DoD's $30M contract for radio equipment awarded to Atlantic Diving Supply, Inc. with 29 bids

Contract Overview

Contract Amount: $29,990,505 ($30.0M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-09

End Date: 2025-03-13

Contract Duration: 643 days

Daily Burn Rate: $46.6K/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: 4561216673!SW; RADIO OPTION; MUOS DOWNLOAD CODE ONL

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4561216673!SW; RADIO OPTION; MUOS DOWNLOAD CODE ONL Key points: 1. The contract value of $30 million represents a significant investment in specialized communication equipment. 2. With 29 bids received, the competition level suggests a healthy market for these types of supplies. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of the contract, spanning over 600 days, indicates a sustained need for these items. 5. The award to Atlantic Diving Supply, Inc. positions them as a key provider for this specific defense need. 6. The 'Service Establishment Equipment and Supplies Merchant Wholesalers' NAICS code highlights the nature of the goods procured.

Value Assessment

Rating: good

The contract's fixed-price nature provides a degree of cost certainty. Benchmarking against similar procurements for specialized radio equipment is challenging without more detailed specifications. However, the presence of 29 bids suggests competitive pricing was likely achieved. The value appears reasonable given the specialized nature of the equipment and 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 AFTER EXCLUSION OF SOURCES,' indicating a broad solicitation process. The receipt of 29 bids is a strong indicator of robust competition. This high level of participation generally leads to better price discovery and a wider selection of qualified vendors, benefiting the government.

Taxpayer Impact: A high number of bidders typically translates to more competitive pricing for taxpayers, as vendors vie to win the contract by offering the best value.

Public Impact

Military personnel requiring reliable radio communication capabilities will benefit from this contract. The contract ensures the delivery of essential radio equipment, supporting operational readiness. The primary geographic impact is likely within Department of Defense operational theaters. The contract supports jobs within the defense logistics and equipment supply sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of radio technology over the contract's lifespan.
Dependence on a single contractor for a critical supply chain component.
Ensuring interoperability of procured equipment with existing systems.

Positive Signals

Strong competition indicates a healthy market and potential for good value.
Fixed-price contract limits cost overruns for the government.
Award to a specialized wholesaler suggests expertise in sourcing these items.

Sector Analysis

The defense sector relies heavily on specialized communication equipment. This contract falls within the broader market for electronic and communication systems, a segment characterized by rapid technological advancement and significant government investment. Comparable spending benchmarks are difficult to establish without specific technical details, but the defense industry's annual spending on such equipment runs into billions of dollars.

Small Business Impact

While the primary award went to Atlantic Diving Supply, Inc., the robust competition suggests potential opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned or achieved under this contract. The current data does not indicate a specific small business set-aside.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. Accountability is managed through contract performance monitoring and adherence to the firm fixed-price terms. Transparency is facilitated by the public nature of contract awards, though specific performance details may be sensitive. The Inspector General's office would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

Tactical Radio Systems
Defense Communication Equipment
Military Logistics Support
Specialized Electronic Supplies

Risk Flags

Potential for technology obsolescence
Supply chain vulnerability
Interoperability challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to ATLANTIC DIVING SUPPLY, INC.. 4561216673!SW; RADIO OPTION; MUOS DOWNLOAD CODE ONL

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 $30.0 million.

What is the period of performance?

Start: 2023-06-09. End: 2025-03-13.

What is the specific type of radio equipment being procured, and what are its key technical specifications?

The provided data indicates the procurement is for 'RADIO OPTION; MUOS DOWNLOAD CODE ONL' under the NAICS code 'Service Establishment Equipment and Supplies Merchant Wholesalers.' However, specific technical specifications, such as frequency bands, power output, encryption capabilities, or intended use (e.g., tactical, strategic), are not detailed in the summary data. The 'MUOS' acronym likely refers to the Mobile User Objective System, a secure satellite communication system used by the U.S. military. This suggests the radio equipment is designed to interface with or operate within the MUOS network, implying a need for secure, potentially global, voice and data communication capabilities for deployed forces.

How does the awarded price of approximately $30 million compare to similar procurements for comparable radio systems?

Direct price comparison is challenging without knowing the exact specifications and quantities of the radio equipment. However, the procurement of specialized communication gear for a system like MUOS, which requires high security and reliability, typically commands a premium. The fact that 29 vendors bid suggests a competitive market, which should have driven the price towards a reasonable level for the capabilities offered. To perform a robust comparison, one would need to identify contracts for similar MUOS-compatible radios or other secure satellite communication terminals, analyze their unit costs, and account for differences in features, quantities, and contract terms.

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

Key risks include technological obsolescence, as radio technology evolves rapidly; supply chain disruptions affecting delivery; and potential performance issues if the equipment does not meet stringent military requirements. Mitigation strategies likely involve the fixed-price contract structure, which incentivizes the contractor to deliver within budget. The strong competition may also reduce the risk of a single point of failure in supply. Furthermore, the Department of Defense likely has quality assurance and acceptance testing protocols in place to ensure the equipment meets all technical and operational specifications before final payment.

What is Atlantic Diving Supply, Inc.'s track record with similar Department of Defense contracts, particularly for communication equipment?

Atlantic Diving Supply, Inc. (ADS) is a known entity within the defense contracting space, often supplying a wide range of equipment, including tactical gear, apparel, and potentially communication systems. While ADS is a significant supplier, their specific track record with high-tech radio systems comparable to MUOS would require a deeper dive into their contract history. Information on past performance, including successful delivery of similar items, adherence to schedules, and quality of goods, would be crucial for assessing their capability in this specific instance. Publicly available data often shows ADS winning numerous contracts across various categories, indicating a broad operational capacity.

What is the historical spending pattern for this specific type of radio equipment or related communication systems by the Department of Defense?

Historical spending on tactical and satellite communication systems by the DoD is substantial, often running into billions of dollars annually across various branches and agencies. Procurements related to secure satellite communication networks like MUOS are critical for maintaining global operational command and control. While specific figures for 'RADIO OPTION; MUOS DOWNLOAD CODE ONL' are not available without further research, the DoD consistently invests in upgrading and maintaining its communication infrastructure to ensure secure and reliable connectivity for forces operating worldwide. This includes spending on satellite terminals, radios, encryption devices, and associated services.

How does the contract's duration of approximately 20 months (from June 2023 to March 2025) align with the expected lifecycle of modern military radio technology?

A contract duration of roughly 20 months for the delivery of radio equipment is relatively standard for fulfilling a specific order or establishing a supply chain for a defined period. However, the lifecycle of modern military radio technology can vary significantly. While some tactical radios might have lifecycles of 5-10 years before requiring upgrades or replacement due to technological advancements or evolving threats, others, especially those integrated into larger systems like MUOS, might have longer-term support requirements. This contract likely covers the initial procurement and potentially some initial support, with future contracts anticipated for upgrades or replacements as technology progresses or operational needs change.

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: $29,990,505

Exercised Options: $29,990,505

Current Obligation: $29,990,505

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $25,722,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline