DoD Awards $12.5M for ECLIPSE RF Subsystems to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $12,479,040 ($12.5M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2027-04-20

Contract Duration: 572 days

Daily Burn Rate: $21.8K/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: 4569643099!ECLIPSE RF 3U VPX 14 SUBSYSTEM

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643099!ECLIPSE RF 3U VPX 14 SUBSYSTEM Key points: 1. Contract awarded for specialized RF subsystems, indicating a need for advanced electronic warfare or communication capabilities. 2. Atlantic Diving Supply, Inc. secured the award, suggesting they are a key provider in this niche market. 3. The contract's duration of 572 days points to a significant, multi-year requirement. 4. The use of Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $12.5M for 29 units suggests a per-unit price of approximately $431,000. This appears reasonable given the specialized nature of RF subsystems, but a direct comparison would require benchmarking against similar advanced electronic warfare or communication hardware.

Cost Per Unit: $431,000 (estimated)

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, specific sources were excluded, potentially limiting the pool of bidders and impacting price discovery.

Taxpayer Impact: The government sought competitive bids, but the exclusion of certain sources may have resulted in a higher price than if all potential vendors had participated.

Public Impact

Ensures the Department of Defense has access to critical RF technology for operational readiness. Supports advanced electronic warfare or communication capabilities essential for national security. The award to Atlantic Diving Supply, Inc. highlights the role of specialized contractors in defense supply chains. Potential impact on the broader defense electronics market and availability of similar technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Potential for higher costs due to restricted bidder pool.
Reliance on a single awardee for critical subsystems.

Positive Signals

Firm Fixed Price contract aims for cost certainty.
Award supports critical defense capabilities.
Defined delivery schedule ensures timely procurement.

Sector Analysis

This contract falls within the defense electronics sector, specifically focusing on Radio Frequency (RF) subsystems. Spending in this area is driven by the need for advanced communication, surveillance, and electronic warfare capabilities, often involving high-value, specialized components.

Small Business Impact

The data does not indicate if small businesses were involved in the subcontracting or prime contracting process for this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award was made by the Defense Logistics Agency, a key component of the DoD responsible for procurement. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm fixed price terms.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher prices.
Potential for vendor lock-in.
Reliance on a single awardee for critical technology.
Need for detailed technical specifications to ensure quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to ATLANTIC DIVING SUPPLY, INC.. 4569643099!ECLIPSE RF 3U VPX 14 SUBSYSTEM

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 $12.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-04-20.

What specific technological advancements or operational needs necessitate these particular RF subsystems, and how do they compare to commercially available alternatives?

The specific technological advancements and operational needs driving the procurement of these ECLIPSE RF 3U VPX subsystems are not detailed in the provided data. However, their designation as 'Service Establishment Equipment and Supplies Merchant Wholesalers' by the DLA suggests a requirement for specialized military-grade components, likely for advanced communication, electronic warfare, or signal intelligence applications. These systems often incorporate proprietary technology or ruggedization not found in commercial off-the-shelf (COTS) products, justifying higher costs.

Given the 'exclusion of sources' in the competition, what is the assessed risk of vendor lock-in or reduced innovation in future procurements of similar RF technology?

The exclusion of sources presents a moderate risk of vendor lock-in and potentially stifled innovation. If the excluded sources represent significant market players or possess unique technological capabilities, the government may become overly reliant on Atlantic Diving Supply, Inc. for future needs. This could limit competitive pressure, potentially leading to higher prices and slower adoption of next-generation technologies in subsequent procurements.

How does the firm fixed price contract structure mitigate the risk of cost overruns for these complex RF subsystems, considering the potential for unforeseen technical challenges?

The Firm Fixed Price (FFP) contract structure is designed to transfer the risk of cost overruns to the contractor, Atlantic Diving Supply, Inc. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. While FFP provides cost certainty for the government, the risk of unforeseen technical challenges impacting the contractor's profitability remains. Effective contract management and clear technical specifications are crucial to ensure the contractor can deliver the required subsystems within the fixed price.

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: $12,479,040

Exercised Options: $12,479,040

Current Obligation: $12,479,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline