DoD's $456M contract for inertial navigation units awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $25,715,664 ($25.7M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-09-09

Contract Duration: 712 days

Daily Burn Rate: $36.1K/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: 4565981904!ATALIN 5000 INERTIAL NAVIGATION UNIT (IN

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4565981904!ATALIN 5000 INERTIAL NAVIGATION UNIT (IN Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are being monitored, with a focus on performance and delivery timelines. 4. Performance context is evaluated against historical delivery orders and contract duration. 5. Sector positioning places this contract within the Defense Logistics Agency's procurement of specialized equipment. 6. The contract's fixed-price nature aims to control costs for the government.

Value Assessment

Rating: good

The contract's total value of $456,598,190 over approximately two years suggests a significant investment in critical defense equipment. Benchmarking against similar contracts for inertial navigation systems is crucial to determine if the pricing is competitive. Given the specialized nature of the equipment, a firm fixed-price contract is generally favorable for cost control, provided the initial pricing is well-justified. The per-unit cost, while not explicitly provided, would be a key metric for detailed value assessment.

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 that while the competition was broad, specific sources were initially excluded before a full and open process was initiated. The number of bidders is not specified, but the 'full and open' designation implies multiple potential offerors were considered. This level of competition is generally expected to drive competitive pricing and ensure the government receives fair market value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods or services.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units requiring advanced inertial navigation capabilities for operational effectiveness. Services delivered include the provision of 5000 Inertial Navigation Units, critical for navigation and guidance systems. The geographic impact is likely global, supporting military operations wherever deployed. Workforce implications may include specialized manufacturing, logistics, and maintenance roles related to the navigation units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring the technological obsolescence of navigation units is managed effectively over the contract period.
Verification of the units' performance specifications against stringent military requirements.

Positive Signals

Award to a single, established contractor suggests a streamlined procurement process.
Firm Fixed Price contract structure provides cost certainty for the government.
Long-term contract duration allows for consistent supply and potential volume discounts.

Sector Analysis

This contract falls within the defense sector, specifically focusing on the procurement of specialized electronic equipment for military applications. The market for inertial navigation systems is characterized by high technological barriers to entry and stringent performance requirements. Spending in this area is driven by the need for advanced situational awareness and precision in defense operations. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar navigation or guidance systems by defense agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary awardee, Atlantic Diving Supply, Inc., is likely a larger entity, or that the contract was not specifically structured to prioritize small business prime contractors. Subcontracting opportunities for small businesses may still exist, depending on the prime contractor's strategy and the nature of the components or services required for the inertial navigation units.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms, quality standards, and financial regulations. The contract's performance will be monitored through regular reporting and inspections. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Procurement
Inertial Navigation Systems Procurement
Department of Defense Equipment Acquisition
Service Establishment Equipment and Supplies Merchant Wholesalers

Risk Flags

Potential for supply chain vulnerabilities
Risk of technological obsolescence
Ensuring consistent quality and performance
Dependency on a single contractor for a critical component

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to ATLANTIC DIVING SUPPLY, INC.. 4565981904!ATALIN 5000 INERTIAL NAVIGATION UNIT (IN

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 $25.7 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-09.

What is the historical performance record of Atlantic Diving Supply, Inc. with the Department of Defense, particularly concerning contracts of similar scale and complexity?

A thorough review of Atlantic Diving Supply, Inc.'s contract history with the Department of Defense is essential. This includes examining past performance on contracts for defense equipment, especially those involving complex electronic systems like inertial navigation units. Key metrics to assess would be on-time delivery rates, adherence to quality specifications, and any history of contract disputes or terminations. Analyzing past performance provides insight into the contractor's reliability and capability to meet the demands of this significant $456 million award. Without specific historical data points readily available in this summary, further investigation into contract databases and performance reports would be necessary to provide a definitive assessment of their track record.

How does the per-unit cost of the ATALIN 5000 Inertial Navigation Unit compare to market rates for similar technologies from other manufacturers?

Determining the per-unit cost requires dividing the total contract value by the number of units procured ($456,598,190 / 5000 units = $91,319.64 per unit). This figure must then be benchmarked against the market rates for comparable inertial navigation systems. Factors influencing market rates include the technological sophistication, accuracy, reliability, and specific features of the units. Researching pricing from other defense contractors or commercial providers of similar navigation technology is necessary. If the ATALIN 5000 units are priced significantly higher or lower than comparable systems, it warrants further investigation into the reasons, which could relate to unique specifications, bulk purchasing discounts, or potential pricing anomalies.

What are the primary risks associated with the long-term supply of specialized electronic components like inertial navigation units, and how are they being mitigated?

Key risks in supplying specialized electronic components include technological obsolescence, supply chain disruptions (e.g., component shortages, geopolitical instability affecting raw materials), and potential quality control issues. For inertial navigation units, rapid advancements in technology could render current models outdated. Mitigation strategies often involve robust quality assurance processes, diversification of suppliers for critical components, maintaining strategic inventory levels, and building flexibility into the contract for technology refresh or upgrades. The contract's duration (712 days) necessitates proactive management of these risks throughout its lifecycle to ensure sustained operational capability for the end-users.

What is the expected impact of these inertial navigation units on the operational effectiveness and mission capabilities of the Department of Defense units utilizing them?

Inertial navigation units are critical for providing accurate positioning, navigation, and timing (PNT) data, especially in environments where GPS or other external navigation signals may be denied, degraded, or jammed. Their deployment is expected to significantly enhance the operational effectiveness of platforms such as aircraft, ships, vehicles, and potentially guided munitions. This improved PNT capability directly supports mission success by enabling precise maneuvering, target acquisition, and navigation in complex operational theaters. The ATALIN 5000 units, by providing reliable autonomous navigation, contribute to increased survivability, mission accuracy, and overall force projection capabilities for the DoD.

How does the $456 million spending on these navigation units fit into the broader context of the Defense Logistics Agency's annual procurement budget and priorities?

The $456 million allocated to this contract represents a substantial investment within the Defense Logistics Agency's (DLA) overall budget. The DLA's mission is to provide logistics support to the U.S. Armed Forces, encompassing a wide range of supplies and services. Procurement of specialized equipment like inertial navigation units aligns with the DLA's role in equipping military services with essential operational capabilities. Understanding how this spending fits into the DLA's annual budget requires comparing it to total DLA spending and other major procurement categories. This contract likely represents a significant portion dedicated to advanced electronics and equipment, reflecting a strategic priority for maintaining technological superiority and operational readiness.

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: $25,715,664

Exercised Options: $25,715,664

Current Obligation: $25,715,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline