DoD Awards $21M for Service Establishment Equipment, Supplies to Atlantic Diving Supply

Contract Overview

Contract Amount: $21,062,434 ($21.1M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-23

End Date: 2026-03-06

Contract Duration: 438 days

Daily Burn Rate: $48.1K/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: 4566797224!FCS14

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4566797224!FCS14 Key points: 1. Contract awarded to Atlantic Diving Supply, Inc. for essential equipment and supplies. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 438 days, ending March 6, 2026. 4. The total award value is $21,062,434.32. 5. The contract falls under the Service Establishment Equipment and Supplies Merchant Wholesalers NAICS code.

Value Assessment

Rating: good

The award value of $21M appears reasonable for a multi-year contract of this nature, especially given the firm fixed price structure which limits cost escalation. Benchmarking against similar contracts for specialized equipment and supplies would provide a more precise assessment.

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,' indicating that while competition was sought, specific sources may have been excluded initially. This method aims for competitive pricing but the exclusion aspect warrants scrutiny.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages multiple bids, driving down prices. The final price achieved through this process will determine the ultimate taxpayer impact.

Public Impact

Ensures availability of critical service establishment equipment and supplies for the Department of Defense. Supports military readiness by providing necessary operational resources. Potential impact on the supply chain for specialized defense equipment. The contract's duration suggests ongoing operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price inflation due to firm fixed price if market conditions change significantly.
Need to verify the rationale behind 'exclusion of sources' in the competition.

Positive Signals

Awarded through full and open competition, promoting competitive pricing.
Firm fixed price contract provides cost certainty.
Long-term contract duration indicates sustained demand and potential for economies of scale.

Sector Analysis

This contract falls within the wholesale trade sector, specifically for service establishment equipment and supplies. Spending in this area is crucial for maintaining operational capabilities across various defense logistics functions. Benchmarks would typically be assessed against historical spending for similar equipment categories.

Small Business Impact

The data indicates that the award was not made to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific contract award. Future solicitations should consider opportunities for small business participation.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting a framework agreement is in place. Oversight will focus on the performance of Atlantic Diving Supply, Inc. and adherence to the terms of the delivery order, particularly regarding delivery schedules and product quality.

Related Government Programs

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

Risk Flags

Potential lack of transparency due to 'exclusion of sources'.
No small business participation noted.
Reliance on a single awardee for a significant value contract.
Firm fixed price could be a risk if input costs rise unexpectedly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to ATLANTIC DIVING SUPPLY, INC.. 4566797224!FCS14

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 $21.1 million.

What is the period of performance?

Start: 2024-12-23. End: 2026-03-06.

What specific types of service establishment equipment and supplies are covered under this contract, and how do their prices compare to market rates?

The contract ID '423850' and NAICS code 'ND' suggest a broad category of 'Service Establishment Equipment and Supplies Merchant Wholesalers.' Without a detailed line-item breakdown, it's difficult to ascertain specific items. A thorough review would involve comparing the unit prices of key items against GSA schedules or other government and commercial price lists to ensure fair and reasonable pricing.

What were the specific reasons for excluding certain sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or security requirements are necessary, and only a limited number of vendors can meet them. The contracting agency must provide a documented justification for such exclusions. If the exclusion significantly reduced the number of bidders, it could potentially lead to a less competitive price than a truly open competition.

How effectively does this contract support the operational readiness and mission objectives of the Department of Defense, considering the value and duration?

The $21M award over approximately 1.5 years for essential equipment and supplies directly supports the DoD's operational readiness by ensuring necessary resources are available. The firm fixed price and competitive nature suggest a cost-effective approach. However, effectiveness is ultimately measured by the timely delivery of quality goods and their impact on mission success.

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: $21,062,434

Exercised Options: $21,062,434

Current Obligation: $21,062,434

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $20,009,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline