DoD Awards $21.1M Contract to Atlantic Diving Supply for Service Equipment, Competition Limited by Source Exclusion

Contract Overview

Contract Amount: $21,147,053 ($21.1M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2027-06-01

Contract Duration: 614 days

Daily Burn Rate: $34.4K/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: 4569643145!RT2096A(P)(C)/U

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643145!RT2096A(P)(C)/U Key points: 1. Contract Value: $21.1 million over its period of performance. 2. Competition: Full and open after exclusion of sources, suggesting a specific justification for limiting bidders. 3. Risk: Potential for higher costs due to limited competition; contract type is Firm Fixed Price. 4. Sector: Defense Logistics Agency procurement for Service Establishment Equipment and Supplies.

Value Assessment

Rating: fair

The contract is Firm Fixed Price, which typically offers good price certainty. However, the 'full and open competition after exclusion of sources' raises questions about whether the government secured the best possible price by limiting the competitive pool.

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.' This method implies that while the competition was intended to be broad, specific sources were intentionally excluded, potentially impacting price discovery and overall value.

Taxpayer Impact: The exclusion of sources may lead to a less competitive environment, potentially resulting in higher costs for taxpayers than a truly open competition.

Public Impact

Ensures availability of essential service establishment equipment and supplies for the Department of Defense. Supports military readiness by providing necessary operational gear. The limited competition aspect could impact the range of available products and innovation. Potential for increased costs to taxpayers due to restricted bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Potential for inflated pricing
Lack of transparency in source exclusion justification

Positive Signals

Firm Fixed Price contract type
Long-term contract provides stability

Sector Analysis

This contract falls within the Defense sector, specifically for wholesale merchant sales of service establishment equipment and supplies. Spending benchmarks in this area are highly variable, depending on the specific equipment and quantities required, but large-scale procurements like this are common for military readiness.

Small Business Impact

The data indicates the awardee is ATLANTIC DIVING SUPPLY, INC. There is no explicit information provided regarding small business participation or subcontracting goals within this specific contract award. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract type (Firm Fixed Price) and the 'full and open competition after exclusion of sources' method warrant oversight. Agencies must clearly document the justification for excluding sources to ensure accountability and prevent potential impropriety.

Related Government Programs

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

Risk Flags

Limited competition may result in higher costs.
Lack of transparency regarding source exclusion.
Potential for non-competitive pricing.
Need for robust quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to ATLANTIC DIVING SUPPLY, INC.. 4569643145!RT2096A(P)(C)/U

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 $21.1 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-06-01.

What was the specific justification for excluding certain sources from this 'full and open' competition, and how did this impact the final price?

The justification for excluding sources is critical for understanding the procurement's integrity. If exclusions were based on technical requirements, it might be valid. However, if arbitrary, it could inflate costs. A thorough review of the solicitation documents and any pre-award communications would be necessary to assess the rationale and its financial implications for the government.

How does the pricing of this contract compare to similar equipment and supplies procured through unrestricted full and open competition?

Benchmarking this contract's pricing against similar items acquired via unrestricted competition is essential for value assessment. Without this comparison, it's difficult to determine if the exclusion of sources led to a higher price. Analyzing historical data for comparable items or market research reports would provide the necessary context to evaluate cost-effectiveness.

What measures are in place to ensure the effectiveness and quality of the service establishment equipment and supplies delivered under this contract?

Effectiveness and quality are paramount for military readiness. Oversight mechanisms likely include inspection and acceptance procedures at delivery, adherence to technical specifications, and performance metrics. The contract's success hinges on robust quality assurance processes by the Defense Logistics Agency to ensure the equipment meets operational demands.

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: $21,147,053

Exercised Options: $21,147,053

Current Obligation: $21,147,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline