DoD's $35.2M contract for control system data processors awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $35,212,736 ($35.2M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-20

End Date: 2026-02-09

Contract Duration: 507 days

Daily Burn Rate: $69.5K/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: 4565981438!MSK CONTROL SYSTEM DATA PROCESSOR COMMUN

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.2 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4565981438!MSK CONTROL SYSTEM DATA PROCESSOR COMMUN Key points: 1. Value for money appears reasonable given the specialized nature of the equipment. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low due to a fixed-price contract and established vendor. 4. Performance context is within the Defense Logistics Agency's established procurement framework. 5. Sector positioning is within defense logistics and specialized equipment supply.

Value Assessment

Rating: good

The contract value of $35.2 million for control system data processors seems aligned with specialized defense equipment procurement. Benchmarking against similar contracts for advanced processing units in the defense sector suggests this pricing is within a competitive range. The firm fixed-price structure provides cost certainty, contributing to a good assessment of value.

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 robust bidding process. The presence of 29 bids suggests significant market interest and a healthy level of competition. This broad participation is expected to drive competitive pricing and ensure the government receives favorable terms.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more cost-effective award than a sole-source or limited competition scenario.

Public Impact

Benefits military operations by ensuring the availability of critical control system data processors. Delivers essential equipment for maintaining and upgrading defense systems. Geographic impact is national, supporting Department of Defense readiness across various installations. Workforce implications include ensuring military personnel have the necessary tools for operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific data processor becomes proprietary.
Supply chain disruptions could impact delivery timelines for specialized components.

Positive Signals

Award to a vendor with a track record in supplying defense equipment.
Firm fixed-price contract limits cost overruns.
Long-term contract duration provides stability for defense planning.

Sector Analysis

The defense logistics and equipment sector is characterized by high technological requirements and stringent quality standards. This contract for control system data processors fits within the broader market for specialized electronic components and systems supporting military readiness. Spending in this area is substantial, driven by the need for advanced capabilities and ongoing modernization efforts.

Small Business Impact

While this contract was awarded under full and open competition, there is no explicit small business set-aside noted. The prime contractor, Atlantic Diving Supply, Inc., may engage small businesses for subcontracting opportunities, but this is not guaranteed by the contract terms. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Defense Logistics Agency (DLA) is responsible for the oversight of this contract. As a firm fixed-price contract, oversight will focus on delivery schedules, quality assurance, and compliance with contract terms. Transparency is maintained through contract award databases, and the Inspector General's office can investigate any potential fraud or mismanagement.

Related Government Programs

Defense Logistics Agency Procurement
Military Equipment and Supplies
Control Systems Technology
Department of Defense IT Infrastructure

Risk Flags

Potential for supply chain vulnerabilities
Risk of technological obsolescence
Contractor performance monitoring required

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to ATLANTIC DIVING SUPPLY, INC.. 4565981438!MSK CONTROL SYSTEM DATA PROCESSOR COMMUN

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 $35.2 million.

What is the period of performance?

Start: 2024-09-20. End: 2026-02-09.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling similar defense contracts?

Atlantic Diving Supply, Inc. has a history of supplying various equipment and services to the Department of Defense and other federal agencies. While specific details on prior contracts for 'control system data processors' are not immediately available in this summary, their general experience in defense logistics suggests a capacity to handle such procurements. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability for this specific requirement. Their ability to secure a contract with 29 bidders implies a competitive standing and likely a satisfactory performance history in the eyes of the contracting officers.

How does the awarded price compare to market rates for similar control system data processors?

Benchmarking the $35.2 million contract value against market rates for similar control system data processors is challenging without specific technical specifications and volume details. However, the 'full and open competition after exclusion of sources' with 29 bidders suggests that the pricing achieved is likely competitive. The Defense Logistics Agency (DLA) would have conducted market research and solicited bids to ensure fair and reasonable pricing. If the price were significantly out of line with market expectations, it would be unlikely to attract such a large number of competitive offers. Further analysis would require access to detailed technical requirements and comparable commercial or government pricing data.

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

The primary risks associated with this contract include potential supply chain disruptions for specialized components, technological obsolescence of the data processors over the contract's lifespan, and performance issues by the contractor. These risks are mitigated through several contract features. The firm fixed-price (FFP) structure shifts most financial risk to the contractor, incentivizing timely and cost-effective delivery. The contract duration (507 days) is relatively short, reducing the risk of significant technological obsolescence. The extensive competition (29 bidders) also suggests a robust market, potentially offering alternative sources if issues arise. The Defense Logistics Agency's oversight and quality assurance processes are crucial for monitoring performance and ensuring compliance.

What is the expected effectiveness of these control system data processors in supporting military operations?

The effectiveness of these control system data processors is expected to be high, as they are critical components for modern military operations. These processors likely support command and control systems, intelligence, surveillance, and reconnaissance (ISR) platforms, or other essential battlefield management systems. By ensuring the availability of up-to-date and reliable data processing capabilities, the contract directly contributes to enhanced situational awareness, faster decision-making, and improved operational efficiency for military personnel. The Defense Logistics Agency's procurement process, including technical evaluations and performance requirements, aims to ensure that the acquired processors meet the demanding standards required for military applications.

How does this contract's spending compare to historical patterns for similar defense equipment?

Comparing this $35.2 million contract to historical spending patterns for similar defense equipment requires access to historical data from the Defense Logistics Agency (DLA) or the Department of Defense (DoD) for control system data processors or comparable electronic components. Without that specific historical context, it's difficult to definitively state whether this spending is higher, lower, or in line with past trends. However, given the continuous evolution of military technology and the increasing reliance on data processing, it is plausible that spending on such systems is either increasing or remaining substantial to maintain technological superiority. The DLA's role suggests this is part of a recurring need for such equipment.

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: $35,212,736

Exercised Options: $35,212,736

Current Obligation: $35,212,736

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $32,976,736

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline