DoD's $8.7M contract for centrifugal pumps awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $8,781,420 ($8.8M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-18

End Date: 2029-06-25

Contract Duration: 1,285 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511764941!PUMP,CENTRIFUGAL

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 8511764941!PUMP,CENTRIFUGAL Key points: 1. Value for money appears fair given the firm fixed price contract type. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and a single delivery order. 4. Performance context shows a need for centrifugal pumps within the Defense Logistics Agency. 5. Sector positioning is within the industrial equipment and supplies category for defense logistics.

Value Assessment

Rating: fair

The contract's value of $8.7 million for centrifugal pumps is difficult to benchmark without specific technical details and quantity. However, the firm fixed-price contract type generally provides cost certainty for the government. Comparing this to similar large-scale procurements for industrial pumps would be necessary for a more precise value assessment. The pricing appears to be within a reasonable range for a government contract of this magnitude, assuming the scope of work is comprehensive.

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 3 bidders suggests a reasonable level of competition, which typically helps in achieving competitive pricing and ensuring that the government receives the best value. The specific details of the bidding process and the number of proposals received would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality goods or services.

Public Impact

The Department of Defense benefits from the acquisition of essential centrifugal pumps. Services delivered include the provision of centrifugal pumps to support military operations. Geographic impact is likely concentrated around DLA facilities and operational areas. Workforce implications are minimal, primarily related to the contractor's supply chain and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1285 days) increases exposure to potential price fluctuations or obsolescence.
Reliance on a single delivery order could limit flexibility if additional needs arise.
The specific nature of 'centrifugal pumps' requires detailed technical specifications to ensure suitability and prevent over-specification or under-specification.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Award to a single contractor for a defined period ensures supply chain continuity for critical equipment.

Sector Analysis

This contract falls within the industrial equipment and supplies sector, specifically serving the defense logistics needs of the Department of Defense. The market for centrifugal pumps is broad, encompassing various industrial, commercial, and military applications. Spending in this category is driven by operational requirements, maintenance, and modernization efforts within military branches. Comparable spending benchmarks would involve analyzing historical procurement data for similar pump systems across different defense agencies.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While there is no direct indication of subcontracting requirements for small businesses, the prime contractor, Atlantic Diving Supply, Inc., may engage small businesses in its supply chain. The overall impact on the small business ecosystem would depend on the extent of their involvement in fulfilling this contract.

Oversight & Accountability

Oversight for this contract will be managed by the Defense Logistics Agency (DLA), a component of the Department of Defense. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency Procurement
Industrial Equipment Procurement
Military Operational Support Contracts
Centrifugal Pump Market

Risk Flags

Long contract duration may increase risk of obsolescence or price volatility.
Single delivery order could limit flexibility for evolving needs.
Need for detailed technical specifications to ensure pump suitability and prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to ATLANTIC DIVING SUPPLY, INC.. 8511764941!PUMP,CENTRIFUGAL

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 $8.8 million.

What is the period of performance?

Start: 2025-12-18. End: 2029-06-25.

What is the historical spending pattern for centrifugal pumps by the Defense Logistics Agency?

Analyzing historical spending patterns for centrifugal pumps by the Defense Logistics Agency (DLA) is crucial for understanding the scale and frequency of such procurements. While specific historical data for this exact item is not provided, DLA's mission involves procuring a vast array of equipment and supplies to support military operations. Past DLA spending on pumps would likely show fluctuations based on modernization programs, operational tempo, and replacement cycles for aging equipment. A review of previous contract awards for similar pump systems, including their values, quantities, and durations, would reveal trends. For instance, significant investments might be observed during periods of increased global military engagement or when new naval vessels or ground support equipment are commissioned. Conversely, spending might decrease during budget austerity periods or when existing equipment reaches its end-of-life and is phased out. Understanding these patterns helps in assessing whether the current $8.7 million award is consistent with historical investment levels or represents a significant deviation.

How does the pricing of this contract compare to similar centrifugal pump procurements?

Benchmarking the pricing of this $8.7 million contract against similar centrifugal pump procurements is essential for assessing value for money. Without detailed specifications of the pumps (e.g., flow rate, head, material, specific application), a direct comparison is challenging. However, general market rates for industrial-grade centrifugal pumps can range significantly, from a few thousand dollars for basic models to tens or hundreds of thousands for highly specialized or large-capacity units. Given the firm fixed-price nature and the full and open competition, the government likely secured a competitive price. To perform a thorough comparison, one would need to identify contracts with comparable pump types, quantities, and performance characteristics awarded by the DLA or other federal agencies. Factors such as warranty, delivery timelines, and included services also influence price. If this contract's unit price, once calculated, falls within or below the range of comparable procurements, it suggests good value. Conversely, a significantly higher unit price would warrant further investigation into potential cost drivers or competitive weaknesses.

What are the potential risks associated with the long performance period of this contract?

The contract's performance period spans approximately 1285 days (around 3.5 years), extending from December 2025 to June 2029. A significant risk associated with such a long duration is the potential for technological obsolescence. Centrifugal pump technology, while mature, can see incremental improvements in efficiency, materials, or control systems. If the procured pumps become outdated during the contract term, their effectiveness or maintainability could be compromised. Another risk is price escalation; although it's a firm fixed-price contract, unforeseen market shifts in raw materials or manufacturing costs could impact the contractor's profitability, potentially leading to quality compromises if not managed carefully. Furthermore, a longer performance period increases the government's exposure to potential contractor performance issues, such as delivery delays or quality defects, which may take longer to identify and rectify. Lastly, changes in operational requirements or military strategy during this extended period could render the procured pumps less critical or even unnecessary, leading to underutilization of funds.

How effective is the full and open competition in ensuring the best value for taxpayers in this case?

The full and open competition utilized for this $8.7 million contract is generally considered the most effective method for ensuring the best value for taxpayers. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. The presence of three bidders suggests that the market is sufficiently robust to support competition. This competitive pressure incentivizes contractors to offer their best pricing and most capable solutions to win the contract. For taxpayers, this translates into potentially lower acquisition costs and higher quality products compared to sole-source or limited competition scenarios. The effectiveness is further enhanced if the solicitation includes clear performance requirements and evaluation criteria that prioritize both price and technical merit. However, the true measure of effectiveness lies in the final awarded price relative to the market value and the delivered performance quality.

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

Assessing the track record of Atlantic Diving Supply, Inc. (ADS) is crucial for understanding their capability to successfully execute this $8.7 million contract for centrifugal pumps. A review of federal procurement databases (like SAM.gov or FPDS) would reveal ADS's past performance, including the types of contracts they have held, their values, agencies served, and performance ratings. Information on contract completion timeliness, quality of goods/services, and any past disputes or terminations would be particularly relevant. While ADS is known for providing a wide range of products, including diving and marine equipment, their experience with large-scale industrial pump procurements for the Department of Defense needs specific verification. A strong track record with similar complex procurements, especially those involving firm fixed-price awards and competitive bidding, would increase confidence in their ability to deliver. Conversely, any history of performance issues or contract failures would represent a significant risk factor for this current award.

What are the implications of this contract award on the small business industrial ecosystem?

This contract award has limited direct implications for the small business industrial ecosystem, as it was not awarded under a small business set-aside program (indicated by 'ss: false' and 'sb: false'). The prime contractor, Atlantic Diving Supply, Inc., is not explicitly identified as a small business. Therefore, the primary mechanism through which small businesses might benefit would be through subcontracting opportunities. The contract's value and nature (supply of centrifugal pumps) could potentially involve small businesses in the supply chain for components, specialized manufacturing, or logistics services. However, without specific subcontracting goals or reporting requirements mandated in the contract, the extent of small business involvement remains uncertain. Agencies often encourage or require prime contractors to utilize small businesses, but the absence of explicit set-asides suggests this was not a primary focus for this particular procurement. The overall impact hinges on ADS's internal policies and practices regarding small business engagement.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Bare Printed Circuit Board Manufacturing

Product/Service Code: PUMPS AND COMPRESSORS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 LYNNHAVEN PKWY, 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: $8,781,420

Exercised Options: $8,781,420

Current Obligation: $8,781,420

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRMM125DMA01

IDV Type: IDC

Timeline