DoD's $45.7M Soundgear Shield Kit contract awarded to Atlantic Diving Supply, Inc. for over 3 years

Contract Overview

Contract Amount: $36,964,460 ($37.0M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-03

End Date: 2028-06-27

Contract Duration: 1,028 days

Daily Burn Rate: $36.0K/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: 4569333967!SOUNDGEAR SHIELD KIT

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.0 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569333967!SOUNDGEAR SHIELD KIT Key points: 1. Value for money appears fair given the long-term nature and specialized equipment. 2. Competition was robust, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with performance dependent on contractor delivery and product efficacy. 4. Performance context is within the Defense Logistics Agency's procurement of specialized equipment. 5. Sector positioning is within defense logistics and specialized equipment provisioning.

Value Assessment

Rating: fair

The total contract value of $45.7 million over approximately 3.5 years suggests a moderate annual spend. Benchmarking against similar specialized defense equipment procurements is challenging without more specific product details. However, the firm-fixed-price structure provides cost certainty for the government, though it may not capture the lowest possible price if market conditions fluctuate significantly. The value proposition hinges on the critical nature of the 'Soundgear Shield Kit' and its operational necessity.

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 competition was sought, specific reasons led to the exclusion of certain potential bidders. The presence of 29 bids suggests a healthy level of interest and competition, which generally aids in price discovery and achieving a more competitive price. The exclusion of sources warrants further investigation to ensure no viable competitors were unfairly barred.

Taxpayer Impact: The broad competition, despite source exclusions, likely resulted in a more favorable price for taxpayers than a sole-source award. However, understanding the rationale behind source exclusions is crucial to confirm maximum taxpayer benefit.

Public Impact

The primary beneficiaries are Department of Defense personnel requiring specialized protective equipment. The contract delivers essential 'Soundgear Shield Kits' to enhance operational safety. Geographic impact is likely widespread, supporting military operations globally. Workforce implications are minimal for the contracting agency but significant for the end-users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for product obsolescence in a rapidly evolving defense technology landscape.
Dependence on a single contractor for a critical piece of equipment could pose supply chain risks.
Ensuring the 'Soundgear Shield Kit' meets evolving operational requirements and threat assessments.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Extensive competition (29 bids) suggests a competitive market for this type of equipment.
Long-term contract (over 3 years) allows for sustained availability of critical gear.

Sector Analysis

The defense logistics sector involves the procurement and distribution of a vast array of equipment, from basic supplies to highly specialized technological systems. This contract for 'Soundgear Shield Kits' fits within the niche of specialized protective gear, a segment that often sees innovation driven by operational needs. Comparable spending benchmarks are difficult to establish without knowing the exact nature and unit cost of the kits, but the overall defense logistics market is substantial, with billions spent annually on similar procurements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Atlantic Diving Supply, Inc., is not explicitly identified as a small business in this context. Subcontracting opportunities for small businesses may exist, but they are not a primary focus of this award based on the provided information. The impact on the small business ecosystem would depend on the extent of any subcontracting requirements or voluntary participation by the prime.

Oversight & Accountability

Oversight will be managed by the Defense Logistics Agency (DLA), responsible for ensuring timely delivery and adherence to specifications. Accountability measures are embedded in the firm-fixed-price contract terms, with penalties for non-performance or deviations. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Procurement
Specialized Military Equipment
Personal Protective Equipment
Department of Defense Contracts
Sound Protection Systems

Risk Flags

Potential for technological obsolescence
Supply chain vulnerability for specialized components
Ensuring consistent quality and performance over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.0 million to ATLANTIC DIVING SUPPLY, INC.. 4569333967!SOUNDGEAR SHIELD KIT

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 $37.0 million.

What is the period of performance?

Start: 2025-09-03. End: 2028-06-27.

What is the specific operational purpose and technical specification of the 'Soundgear Shield Kit'?

The 'Soundgear Shield Kit' is a specialized piece of equipment designed to provide advanced auditory protection and potentially communication capabilities for military personnel operating in high-noise environments. While specific technical specifications are not publicly detailed in the award notice, such kits typically integrate noise-canceling technology, hearing enhancement features, and communication systems (like radio integration) to ensure situational awareness while safeguarding hearing. Their purpose is to mitigate the risk of noise-induced hearing loss, a common occupational hazard in military settings, and to maintain effective command and control during operations.

How does the unit cost of the 'Soundgear Shield Kit' compare to similar protective equipment procured by the DoD or other federal agencies?

Direct unit cost comparison is challenging without the specific unit price from the contract award. The total award of $45,693,339.00 over a period of approximately 1028 days (roughly 3.5 years) with 29 bids suggests a competitive market. However, the complexity and specialized nature of 'Soundgear' technology likely place its unit cost higher than standard earplugs or earmuffs. To benchmark effectively, one would need to compare it against other advanced tactical communication headsets or hearing protection systems procured by agencies like the Army or Air Force, considering factors like integrated electronics, durability, and specific performance metrics.

What are the key performance indicators (KPIs) for this contract, and how will they be monitored?

Key performance indicators for this contract would likely revolve around timely delivery of the 'Soundgear Shield Kits,' adherence to technical specifications and quality standards, and potentially contractor responsiveness to inquiries or issues. The Defense Logistics Agency (DLA) would monitor these KPIs through contract administration processes, including reviewing delivery schedules, inspecting received goods for compliance, and tracking any performance deficiencies. While specific KPIs are not detailed in the award notice, standard metrics for equipment procurement contracts include on-time delivery rates, defect rates, and compliance with warranty provisions. Failure to meet these KPIs could result in contractual remedies.

What is Atlantic Diving Supply, Inc.'s track record with similar defense contracts, particularly for specialized electronic or protective gear?

Atlantic Diving Supply, Inc. (ADS) has a significant track record in supplying a wide range of equipment to the U.S. military and federal agencies, including tactical gear, protective equipment, and specialized systems. Their experience often includes providing items related to soldier modernization and operational readiness. While specific details on their past performance with 'Soundgear' type technology are not immediately available from this award notice alone, ADS is known for its broad catalog and ability to source and deliver complex equipment. A deeper dive into their contract history with DLA and other branches would reveal their performance trends in delivering similar high-value, specialized items.

What is the historical spending pattern for 'Soundgear Shield Kits' or comparable auditory protection systems by the Department of Defense?

Historical spending on 'Soundgear Shield Kits' or directly comparable advanced auditory protection systems by the DoD is not readily available from this single contract award. However, the DoD consistently invests significant funds in personal protective equipment (PPE) and soldier modernization programs, which include advanced hearing protection and communication systems. Spending in this category can fluctuate based on new technology adoption, operational tempo, and specific service branch requirements. Analyzing past DLA or individual service procurement data for tactical headsets, communication systems, and specialized hearing protection would provide a broader context for this $45.7 million award over its duration.

Are there any known risks associated with the technology or the contractor that could impact the successful delivery of these kits?

Potential risks associated with this contract include technological obsolescence, as defense technology evolves rapidly. If the 'Soundgear Shield Kit' technology becomes outdated quickly, its long-term value could diminish. Another risk involves the contractor's ability to consistently meet demand and quality standards over the contract's duration, especially given the competitive nature of the award which might have pressured pricing. Supply chain disruptions for specialized components could also pose a risk. However, the firm-fixed-price nature and the multiple bids suggest a degree of confidence in the contractor's capability and the technology's viability at the time of award.

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: $36,964,460

Exercised Options: $36,964,460

Current Obligation: $36,964,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline