its personnel.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911QY06R0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADS Tactical, Inc. (UEI: 078857127)

Address: 477 VIKING DRIVE, SUITE 350, VIRGINIA BEACH, VA, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $64,395,260

Exercised Options: $64,395,260

Current Obligation: $64,395,260

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY07D0003

IDV Type: IDC

Timeline