DoD's $48.9M contract to Atlantic Diving Supply for service equipment and supplies, awarded under full and open competition

Contract Overview

Contract Amount: $48,876,806 ($48.9M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-05

End Date: 2026-05-26

Contract Duration: 628 days

Daily Burn Rate: $77.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4565716902!UTS PBDJ1 ODGREEN

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4565716902!UTS PBDJ1 ODGREEN Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and competitive award. 2. Competition dynamics indicate a robust bidding process, likely driving competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract and established vendor. 4. Performance context is within the scope of routine equipment and supply procurement for military needs. 5. Sector positioning is within the defense logistics and wholesale merchant sector.

Value Assessment

Rating: good

The contract's value of approximately $48.9 million over its period of performance is within a typical range for large-scale equipment and supply procurements for the Department of Defense. The firm-fixed-price structure suggests that the government has secured predictable costs, which is a positive indicator for value. Benchmarking against similar contracts for service establishment equipment and supplies would provide a more precise assessment, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial solicitations may have had some exclusions, the final award was made through a broad competitive process. The specific details of the exclusion are not provided, but the 'full and open' designation suggests multiple bidders were likely considered and evaluated. This level of competition is generally favorable for achieving competitive pricing and ensuring a wide range of potential suppliers can participate.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation among suppliers, leading to better value for public funds.

Public Impact

The primary beneficiaries are military personnel and units requiring service establishment equipment and supplies. Services delivered include the provision of essential equipment and supplies necessary for various military operations and base support. The geographic impact is likely nationwide, supporting DoD operations across different installations. Workforce implications may include support for manufacturing, logistics, and distribution jobs within the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and compliance with military specifications across all delivered items.
Managing contract modifications and potential cost overruns if scope changes.

Positive Signals

Award to an established vendor with a track record in defense contracting.
Firm-fixed-price contract limits cost uncertainty for the government.
Competitive award process suggests a fair market price was obtained.

Sector Analysis

The defense logistics and wholesale merchant sector is a critical component of the U.S. economy, supporting military readiness through the procurement and distribution of a vast array of goods. This contract falls within the 'Service Establishment Equipment and Supplies Merchant Wholesalers' category, indicating a focus on specialized equipment and supplies rather than general commodities. Spending in this sector is substantial, driven by the continuous need for operational readiness and modernization within the armed forces. Comparable spending benchmarks would involve analyzing aggregate DoD spending on similar equipment categories and identifying average contract values for wholesale merchant services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Atlantic Diving Supply, Inc., is responsible for fulfilling the contract requirements, and any subcontracting decisions would be at their discretion, not mandated by a set-aside provision.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), which is responsible for procuring and distributing supplies for the U.S. military. Accountability measures are embedded in the firm-fixed-price contract type, which holds the contractor responsible for delivering goods at the agreed-upon price. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency Procurement
Military Equipment and Supplies
Service Establishment Equipment
Wholesale Merchant Services

Risk Flags

Potential for supply chain vulnerabilities
Ensuring adherence to strict military specifications
Contract performance monitoring complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to ATLANTIC DIVING SUPPLY, INC.. 4565716902!UTS PBDJ1 ODGREEN

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 $48.9 million.

What is the period of performance?

Start: 2024-09-05. End: 2026-05-26.

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

Atlantic Diving Supply, Inc. has a history of receiving contracts from the Department of Defense, primarily through the Defense Logistics Agency. Their contract awards often fall within the categories of equipment, supplies, and logistical support. Reviewing their past performance evaluations and the types of goods and services they have previously provided can offer insights into their reliability and capability. While this specific contract is for service establishment equipment and supplies, their broader experience in defense procurement suggests a familiarity with government contracting processes and requirements. Further analysis would involve examining the volume and value of their previous DoD contracts, as well as any reported issues or commendations regarding their performance.

How does the pricing of this contract compare to similar procurements for service establishment equipment?

The firm-fixed-price nature of this $48.9 million contract provides a clear cost ceiling for the government. To benchmark its value, one would compare the per-unit costs of specific items procured under this contract against historical data for similar items purchased by the DoD or other federal agencies. Additionally, analyzing the number of bidders and the final award price relative to the initial solicitation estimates can indicate the competitiveness of the pricing. Without specific item details, a direct per-unit cost comparison is not feasible. However, the 'full and open competition' award suggests that the pricing achieved is likely reflective of market conditions and competitive pressures, aiming for good value.

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

Key risks include potential supply chain disruptions that could delay the delivery of essential equipment and supplies, impacting military readiness. Ensuring the quality and compliance of all delivered items with stringent military specifications is another critical risk. The firm-fixed-price contract type mitigates financial risk for the government by capping costs, but it places the burden of cost control on the contractor. Mitigation strategies likely involve robust contract management by the Defense Logistics Agency, including performance monitoring, quality assurance checks, and clear communication channels with Atlantic Diving Supply, Inc. to address any emerging issues proactively.

What is the expected effectiveness of this contract in supporting military operations?

The effectiveness of this contract hinges on the timely and reliable delivery of the specified service establishment equipment and supplies. These items are crucial for setting up and maintaining operational bases, facilitating training, and supporting various logistical functions. If Atlantic Diving Supply, Inc. fulfills the contract requirements efficiently and with high-quality products, it will directly contribute to the operational readiness and effectiveness of the military units it serves. The contract's duration and the scope of items procured are designed to meet ongoing needs, suggesting a sustained positive impact on military capabilities.

How does current spending on service establishment equipment compare to historical patterns?

Analyzing historical spending patterns for service establishment equipment and supplies requires access to detailed historical contract data from the DoD, specifically from agencies like the Defense Logistics Agency. Trends in this spending are influenced by geopolitical factors, military modernization efforts, and changes in operational tempo. For instance, periods of increased global engagement or significant force structure changes often correlate with higher spending in this category. Comparing the $48.9 million award to the average annual spending on similar equipment over the past 5-10 years would reveal whether current investment levels are consistent, increasing, or decreasing, providing context for the significance of this particular contract.

What are the implications of awarding this contract after excluding certain sources?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the final award was competitive, certain potential sources were initially excluded from consideration. The reasons for exclusion could range from non-responsiveness to initial solicitation requirements, failure to meet pre-qualification criteria, or specific national security concerns. While the final award was open, the initial exclusion might have narrowed the competitive pool. Understanding the rationale behind the initial exclusions is important for assessing whether the broadest possible competition was truly achieved and if any potentially innovative or cost-effective solutions were overlooked early in the process.

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

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: $48,876,806

Exercised Options: $48,876,806

Current Obligation: $48,876,806

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $32,465,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1026

IDV Type: IDC

Timeline