DHS awards $19M for optics, with a significant portion for specialized equipment

Contract Overview

Contract Amount: $18,998,394 ($19.0M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-29

End Date: 2026-03-30

Contract Duration: 182 days

Daily Burn Rate: $104.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RED DOT OPTICS

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.0 million to ATLANTIC DIVING SUPPLY, INC. for work described as: RED DOT OPTICS Key points: 1. Contract value of $18.99M for specialized optics suggests a focus on high-performance equipment. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process with specific source considerations. 3. Delivery order type suggests this is part of a larger contract vehicle, potentially for ongoing or phased procurements. 4. The fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies if managed well. 5. The duration of 182 days for this delivery order points to a focused, short-term need for the specified optics. 6. The awarding agency, U.S. Customs and Border Protection, implies these optics are critical for border security operations.

Value Assessment

Rating: good

The contract value of $18.99M for 'RED DOT OPTICS' appears reasonable given the specialized nature of such equipment, often used in demanding environments like law enforcement or military applications. Without specific details on the exact models and quantities, a direct per-unit cost comparison is difficult. However, the firm fixed-price nature suggests the government has negotiated a set price, which can be advantageous if the contractor can deliver efficiently. Benchmarking against similar procurements for advanced optical sights would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded for specific reasons, possibly related to technical requirements, security clearances, or prior performance. The number of bidders is not specified, but the 'exclusion of sources' clause suggests a potentially narrowed field compared to a purely open competition, which could impact price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value, even with source exclusions. The specific reasons for exclusion would need further review to ensure they were justified and did not unduly limit competition, potentially increasing costs.

Public Impact

U.S. Customs and Border Protection officers will benefit from enhanced targeting and situational awareness capabilities provided by these advanced optics. The services delivered include the provision of specialized optical equipment, crucial for effective surveillance and operational readiness. The geographic impact is likely concentrated on areas of U.S. Customs and Border Protection operations, potentially along borders or at ports of entry. Workforce implications include equipping law enforcement personnel with tools to improve their effectiveness and safety in the field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' could lead to higher prices if justifications are weak.
The specific technical requirements for the optics are not detailed, making it difficult to assess if they are truly necessary or if commercial off-the-shelf solutions could suffice.
Reliance on a single delivery order under a larger contract vehicle might obscure the total spending and long-term commitment for this type of equipment.

Positive Signals

Awarded under a competitive process, aiming for best value.
Firm fixed-price contract type provides cost certainty for the government.
The contract is for specialized equipment, suggesting a critical operational need is being met.

Sector Analysis

The market for advanced optics, particularly those designed for tactical and law enforcement applications, is a specialized segment within the broader defense and security industry. This sector is characterized by high technological requirements, stringent quality control, and often, long-term relationships between government agencies and specialized manufacturers. Spending in this area is driven by the need for enhanced situational awareness, targeting accuracy, and operational effectiveness in diverse and challenging environments. Comparable spending benchmarks would typically involve other procurements of similar tactical optics by agencies like the Department of Defense or other federal law enforcement entities.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the procurement likely targeted larger, specialized manufacturers capable of meeting the technical demands for advanced optics. The impact on the small business ecosystem would be minimal unless these larger contractors are mandated to subcontract with small businesses, which is not indicated here.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified goods by the deadline. Transparency is facilitated by the public nature of contract awards, though detailed technical specifications and justifications for source exclusions may not be readily available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Tactical Optics Procurement
Law Enforcement Equipment
Border Security Technology

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed technical specifications makes value assessment difficult.
Contractor's specific experience with red dot optics not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.0 million to ATLANTIC DIVING SUPPLY, INC.. RED DOT OPTICS

Who is the contractor on this award?

The obligated recipient is ATLANTIC DIVING SUPPLY, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-03-30.

What specific types of 'RED DOT OPTICS' are being procured, and what are their intended operational uses for U.S. Customs and Border Protection?

The specific types of 'RED DOT OPTICS' are not detailed in the provided data. However, given the procuring agency (U.S. Customs and Border Protection) and the context of federal spending on tactical equipment, these are likely advanced optical sights designed for firearms. Red dot sights offer rapid target acquisition and improved accuracy, especially in dynamic situations. For CBP, they would likely be used by Border Patrol agents, CBP officers, and special response teams to enhance their effectiveness in surveillance, interdiction, and law enforcement operations. The 'exclusion of sources' clause might indicate a need for specific features, durability standards, or compatibility with existing CBP equipment that only a limited number of manufacturers can meet.

How does the awarded amount of $18.99 million compare to historical spending on similar optics by U.S. Customs and Border Protection or other federal agencies?

Without access to historical spending databases or specific contract details, a precise comparison is challenging. However, $18.99 million for a delivery order of specialized optics suggests a significant procurement. Federal agencies, particularly those involved in law enforcement and national security, frequently procure advanced optical sights. The cost per unit for high-end tactical red dot sights can range from a few hundred to over a thousand dollars, depending on features like durability, reticle options, night vision compatibility, and brand reputation. A $19 million award could represent hundreds or thousands of units. Benchmarking against similar procurements by agencies like the Department of Defense or FBI would be necessary to determine if this represents a competitive price point for the quantity and quality of optics acquired.

What are the specific justifications for the 'exclusion of sources' in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and how might this impact pricing?

The provided data does not specify the justifications for excluding certain sources. Typically, such exclusions are based on unique technical requirements, proprietary technology, security concerns, or the need for compatibility with existing systems that only a limited number of vendors can satisfy. For example, the optics might need to integrate with specific weapon platforms, meet stringent environmental resistance standards (e.g., shock, water, fog), or possess advanced features not available from all manufacturers. While intended to ensure the best fit for the mission, excluding sources can potentially limit competition. If the justifications are narrow or not well-substantiated, it could lead to fewer bidders and potentially higher prices than if a broader range of suppliers were considered.

What is the track record of ATLANTIC DIVING SUPPLY, INC. in supplying similar optical equipment to federal agencies, and have they previously received contracts for red dot optics?

Information regarding ATLANTIC DIVING SUPPLY, INC.'s specific track record with optical equipment, particularly red dot optics, is not provided in the summary data. As a federal contractor, their past performance would be documented in federal procurement databases (like SAM.gov or FPDS). A thorough analysis would involve reviewing their contract history to identify previous awards for similar items, the value of those contracts, and any performance evaluations. Agencies often consider past performance when awarding contracts, especially under competitive procedures. Without this specific historical data, it's difficult to assess their experience and reliability in delivering this type of specialized equipment.

What are the potential risks associated with a firm fixed-price contract for specialized optics, and how are these mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or delivery to maximize profit if they underestimated costs or encountered unforeseen issues. For specialized optics, this could mean subpar materials, less rigorous testing, or delayed delivery. Mitigation strategies employed by the government include clearly defined specifications and performance standards in the contract, robust quality assurance and inspection processes during production and delivery, and performance metrics that the contractor must meet. The contract also includes a defined delivery period (182 days), providing a clear timeline. Furthermore, the government's ability to withhold payment or exercise contract remedies for non-performance serves as a significant deterrent against quality compromises.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 LYNNHAVEN PKWY, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,998,394

Exercised Options: $18,998,394

Current Obligation: $18,998,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B06C24D00000013

IDV Type: IDC

Timeline