Dod Awards $25.7M for Sherpa Deployment Bags to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $25,709,718 ($25.7M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-24

End Date: 2026-03-23

Contract Duration: 364 days

Daily Burn Rate: $70.6K/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: 4567718576!SHERPA DEPLOYMENT BAG COYOTE

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: 4567718576!SHERPA DEPLOYMENT BAG COYOTE Key points: 1. Contract awarded for SHERPA DEPLOYMENT BAGS, a specialized equipment item. 2. ATLANTIC DIVING SUPPLY, INC. is the sole awardee. 3. The contract is for a 1-year period, ending March 2026. 4. The total award value is $25,709,717.70.

Value Assessment

Rating: fair

The per-unit cost is approximately $364,000, which appears high for a deployment bag. Benchmarking against similar specialized equipment contracts is recommended to assess value.

Cost Per Unit: $364,000

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not have yielded the best possible price discovery.

Taxpayer Impact: Taxpayers may be overpaying due to limited competition, potentially impacting the overall value for money.

Public Impact

Specialized equipment for military use ensures operational readiness. The contract supports a specific defense logistics need. Procurement details highlight the cost associated with specialized gear.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • High per-unit cost
  • Limited competition

Positive Signals

  • Supports defense logistics
  • Firm fixed price contract

Sector Analysis

This contract falls within the Defense sector, specifically for Service Establishment Equipment and Supplies. Spending benchmarks for similar specialized military gear can vary widely based on complexity and quantity.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, a key component of DoD oversight. The 'after exclusion of sources' clause warrants scrutiny to ensure proper justification.

Related Government Programs

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

Risk Flags

  • High per-unit cost
  • Limited competition justification
  • Potential for overpayment
  • Lack of small business participation data

Tags

service-establishment-equipment-and-supp, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to ATLANTIC DIVING SUPPLY, INC.. 4567718576!SHERPA DEPLOYMENT BAG COYOTE

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: 2025-03-24. End: 2026-03-23.

What is the justification for excluding other sources in this full and open competition?

The justification for excluding other sources in a 'full and open competition after exclusion of sources' scenario typically involves specific technical requirements, unique capabilities, or prior performance that only a particular vendor can meet. Without further documentation, it's difficult to ascertain the precise reason, but it implies a belief that only one source could fulfill the contract's stringent demands at the time of award.

How does the $364,000 per-unit cost compare to similar specialized military equipment?

A per-unit cost of $364,000 for a 'deployment bag' is exceptionally high and warrants significant investigation. Standard deployment bags are typically priced in the hundreds or low thousands of dollars. This figure suggests either a highly specialized, technologically advanced system integrated into the bag, or a significant misinterpretation of the unit cost data. Benchmarking against comparable complex military systems is crucial.

What is the long-term strategic value of these SHERPA DEPLOYMENT BAGS for the Department of Defense?

The long-term strategic value hinges on the specific capabilities the SHERPA DEPLOYMENT BAG provides. If it integrates advanced technology, offers unique protective features, or facilitates critical mission functions, its value could be substantial despite the high cost. However, without understanding its specific role and performance advantages over existing solutions, its strategic importance remains unclear and potentially questionable.

Industry Classification

NAICS: Wholesale TradeMachinery, Equipment, and Supplies Merchant WholesalersService 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: $25,709,718

Exercised Options: $25,709,718

Current Obligation: $25,709,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline

Start Date: 2025-03-24

Current End Date: 2026-03-23

Potential End Date: 2026-03-23 00:00:00

Last Modified: 2025-03-27

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