DoD's $33.2M Unmanned Aircraft Contract Awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $33,197,076 ($33.2M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-12-20

End Date: 2018-06-08

Contract Duration: 170 days

Daily Burn Rate: $195.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4540359833!UNMANNED AIRCRAFT - BLOCK E; BLIND; 1.3

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4540359833!UNMANNED AIRCRAFT - BLOCK E; BLIND; 1.3 Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process after source exclusion. 3. Risk indicators are being monitored for performance and delivery. 4. Performance context is tied to service establishment equipment and supplies. 5. Sector positioning within Defense Logistics Agency's procurement of specialized equipment.

Value Assessment

Rating: fair

The contract value of $33.2 million for unmanned aircraft systems appears within a reasonable range for specialized defense equipment. Benchmarking against similar contracts for unmanned aerial vehicles (UAVs) or related systems would provide a clearer picture of value for money. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific sources were excluded for reasons not detailed in the provided data. The number of bidders is not specified, but the exclusion of sources may limit the full potential of price discovery compared to a purely full and open competition.

Taxpayer Impact: The exclusion of sources, even within a broader competitive framework, could potentially lead to less aggressive pricing for taxpayers if it restricts the pool of qualified and competitive vendors.

Public Impact

Benefits the Department of Defense by providing essential unmanned aircraft capabilities. Services delivered include the supply of specialized equipment for defense operations. Geographic impact is primarily within the operational areas of the Defense Logistics Agency. Workforce implications may involve training and integration of new unmanned systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion.
Need for clear performance metrics to ensure value for taxpayer funds.
Dependence on contractor for specialized equipment could pose supply chain risks.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded by the Defense Logistics Agency, a key procurement entity.
Procurement of unmanned aircraft aligns with modern military needs.

Sector Analysis

This contract falls within the defense sector, specifically concerning the procurement of unmanned aircraft systems (UAS). The market for UAS is rapidly growing, with significant government investment. Spending benchmarks for similar UAS procurements vary widely based on system capabilities, quantity, and technological sophistication. This contract represents a portion of the broader defense spending on intelligence, surveillance, and reconnaissance (ISR) assets.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Atlantic Diving Supply, Inc., may engage small businesses as subcontractors, which would be a secondary avenue for small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance details and oversight reports may be internal to the agency.

Related Government Programs

Unmanned Aerial Vehicles (UAVs)
Defense Logistics Agency Procurement
Intelligence, Surveillance, and Reconnaissance (ISR) Equipment
Department of Defense Equipment Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for performance or delivery issues.
Need for detailed technical specifications to assess value.
Risk of technological obsolescence in a rapidly evolving field.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to ATLANTIC DIVING SUPPLY, INC.. 4540359833!UNMANNED AIRCRAFT - BLOCK E; BLIND; 1.3

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 $33.2 million.

What is the period of performance?

Start: 2017-12-20. End: 2018-06-08.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling defense contracts, particularly for unmanned systems?

Atlantic Diving Supply, Inc. has a history of receiving defense contracts, primarily through the Defense Logistics Agency. While their specialization might lean towards diving and marine equipment, their ability to secure contracts for unmanned aircraft suggests a capacity to adapt or partner for specific technological needs. A deeper dive into their past performance on similar unmanned systems contracts, including any reported issues or successes, would be necessary for a comprehensive assessment. Their overall contract history with the government, including contract values and types, can be found in public databases like SAM.gov and FPDS.

How does the awarded price of $33.2 million compare to market rates for similar unmanned aircraft systems?

Benchmarking the $33.2 million award requires detailed specifications of the unmanned aircraft systems procured. Prices for unmanned systems can range dramatically from a few thousand dollars for small drones to millions for advanced, long-endurance platforms. Without knowing the specific capabilities (e.g., payload, range, sensor suite, endurance), it's difficult to provide a precise market comparison. However, for mid-tier unmanned systems used for surveillance or tactical support, this value could be competitive if the systems meet the required specifications and performance standards. Further analysis would involve comparing unit costs against publicly available data for comparable systems from other manufacturers and government contracts.

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

Key risks for this contract include potential performance issues if the unmanned aircraft systems do not meet operational requirements, delivery delays, and the possibility of technological obsolescence. Since it's a firm fixed-price contract, the primary financial risk lies with the contractor. Mitigation strategies likely involve rigorous testing and acceptance protocols by the Defense Logistics Agency, clear performance metrics outlined in the contract, and potentially phased deliveries to allow for early detection of issues. The 'after exclusion of sources' aspect of the competition might also introduce a risk of not having the most optimal solution available due to a limited vendor pool.

What is the overall effectiveness of this procurement in meeting the Department of Defense's unmanned aircraft needs?

The effectiveness of this procurement hinges on how well the acquired unmanned aircraft systems fulfill the specific operational requirements of the Department of Defense units they are intended for. If these systems enhance intelligence gathering, surveillance capabilities, or provide tactical advantages, then the procurement is effective. The duration of the contract (170 days) suggests a relatively short-term supply need rather than a long-term program. Evaluating effectiveness would require post-delivery assessments of system performance in the field, user feedback, and whether the systems contribute to mission success and force protection.

What have been the historical spending patterns for unmanned aircraft systems by the Defense Logistics Agency or the Department of Defense?

The Department of Defense, including agencies like the Defense Logistics Agency, has consistently increased spending on unmanned aircraft systems over the past two decades. This trend reflects the growing recognition of UAS capabilities in intelligence, surveillance, reconnaissance (ISR), and combat operations. Historical spending data shows a significant upward trajectory, with billions allocated annually across various branches for different types of UAS, from small tactical drones to large, high-altitude platforms. The DLA's role often involves procuring common-use equipment and supplies, including components or complete systems that support broader DoD UAS initiatives.

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

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

Address: 621 LYNNHAVEN PKWY STE 400, 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: $33,197,076

Exercised Options: $33,197,076

Current Obligation: $33,197,076

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $31,920,264

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM8EJ14D0005

IDV Type: IDC

Timeline