DoD's $45.6M Apparel Contract Awarded to Atlantic Diving Supply, Inc. for GEN III ECWCS Kits

Contract Overview

Contract Amount: $45,559,260 ($45.6M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-07

End Date: 2012-05-31

Contract Duration: 267 days

Daily Burn Rate: $170.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GEN III ECWCS KIT IN MULTICAM WITH LAYER 5 FR

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to ATLANTIC DIVING SUPPLY, INC. for work described as: GEN III ECWCS KIT IN MULTICAM WITH LAYER 5 FR Key points: 1. The contract value represents a significant investment in specialized military clothing. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance period. 4. Performance context is provided by comparing this award to similar defense apparel procurements. 5. This contract positions the Department of the Army within the broader defense logistics sector. 6. The use of a Firm Fixed Price contract suggests a defined scope and cost control objective.

Value Assessment

Rating: good

The contract value of $45.6 million for GEN III ECWCS kits appears reasonable given the specialized nature of military-grade apparel. Benchmarking against similar large-scale procurements for tactical clothing systems would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumed the primary cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to commercial equivalents, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, a higher number of competitors typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently, as the award was made under conditions that allowed for a range of price and performance options to be considered.

Public Impact

Soldiers in the Department of the Army benefit from receiving advanced, multi-layered extreme cold weather clothing systems. The contract ensures the delivery of essential gear for personnel operating in diverse and challenging environmental conditions. The geographic impact is primarily within military installations and deployment zones where Army personnel are stationed. Workforce implications include support for manufacturing and logistics jobs within the defense supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial pricing did not fully account for all material and labor fluctuations.
Risk of delivery delays if the contractor faces supply chain disruptions for specialized materials.
Ensuring consistent quality and performance across all issued kits requires robust government inspection.
The fixed-price nature could disincentivize innovation or upgrades during the contract period if not structured for flexibility.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type generally provides cost certainty for the government.
The contractor, Atlantic Diving Supply, Inc., has experience in supplying defense-related equipment.
The contract specifies a clear deliverable (GEN III ECWCS kits), reducing scope ambiguity.
The contract duration is defined, allowing for planned procurement and distribution.

Sector Analysis

The apparel manufacturing sector, particularly for specialized military equipment, is a niche but critical part of the broader defense industrial base. This contract falls under the 'Other Apparel Accessories and Other Apparel Manufacturing' category. The market for military clothing is characterized by stringent quality requirements, specific performance standards (like multi-camouflage patterns and layering systems), and often relies on a limited number of experienced suppliers capable of meeting these demands. Spending in this area is driven by troop readiness, operational requirements, and the need for advanced protective and functional gear.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. Atlantic Diving Supply, Inc. is likely a mid-to-large-sized business given the contract value. The absence of set-aside provisions means that opportunities for small businesses to directly participate in fulfilling this contract may be limited, unless they are part of the supply chain for the prime contractor. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported during the contract's performance or closeout.

Related Government Programs

Department of Defense Clothing and Individual Equipment (CIE) procurements
Army Combat Uniform (ACU) procurements
Special Operations Forces (SOF) gear procurements
Extreme Cold Weather Clothing System (ECWCS) procurements
Tactical Apparel Manufacturing Contracts

Risk Flags

Potential for quality issues if cost-cutting measures are employed under FFP.
Supply chain vulnerability for specialized materials.
Moderate competition level may limit price optimization.
Ensuring consistent fit and performance across diverse user base.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to ATLANTIC DIVING SUPPLY, INC.. GEN III ECWCS KIT IN MULTICAM WITH LAYER 5 FR

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 $45.6 million.

What is the period of performance?

Start: 2011-09-07. End: 2012-05-31.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling similar large-scale military apparel contracts?

Atlantic Diving Supply, Inc. has a history of supplying various equipment and apparel to government agencies, including the Department of Defense. While specific details on past performance for large-scale GEN III ECWCS kits are not provided in this summary, their presence as a bidder and awardee in defense contracts suggests they possess the necessary capabilities and experience. A deeper dive into their contract history, including past performance reviews and any reported issues on previous awards, would offer a more comprehensive understanding of their reliability and competence in delivering complex military clothing systems.

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

The provided data does not include per-unit cost information, making a direct comparison to market rates or similar government procurements impossible. The total contract value of $45.6 million divided by the number of units procured (if known) would yield a per-unit cost. To assess value, this figure would need to be benchmarked against the cost of comparable systems procured by other military branches or allied nations, as well as against commercially available high-performance outdoor gear, adjusted for military-specific requirements and certifications. Without this data, the value proposition remains partially assessed.

What are the primary risk indicators associated with this specific contract award?

Key risk indicators for this contract include the potential for supply chain disruptions affecting specialized materials needed for the GEN III ECWCS kits, especially given the global nature of manufacturing. The Firm Fixed Price (FFP) contract type, while offering cost certainty, can pose a risk if the initial cost estimates were inaccurate, potentially leading to quality compromises if the contractor seeks to reduce expenses. Furthermore, ensuring consistent quality and adherence to strict military specifications across all delivered items requires diligent government oversight and inspection. The moderate competition level (3 bidders) also presents a slight risk, as fewer bidders might imply less aggressive pricing than in a more crowded field.

How effective is the Department of the Army's procurement process in securing value for money in apparel contracts like this?

The effectiveness of the Army's procurement process in securing value for money for this contract is suggested by the use of 'Full and Open Competition,' which theoretically maximizes the potential for competitive pricing. The award to Atlantic Diving Supply, Inc. indicates a successful selection based on the stated criteria. However, a definitive assessment of 'value for money' requires comparing the final price and quality against alternative solutions or benchmarks, which are not detailed here. The moderate number of bidders (3) implies that while competition existed, it might not have been as intense as in procurements attracting a larger pool of offers, potentially impacting the ultimate price efficiency achieved for the taxpayer.

What has been the historical spending pattern for ECWCS or similar cold-weather gear by the Department of Defense?

Historical spending on Extreme Cold Weather Clothing Systems (ECWCS) and similar cold-weather gear by the Department of Defense represents a consistent and significant investment, driven by the operational needs of forces deployed in various climates. While the specific total annual spending fluctuates based on modernization cycles, troop levels, and emerging threats, the DoD regularly procures advanced layering systems, insulated garments, and protective accessories. This $45.6 million contract for GEN III ECWCS kits is part of this ongoing expenditure. Analyzing historical data reveals a trend towards lighter, more breathable, yet equally or more protective materials, reflecting technological advancements in fabric and design.

Are there any specific performance metrics or quality assurance measures tied to this contract?

The provided summary does not detail specific performance metrics or quality assurance (QA) measures beyond the general implications of a Firm Fixed Price contract. Typically, military apparel contracts include stringent QA clauses that require the contractor to maintain a comprehensive quality system. This often involves government inspections at various stages of production, material testing, and final acceptance testing to ensure compliance with military specifications (e.g., MIL-SPEC). Performance metrics might relate to delivery schedules, defect rates, and warranty provisions. A thorough review of the contract's Statement of Work (SOW) and associated clauses would be necessary to identify the precise QA and performance requirements.

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: $45,559,260

Exercised Options: $45,559,260

Current Obligation: $45,559,260

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY07D0003

IDV Type: IDC

Timeline