DoD's JFTI Trainer System contract awarded to Atlantic Diving Supply for $32.8M, with 29 orders

Contract Overview

Contract Amount: $32,821,218 ($32.8M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-17

End Date: 2025-09-02

Contract Duration: 350 days

Daily Burn Rate: $93.8K/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: 4565981982!JFTI TRAINER SYSTEM (JTS) TFPS 29 SUBSY

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.8 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4565981982!JFTI TRAINER SYSTEM (JTS) TFPS 29 SUBSY Key points: 1. Value for money appears fair given the firm-fixed-price structure and duration. 2. Competition was full and open after exclusion of sources, suggesting some market research was conducted. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within the Defense Logistics Agency's purview for equipment and supplies. 5. Sector positioning is within Defense, specifically for training systems and equipment.

Value Assessment

Rating: fair

The contract's total value is $32.8 million over approximately one year. Benchmarking against similar training systems is difficult without more specific details on the 'JFTI Trainer System'. However, the firm-fixed-price nature of the contract provides cost certainty for the government. The number of delivery orders (29) suggests a potentially fragmented delivery schedule or a need for various components/services under the umbrella contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific technical requirements or prior market research. The number of bidders is not explicitly stated, but the 'full and open' designation implies more than a sole-source award.

Taxpayer Impact: This competition level aims to ensure the government receives competitive pricing by allowing multiple qualified vendors to bid, ultimately benefiting taxpayers through potentially lower costs.

Public Impact

The primary beneficiaries are the Department of Defense personnel who will utilize the JFTI Trainer System for training. The services delivered include the provision of training systems and associated equipment. The geographic impact is likely within military installations where training occurs. Workforce implications may involve training personnel on the new system and potentially support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the JFTI system becomes highly specialized and difficult to replace.
The 'after exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.
Dependence on a single contractor for specialized training systems can pose supply chain risks.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
The Defense Logistics Agency's involvement suggests established procurement processes and oversight.
Multiple delivery orders may indicate flexibility in meeting evolving training needs.

Sector Analysis

This contract falls within the Defense sector, specifically concerning training and simulation equipment. The market for defense training systems is substantial, driven by the need for advanced and realistic training environments. Comparable spending benchmarks would typically involve other large-scale simulation and training contracts awarded by military branches, often running into tens or hundreds of millions of dollars.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor, Atlantic Diving Supply, Inc., is not typically categorized as a small business. Subcontracting opportunities for small businesses may exist, but they are not detailed in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting plans are in place.

Oversight & Accountability

Oversight is likely managed by the Defense Logistics Agency (DLA), which is responsible for procuring and distributing supplies for the U.S. Armed Forces. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified goods or services at an agreed-upon price. Transparency is facilitated through contract databases, though specific performance metrics and oversight reports are not detailed here.

Related Government Programs

Defense Training Systems
Military Simulation Equipment
Logistics and Supply Chain Management (DoD)
Joint Fires and Effects Training Systems

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed public information on system capabilities and performance metrics.
Contract duration of approximately one year may require follow-on procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to ATLANTIC DIVING SUPPLY, INC.. 4565981982!JFTI TRAINER SYSTEM (JTS) TFPS 29 SUBSY

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 $32.8 million.

What is the period of performance?

Start: 2024-09-17. End: 2025-09-02.

What is the specific nature and capability of the 'JFTI TRAINER SYSTEM (JTS)'?

The 'JFTI TRAINER SYSTEM (JTS)' likely refers to a system designed for Joint Fires and Effects Training. This could encompass a range of capabilities, from virtual simulation environments that replicate battlefield scenarios to physical training equipment that allows personnel to practice coordinating fires from different military branches. The 'TFPS 29 SUBSY' designation might indicate a specific version, subsystem, or a particular program element within the broader JFTI initiative. Without more detailed documentation or public disclosures from the Department of Defense or Atlantic Diving Supply, the precise technical specifications and functionalities remain unspecified. However, such systems are crucial for enhancing interoperability and effectiveness in complex joint military operations.

How does the $32.8 million contract value compare to similar defense training system procurements?

The $32.8 million contract value for the JFTI Trainer System is a significant but not extraordinary amount for defense training and simulation equipment. Large-scale simulation programs, such as flight simulators, combat vehicle simulators, or sophisticated virtual training environments, can often range from tens of millions to hundreds of millions of dollars. For instance, contracts for advanced fighter jet simulators or comprehensive virtual reality training suites for ground forces frequently exceed this figure. The value of this specific contract suggests it may be for a specialized system, a particular phase of development, or a limited deployment, rather than a full-scale, branch-wide implementation. A more precise comparison would require identifying contracts for systems with analogous complexity, user base, and technological sophistication.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential performance issues if the JFTI Trainer System does not meet the required training objectives or technical specifications. Given the firm-fixed-price nature, the risk of cost overruns is largely borne by the contractor, but delays in delivery or subpar performance could still impact readiness and training schedules. Another risk is the potential for obsolescence; training technology evolves rapidly, and the system may require upgrades or replacements sooner than anticipated. Furthermore, reliance on a single contractor for a critical training system could create vulnerabilities in supply chain continuity or long-term support, especially if the contractor faces financial difficulties or strategic shifts. Ensuring adequate contractor oversight and robust performance metrics are key to mitigating these risks.

What is Atlantic Diving Supply, Inc.'s track record with similar defense contracts?

Atlantic Diving Supply, Inc. (ADS) has a substantial track record of providing equipment and services to the U.S. military and federal agencies. While their name might suggest a focus on diving equipment, ADS has diversified significantly and is a major supplier of tactical gear, outdoor equipment, and specialized operational solutions. They frequently engage in large-scale contracts involving the procurement and distribution of a wide array of products. Their history includes numerous awards from agencies like the Defense Logistics Agency (DLA), Special Operations Command (SOCOM), and various branches of the military. This experience suggests they possess the logistical capabilities and established relationships necessary to manage complex supply chains and deliver a broad range of equipment, including training systems, though the specific nature of the JFTI Trainer System would require a deeper dive into their specialized offerings.

How has historical spending on defense training systems evolved, and where does this contract fit?

Historical spending on defense training systems has shown a consistent upward trend, driven by the increasing complexity of modern warfare, the need for advanced technological integration, and the desire for more realistic and cost-effective training solutions compared to live exercises. There has been a significant shift towards simulation, virtual reality (VR), augmented reality (AR), and blended learning approaches. This contract for the JFTI Trainer System fits within this evolution by likely providing a component or system that leverages modern technology to enhance joint fires training. It represents a specific investment in a particular capability area, contributing to the overall modernization of military training infrastructure. The total annual spending across the DoD on training systems can run into billions of dollars, encompassing everything from individual soldier simulators to large-scale joint operational environment simulations.

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

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: $32,821,218

Exercised Options: $32,821,218

Current Obligation: $32,821,218

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $32,177,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline