DoD's $31M contract for WISPXMCT SENSOR equipment awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $31,136,800 ($31.1M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-16

End Date: 2024-05-21

Contract Duration: 797 days

Daily Burn Rate: $39.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4556609578!WISPXMCT SENSOR

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4556609578!WISPXMCT SENSOR Key points: 1. Value for money appears fair given the contract duration and competitive nature. 2. Competition dynamics indicate a robust bidding process, potentially leading to better pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is established through a multi-year delivery order for essential equipment. 5. Sector positioning places this contract within the Defense Logistics Agency's procurement of specialized equipment.

Value Assessment

Rating: fair

The contract value of $31,000,000 over approximately 797 days suggests a moderate per-diem cost for the WISPXMCT SENSOR equipment. Benchmarking against similar specialized sensor procurements is challenging without more detailed specifications. However, the firm fixed-price structure provides cost certainty for the government, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This suggests a potentially limited pool of bidders compared to unrestricted full and open competition. The number of bids received (29) is substantial and indicates significant interest, which is a positive sign for price discovery.

Taxpayer Impact: A substantial number of bidders, even with source exclusions, generally benefits taxpayers by fostering competitive pricing and encouraging efficient resource allocation.

Public Impact

The Department of Defense benefits from the acquisition of critical WISPXMCT SENSOR equipment. This contract supports the operational readiness and technological capabilities of military units. The geographic impact is likely national, supporting various defense installations and operations. Workforce implications may include specialized personnel for the operation and maintenance of the sensors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions.
Dependence on a single contractor for specialized equipment could pose supply chain risks.
Ensuring long-term sustainment and technical support for the sensors.

Positive Signals

Firm fixed-price contract limits cost escalation.
Significant number of bidders suggests market interest and potential for competitive pricing.
Multi-year award provides supply chain stability for essential equipment.

Sector Analysis

This contract falls within the defense sector, specifically concerning the procurement of specialized electronic equipment and supplies. The market for such advanced sensors is often characterized by high barriers to entry due to technological complexity and stringent performance requirements. Comparable spending benchmarks are difficult to ascertain without specific details on the WISPXMCT SENSOR's capabilities and intended use.

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 Atlantic Diving Supply, Inc. is the prime contractor, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized components or services related to the WISPXMCT SENSOR.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Logistics Agency (DLA) and relevant Department of Defense (DoD) contracting officers. Accountability measures are embedded in the firm fixed-price contract type, which holds the contractor responsible for delivering goods within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Defense Logistics Agency Procurement
Department of Defense Sensor Systems
Service Establishment Equipment and Supplies
Specialized Military Hardware Procurement

Risk Flags

Potential for limited competition due to source exclusions.
Dependence on specialized technology requires ongoing monitoring for obsolescence.
Contract duration may necessitate planning for future sustainment and upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to ATLANTIC DIVING SUPPLY, INC.. 4556609578!WISPXMCT SENSOR

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 $31.1 million.

What is the period of performance?

Start: 2022-03-16. End: 2024-05-21.

What is the specific function and criticality of the WISPXMCT SENSOR equipment being procured?

The specific function and criticality of the WISPXMCT SENSOR equipment are not detailed in the provided data. However, its procurement by the Defense Logistics Agency (DLA) for the Department of Defense (DoD) suggests it plays a vital role in military operations, intelligence gathering, surveillance, or reconnaissance. The 'SENSOR' designation implies a capability to detect, measure, or record physical properties. Given the substantial contract value of over $31 million and a duration of nearly two years, it is likely a sophisticated piece of technology essential for national security objectives, potentially supporting advanced threat detection or situational awareness.

How does the pricing of this contract compare to similar sensor procurements by the DoD or other federal agencies?

Direct comparison of pricing for this specific WISPXMCT SENSOR contract to similar procurements is challenging without detailed technical specifications and performance benchmarks. The provided data indicates a firm fixed-price contract valued at $31,000,000 over approximately 797 days. To assess value for money, one would need to compare the per-unit cost, total cost of ownership, and performance metrics against other sensor systems with comparable capabilities. Factors such as technological sophistication, intended operational environment, and quantity ordered significantly influence pricing. The fact that it was competed after exclusion of sources with 29 bidders suggests a degree of market validation, but a true benchmark would require access to detailed procurement histories of analogous systems.

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

Primary risks associated with this contract include potential supply chain disruptions for specialized components, technological obsolescence of the sensors over their lifecycle, and ensuring adequate contractor performance and support. Mitigation strategies are evident in the contract structure: the firm fixed-price (FFP) type contract shifts cost overrun risk to the contractor. The multi-year duration (797 days) provides some supply chain stability. Furthermore, the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 29 bidders suggests a degree of market vetting and potential for multiple sources of support, reducing sole-reliance risks. Robust government oversight by the Defense Logistics Agency is also a key mitigation factor.

What is the historical spending pattern for this type of equipment or by this specific contractor with the DoD?

The provided data snippet focuses on a single contract award. To understand historical spending patterns for this type of equipment (WISPXMCT SENSOR) or by the contractor (ATLANTIC DIVING SUPPLY, INC.) with the DoD, a broader analysis of federal procurement databases would be necessary. This would involve searching for prior contracts for similar sensor systems, examining the volume and value of contracts awarded to Atlantic Diving Supply, Inc. over time, and identifying trends in spending by the Defense Logistics Agency or other relevant DoD components. Without this historical context, it's difficult to determine if this $31 million award represents an increase, decrease, or consistent level of spending for such procurements.

How effective has the competition process been in ensuring a fair price for the government?

The competition process for this contract, described as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' involved 29 bidders. A substantial number of bidders generally indicates a healthy competitive environment, which typically leads to better price discovery and fairer pricing for the government. The exclusion of certain sources, however, could potentially limit the breadth of competition and its downward pressure on price. Without knowing the specific reasons for the source exclusions or the bid prices submitted, it's difficult to definitively assess the 'effectiveness' in absolute terms. However, receiving 29 bids suggests that the process was sufficiently attractive to a significant portion of the market, likely resulting in a competitive price relative to the available options.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADS Tactical, Inc.

Address: 621 LYNNHAVEN PKWY STE 160, 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: $31,136,800

Exercised Options: $31,136,800

Current Obligation: $31,136,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline