DoD's $90.6M antenna contract to Atlantic Diving Supply shows strong competition and long-term delivery

Contract Overview

Contract Amount: $90,585,591 ($90.6M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-31

End Date: 2027-02-12

Contract Duration: 408 days

Daily Burn Rate: $222.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4570386387!2.22.5 HZ 4DBI RUGGEDIZED ANTENNA; NATO

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $90.6 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4570386387!2.22.5 HZ 4DBI RUGGEDIZED ANTENNA; NATO Key points: 1. The contract's value of $90.6 million over its period of performance suggests a significant investment in specialized equipment. 2. Full and open competition after exclusion of sources indicates a deliberate effort to ensure fair market access while meeting specific requirements. 3. The contract duration of 408 days points to a sustained need for these ruggedized antennas. 4. The award to Atlantic Diving Supply, Inc. places this spending within the Defense Logistics Agency's broader procurement strategy for essential supplies. 5. The fixed-price contract type offers cost certainty for the government, mitigating risks associated with cost overruns. 6. The presence of 29 bids suggests a healthy competitive landscape for this type of specialized defense equipment.

Value Assessment

Rating: good

The contract value of $90.6 million for ruggedized antennas appears reasonable given the specialized nature of the equipment and the competitive bidding process. While specific per-unit cost benchmarks are not provided, the significant number of bidders (29) suggests that pricing was likely scrutinized against market rates. The fixed-price nature of the contract further supports value for money by locking in costs.

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 the competition was open, certain sources were initially excluded, possibly due to specific technical or security requirements. The high number of bids (29) suggests that despite any initial exclusions, a robust competitive environment was achieved, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The strong competition, evidenced by 29 bids, is beneficial for taxpayers as it likely drove down prices and ensured the government secured the best possible value for these critical defense assets.

Public Impact

This contract directly benefits the Department of Defense by providing essential ruggedized antennas for operational use. The services delivered include the supply of specialized communication equipment crucial for military readiness. The geographic impact is primarily within defense operations, supporting units wherever these antennas are deployed. Workforce implications may include specialized manufacturing and logistics roles within the supply chain for these antennas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited visibility into the exact technical specifications that led to the exclusion of certain sources.
Reliance on a single awardee for a potentially critical piece of equipment, even with competitive bidding, carries inherent supply chain risks.
The long-term delivery schedule could be impacted by unforeseen global supply chain disruptions.

Positive Signals

The high number of bids (29) indicates strong market interest and a competitive environment.
The firm fixed-price contract type provides cost predictability for the government.
The contract is awarded to Atlantic Diving Supply, Inc., a known entity in defense contracting.
The duration of the contract suggests a sustained and planned requirement, indicating good program management.

Sector Analysis

This contract falls within the broader defense electronics and communication equipment sector. The market for ruggedized military-grade antennas is specialized, requiring manufacturers to meet stringent durability and performance standards. Spending in this category is driven by the need for reliable communication in challenging operational environments. Comparable spending benchmarks would typically be found within the Defense Logistics Agency's procurement history for similar communication hardware.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Atlantic Diving Supply, Inc. chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for ensuring compliance with contract terms, quality standards, and financial accountability. The Department of Defense's Inspector General also has jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Defense Communications Equipment Procurement
Military Ruggedized Electronics
NATO Communications Standards
Defense Logistics Agency Supply Chain Management
Service Establishment Equipment and Supplies

Risk Flags

Potential for supply chain disruption impacting delivery.
Risk of technical obsolescence if technology evolves rapidly.
Contractor performance risk, despite competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.6 million to ATLANTIC DIVING SUPPLY, INC.. 4570386387!2.22.5 HZ 4DBI RUGGEDIZED ANTENNA; NATO

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 $90.6 million.

What is the period of performance?

Start: 2025-12-31. End: 2027-02-12.

What is the specific nature of the 'HZ 4DBI RUGGEDIZED ANTENNA; NATO' and why is it critical for the Department of Defense?

The 'HZ 4DBI RUGGEDIZED ANTENNA; NATO' refers to a specialized antenna with a gain of 4 decibels isotropic (4dBi), designed to withstand harsh environmental conditions ('ruggedized') and likely compliant with North Atlantic Treaty Organization (NATO) standards for interoperability and performance. Its criticality stems from the need for reliable, secure, and robust communication capabilities for military operations in diverse and challenging terrains. Such antennas are essential for transmitting and receiving radio signals, supporting everything from tactical communications and command and control to intelligence gathering and logistics coordination, ensuring that forces can maintain situational awareness and operational effectiveness.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact pricing and availability?

This procurement method signifies that the solicitation was initially open to all responsible sources, but certain sources were subsequently excluded. This exclusion could be based on specific technical requirements, security clearances, or past performance criteria that only a subset of potential bidders could meet. While it aims to ensure that only qualified vendors participate, it can potentially limit the breadth of competition compared to a purely 'full and open' approach. However, the fact that 29 bids were received suggests that a sufficient number of qualified vendors remained, likely leading to competitive pricing. The exclusion of sources, when justified by specific needs, can ensure that the government procures highly specialized or secure equipment without compromising on essential capabilities.

What are the potential risks associated with a firm fixed-price contract for specialized equipment like ruggedized antennas?

While firm fixed-price (FFP) contracts are generally favored for providing cost certainty to the government, they can introduce risks for the contractor. If the contractor underestimates costs or encounters unforeseen production challenges, they bear the brunt of the loss. For the government, the primary risk with FFP contracts for specialized equipment lies in ensuring the contractor has the technical capability and capacity to deliver the required quality and quantity within the agreed price. If the contractor struggles, it could lead to delays or performance issues. Additionally, if the market price for raw materials or components increases significantly after the contract is awarded, the contractor might face financial strain, potentially impacting delivery schedules or quality unless robust contract clauses are in place to manage such escalations.

Can the $90.6 million contract value be benchmarked against similar procurements for ruggedized antennas?

Benchmarking this $90.6 million contract requires access to detailed historical procurement data for similar ruggedized antennas, including specifications, quantities, and contract types. Without such specific data, a direct comparison is challenging. However, the value suggests a significant quantity or highly specialized nature of the antennas. The fact that 29 bids were received indicates a competitive market, which generally helps in achieving fair market pricing. The Defense Logistics Agency (DLA) is a major procurer of such equipment, and their historical spending patterns for communication hardware would provide the most relevant benchmark. The contract's duration (408 days) also needs to be factored in when comparing total values.

What is Atlantic Diving Supply, Inc.'s track record with the Department of Defense, particularly for communication equipment?

Atlantic Diving Supply, Inc. (ADS) has a significant history of contracting with the Department of Defense and other federal agencies, often supplying a wide range of equipment, including tactical gear, survival equipment, and potentially communication devices. Their track record typically involves fulfilling numerous delivery orders and contracts, demonstrating an ability to navigate federal procurement processes. While ADS is known for its broad catalog and supply chain capabilities, specific details on their performance history related to high-volume or highly technical communication equipment like the 'HZ 4DBI RUGGEDIZED ANTENNA; NATO' would require a deeper dive into their contract performance reports and past performance evaluations within federal databases. Generally, their ability to secure large contracts like this suggests a satisfactory performance history.

How does the geographic location of the awardee (Virginia) potentially impact delivery timelines or logistics for the DoD?

The awardee, Atlantic Diving Supply, Inc., is located in Virginia. This location can have several implications for delivery timelines and logistics. Virginia is a hub for defense activities and has significant logistical infrastructure, including major ports and transportation networks, which can facilitate efficient distribution of goods to various military installations domestically and internationally. Proximity to major East Coast military bases could potentially shorten lead times for certain deliveries. However, the ultimate impact on delivery timelines depends on the specific deployment locations of the antennas and the contractor's own distribution network and inventory management capabilities, rather than solely on their headquarters' location.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

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: $90,585,591

Exercised Options: $90,585,591

Current Obligation: $90,585,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline