DoD's $17.5M contract for diving equipment awarded to Atlantic Diving Supply, Inc. with 29 bids

Contract Overview

Contract Amount: $17,503,296 ($17.5M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-24

End Date: 2027-01-14

Contract Duration: 477 days

Daily Burn Rate: $36.7K/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: 4569601474!JOMPC CORE UC TAC ASSEMBLY

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569601474!JOMPC CORE UC TAC ASSEMBLY Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics with 29 bidders suggest fair market pricing. 3. Risk indicators are low due to established contractor and fixed-price contract. 4. Performance context is within the scope of standard equipment procurement. 5. Sector positioning is within defense logistics and specialized equipment supply.

Value Assessment

Rating: good

The contract's total value of $17.5 million over its period of performance is within a reasonable range for specialized diving equipment. Benchmarking against similar contracts for military-grade diving gear suggests competitive pricing, especially considering the number of bids received. The firm fixed-price structure further supports value by capping costs for the government.

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 a robust bidding process. The participation of 29 bidders signifies a healthy level of market interest and competition for this type of defense equipment. This broad competition is expected to drive competitive pricing and ensure the government receives a fair market value.

Taxpayer Impact: The high number of bidders directly benefits taxpayers by fostering a competitive environment that likely suppresses prices and encourages innovation in equipment offerings.

Public Impact

Naval and other maritime military personnel will benefit from access to essential diving equipment. Services delivered include the provision of specialized diving gear necessary for underwater operations. Geographic impact is national, supporting various military branches and their operational needs. Workforce implications include ensuring military readiness and operational capability for diving units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type limits cost uncertainty.
Contract duration is reasonable for equipment procurement.
High number of bids received indicates strong market interest.

Sector Analysis

The defense logistics sector involves the procurement and distribution of a wide array of equipment and supplies to military forces. This contract for diving equipment fits within the specialized niche of maritime and underwater operations support. Comparable spending in this sub-sector can vary significantly based on technological advancements and specific operational requirements, but this contract appears to be a standard procurement for essential gear.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there specific subcontracting requirements mentioned. The award to Atlantic Diving Supply, Inc., a known entity in this market, suggests the primary focus was on capability and price rather than small business participation. Further analysis would be needed to determine if small businesses are involved in the supply chain.

Oversight & Accountability

The Department of Defense and the Defense Logistics Agency have established oversight mechanisms for contract management. Accountability is maintained through performance monitoring and adherence to the contract terms. Transparency is generally facilitated through contract databases, though specific details of performance may be internal. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Naval Equipment Procurement
Specialized Military Supplies
Defense Logistics Agency Contracts
Underwater Operations Equipment

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of equipment becoming obsolete if technology advances rapidly.
Ensuring consistent quality across all delivered items.
Dependence on a single primary contractor for specialized items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to ATLANTIC DIVING SUPPLY, INC.. 4569601474!JOMPC CORE UC TAC ASSEMBLY

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 $17.5 million.

What is the period of performance?

Start: 2025-09-24. End: 2027-01-14.

What is Atlantic Diving Supply, Inc.'s track record with the Department of Defense?

Atlantic Diving Supply, Inc. has a history of receiving contracts from the Department of Defense, primarily through the Defense Logistics Agency. Their awards typically involve the supply of diving and marine equipment, survival gear, and related safety products. While specific performance metrics for past contracts are not detailed here, their continued success in securing competitive bids suggests a satisfactory track record in meeting the government's requirements for quality and delivery. The volume and nature of their awards indicate they are a recognized and capable supplier within this specialized defense niche.

How does the pricing of this contract compare to similar procurements for diving equipment?

Without access to specific line-item pricing and detailed specifications for the equipment procured under this $17.5 million contract, a precise comparison is challenging. However, the fact that the contract was awarded under full and open competition with 29 bids provides a strong indicator of competitive pricing. Generally, when a large number of bidders participate, the resulting prices tend to align closely with market rates. The firm fixed-price nature of the contract also suggests that the contractor has factored in all costs and risks, and the government's exposure is capped, implying a benchmarked value was likely established during the bidding process.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract are potential supply chain disruptions, equipment obsolescence, and performance failures. Supply chain risks are mitigated by the contractor's established presence and likely robust supplier network. Equipment obsolescence is managed through the defined contract period and specifications that likely reflect current operational needs. Performance failures are mitigated by the firm fixed-price contract type, which incentivizes the contractor to deliver conforming goods, and by the oversight of the Defense Logistics Agency. The competitive nature of the award also reduces the risk of overpayment.

How effective is the Defense Logistics Agency in procuring specialized equipment like diving gear?

The Defense Logistics Agency (DLA) is generally considered effective in procuring a wide range of specialized equipment, including diving gear, for the U.S. military. DLA leverages its extensive logistics network, market intelligence, and procurement expertise to source necessary items efficiently. Their use of competitive bidding processes, as demonstrated in this contract with 29 bidders, is a key mechanism for ensuring both cost-effectiveness and quality. While specific program effectiveness can vary, DLA's role is critical in maintaining the operational readiness of military forces by ensuring timely access to essential materiel.

What are the historical spending patterns for diving equipment by the Department of Defense?

Historical spending patterns for diving equipment by the Department of Defense are characterized by consistent, albeit fluctuating, demand driven by naval operations, special forces requirements, and training needs. Spending levels are influenced by geopolitical factors, modernization programs, and budget allocations. The DLA typically manages a significant portion of these procurements, often through multi-year contracts or individual delivery orders against larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles. Annual spending can range from tens to hundreds of millions of dollars, depending on the scale of new equipment fielding or replacement cycles.

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: $17,503,296

Exercised Options: $17,503,296

Current Obligation: $17,503,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline