DoD Awards $119M Contract for Service Establishment Equipment to Atlantic Diving Supply, Inc
Contract Overview
Contract Amount: $11,908,750 ($11.9M)
Contractor: Atlantic Diving Supply, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-18
End Date: 2030-10-10
Contract Duration: 1,848 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 29
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 4569567562!TUBES
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23452
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.9 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569567562!TUBES Key points: 1. Significant contract value of $119 million awarded. 2. Competition method indicates full and open, suggesting potential for competitive pricing. 3. Contract duration extends to 2030, posing long-term fiscal considerations. 4. Service Establishment Equipment and Supplies Merchant Wholesalers sector is critical for military readiness.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar contracts for specialized equipment is recommended to ensure optimal value.
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, which generally promotes competitive pricing and broad market access. This method aims to secure the best value for the government.
Taxpayer Impact: The competitive nature of this award is expected to yield favorable pricing, maximizing taxpayer return on investment for essential equipment.
Public Impact
Ensures availability of critical service establishment equipment for military operations. Supports a key supplier in the defense logistics chain. Long-term contract provides stability for both the agency and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Long contract duration may lead to price escalation risks.
- Dependence on a single awardee for a broad category of supplies.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Awarded to a known entity in the defense supply sector.
Sector Analysis
This contract falls within the wholesale trade sector, specifically for service establishment equipment and supplies. Spending in this area is crucial for maintaining operational readiness and logistical support for military personnel.
Small Business Impact
While the awardee is Atlantic Diving Supply, Inc., the data does not indicate if small businesses were involved as subcontractors or if the prime contractor is a small business. Further analysis is needed to assess small business participation.
Oversight & Accountability
The use of full and open competition suggests a robust process. However, ongoing monitoring of contract performance and adherence to terms is essential for accountability.
Related Government Programs
- Service Establishment Equipment and Supplies Merchant Wholesalers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (over 9 years).
- Broad scope of 'Service Establishment Equipment and Supplies'.
- Potential for price escalation over the contract term.
- Risk of technological obsolescence.
- Dependence on a single awardee for a wide range of goods.
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 $11.9 million to ATLANTIC DIVING SUPPLY, INC.. 4569567562!TUBES
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 $11.9 million.
What is the period of performance?
Start: 2025-09-18. End: 2030-10-10.
What is the specific breakdown of equipment categories covered under this contract, and how does the unit pricing compare to market rates for similar items?
The contract covers a broad range of 'Service Establishment Equipment and Supplies.' A detailed breakdown of specific items and their associated unit prices is necessary for a thorough value assessment. Comparing these prices against industry benchmarks and historical data for comparable government or commercial contracts would reveal potential cost savings or overspending.
What are the potential risks associated with a contract duration extending over a decade, particularly concerning technological obsolescence or changing operational requirements?
A contract spanning nearly ten years carries inherent risks. Technological advancements could render some equipment obsolete, while evolving military needs might necessitate different types of supplies. The firm fixed price might not adequately account for future inflation or unforeseen market shifts, potentially leading to suboptimal value or the need for costly contract modifications.
How effectively does this contract support the Department of Defense's mission readiness and logistical efficiency, given the broad scope of 'Service Establishment Equipment and Supplies'?
This contract likely supports mission readiness by ensuring a consistent supply of essential equipment. However, its effectiveness hinges on the specific items procured and their direct relevance to current operational needs. Efficient logistical support is achieved if the awarded items are readily available and delivered on time, minimizing operational disruptions.
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: $11,908,750
Exercised Options: $11,908,750
Current Obligation: $11,908,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE8EJ21D1020
IDV Type: IDC
Timeline
Start Date: 2025-09-18
Current End Date: 2030-10-10
Potential End Date: 2030-10-10 00:00:00
Last Modified: 2025-09-23
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