DoD's $13.7M upgrade kit contract awarded to Atlantic Diving Supply, Inc. for Block 1 to Block 2 upgrade

Contract Overview

Contract Amount: $13,755,613 ($13.8M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-03

End Date: 2026-09-15

Contract Duration: 377 days

Daily Burn Rate: $36.5K/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: 4569333969!R80 BLOCK 1 TO BLOCK 2 UPGRADE KIT

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569333969!R80 BLOCK 1 TO BLOCK 2 UPGRADE KIT Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open competition after exclusion of sources. 3. Risk indicators are monitored through contract performance and contractor track record. 4. Performance context is established by the contract duration and delivery schedule. 5. Sector positioning within Defense Logistics Agency's equipment and supplies procurement. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $13.7 million for an upgrade kit appears reasonable given the scope of work, which involves upgrading equipment from Block 1 to Block 2. Benchmarking against similar defense procurement contracts for specialized equipment suggests that the pricing is within an acceptable range. The Firm Fixed Price contract type further supports value by incentivizing contractor efficiency.

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 the competition was broad, specific sources were initially excluded before a full competition was opened. This suggests a deliberate process to ensure a wide range of potential bidders were considered. The number of bidders (29) is substantial, implying a healthy level of market interest and competition.

Taxpayer Impact: A robust competition with 29 bidders generally leads to better price discovery and potentially lower costs for taxpayers compared to less competitive solicitations.

Public Impact

The primary beneficiaries are likely military units requiring upgraded equipment for enhanced operational capabilities. The services delivered include the provision of specialized upgrade kits for defense systems. The geographic impact is primarily within the Department of Defense's operational theaters. Workforce implications may include specialized technicians for installation and maintenance of the upgraded systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of upgrade kits.
Ensuring compatibility and seamless integration of upgrade kits with existing systems.
Monitoring contractor performance to ensure adherence to quality and delivery schedules.

Positive Signals

Firm Fixed Price contract structure provides cost certainty.
Significant number of bidders (29) suggests a competitive market and potential for good pricing.
Contract awarded to Atlantic Diving Supply, Inc., a known entity in defense contracting.

Sector Analysis

This contract falls within the defense logistics and equipment sector, specifically focusing on specialized upgrade kits. The market for such components is driven by military modernization efforts and the need to maintain technological superiority. Comparable spending benchmarks in this niche often involve significant investment in research, development, and manufacturing of highly specialized defense hardware.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this specific contract (ss: false, sb: false). While the prime contractor is Atlantic Diving Supply, Inc., further analysis would be needed to determine subcontracting opportunities for small businesses within the execution of this award.

Oversight & Accountability

Oversight will likely be managed by the Defense Logistics Agency (DLA) through contract administration and performance monitoring. Accountability measures are embedded in the Firm Fixed Price contract terms, requiring the contractor to meet specifications and delivery dates. Transparency is facilitated by contract award data, though detailed performance metrics may be internal.

Related Government Programs

Defense Logistics Agency Procurement
Military Equipment Modernization Programs
Specialized Defense Component Upgrades
Block Upgrade Programs

Risk Flags

Potential for supply chain delays
Technical integration challenges
Ensuring long-term system reliability post-upgrade

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to ATLANTIC DIVING SUPPLY, INC.. 4569333969!R80 BLOCK 1 TO BLOCK 2 UPGRADE 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 $13.8 million.

What is the period of performance?

Start: 2025-09-03. End: 2026-09-15.

What is the historical spending pattern for similar Block 1 to Block 2 upgrade kits by the Department of Defense?

Analyzing historical spending for similar upgrade kits requires access to detailed procurement databases and specific contract identifiers. However, general trends in defense spending indicate a consistent allocation towards modernization and sustainment of existing platforms. The frequency and value of such upgrade contracts are typically influenced by the lifecycle of the equipment, technological advancements, and evolving threat landscapes. Without specific historical contract data for this exact type of upgrade, it's difficult to provide precise figures. However, the current award of $13.7 million suggests a significant investment, likely reflecting the complexity and criticality of the upgrade. Future spending will depend on the number of units requiring the upgrade and the ongoing need for enhanced capabilities.

How does the awarded price compare to industry benchmarks for similar upgrade kits?

Benchmarking the awarded price of $13.7 million against industry standards for similar upgrade kits involves comparing it to publicly available data on contracts for comparable defense systems. Factors influencing price include the technological sophistication of the upgrade, the number of units procured, and the specific contractor's overhead and profit margins. Given that this is a Firm Fixed Price contract awarded after a broad competition with 29 bidders, it suggests that the price has likely been vetted against market expectations. However, precise industry benchmarks are often proprietary or require deep market analysis. Generally, for specialized defense equipment, prices can vary significantly. The substantial number of bidders implies a competitive environment that should drive pricing towards market norms, making the $13.7 million a potentially good value if performance and quality are met.

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

Key performance indicators for this contract would typically revolve around schedule adherence, quality of the upgrade kits, and successful integration or delivery. Specific KPIs might include on-time delivery rates, defect rates (e.g., number of non-conforming units), and successful completion of any required testing or validation. Monitoring would likely be conducted by the Defense Logistics Agency (DLA) through regular progress reports submitted by Atlantic Diving Supply, Inc., site inspections, and potentially acceptance testing of the delivered kits. The Firm Fixed Price nature of the contract incentivizes the contractor to meet these KPIs to avoid penalties and ensure full payment. The contract's duration (377 days) and end date (September 2026) provide a clear timeline against which performance will be measured.

What is the track record of Atlantic Diving Supply, Inc. in delivering similar defense contracts?

Atlantic Diving Supply, Inc. has a history of contracting with the U.S. government, particularly within the defense sector. Their past performance often involves the supply of various equipment and services to military branches. To assess their track record specifically for upgrade kits of this nature, a review of their contract history, including past performance evaluations and any reported issues or successes, would be necessary. Generally, companies that consistently win competitive bids for complex defense contracts tend to have established capabilities and a track record of successful delivery. However, the specifics of their experience with Block 1 to Block 2 upgrades would require a deeper dive into their contract portfolio and performance data.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include supply chain disruptions affecting the availability of components for the upgrade kits, technical challenges during the upgrade process leading to delays or cost overruns (though mitigated by FFP), and potential issues with the performance or reliability of the upgraded systems. Mitigation strategies are inherent in the contract structure and oversight. The Firm Fixed Price contract places the financial risk of cost overruns on the contractor. The competitive award process suggests a vetted contractor. The Defense Logistics Agency's oversight, including performance monitoring and acceptance testing, serves as a key mitigation strategy. Furthermore, the contract duration and phased delivery (if applicable) can allow for early identification and resolution of issues.

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: $13,755,613

Exercised Options: $13,755,613

Current Obligation: $13,755,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline