DoD's $11.8M contract for miscellaneous manufacturing services awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $11,872,601 ($11.9M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-30

End Date: 2027-10-31

Contract Duration: 670 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EKRAKEN.5 HARPY SYSTEMS AND TRAINING

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to ATLANTIC DIVING SUPPLY, INC. for work described as: EKRAKEN.5 HARPY SYSTEMS AND TRAINING Key points: 1. Value for money appears fair given the fixed-price nature and duration, but detailed benchmarking is needed. 2. Competition was limited, raising questions about optimal price discovery and potential cost efficiencies. 3. Risk indicators include the 'All Other Miscellaneous Manufacturing' NAICS code, suggesting a broad scope. 4. Performance context is a delivery order under a larger contract, implying prior vetting. 5. Sector positioning is within Defense, specifically Air Force, for manufacturing support.

Value Assessment

Rating: fair

The contract's firm fixed-price structure provides cost certainty for the government. However, without specific details on the 'miscellaneous manufacturing' deliverables, a direct comparison to similar contracts is challenging. The award amount of over $11.8 million for a duration of approximately two years suggests a moderate investment. Benchmarking against industry standards for similar manufacturing services would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial broad competition was considered, specific sources were later excluded. This suggests a potentially limited pool of bidders. The presence of only two bidders, as indicated by the 'no' field, further points to a less robust competitive environment. This limited competition may have implications for achieving the most competitive pricing.

Taxpayer Impact: Limited competition can result in higher prices for taxpayers compared to scenarios with a wider range of responsive bidders vying for the contract.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving manufacturing support services. The contract supports miscellaneous manufacturing, likely encompassing a range of goods or components. The geographic impact is centered in Indiana, where the contractor is located. Workforce implications may include employment opportunities within the contractor's manufacturing facilities in Indiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Broad 'miscellaneous manufacturing' NAICS code lacks specificity, potentially increasing scope creep risk.
Contract duration of nearly two years requires ongoing performance monitoring.

Positive Signals

Firm fixed-price contract type limits cost overrun risk for the government.
Delivery order structure implies it's part of a potentially established contracting vehicle.
Contractor is based in Indiana, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the broader 'Miscellaneous Manufacturing' sector, which encompasses a wide array of production activities not classified elsewhere. Within the defense industry, such contracts often support specialized components, equipment, or repair services. The market size for miscellaneous manufacturing is substantial, but highly fragmented due to the diverse nature of the sub-sectors. This specific award represents a small portion of overall defense procurement spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, Atlantic Diving Supply, Inc., is not specified as a small business, suggesting it is likely a larger entity. The impact on the small business ecosystem is therefore indirect, potentially through competition with larger firms or through opportunities if the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified goods or services. Transparency is facilitated by contract award databases, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Manufacturing Contracts
Air Force Procurement
Miscellaneous Goods Manufacturing
Federal Supply Chain Support

Risk Flags

Limited Competition
Broad NAICS Code
Potential for Price Inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to ATLANTIC DIVING SUPPLY, INC.. EKRAKEN.5 HARPY SYSTEMS AND TRAINING

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 $11.9 million.

What is the period of performance?

Start: 2025-12-30. End: 2027-10-31.

What is the specific nature of the 'miscellaneous manufacturing' services being procured under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 339999, which corresponds to 'All Other Miscellaneous Manufacturing.' This broad classification suggests the contract could encompass a wide variety of manufactured goods or services that do not fit into more specific manufacturing categories. Examples could range from specialized components, custom fabrication, repair of specific equipment, or the production of unique items. Without further details from the contract's statement of work or performance work statement, the precise nature of the deliverables remains unspecified. This lack of specificity can sometimes pose challenges in performance monitoring and value assessment.

How does the pricing of this contract compare to similar manufacturing services awarded by the Department of Defense?

Benchmarking the pricing of this $11.8 million contract against similar 'miscellaneous manufacturing' services is difficult without more specific details on the deliverables. The 'All Other Miscellaneous Manufacturing' NAICS code is very broad. To conduct a meaningful comparison, one would need to identify contracts with comparable scope, complexity, and duration within the defense sector. Factors such as the type of materials used, labor intensity, required certifications, and production volume would be critical. The firm fixed-price nature provides cost certainty, but the initial price point's competitiveness can only be assessed against a tailored set of comparable awards, which are not readily available in the provided summary data.

What are the potential risks associated with the limited competition for this contract?

The limited competition, indicated by 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and only two bidders, presents several potential risks. Firstly, it may have led to a higher price than would have been achieved in a more robustly competitive environment, meaning taxpayers could be paying a premium. Secondly, it could limit the government's access to innovative solutions or specialized capabilities that might have been offered by a broader range of potential contractors. Lastly, a less competitive landscape can sometimes reduce the incentive for the awarded contractor to maintain peak efficiency and quality throughout the contract's performance period.

What is the track record of Atlantic Diving Supply, Inc. in performing federal contracts, particularly within the Department of Defense?

Information regarding the specific track record of Atlantic Diving Supply, Inc. in performing federal contracts, especially within the Department of Defense, is not detailed in the provided data summary. While the award itself indicates they were selected for this $11.8 million contract, it does not offer insight into their past performance, quality of work, adherence to schedule, or customer satisfaction on previous engagements. A thorough assessment would require reviewing their contract history, including past performance evaluations, any disputes or claims, and their experience with similar types of manufacturing services. This information is typically available through federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS).

How does the contract duration of 670 days (approximately 22 months) align with typical manufacturing support contracts of this value?

A contract duration of 670 days (approximately 22 months) for an $11.8 million award in miscellaneous manufacturing support is within a reasonable range, though it can vary significantly based on the specific nature of the goods or services. For complex or custom manufacturing projects, this duration might be considered moderate, allowing for design, prototyping, production, and delivery phases. If the contract involves more routine or standardized manufacturing, it might be on the longer side. The firm fixed-price nature suggests that the duration was factored into the initial pricing, and the government expects consistent delivery over this period. Monitoring the contractor's progress against milestones within this timeframe will be crucial for ensuring timely execution.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 LYNNHAVEN PKWY STE 160, 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: $11,872,601

Exercised Options: $11,872,601

Current Obligation: $11,872,601

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862920D5054

IDV Type: IDC

Timeline