DoD's $54.2M aircraft maintenance structure contract awarded to Atlantic Diving Supply shows fair value with 2 bidders

Contract Overview

Contract Amount: $54,247,984 ($54.2M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2023-11-24

Contract Duration: 793 days

Daily Burn Rate: $68.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TEMPORARY AIRCRAFT MAINTENANCE STRUCTURES AT HILL AIR FORCE BASE, UT.

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to ATLANTIC DIVING SUPPLY, INC. for work described as: TEMPORARY AIRCRAFT MAINTENANCE STRUCTURES AT HILL AIR FORCE BASE, UT. Key points: 1. The contract's value appears reasonable given the scope of temporary aircraft maintenance structures. 2. Competition was robust with two bidders, suggesting a healthy price discovery process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of 793 days indicates a significant, medium-term requirement. 5. This contract supports critical Air Force readiness operations at Hill Air Force Base. 6. The award falls within the broader category of industrial equipment and services.

Value Assessment

Rating: good

The contract's total value of $54.2 million for temporary aircraft maintenance structures appears to be within a reasonable range for such specialized facilities. Benchmarking against similar temporary structure procurements is challenging due to unique specifications, but the presence of two bidders suggests competitive pricing was achieved. The firm fixed-price nature of the contract further enhances value by transferring risk to the contractor.

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. Two bids were received, which, while not a large number, suggests a degree of market interest and competition for this specialized requirement. The competition level is sufficient to provide a basis for price reasonableness assessment.

Taxpayer Impact: The full and open competition, even with two bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Hill Air Force Base, Utah, who will utilize the temporary maintenance structures. The contract delivers essential infrastructure for maintaining aircraft readiness and operational capabilities. The geographic impact is localized to Hill Air Force Base, Utah. The contract supports jobs within the construction and industrial equipment manufacturing sectors, though specific workforce implications are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues given the duration and specialized nature of the structures.
Risk of unforeseen site conditions impacting construction timelines or costs, despite fixed-price.
Dependence on a single awardee for delivery and potential maintenance of critical infrastructure.

Positive Signals

Firm fixed-price contract structure limits government financial exposure.
Award to a single contractor streamlines management and oversight.
Competition, even if limited to two bidders, provides a baseline for value.
Clear delivery order mechanism for phased deployment of structures.

Sector Analysis

This contract falls within the broader industrial equipment and services sector, specifically related to specialized temporary structures for defense applications. The market for such custom-built, temporary facilities is niche, often driven by specific government or industrial project needs. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of aircraft maintenance structures, but the overall defense spending on facilities and equipment runs into billions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight is primarily managed by the Department of the Air Force contracting and program management offices responsible for Hill Air Force Base. Accountability is established through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by the contract award data available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair
Temporary Facility Construction
Defense Industrial Base
Air Force Infrastructure Projects
Base Operations Support

Risk Flags

Potential for cost growth if unforeseen site conditions arise.
Contractor performance risk for timely delivery and quality.
Limited competition may impact long-term pricing leverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to ATLANTIC DIVING SUPPLY, INC.. TEMPORARY AIRCRAFT MAINTENANCE STRUCTURES AT HILL AIR FORCE BASE, UT.

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 Air Force).

What is the total obligated amount?

The obligated amount is $54.2 million.

What is the period of performance?

Start: 2021-09-22. End: 2023-11-24.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling similar government contracts, particularly for large-scale temporary structures?

A review of Atlantic Diving Supply, Inc.'s contract history reveals a diverse portfolio of awards, primarily within the Department of Defense. While specific experience with large-scale, custom temporary aircraft maintenance structures may not be immediately apparent from high-level data, the company has a history of providing various equipment and services to military branches. Further analysis would require examining past performance evaluations and contract details for similar projects to assess their capability and reliability in delivering complex, specialized infrastructure on time and within budget. Their award on this contract suggests they met the technical and performance requirements outlined by the Air Force.

How does the awarded price of $54.2 million compare to industry benchmarks for temporary aircraft maintenance structures of similar size and complexity?

Directly comparing the $54.2 million award to industry benchmarks for temporary aircraft maintenance structures is challenging due to the highly specialized and often custom nature of these facilities. Factors such as size, specific environmental controls, structural integrity requirements for aircraft loads, and duration of use significantly influence cost. Without detailed specifications of the structures procured, a precise benchmark is difficult. However, the fact that the contract was competed and resulted in a firm fixed-price award suggests the government sought competitive bids to ensure value. The presence of two bidders implies a degree of market validation for the pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential contractor performance issues (delays, quality defects), unforeseen site conditions impacting installation, and the long-term durability of temporary structures. Mitigation strategies are embedded within the contract structure. The firm fixed-price nature transfers significant cost overrun risk to the contractor. The contract duration and phased delivery orders allow for monitoring progress and addressing issues incrementally. The Air Force's oversight and quality assurance personnel will be crucial in monitoring performance and ensuring compliance with specifications. Furthermore, the competition, even if limited, provides some assurance of contractor capability.

How effective are temporary aircraft maintenance structures in supporting Air Force operational readiness compared to permanent facilities?

Temporary aircraft maintenance structures can be highly effective in supporting Air Force operational readiness by providing rapid deployment capabilities to address immediate needs, surge capacity, or situations where permanent construction is not feasible or cost-effective. They offer flexibility to adapt to changing mission requirements or base layouts. While they may not offer the same long-term durability or advanced integrated systems as permanent facilities, their speed of deployment and lower initial capital investment can be critical for maintaining aircraft serviceability during specific operations or base transitions. Their effectiveness is contingent on proper design, construction, and maintenance to meet the demanding operational environment.

What has been the historical spending pattern for temporary aircraft maintenance structures at Hill Air Force Base or similar Air Force installations?

Historical spending patterns for temporary aircraft maintenance structures at Hill Air Force Base and similar Air Force installations can vary significantly based on modernization efforts, operational tempo, and specific mission requirements. Data on this specific category of spending is often aggregated within broader facilities, construction, or equipment procurement budgets. While this $54.2 million award represents a substantial investment, it may be an outlier or part of a larger infrastructure upgrade initiative. Analyzing historical data would require delving into specific base master plans, budget allocations for temporary facilities, and previous contract awards for similar structures over multiple fiscal years to identify trends and patterns.

What is the significance of the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code in relation to this contract?

The NAICS code '333318 - Other Commercial and Service Industry Machinery Manufacturing' is assigned to this contract, indicating that the primary product or service procured falls under the manufacturing of machinery used in commercial and service industries, which is not elsewhere classified. For temporary aircraft maintenance structures, this code suggests the contract may involve the manufacturing of specialized equipment or modular components that constitute these structures, rather than just the assembly or installation on-site. It points towards the contractor's role in producing the physical elements of the maintenance facilities, aligning with the need for robust, potentially prefabricated, industrial-grade components.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA822721Q1490

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADS Tactical, Inc.

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: $54,247,984

Exercised Options: $54,247,984

Current Obligation: $54,247,984

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,520,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F358AA

IDV Type: FSS

Timeline