DoD's $35M contract for secure IT equipment awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $34,987,215 ($35.0M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-18

End Date: 2026-10-19

Contract Duration: 761 days

Daily Burn Rate: $46.0K/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: 4565981990!RES1360LMS041, 1U BUILTSECURE RES TRUST

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4565981990!RES1360LMS041, 1U BUILTSECURE RES TRUST Key points: 1. Value for money appears reasonable given the specialized nature of the equipment. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. Risk indicators are moderate, focusing on delivery timelines and product specifications. 4. Performance context suggests a need for secure IT solutions within the Defense sector. 5. Sector positioning is within Defense IT procurement, a critical area for national security.

Value Assessment

Rating: good

The contract value of approximately $35 million for secure IT equipment seems within a reasonable range for specialized defense procurement. Benchmarking against similar contracts for high-security IT hardware is challenging due to proprietary nature and specific requirements. However, the fixed-price structure provides cost certainty for the government. The total award amount is a significant investment, suggesting a substantial requirement for these specific IT solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initially open, certain sources were later excluded. This suggests a limited competition pool, potentially due to specific security clearances, certifications, or technical capabilities required for the equipment. With only one bid received (implied by the limited competition), it raises questions about the breadth of market engagement and whether the exclusion criteria were overly restrictive.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the incentive for vendors to offer their most competitive bids. It also means fewer options were explored, potentially missing out on more cost-effective solutions.

Public Impact

The Department of Defense benefits from enhanced cybersecurity and operational capabilities through the provision of secure IT equipment. Services delivered include the supply of specialized IT hardware designed for secure environments. Geographic impact is likely nationwide within DoD facilities requiring secure IT infrastructure. Workforce implications may involve IT personnel responsible for deploying and managing this secure equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than if more vendors had participated.
The exclusion of sources needs further justification to ensure it was necessary and not overly restrictive.
Reliance on a single bidder could pose future supply chain risks if that vendor faces operational issues.

Positive Signals

The contract addresses a critical need for secure IT equipment within the Department of Defense.
A firm fixed-price contract provides cost predictability for the government.
The award is to a known entity, Atlantic Diving Supply, Inc., suggesting some level of established relationship or capability.

Sector Analysis

The defense IT sector is characterized by high security requirements, stringent compliance standards, and significant government investment. This contract fits within the broader market for secure IT hardware and solutions, which is a critical component of national defense infrastructure. Spending in this area is often driven by evolving threat landscapes and the need for advanced technological capabilities. Comparable spending benchmarks are difficult to establish due to the specialized nature of secure equipment.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Atlantic Diving Supply, Inc., a company that may or may not be an SMB, does not automatically imply benefits for the broader small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract will likely fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for ensuring compliance with contract terms and financial accountability. The Inspector General for the Department of Defense would have jurisdiction for investigations into fraud, waste, or abuse. Transparency is facilitated through contract databases, but specific details on performance monitoring are not provided.

Related Government Programs

Defense Information Systems Agency (DISA) procurements
Tactical Data Systems
Cybersecurity Equipment
Secure Communication Systems

Risk Flags

Limited competition raises concerns about price and vendor options.
Potential for supply chain vulnerabilities due to specialized nature of equipment.
Need for clear performance metrics and oversight for secure IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to ATLANTIC DIVING SUPPLY, INC.. 4565981990!RES1360LMS041, 1U BUILTSECURE RES TRUST

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 $35.0 million.

What is the period of performance?

Start: 2024-09-18. End: 2026-10-19.

What is the specific nature of the 'secure IT equipment' being procured, and what are its key technical specifications?

The provided data indicates the contract is for '1U BUILTSECURE RES TRUST' equipment. This likely refers to ruggedized, secure server or computing units designed for demanding environments, possibly with built-in security features and trusted platform modules. Specific technical specifications, such as processing power, memory, storage capacity, network interfaces, environmental hardening (temperature, shock, vibration), and advanced cybersecurity certifications (e.g., Common Criteria, FIPS 140-2), would typically be detailed in the contract's Statement of Work (SOW) or technical exhibits. Without access to these detailed documents, the precise nature and capabilities of the equipment remain generalized.

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

Direct price comparison is challenging without knowing the exact specifications and quantities of the '1U BUILTSECURE RES TRUST' equipment. However, the total award of approximately $35 million over a period of roughly two years suggests a significant unit cost, likely in the thousands or tens of thousands of dollars per unit, reflecting the specialized security features, ruggedization, and potential for custom development or integration. Benchmarking would require access to publicly available contract awards for comparable secure IT hardware, factoring in differences in performance, security certifications, and vendor overhead. Given the limited competition, it's possible the price is at the higher end of the market spectrum for such specialized items.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential supply chain disruptions for specialized components, the risk of the procured equipment becoming obsolete quickly in the fast-paced IT sector, and the possibility of performance issues or security vulnerabilities not being fully identified during the limited competition phase. Given the 'limited' competition after exclusion of sources, there's also a risk that the government did not secure the best possible price or that the chosen solution is not the most innovative available. Mitigation strategies would typically involve robust quality assurance, performance monitoring by the Defense Logistics Agency, clear delivery schedules with penalties for delays, and potentially contingency planning for alternative suppliers or solutions if issues arise.

What is the historical spending pattern for this type of secure IT equipment within the Defense Logistics Agency or the broader DoD?

Historical spending data for this specific category of 'secure IT equipment' by the Defense Logistics Agency (DLA) or the wider Department of Defense (DoD) is not directly available from the provided summary data. However, the DLA is known to procure a vast array of equipment and supplies to support military operations, including IT hardware. The DoD consistently invests heavily in secure IT infrastructure to maintain operational readiness and protect sensitive information. Analyzing past DLA or DoD contracts for similar ruggedized, high-security computing devices, or secure network components, would provide context. Trends likely show increasing investment in cybersecurity and resilient IT solutions to counter evolving threats.

What is the track record of Atlantic Diving Supply, Inc. in providing IT equipment, particularly secure or specialized systems, to the federal government?

Atlantic Diving Supply, Inc. (ADS) has a significant track record as a government contractor, primarily known for providing a wide range of equipment, including tactical gear, personal protective equipment, and specialized systems. While their core strength may not be solely IT hardware, they often act as a prime contractor or distributor for various technological solutions. Their ability to secure this contract suggests they possess the necessary contracting vehicles, supply chain management capabilities, and potentially partnerships to deliver specialized IT equipment. A deeper dive into their contract history, specifically looking for IT-related awards and performance reviews, would provide a more precise assessment of their IT delivery capabilities.

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: $34,987,215

Exercised Options: $34,987,215

Current Obligation: $34,987,215

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $31,099,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline