DoD's $47.6M Tactical Terminal Modification Assembly contract awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $47,632,339 ($47.6M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-27

End Date: 2019-08-02

Contract Duration: 218 days

Daily Burn Rate: $218.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4544430145!TACTICAL TERMINAL MODIFICATION ASSEMBLY

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.6 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4544430145!TACTICAL TERMINAL MODIFICATION ASSEMBLY Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and fixed-price structure, which can mitigate cost overruns. 4. Performance context is tied to equipment modification and supply, crucial for operational readiness. 5. Sector positioning within Defense Logistics Agency's equipment and supplies merchant wholesale category. 6. The contract's fixed-price nature aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $47.6 million for tactical terminal modification assembly appears reasonable when considering the scope of work and the duration of the contract. Benchmarking against similar defense equipment modification contracts suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without specific per-unit data, a precise value-for-money assessment is challenging, but the overall contract value seems aligned with industry standards for specialized defense equipment services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' basis. While the 'exclusion of sources' aspect requires further investigation to understand why specific sources were excluded, the 'full and open' nature suggests that multiple bidders were likely considered. The presence of competition, even with exclusions, generally supports price discovery and can lead to more favorable terms for the government compared to sole-source awards. The number of bidders and the specific reasons for exclusion would provide a clearer picture of the competitive landscape.

Taxpayer Impact: A full and open competition, even with potential source exclusions, is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of receiving the best value. This process helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are Department of Defense units requiring modified tactical terminal equipment. Services delivered include the modification and assembly of tactical terminal equipment. Geographic impact is likely nationwide, supporting various military installations and operational theaters. Workforce implications may involve specialized technicians and logistics personnel within the contractor's organization and potentially within the Defense Logistics Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if excluded sources would have offered significantly lower prices.
Dependence on a single contractor for specialized modification services could pose supply chain risks.
Ensuring the 'exclusion of sources' was justified and did not unduly limit competition.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition framework encourages competitive bidding.
Award to an established supplier like Atlantic Diving Supply, Inc. suggests a degree of reliability.

Sector Analysis

This contract falls within the defense logistics and equipment sector, specifically focusing on the modification and supply of tactical communication or terminal equipment. The market for defense logistics services is substantial, driven by the continuous need for operational readiness and technological upgrades. Spending in this area is often characterized by long-term contracts, specialized requirements, and a mix of competitive and sole-source awards. Comparable spending benchmarks would involve analyzing other contracts for similar equipment modifications and sustainment services within the Department of Defense.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger, established companies were likely the primary participants. The implications for the small business ecosystem are that opportunities for subcontracting may exist, but the prime contract was not set aside. Further analysis would be needed to determine if any small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA), which is responsible for ensuring that the contractor meets all performance requirements and delivery schedules. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for non-performance or delays. Transparency is facilitated through contract award databases, although detailed performance reports may be restricted. The Inspector General of the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Logistics Agency Procurement
Tactical Equipment Procurement
Military Communications Equipment
Defense Supply Chain Management
Equipment Modification Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Contract duration and scope require careful performance monitoring.
Reliance on a single contractor for critical modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.6 million to ATLANTIC DIVING SUPPLY, INC.. 4544430145!TACTICAL TERMINAL MODIFICATION ASSEMBLY

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $47.6 million.

What is the period of performance?

Start: 2018-12-27. End: 2019-08-02.

What is the track record of Atlantic Diving Supply, Inc. with the Department of Defense for similar contracts?

Atlantic Diving Supply, Inc. has a history of contracts with the Department of Defense, primarily through the Defense Logistics Agency (DLA). Their awards often fall within the categories of general supply, equipment, and specialized gear. Analyzing their past performance on similar modification or assembly contracts would involve reviewing contract completion records, any reported issues with quality or delivery, and their overall performance ratings. A review of publicly available contract data indicates they have received numerous awards, suggesting a capacity to handle government contracts. However, the specifics of their performance on tactical terminal modification projects would require a deeper dive into DLA's internal performance metrics and any past performance evaluations associated with this specific contract or similar ones.

How does the per-unit cost of the modified tactical terminal compare to market rates or similar government procurements?

Determining the precise per-unit cost for the tactical terminal modification assembly is challenging without access to the detailed breakdown of the $47.6 million contract value and the number of units procured. However, a general assessment can be made by comparing the total contract value against the estimated number of units or the complexity of the modifications. If this contract covered a large volume of standardized modifications, the average cost per unit could be benchmarked against commercial off-the-shelf (COTS) terminal costs or similar government contracts for equipment upgrades. If the modifications are highly specialized or bespoke, direct comparison becomes more difficult. The 'full and open competition' aspect suggests that the pricing was likely vetted against multiple bids, which should theoretically align it with market competitiveness. Further analysis would require knowing the quantity and specific nature of the modifications.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns (though mitigated by the firm fixed-price structure), delivery delays impacting operational readiness, and the possibility of technical obsolescence if modifications do not meet future requirements. The firm fixed-price (FFP) nature of the contract places the financial risk of cost increases on the contractor, Atlantic Diving Supply, Inc., which incentivizes efficient management. Mitigation for delivery delays would be outlined in the contract's performance clauses, potentially including liquidated damages. Technical risks are managed through detailed specifications and quality assurance processes overseen by the Defense Logistics Agency. The 'full and open competition' also helps mitigate risks by ensuring a competitive selection process, theoretically leading to a more capable and reliable contractor.

What is the expected effectiveness and impact of these modified tactical terminals on military operations?

The effectiveness and impact of the modified tactical terminals are expected to enhance the operational capabilities of the Department of Defense units utilizing them. Tactical terminals are crucial for communication, data transmission, and command and control in various operational environments. Modifications could involve upgrading hardware for increased speed or reliability, enhancing software for new functionalities, improving ruggedness for deployment in harsh conditions, or integrating new communication protocols. The successful modification and timely delivery of these terminals directly contribute to maintaining situational awareness, enabling secure communications, and supporting mission objectives. The specific impact would depend on the nature of the modifications and the operational context in which the terminals are deployed.

How does the historical spending on tactical terminal modification and assembly compare to this contract's value?

To assess historical spending patterns, one would need to analyze the Defense Logistics Agency's (DLA) and the broader Department of Defense's (DoD) expenditure on tactical terminal modification and assembly over several fiscal years. This $47.6 million contract represents a significant investment. Comparing it to historical data would involve identifying similar contracts awarded in previous years, noting their values, durations, and the scope of work. If historical spending shows a consistent need for such modifications, this contract aligns with ongoing sustainment and upgrade efforts. Conversely, if this value is substantially higher or lower than typical spending, it might indicate a shift in procurement strategy, a one-time major upgrade, or a change in market pricing. Without access to detailed historical procurement databases, a precise comparison is difficult, but the value suggests a substantial requirement.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Service Establishment Equipment and Supplies Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

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

Parent Company: ADS Tactical, Inc.

Address: 621 LYNNHAVEN PKWY STE 400, 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: $47,632,339

Exercised Options: $47,632,339

Current Obligation: $47,632,339

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $44,725,200

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ19D1004

IDV Type: IDC

Timeline