DoD's $123.9M Contract for Diving Equipment Awarded to Atlantic Diving Supply

Contract Overview

Contract Amount: $12,389,630 ($12.4M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-09

End Date: 2027-11-22

Contract Duration: 804 days

Daily Burn Rate: $15.4K/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: 4569564891!GD6010 (DSDU)

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569564891!GD6010 (DSDU) Key points: 1. The contract is for Service Establishment Equipment and Supplies, a niche but critical area for military operations. 2. Atlantic Diving Supply, Inc. is the sole awardee, raising questions about the breadth of competition. 3. The contract's duration of 804 days suggests a significant, ongoing need for these specialized supplies. 4. The fixed-price contract type aims to control costs, but the lack of broader competition warrants scrutiny.

Value Assessment

Rating: fair

The contract value of $123.9 million over approximately 2.2 years is substantial for specialized diving equipment. Benchmarking requires specific data on similar large-scale procurements for military-grade diving gear, which is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict price discovery and potentially lead to higher costs compared to a truly open competition.

Taxpayer Impact: Taxpayer funds are being used for specialized military equipment. The limited competition raises concerns about whether the best possible price was achieved.

Public Impact

Ensures readiness of naval and special operations forces requiring specialized diving equipment. Supports a specific industry segment focused on maritime and underwater operations. Potential for increased costs due to limited competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate prices.
Sole awardee could indicate market concentration or barriers to entry.
Long contract duration requires ongoing monitoring for performance and cost.

Positive Signals

Fixed-price contract type helps manage cost certainty.
Awarding agency is the Defense Logistics Agency, experienced in procurement.
Contract supports critical defense capabilities.

Sector Analysis

The defense sector, particularly specialized equipment like diving gear, often involves unique technical requirements and a limited number of qualified suppliers. Spending benchmarks are highly specific to the type and quantity of equipment procured.

Small Business Impact

The contract was not awarded to a small business. Analysis of whether small businesses were excluded or unable to compete is needed, especially given the specialized nature of the equipment.

Oversight & Accountability

The Defense Logistics Agency is responsible for this procurement. Oversight will focus on ensuring the limited competition was justified and that the awarded price reflects fair market value for the specialized equipment.

Related Government Programs

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

Risk Flags

Limited competition.
Potential for price inflation.
Lack of small business participation.
Sole awardee concentration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to ATLANTIC DIVING SUPPLY, INC.. 4569564891!GD6010 (DSDU)

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 $12.4 million.

What is the period of performance?

Start: 2025-09-09. End: 2027-11-22.

What specific factors led to the exclusion of other sources in this 'full and open competition after exclusion of sources' scenario?

The exclusion of sources typically occurs when only a limited number of contractors possess the necessary technical capabilities, security clearances, or specialized facilities required for the specific equipment or service. For diving equipment, this could involve unique manufacturing processes, proprietary technology, or specific certifications mandated by the Department of Defense.

How does the $123.9 million contract value compare to historical spending on similar diving equipment by the DoD?

Benchmarking this contract's value requires detailed historical data on procurements of comparable military-grade diving systems, including quantities, specifications, and contract types. Without access to such granular data, it's difficult to definitively assess if $123.9 million represents a fair market price or an overpayment relative to past spending patterns.

What mechanisms are in place to ensure the effectiveness and quality of the diving equipment supplied under this contract?

Effectiveness and quality are typically ensured through stringent technical specifications outlined in the contract, pre-award inspections, source selection criteria, and post-award quality assurance surveillance. The Defense Contract Management Agency (DCMA) often plays a role in monitoring contractor performance and ensuring compliance with contractual requirements.

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: $12,389,630

Exercised Options: $12,389,630

Current Obligation: $12,389,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline