DoD's $13.2M contract for navigation systems awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $13,264,307 ($13.3M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2026-11-09

Contract Duration: 410 days

Daily Burn Rate: $32.4K/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: 4569643144!VXE30 STALKER SYSTEM ADVANCED NAVIGATION

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643144!VXE30 STALKER SYSTEM ADVANCED NAVIGATION Key points: 1. Value for money appears reasonable given the specialized nature of advanced navigation equipment. 2. Competition was conducted under a 'full and open competition after exclusion of sources' clause, suggesting specific justifications for limiting initial bidders. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within the Defense Logistics Agency's procurement of service establishment equipment. 5. Sector positioning is within the defense logistics and specialized equipment market.

Value Assessment

Rating: good

The contract value of $13.2 million for advanced navigation systems seems aligned with specialized defense equipment procurement. Benchmarking against similar contracts for advanced navigation or tactical equipment would provide a clearer picture of value. The firm fixed-price structure suggests a degree of confidence in cost estimation by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while competition was sought, certain sources may have been excluded based on specific criteria, potentially limiting the breadth of bidders. The number of bidders (29) is substantial, suggesting a healthy level of interest despite the exclusion clause.

Taxpayer Impact: The significant number of bidders indicates that taxpayers likely benefited from competitive pricing, even with initial source exclusions.

Public Impact

The primary beneficiaries are Department of Defense personnel requiring advanced navigation capabilities for operational readiness. The services delivered include the provision of advanced navigation systems, crucial for mission success in complex environments. The geographic impact is likely global, supporting deployed military units. Workforce implications are indirect, supporting the defense industrial base and specialized manufacturing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause, requiring careful monitoring of future procurements.
Reliance on a single contractor for specialized equipment could pose supply chain risks if not managed proactively.

Positive Signals

A high number of bidders (29) indicates strong market interest and potential for competitive pricing.
Firm Fixed Price contract type helps control costs and provides budget certainty.
Long-term contract duration (410 days) suggests a stable supply chain for critical equipment.

Sector Analysis

This contract falls within the defense logistics and specialized equipment sector, a critical component of national security spending. The market for advanced navigation systems is characterized by high technological barriers to entry and significant R&D investment. Comparable spending benchmarks would typically involve other procurements of tactical navigation, communication, or sensor systems for military applications.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, nor are there immediate subcontracting implications mentioned. Further analysis would be needed to determine if small businesses are participating in the supply chain for this specialized equipment.

Oversight & Accountability

Oversight is likely managed by the Defense Logistics Agency (DLA) through contract administration and performance monitoring. Accountability measures are embedded in the firm fixed-price contract terms. Transparency is facilitated by public contract data, though specific performance metrics and oversight reports would require deeper access.

Related Government Programs

Defense Logistics Agency Procurement
Tactical Navigation Systems
Military Equipment Procurement
Service Establishment Equipment

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on specialized components may introduce supply chain vulnerabilities.
Technological obsolescence risk for advanced systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to ATLANTIC DIVING SUPPLY, INC.. 4569643144!VXE30 STALKER SYSTEM ADVANCED NAVIGATION

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 $13.3 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-11-09.

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

Atlantic Diving Supply, Inc. has a history of contracts with the Department of Defense, primarily through the Defense Logistics Agency (DLA). Their contract portfolio often includes diving equipment, survival gear, and other specialized operational supplies. Analyzing their past performance on similar value contracts, adherence to delivery schedules, and quality of goods provided is crucial for assessing their reliability on this new navigation system contract. A review of past performance evaluations and any reported disputes or corrective actions would offer further insight into their capabilities and potential risks.

How does the $13.2 million value compare to similar advanced navigation system procurements?

Benchmarking the $13.2 million value requires identifying comparable procurements for advanced navigation systems within the defense sector. Factors such as system complexity, technological sophistication (e.g., GPS, inertial navigation, multi-sensor fusion), quantity ordered, and specific operational requirements (e.g., ruggedization, environmental resilience) significantly influence pricing. Without direct comparisons of systems with identical specifications and quantities, this figure represents a general investment in specialized military technology. The number of bidders (29) suggests a competitive market, which should theoretically drive pricing towards market norms for such equipment.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential supply chain disruptions for specialized components, technological obsolescence if the systems are not state-of-the-art or easily upgradeable, and performance issues if the systems do not meet stringent military operational requirements. The 'full and open competition after exclusion of sources' clause, while potentially justified, could also introduce a risk of overlooking highly capable vendors. Furthermore, contractor viability and financial stability are always a consideration for long-term supply contracts.

How effective is the Defense Logistics Agency in procuring specialized equipment like navigation systems?

The Defense Logistics Agency (DLA) is a primary entity responsible for procuring a vast array of supplies and services for the U.S. military, including specialized equipment. Their effectiveness in procuring navigation systems is generally considered robust, given their established processes, market reach, and expertise in logistics. However, effectiveness can vary based on the specific item's complexity and market dynamics. The DLA's ability to attract a significant number of bidders (29) for this contract suggests a well-managed procurement process that successfully engaged the relevant industry base.

What are the historical spending patterns for advanced navigation systems within the DoD?

Historical spending patterns for advanced navigation systems within the Department of Defense (DoD) show a consistent and significant investment driven by the need for precise and reliable positioning, navigation, and timing (PNT) capabilities across all military branches. Spending fluctuates based on technological advancements, new platform integration (e.g., aircraft, vehicles, soldier systems), and evolving operational requirements, including counter-GPS environments. The DoD often procures these systems through various contract vehicles, including prime contracts for major platforms and specific delivery orders for standalone navigation units, with annual spending often in the hundreds of millions to billions of dollars across all PNT-related procurements.

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: $13,264,307

Exercised Options: $13,264,307

Current Obligation: $13,264,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline