Department of the Army awards $59.17M for GEN III ECWCS KIT IN MULTICAM to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $59,169,196 ($59.2M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-20

End Date: 2011-12-30

Contract Duration: 193 days

Daily Burn Rate: $306.6K/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 IN MULTICAM:

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $59.2 million to ATLANTIC DIVING SUPPLY, INC. for work described as: GEN III ECWCS KIT IN MULTICAM: Key points: 1. Value for money appears fair given the firm fixed price contract type and delivery order nature. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed price contract and a defined delivery period. 4. Performance context is a single delivery order under a larger contract vehicle. 5. Sector positioning is within the defense apparel and equipment manufacturing industry.

Value Assessment

Rating: fair

The total award amount of $59.17 million for the GEN III ECWCS KIT IN MULTICAM is a significant investment. Without specific per-unit cost data or comparable contract benchmarks for this exact kit configuration, a precise value-for-money assessment is challenging. However, the firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. The delivery order nature implies it's part of a larger framework agreement, potentially allowing for negotiated pricing over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a reasonable level of competition for this specific delivery order. A higher number of bidders generally leads to more competitive pricing and a wider range of solutions, but three bidders can still yield a fair market price.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and encourage innovation.

Public Impact

Soldiers in the U.S. Army benefit from receiving advanced Extended Cold Weather Clothing System (ECWCS) kits. The kits provide essential gear for operating in extreme cold weather environments, enhancing soldier survivability and performance. The geographic impact is primarily on Army units requiring specialized cold-weather gear, with distribution likely across various installations. Workforce implications include jobs in manufacturing, logistics, and quality control within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases on future delivery orders if competition diminishes.
Reliance on a single contractor for this specific kit could pose supply chain risks if not managed proactively.

Positive Signals

Awarded under a full and open competition, suggesting a competitive process.
Firm fixed-price contract type shifts cost risk to the contractor.
Clear product description (GEN III ECWCS KIT IN MULTICAM) indicates specific requirements were met.

Sector Analysis

The defense apparel and equipment sector is a critical component of the broader defense industrial base, providing essential gear to military personnel. Spending in this area is driven by operational needs, technological advancements in materials, and soldier modernization programs. The market includes a range of suppliers, from large defense contractors to specialized apparel manufacturers. This contract for ECWCS kits fits within the segment focused on individual soldier protection and environmental survivability.

Small Business Impact

While this specific contract was awarded to Atlantic Diving Supply, Inc., the extent of small business subcontracting is not detailed in the provided data. Analysis of the prime contractor's history and the specific terms of the contract would be needed to determine the impact on the small business ecosystem. However, large defense contracts often include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is facilitated by contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Combat Uniforms
Individual Soldier Equipment
Cold Weather Gear Procurement
Defense Logistics Agency (DLA) Contracts

Risk Flags

Potential for quality issues if contractor prioritizes cost-cutting over specifications.
Supply chain disruption risk if contractor faces production or logistical challenges.
Limited flexibility for scope changes without contract modification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.2 million to ATLANTIC DIVING SUPPLY, INC.. GEN III ECWCS KIT IN MULTICAM:

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $59.2 million.

What is the period of performance?

Start: 2011-06-20. End: 2011-12-30.

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

Atlantic Diving Supply, Inc. has a history of receiving defense contracts, primarily related to apparel, footwear, and survival equipment. Their contract awards often span various branches of the U.S. military, including the Army, Navy, and Marine Corps. While specific performance details for each contract are not always publicly detailed, their consistent receipt of awards suggests a capacity to meet government requirements. A deeper dive into past performance reviews and any reported issues would provide a more comprehensive understanding of their reliability and quality of execution for contracts of this nature.

How does the awarded amount compare to historical spending on similar ECWCS kits?

Comparing the $59.17 million award for this specific delivery order to historical spending on similar ECWCS kits requires access to detailed historical procurement data for the GEN III ECWCS. The value of such kits can fluctuate based on quantity, specific components included, material costs, and the competitive landscape at the time of procurement. Without granular data on previous ECWCS procurements (e.g., by quantity, specific generation, and year), it is difficult to establish a direct benchmark. However, the amount suggests a substantial procurement, likely for a significant number of soldiers or a comprehensive kit configuration.

What are the primary risks associated with this firm fixed-price contract for the government?

The primary risk for the government with a firm fixed-price (FFP) contract is that the contractor may deliver substandard quality to maintain their profit margin if oversight is insufficient. While the FFP shifts cost overrun risk to the contractor, it does not eliminate the risk of non-conforming goods or services. If the contractor fails to meet specifications, the government's recourse might involve contract termination, disputes, or seeking damages, which can lead to delays and additional costs to procure replacements. Ensuring robust quality assurance and inspection processes is crucial to mitigate these risks.

How effective is the GEN III ECWCS in meeting the Army's cold-weather operational needs?

The GEN III ECWCS is generally considered highly effective and a significant improvement over previous generations, designed to provide modular protection against a wide range of cold-weather conditions. Its layering system allows soldiers to adapt their insulation and protection based on activity level and ambient temperature, from mild cold to extreme cold (-50°F and below). The system incorporates advanced materials for breathability and moisture management, crucial for preventing hypothermia and maintaining soldier performance. Its widespread adoption and continued procurement by the Army underscore its perceived effectiveness in meeting critical operational needs in cold environments.

What is the typical duration and value range for delivery orders under the contract vehicle this award falls under?

The provided data indicates a duration of 193 days for this specific delivery order (from June 20, 2011, to December 30, 2011) and a value of $59.17 million. Without knowing the specific contract vehicle (e.g., IDIQ, GWAC) under which this delivery order was issued, it's challenging to provide a typical duration or value range. However, delivery orders can vary significantly in duration and value, from short-term, smaller-value orders to multi-year, multi-million dollar procurements, depending on the overall scope and requirements of the parent contract.

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, 23452

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $59,169,196

Exercised Options: $59,169,196

Current Obligation: $59,169,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY07D0003

IDV Type: IDC

Timeline