DoD's $33.4M MK93 MOD2 Kit Contract Awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $33,401,400 ($33.4M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-10

End Date: 2025-11-24

Contract Duration: 440 days

Daily Burn Rate: $75.9K/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: 4565762313!MK93 MOD2 KIT (GREENCARC)

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4565762313!MK93 MOD2 KIT (GREENCARC) Key points: 1. The contract is for a significant value of $33.4 million. 2. Atlantic Diving Supply, Inc. is the sole awardee. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. The procurement falls under Service Establishment Equipment and Supplies Merchant Wholesalers.

Value Assessment

Rating: fair

The contract value of $33.4 million for a specialized kit needs comparison against similar defense equipment procurements to assess value. Without benchmarks, it's difficult to definitively state if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The $33.4 million expenditure represents taxpayer funds allocated to defense procurement. The limited competition aspect warrants scrutiny to ensure optimal use of these funds.

Public Impact

Ensures availability of critical equipment for defense operations. Supports a specific segment of the defense supply chain. Potential for increased costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

  • Limited competition may inflate costs.
  • Lack of clear per-unit cost benchmark.
  • Contract duration of 440 days.

Positive Signals

  • Firm Fixed Price contract provides cost certainty.
  • Awarded to a single, potentially specialized, supplier.

Sector Analysis

This procurement falls within the defense sector, specifically for equipment and supplies. Spending benchmarks in this area are highly variable based on the specific equipment and its criticality to national security.

Small Business Impact

The data does not indicate if Atlantic Diving Supply, Inc. is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The contract is managed by the Defense Logistics Agency, a key component for defense procurement. Oversight would focus on contract performance, delivery schedules, and adherence to the terms of the limited competition award.

Related Government Programs

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

Risk Flags

  • Limited competition raises cost concerns.
  • Lack of transparency in source exclusion.
  • Potential for price inflation.
  • Need for detailed performance validation.

Tags

service-establishment-equipment-and-supp, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to ATLANTIC DIVING SUPPLY, INC.. 4565762313!MK93 MOD2 KIT (GREENCARC)

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 $33.4 million.

What is the period of performance?

Start: 2024-09-10. End: 2025-11-24.

What is the justification for excluding other sources in this 'limited competition' scenario?

The justification for excluding other sources is critical for understanding the procurement's fairness and potential cost implications. Without this information, it's challenging to assess if the limited competition was truly necessary or if it resulted in a less competitive environment, potentially leading to higher prices for taxpayers.

How does the $33.4 million price compare to similar defense equipment kits procured through full and open competition?

Comparing this contract's $33.4 million price to similar defense equipment kits procured under full and open competition is essential for value assessment. If this price is significantly higher, it suggests potential overpayment due to the limited competition or other market factors. Benchmarking provides a crucial metric for evaluating the efficiency of this procurement.

What are the specific performance metrics and quality assurance measures in place for this contract?

Understanding the performance metrics and quality assurance measures is vital for ensuring the effectiveness of this $33.4 million contract. Robust oversight mechanisms should be in place to guarantee that the MK93 MOD2 Kit meets all required specifications and operational standards, thereby justifying the taxpayer investment and ensuring mission readiness.

Industry Classification

NAICS: Wholesale TradeMachinery, Equipment, and Supplies Merchant WholesalersService 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

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: $33,401,400

Exercised Options: $33,401,400

Current Obligation: $33,401,400

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $30,593,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline

Start Date: 2024-09-10

Current End Date: 2025-11-24

Potential End Date: 2025-11-24 00:00:00

Last Modified: 2024-09-11

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