DoD's $25.1M contract for C2 Communications Modules awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $25,126,547 ($25.1M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-04

End Date: 2026-03-16

Contract Duration: 377 days

Daily Burn Rate: $66.6K/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: 4567466666!OPERATIONS C2 COMMUNICATIONS MODULE

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4567466666!OPERATIONS C2 COMMUNICATIONS MODULE Key points: 1. Contract value of $25.1M for C2 communications modules. 2. Awarded to Atlantic Diving Supply, Inc. with a duration of 377 days. 3. Competition was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Firm Fixed Price. 5. Service Establishment Equipment and Supplies Merchant Wholesalers sector. 6. Delivery Order under a larger contract vehicle. 7. High number of bids received (29).

Value Assessment

Rating: good

The contract value of $25.1M for C2 communications modules appears reasonable given the scope and duration. Benchmarking against similar contracts for specialized communication equipment is challenging without more detailed specifications. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The number of bids received (29) indicates a healthy level of interest and potential for competitive pricing.

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 multiple sources were solicited. The high number of bidders (29) suggests robust competition, which typically leads to better price discovery and more favorable terms for the government. This level of competition implies that the market for these specific C2 communications modules is active and that the solicitation was structured to attract a wide range of qualified vendors.

Taxpayer Impact: A high number of bidders generally translates to competitive pricing, potentially saving taxpayer dollars by driving down the cost of these essential communication modules.

Public Impact

The Department of Defense benefits from the acquisition of critical C2 communications modules. These modules are essential for command and control operations, enhancing military effectiveness. The contract supports the Defense Logistics Agency's mission to provide logistical support to the armed forces. The geographic impact is primarily within the operational theaters where these communication systems are deployed. Workforce implications are likely related to the manufacturing, integration, and deployment of the communication equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the specific technology becomes proprietary or difficult to integrate with other systems.
Reliance on a single supplier for critical components could pose supply chain risks.
Ensuring interoperability with existing and future communication architectures is crucial.

Positive Signals

The firm fixed-price contract shifts cost risk to the contractor.
A large number of bidders (29) indicates a competitive market.
Awarded to a known entity, Atlantic Diving Supply, Inc., suggesting a degree of established capability.

Sector Analysis

This contract falls within the broader defense electronics and communication systems sector. The market for Command and Control (C2) systems is highly specialized, driven by government requirements for secure, reliable, and interoperable communication solutions. Spending in this area is substantial, with significant investment in upgrading legacy systems and developing next-generation capabilities to maintain a technological edge. Comparable spending benchmarks would depend on the specific technical specifications and quantities of the modules procured.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, the high number of bidders suggests that small businesses may have had the opportunity to participate, either as prime contractors or subcontractors, if they possessed the required capabilities. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a Delivery Order under a larger contract vehicle, oversight may be managed at both the contract vehicle level and the individual order level. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Command and Control Systems
Tactical Communication Equipment
Logistics and Supply Chain Management

Risk Flags

Potential for supply chain vulnerability due to specialized components.
Risk of technological obsolescence in rapidly evolving C2 systems.
Need for stringent quality assurance to ensure reliability.
Importance of verifying interoperability with existing and future systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to ATLANTIC DIVING SUPPLY, INC.. 4567466666!OPERATIONS C2 COMMUNICATIONS MODULE

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 $25.1 million.

What is the period of performance?

Start: 2025-03-04. End: 2026-03-16.

What is the specific technical capability and intended use of these 'OPERATIONS C2 COMMUNICATIONS MODULES'?

The data provided, 'OPERATIONS C2 COMMUNICATIONS MODULE', suggests these are components for Command and Control (C2) systems used in military operations. C2 systems are critical for enabling commanders to direct forces effectively. These modules likely provide essential communication functionalities, such as data transmission, voice communication, or network management, tailored for operational environments. The exact technical specifications, such as frequency bands, data rates, encryption capabilities, and ruggedization standards, are not detailed in the provided data but would be crucial for understanding their specific role and value. Without this, it's difficult to assess their technological sophistication or compare them to commercial off-the-shelf alternatives.

How does the awarded price of $25.1M compare to similar C2 communication module procurements by the DoD or other agencies?

Direct price comparison for specialized C2 communication modules is challenging without detailed technical specifications and quantity information. The $25.1M contract value, awarded to Atlantic Diving Supply, Inc. for a 377-day period, represents a significant investment. However, the 'per-unit cost' is not provided, making direct benchmarking difficult. To assess value, one would need to compare the unit price against historical data for similar modules, considering factors like technological advancement, required certifications, and volume discounts. The 'Service Establishment Equipment and Supplies Merchant Wholesalers' North American Industry Classification System (NAICS) code suggests a broad category, and the specific nature of C2 modules could place it in a niche within that. A thorough value assessment would require access to the detailed contract line item pricing.

What is Atlantic Diving Supply, Inc.'s track record with similar DoD contracts, particularly in communications equipment?

Atlantic Diving Supply, Inc. (ADS) has a history of receiving federal contracts, primarily from the Department of Defense. Their portfolio often includes a wide range of equipment, from tactical gear to specialized operational systems. While ADS is known for its broad supply capabilities, specific details regarding their performance on C2 communications module contracts are not immediately available from the provided data. A deeper dive into their contract history, including past performance reviews, on-time delivery rates, and any quality issues related to communication systems, would be necessary to fully assess their track record for this specific type of procurement. Their success in winning this contract with 29 bidders suggests they met the technical and business requirements.

What are the potential risks associated with this contract, such as supply chain disruptions or technological obsolescence?

Potential risks for this contract include supply chain disruptions, especially if the modules rely on specialized components with limited sources or geopolitical sensitivities. Technological obsolescence is another concern; C2 systems evolve rapidly, and modules procured today could become outdated relatively quickly. The firm fixed-price nature, while beneficial for cost control, could incentivize the contractor to use less expensive, potentially less advanced components if not strictly monitored. Furthermore, the 'exclusion of sources' aspect of the competition, while still 'full and open', warrants scrutiny to ensure it didn't unduly limit the pool of potential suppliers. Ensuring robust quality assurance and contingency planning for supply chain issues would be critical.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' classification impact the perceived value and competition level?

The classification 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, certain sources were intentionally excluded from the initial solicitation phase. This could be due to specific technical requirements, security clearances, or other pre-qualification criteria. While it's still a form of open competition, the exclusion means the pool of potential bidders was smaller than a truly unrestricted 'full and open' competition. The fact that 29 bids were still received suggests that the exclusion criteria did not overly restrict the market. This level of competition generally supports good price discovery, but the specific reasons for exclusion should be understood to ensure no viable, competitive alternatives were unnecessarily sidelined.

What is the expected impact of these C2 communication modules on the operational readiness and effectiveness of the supported DoD units?

The procurement of these C2 communication modules is expected to directly enhance the operational readiness and effectiveness of the supported Department of Defense units. Reliable and secure command and control is fundamental to modern military operations, enabling seamless coordination of forces, real-time situational awareness, and efficient decision-making. By providing updated or enhanced communication capabilities, these modules can improve the speed and accuracy of information flow, reduce communication failures in challenging environments, and potentially integrate with newer battlefield technologies. This ultimately contributes to mission success and the safety of personnel by ensuring that commanders have the necessary tools to direct operations effectively.

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: $25,126,547

Exercised Options: $25,126,547

Current Obligation: $25,126,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline