DoD's Defense Logistics Agency awards $45.7M contract for diving equipment to Atlantic Diving Supply

Contract Overview

Contract Amount: $29,270,486 ($29.3M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-12-07

Contract Duration: 437 days

Daily Burn Rate: $67.0K/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: 4569643147!M240 MMO

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643147!M240 MMO Key points: 1. Contract value represents a significant investment in specialized diving equipment. 2. Competition was full and open after exclusion of sources, indicating a broad initial search. 3. The contract duration of over a year suggests a sustained need for these supplies. 4. Fixed-price contract type aims to control costs for the government. 5. The awardee, Atlantic Diving Supply, Inc., is a key player in this niche market. 6. This contract supports the operational readiness of military diving units.

Value Assessment

Rating: good

The total contract value of $45.7 million over its period of performance appears reasonable for specialized military equipment. Benchmarking against similar contracts for diving gear is challenging due to the niche nature of the supplies. However, the firm fixed-price structure suggests an effort to ensure cost predictability. The number of bids received (29) indicates a healthy level of interest and potential for competitive pricing.

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.' This means that while the competition was initially broad, certain sources were excluded before the final award. The fact that 29 bids were received suggests that despite the exclusion, there was still robust competition, which is generally positive for price discovery and value for the government.

Taxpayer Impact: A competitive bidding process, even with initial exclusions, helps ensure that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

Military diving units across various branches will benefit from access to essential equipment. The contract ensures the availability of specialized diving and salvage equipment. Geographic impact is likely nationwide, supporting deployed units and training facilities. Workforce implications include ensuring military personnel have the necessary tools for their missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces unforeseen issues.
Risk of price creep if the 'exclusion of sources' process limited viable competitors more than intended.

Positive Signals

Firm fixed-price contract provides cost certainty.
A significant number of bidders (29) suggests a competitive market.
Awardee has a track record in supplying similar equipment.
Contract duration aligns with expected equipment lifecycle and sustainment needs.

Sector Analysis

This contract falls within the Defense Logistics Agency's broader mission of providing supply chain management for the U.S. Armed Forces. The market for specialized diving and salvage equipment is relatively niche, dominated by a few key suppliers capable of meeting stringent military specifications. Spending in this category is driven by operational readiness requirements and the need for advanced technology in underwater operations.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this specific contract (sb: false, ss: false). While the prime contractor is Atlantic Diving Supply, Inc., further analysis would be needed to determine if they plan to utilize small business subcontractors to fulfill parts of the contract. The impact on the small business ecosystem depends on whether subcontracting opportunities are made available.

Oversight & Accountability

The Defense Logistics Agency (DLA) is responsible for oversight of this contract. As a firm fixed-price contract, the primary accountability measure is adherence to the delivery schedule and specifications. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for supply chain vulnerability due to single awardee.
Effectiveness of 'exclusion of sources' in maintaining robust competition needs monitoring.
Ensuring timely delivery of specialized equipment is critical for operational readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to ATLANTIC DIVING SUPPLY, INC.. 4569643147!M240 MMO

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 $29.3 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-12-07.

What is Atlantic Diving Supply, Inc.'s track record with the Defense Logistics Agency and other government entities for similar equipment?

Atlantic Diving Supply, Inc. has a history of receiving government contracts, particularly from the Defense Logistics Agency (DLA) and other military branches, for diving and survival equipment. Their performance history, often available through federal procurement databases like SAM.gov, generally indicates experience in fulfilling requirements for specialized gear. Analyzing past awards, delivery performance, and any reported issues or commendations would provide a clearer picture of their reliability and capability in meeting the demands of this significant contract. Their established presence suggests they are a recognized and capable supplier within this niche market.

How does the awarded price compare to historical spending on similar diving equipment by the DLA or other agencies?

Directly comparing the awarded price of $45.7 million to historical spending on 'similar' diving equipment is complex due to the specialized nature of the items procured. The contract covers 'Service Establishment Equipment and Supplies Merchant Wholesalers,' which can encompass a wide range of items. To benchmark effectively, one would need to identify specific line items within this contract and compare their unit costs to previous procurements of identical or highly comparable equipment. Factors like inflation, technological advancements, and changes in military requirements over time would need to be considered. Without detailed line-item data, a precise value-for-money assessment based on historical price comparison is difficult.

What are the primary risks associated with a single awardee for such a critical supply category?

The primary risks associated with a single awardee for critical supplies like specialized diving equipment include potential supply chain disruptions if the contractor faces production issues, financial instability, or logistical challenges. A sole reliance on one vendor can also reduce leverage for future price negotiations. Furthermore, if the 'exclusion of sources' process inadvertently limited the pool of highly capable competitors, the government might not be achieving the best possible pricing or innovation. Contingency planning, robust contract management, and monitoring the contractor's performance are crucial to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring fair pricing and broad market access?

The 'Full and Open Competition After Exclusion of Sources' aims to balance broad market access with specific requirements. It allows for an initial wide solicitation but permits the exclusion of certain sources based on predefined criteria (e.g., security, capability, past performance). Its effectiveness in ensuring fair pricing and market access depends heavily on the justification for exclusions. If exclusions are well-founded and numerous capable bidders remain, it can lead to competitive pricing. However, if exclusions are overly restrictive or poorly justified, it could limit competition and potentially lead to higher prices or reduced innovation. The receipt of 29 bids in this case suggests that the exclusions did not unduly stifle competition.

What are the implications of the contract's duration (437 days) on equipment obsolescence and future technological integration?

A contract duration of 437 days (approximately 1.2 years) for diving equipment suggests a need for sustainment and replenishment rather than procurement of cutting-edge, rapidly evolving technology. This timeframe is generally suitable for standard or proven equipment where obsolescence is less of a concern. It allows for consistent supply without locking the government into a long-term commitment that might miss out on significant technological advancements. However, for highly specialized or rapidly developing areas within diving technology, a shorter contract or more frequent review cycles might be preferable to ensure access to the latest innovations.

What is the estimated value of the contract per day, and how does this inform the overall cost-effectiveness?

The total contract value is approximately $45.7 million over a period of 437 days. This breaks down to roughly $104,570 per day. This daily expenditure figure provides a metric for understanding the ongoing investment in diving equipment supplies. While it doesn't directly indicate cost-effectiveness on its own, it serves as a baseline for tracking spending against deliverables. Comparing this daily rate to the value and quantity of equipment delivered, as well as to the operational tempo and needs of the supported units, would be necessary to assess the true cost-effectiveness of the contract.

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: $29,270,486

Exercised Options: $29,270,486

Current Obligation: $29,270,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline