DoD's $24.2M deployment bag contract awarded to Atlantic Diving Supply shows fair value with 6 bidders

Contract Overview

Contract Amount: $24,274,250 ($24.3M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-08-19

End Date: 2011-08-18

Contract Duration: 729 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEPLOYMENT BAGS (FOR65)

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to ATLANTIC DIVING SUPPLY, INC. for work described as: DEPLOYMENT BAGS (FOR65) Key points: 1. The contract demonstrates a competitive landscape with six bidders, suggesting a healthy market for deployment bags. 2. Pricing appears reasonable given the contract's duration and the number of competing offers. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. This award falls within the 'All Other Miscellaneous Manufacturing' NAICS code, indicating a specialized but not unique product category. 5. The contract's performance period of 729 days allowed for sustained delivery and potential for economies of scale. 6. The award was made by the Department of the Navy, a significant consumer of specialized equipment.

Value Assessment

Rating: good

The contract value of $24.2 million over two years for deployment bags suggests a per-unit cost that is likely competitive, especially given the full and open competition. While specific unit cost benchmarks are not provided, the presence of six bidders indicates that the pricing offered by Atlantic Diving Supply was attractive enough to win in a competitive environment. The firm fixed-price structure further supports good value by ensuring cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bids received. This level of competition is generally considered robust and suggests that the government had a good opportunity to obtain favorable pricing and terms. The multiple bidders indicate that the market is accessible to various suppliers, preventing a single entity from dominating the procurement.

Taxpayer Impact: A full and open competition with multiple bidders ensures that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Naval personnel and units requiring specialized deployment bags for various operational needs benefit from this contract. The contract ensures the timely delivery of essential equipment for military readiness. The primary geographic impact is within the Department of the Navy's operational areas, potentially worldwide. The contract supports manufacturing jobs within the 'All Other Miscellaneous Manufacturing' sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single awardee if future needs arise and competition is less robust.
Ensuring consistent quality across all delivered units over the contract's duration.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract type limits cost overrun risk for the government.
Multiple bidders suggest a healthy supplier base for this type of equipment.
Contract duration allowed for planned production and delivery schedules.

Sector Analysis

The procurement of deployment bags falls under the broader 'All Other Miscellaneous Manufacturing' sector (NAICS 339999). This sector encompasses a wide range of manufactured goods not elsewhere classified. The defense industry frequently procures specialized equipment like these bags, indicating a consistent demand. Comparable spending benchmarks would typically be found within defense logistics and equipment procurement categories, where specialized gear is a significant expenditure.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data. Without specific subcontracting plans or goals, it's difficult to assess the direct benefit to the small business ecosystem from this particular award.

Oversight & Accountability

The contract was awarded by the Department of the Navy, which has established oversight mechanisms for its procurements. As a delivery order under a larger contract vehicle (implied by 'AW': DELIVERY ORDER), oversight would likely be managed by the contracting office responsible for the parent contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense General Supplies
Naval Equipment Procurement
Military Logistics and Support Equipment
Miscellaneous Manufacturing Contracts

Risk Flags

Contract duration may be lengthy for a specific equipment type.
Potential for quality variations in manufactured goods over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to ATLANTIC DIVING SUPPLY, INC.. DEPLOYMENT BAGS (FOR65)

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 Navy).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2009-08-19. End: 2011-08-18.

What is the historical spending trend for deployment bags by the Department of the Navy?

Analyzing historical spending for deployment bags by the Department of the Navy requires access to comprehensive contract databases over multiple fiscal years. While this specific award totals $24.2 million, understanding the trend involves examining prior awards for similar items, including quantities, unit prices, and the number of bidders. A trend analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether competition levels have remained stable or fluctuated. This context is crucial for assessing if the current contract represents a typical investment or an anomaly, and for forecasting future budgetary needs. Without broader historical data, it's challenging to definitively characterize the spending trend.

How does the unit cost of these deployment bags compare to similar items procured by other military branches?

To compare the unit cost of these deployment bags, we would need to identify the exact specifications and quantity per order for this $24.2 million contract and then find comparable contracts from other military branches (e.g., Army, Air Force, Marines) for items with identical or very similar specifications. The provided data indicates a total award value and duration but not the specific number of bags procured, making direct unit cost calculation impossible. If, for example, 100,000 bags were procured, the unit cost would be approximately $242. If other branches procured similar bags at, say, $200-$220 per unit under competitive conditions, this contract might appear slightly higher. Conversely, if the unit cost is within the $250-$300 range and specifications are unique or demanding, it could represent fair market value. Benchmarking requires detailed specification alignment and quantity analysis across different procurements.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key performance indicators (KPIs) for a contract like this, involving the supply of physical goods, typically focus on delivery timeliness, quality conformance, and contract compliance. For the Department of the Navy, specific KPIs might include: 1. On-Time Delivery Rate: Percentage of orders delivered by the specified due dates. 2. Quality Acceptance Rate: Percentage of delivered items that pass inspection and testing without defects. 3. Contract Compliance: Adherence to all terms and conditions, including reporting requirements and pricing. 4. Small Business Subcontracting (if applicable): Meeting any set goals for utilizing small businesses. Success would be measured by Atlantic Diving Supply consistently meeting or exceeding these KPIs throughout the contract's 729-day period. Failure to meet these could result in penalties or impact future contract awards.

What is Atlantic Diving Supply's track record with similar defense contracts?

Assessing Atlantic Diving Supply's track record requires reviewing their past performance on similar contracts, particularly those involving the supply of equipment to the Department of Defense or other federal agencies. This would involve looking at contract values, performance ratings (if available), any past performance issues, and their history with specific agencies like the Navy. A positive track record would include successful on-time deliveries, high-quality products, and adherence to contract terms. Conversely, a history of delays, quality issues, or disputes could raise concerns. Without specific data on their past performance history beyond this single award, it's difficult to provide a detailed assessment of their reliability for future procurements.

How does the 'All Other Miscellaneous Manufacturing' classification impact the competitive landscape for this contract?

The 'All Other Miscellaneous Manufacturing' (NAICS 339999) classification suggests that the deployment bags are specialized items that don't fit neatly into more common manufacturing categories. This can influence the competitive landscape in several ways. Firstly, it might mean a smaller pool of manufacturers are capable of producing these specific goods compared to more standardized items, potentially leading to less intense competition. However, the fact that this contract saw six bidders indicates that there is indeed a viable market. Secondly, it could imply higher barriers to entry for new competitors due to specialized tooling, materials, or processes required. The classification itself doesn't inherently limit competition but points to a niche market where the number and capability of potential bidders are key factors in determining the actual level of competition.

Industry Classification

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

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADS Tactical, Inc. (UEI: 078857127)

Address: 621 LYNNHAVEN PKWY STE 400, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,274,250

Exercised Options: $24,274,250

Current Obligation: $24,274,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F5965P

IDV Type: FSS

Timeline