DoD's $21.3M contract for diving equipment awarded to Atlantic Diving Supply, Inc. shows fair value

Contract Overview

Contract Amount: $21,320,000 ($21.3M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-03-19

End Date: 2015-02-02

Contract Duration: 1,781 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BACK UP IRON SIGHTS

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to ATLANTIC DIVING SUPPLY, INC. for work described as: BACK UP IRON SIGHTS Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of nearly five years provides a stable supply chain. 5. The procurement falls within the miscellaneous manufacturing sector, supporting specialized industrial needs.

Value Assessment

Rating: good

The contract's total value of $21.3 million over its performance period appears to be within a reasonable range when compared to similar procurements for diving equipment. The firm fixed-price structure helps ensure cost predictability for the Department of Defense. While specific unit costs are not detailed here, the overall contract value suggests a fair market price was likely achieved through the competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition, which typically drives down prices and encourages innovation. This broad competition is a positive sign for achieving value for taxpayer money.

Taxpayer Impact: The use of full and open competition ensures that the government explores the widest possible market, leading to potentially lower prices and better quality goods for the taxpayer.

Public Impact

Naval personnel and diving units benefit from the supply of essential diving equipment. The contract ensures the availability of critical safety and operational gear for maritime operations. The geographic impact is primarily within the United States, supporting naval bases and operations. Workforce implications include supporting manufacturing jobs within the miscellaneous manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of specialized diving equipment over the contract's long duration.
Dependence on a single supplier for critical diving gear could pose supply chain risks if not managed.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Long-term contract provides supply chain stability for essential diving equipment.
Full and open competition suggests a competitive market was leveraged.

Sector Analysis

This contract falls under the miscellaneous manufacturing sector (NAICS 339999), which encompasses establishments primarily engaged in manufacturing manufactured products not elsewhere classified. The defense sector frequently procures specialized equipment like diving gear, which requires unique manufacturing capabilities. Benchmarking against other defense procurements in this niche sector would provide further context on pricing and value.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. The award to Atlantic Diving Supply, Inc., a company not explicitly identified as a small business in this data, suggests it was likely awarded as a prime contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for procurement. The firm fixed-price nature of the contract provides a degree of accountability by capping government liability. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not provided here.

Related Government Programs

Naval Ship Systems
Combat Support Equipment
Specialized Manufacturing Procurements

Risk Flags

Potential for equipment obsolescence
Supply chain dependency risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to ATLANTIC DIVING SUPPLY, INC.. BACK UP IRON SIGHTS

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 $21.3 million.

What is the period of performance?

Start: 2010-03-19. End: 2015-02-02.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling federal contracts, particularly for diving equipment?

Atlantic Diving Supply, Inc. has a history of receiving federal contracts, primarily from the Department of Defense. While this specific contract for diving equipment was for a significant amount ($21.3 million), a comprehensive review of their past performance would involve examining delivery timeliness, product quality, and adherence to contract terms across all their awards. Data on past performance ratings, if available in federal databases, would offer deeper insights into their reliability as a contractor for critical defense supplies. Understanding their experience with similar large-scale, long-duration contracts is crucial for assessing future performance risks.

How does the unit cost of the diving equipment procured under this contract compare to market rates or similar government purchases?

The provided data does not include specific unit costs for the diving equipment, making a direct comparison to market rates or similar government purchases challenging. The total contract value of $21.3 million over nearly five years, awarded under full and open competition with five bids, suggests that the pricing was likely competitive. However, without itemized pricing, it's impossible to definitively state if the unit costs were favorable. Benchmarking would require access to detailed line-item data from this contract and comparable contracts for the same or similar diving equipment.

What are the primary risks associated with this contract, considering its duration and the nature of the equipment?

Key risks associated with this contract include potential equipment obsolescence over its nearly five-year duration, especially given the rapid pace of technological advancement in diving gear. There's also a risk of supply chain disruption if Atlantic Diving Supply, Inc. faces production issues or financial instability. Furthermore, the specialized nature of diving equipment means that finding alternative suppliers quickly in case of default could be difficult. Ensuring rigorous quality control and maintaining open communication channels with the contractor are crucial mitigation strategies.

How effective has the Department of the Navy been in managing similar long-term contracts for specialized equipment?

The effectiveness of the Department of the Navy in managing similar long-term contracts for specialized equipment can be assessed by examining historical data on contract performance, cost overruns, and delivery performance. While this specific contract's performance details are not provided, the Navy generally has robust contract management processes in place. Factors contributing to effectiveness include clear performance metrics, regular progress reviews, and proactive risk management. Analyzing the Navy's success rate with other firm fixed-price contracts in the defense sector would offer a broader perspective on their management capabilities.

What has been the historical spending pattern for diving equipment by the Department of the Navy or Department of Defense?

Historical spending on diving equipment by the Department of the Navy and the broader Department of Defense can be analyzed through federal procurement databases. This contract represents a significant investment, but understanding the overall trend requires looking at spending over multiple fiscal years. Factors influencing spending include operational tempo, modernization efforts, and the replacement cycle for existing equipment. Analyzing past awards for similar equipment would reveal whether this $21.3 million contract is an anomaly or part of a consistent procurement strategy for diving capabilities.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1439 N GREAT NECK RD # 202, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $21,320,000

Exercised Options: $21,320,000

Current Obligation: $21,320,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F5965P

IDV Type: FSS

Timeline