DoD's $12B VBSS Operations Ensemble contract awarded to Atlantic Diving Supply, Inc. for $29.6M

Contract Overview

Contract Amount: $29,651,271 ($29.7M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2027-09-20

Contract Duration: 725 days

Daily Burn Rate: $40.9K/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: 4569643152!VBSS OPERATIONS ENSEMBLE 12.0B

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643152!VBSS OPERATIONS ENSEMBLE 12.0B Key points: 1. Value for money appears reasonable given the scale of the contract, though detailed cost breakdowns are needed for precise assessment. 2. Competition dynamics indicate a full and open process after source exclusion, suggesting a competitive environment. 3. Risk indicators are moderate, with potential for cost overruns or performance issues in complex supply chain operations. 4. Performance context is tied to critical naval operations, requiring high reliability and timely delivery. 5. Sector positioning places this contract within the defense logistics and equipment supply chain.

Value Assessment

Rating: good

The awarded amount of $29.6M represents a fraction of the total contract ceiling, making direct value assessment challenging without further data. However, the contract type (Firm Fixed Price) generally favors the government by shifting cost risk. Benchmarking against similar large-scale defense supply contracts would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The number of bidders is not explicitly stated, but the 'after exclusion' clause implies a potentially narrowed field compared to pure full and open competition.

Taxpayer Impact: While the exclusion of sources might limit the number of potential bidders, the remaining competition should still drive price discovery. Taxpayers benefit from a competitive process that aims to secure the best value, even if not all potential vendors were considered.

Public Impact

Naval forces and maritime security operations benefit from the provision of VBSS (Visit, Board, Search, and Seizure) equipment. Essential services delivered include the supply of specialized equipment and ensemble packages for boarding operations. Geographic impact is likely global, supporting U.S. Navy and allied operations in various maritime theaters. Workforce implications may include specialized training for personnel using the equipment and support staff for logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment is difficult to source elsewhere.
Supply chain disruptions could impact the availability of critical VBSS gear.
Ensuring compliance with evolving maritime security regulations requires ongoing vigilance.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Award to a single vendor for a comprehensive ensemble simplifies procurement and logistics.
Long-term contract duration allows for stable supply and potential for economies of scale.

Sector Analysis

This contract falls within the defense logistics and military equipment sector, a significant segment of federal spending. The market for specialized maritime security equipment is driven by geopolitical factors and the need for effective force projection. Comparable spending benchmarks would involve analyzing other large-scale contracts for naval supplies and operational ensembles.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests that the primary awardee is likely a larger entity. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages them for specialized components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Logistics Agency. Accountability measures are embedded in the Firm Fixed Price structure, which incentivizes the contractor to meet delivery schedules and specifications within the agreed price. Transparency is facilitated through contract award databases, though detailed performance metrics and spending breakdowns may require specific Freedom of Information Act requests or internal reporting.

Related Government Programs

Naval Operations Support Contracts
Maritime Security Equipment Procurement
Defense Logistics Agency Supply Chain Management
Specialized Military Equipment Contracts
Visit, Board, Search, and Seizure (VBSS) Program Support

Risk Flags

Potential for limited competition due to source exclusion.
Risk of supply chain disruptions impacting critical equipment availability.
Need for robust oversight to ensure value for money against the large ceiling.
Complexity of managing a large ensemble contract across diverse operational needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to ATLANTIC DIVING SUPPLY, INC.. 4569643152!VBSS OPERATIONS ENSEMBLE 12.0B

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 $29.7 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-09-20.

What is the historical spending pattern for VBSS Operations Ensemble contracts with Atlantic Diving Supply, Inc. or similar vendors?

Analyzing historical spending requires access to a broader dataset of federal procurement records. Without specific historical data for this contract vehicle or direct comparisons with Atlantic Diving Supply's previous awards in this category, it's difficult to establish a precise spending pattern. However, the current award of $29.6M against a $12B ceiling suggests a significant potential for future task orders. Generally, defense spending on specialized operational ensembles can fluctuate based on strategic priorities, technological advancements, and operational tempo. Understanding past contract values, durations, and the number of competitors would provide context for whether this award represents an increase, decrease, or stable level of investment in VBSS capabilities.

How does the per-unit cost of items under this contract compare to market rates or similar government contracts?

The provided data does not include specific line-item details or quantities, making a direct per-unit cost comparison impossible. The contract ceiling is $12 billion, with an initial award of $29.6 million, indicating that the actual per-unit costs will be determined by the specific delivery orders placed over the contract's life. To assess value for money, one would need to compare the pricing of individual items or 'ensembles' within these delivery orders against commercial off-the-shelf (COTS) prices, other government contracts (like GSA schedules or other agency IDIQs), and potentially against prices from other bidders if that information were available. The Firm Fixed Price nature of the contract aims to lock in prices at the time of order, but the initial benchmark is the market rate for the specific equipment and services required for VBSS operations.

What are the key performance indicators (KPIs) and how is contractor performance being measured?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for a contract supporting VBSS Operations Ensemble, typical KPIs would likely include on-time delivery rates, quality of equipment (meeting specifications and standards), responsiveness to urgent requirements, and potentially the reliability and durability of the supplied gear in operational environments. Performance measurement would be conducted by the contracting officer's representative (COR) at the Defense Logistics Agency. Contract clauses would outline remedies for non-performance, such as acceptance of non-conforming supplies, termination for default, or assessment of damages. Regular performance reviews and feedback mechanisms are standard practice.

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

Atlantic Diving Supply, Inc. has a history of receiving federal contracts, primarily within the defense sector. A review of public databases like FPDS or SAM.gov would reveal the extent and nature of their past awards. For contracts related to maritime operations, diving equipment, or general military supplies, their track record would be assessed based on factors such as past performance ratings, contract completion success, and any history of disputes or terminations. The fact that they were awarded this significant contract suggests a positive assessment of their capabilities and past performance by the Department of Defense, likely indicating successful execution of previous, possibly smaller-scale, similar requirements.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type presents a nuanced risk profile. The primary risk is that by excluding certain sources, the government may inadvertently limit the pool of potential offerors, potentially leading to less competitive pricing or fewer innovative solutions than if all sources were considered. The justification for exclusion must be robust to withstand scrutiny. Risks also include potential protests from excluded vendors if the exclusion criteria are perceived as arbitrary or improperly applied. On the other hand, this method can be efficient if specific, pre-identified sources are known to possess unique capabilities essential for the requirement, thereby mitigating risks associated with onboarding entirely new vendors or ensuring specialized product availability.

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: $29,651,271

Exercised Options: $29,651,271

Current Obligation: $29,651,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline