DoD awards $28.3M for STAR SAFIRE FLIR units to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $28,393,200 ($28.4M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-04

End Date: 2020-04-03

Contract Duration: 396 days

Daily Burn Rate: $71.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4545159471!STAR SAFIRE STABILIZED TURRET FLIR UNIT

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4545159471!STAR SAFIRE STABILIZED TURRET FLIR UNIT Key points: 1. The contract is for specialized surveillance equipment, indicating a need for advanced visual capabilities. 2. Atlantic Diving Supply, Inc. secured this award, suggesting potential specialization or existing relationships within the defense sector. 3. The contract's value is significant, requiring careful scrutiny of its necessity and cost-effectiveness. 4. The sector is Defense, specifically focusing on equipment procurement for military operations.

Value Assessment

Rating: fair

The award amount of $28.3M for 396 units suggests a per-unit cost of approximately $71,700. This price needs to be benchmarked against similar advanced FLIR systems to determine value.

Cost Per Unit: $71,700

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implying that while competition was sought, certain sources were initially excluded. This method can sometimes lead to less competitive pricing if the exclusion criteria are not well-justified or if the pool of eligible bidders is small.

Taxpayer Impact: The significant expenditure on specialized equipment necessitates a thorough review to ensure taxpayer funds are used efficiently and effectively for critical defense needs.

Public Impact

Enhances military surveillance capabilities with advanced thermal imaging technology. Supports operational readiness and intelligence gathering for defense missions. Potential for technology advancements in defense optics and sensor systems.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Limited competition justification
High per-unit cost requires validation

Positive Signals

Procurement of critical surveillance technology
Award to a known entity in the defense supply chain

Sector Analysis

This procurement falls within the Defense sector, specifically for specialized equipment. Spending benchmarks for similar advanced electro-optical systems can vary widely based on technological sophistication and quantity, but $28.3M for 396 units indicates a substantial investment in high-end capabilities.

Small Business Impact

The data indicates the award went to Atlantic Diving Supply, Inc., a merchant wholesaler. Further analysis would be needed to determine the extent of small business participation as subcontractors, if any, on this contract.

Oversight & Accountability

The contract was awarded as a Delivery Order under a larger contract vehicle. Oversight would focus on the justification for the specific order, adherence to contract terms, and performance monitoring by the Defense Logistics Agency.

Related Government Programs

Service Establishment Equipment and Supplies Merchant Wholesalers
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for limited competition driving up costs.
High per-unit cost requires thorough price validation.
Need for clear justification of source exclusion.
Dependence on a single supplier for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to ATLANTIC DIVING SUPPLY, INC.. 4545159471!STAR SAFIRE STABILIZED TURRET FLIR UNIT

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 $28.4 million.

What is the period of performance?

Start: 2019-03-04. End: 2020-04-03.

What was the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price?

The justification for excluding sources is critical. If exclusions were based on highly specialized technical requirements or proprietary technology, it might limit competition and potentially increase costs. Conversely, if exclusions were less stringent, the limited competition could indicate a lack of robust price discovery, necessitating a deeper dive into the pricing reasonableness compared to market rates for comparable systems.

How does the $71,700 per-unit cost compare to similar advanced stabilized turret FLIR units available on the market or procured by other agencies?

Benchmarking the $71,700 per-unit cost is essential for assessing value. This requires comparing it against commercially available systems with similar specifications (resolution, range, stabilization, features) and against other government contracts for comparable equipment. Significant deviations from market averages, especially without clear justification for superior technology or unique features, would raise concerns about cost-effectiveness and potential overpayment.

What is the expected operational lifespan and effectiveness of these STAR SAFIRE FLIR units, and how does this justify the investment?

The effectiveness and lifespan of the FLIR units are key to justifying the $28.3M investment. Understanding the expected operational duration, maintenance requirements, and the specific tactical advantages these units provide is crucial. If the units are expected to have a long service life and significantly enhance mission capabilities, the cost may be deemed reasonable. However, if they are prone to obsolescence or high failure rates, the long-term value proposition diminishes.

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: $28,393,200

Exercised Options: $28,393,200

Current Obligation: $28,393,200

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $27,541,404

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ19D1004

IDV Type: IDC

Timeline