DoD's $34.8M WAVE RELAY MPU5 Battery Purchase: Full & Open Competition Amidst Concerns

Contract Overview

Contract Amount: $34,785,182 ($34.8M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-28

End Date: 2026-11-27

Contract Duration: 425 days

Daily Burn Rate: $81.8K/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: 4569643316!WAVE RELAY MPU5 TWIST LOCK BATTERY

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643316!WAVE RELAY MPU5 TWIST LOCK BATTERY Key points: 1. Spending on WAVE RELAY MPU5 batteries totals $34.8M. 2. ATLANTIC DIVING SUPPLY, INC. is the primary contractor. 3. Competition method is 'Full and Open Competition After Exclusion of Sources', raising questions about price discovery. 4. The sector is Defense Logistics Agency (DLA) under Service Establishment Equipment and Supplies Merchant Wholesalers. 5. Contract duration is 425 days with a delivery order.

Value Assessment

Rating: fair

The contract's total value is $34.8M. Without specific unit cost data or benchmarks for this specialized equipment, a precise value assessment is difficult. However, the 'br' (benchmark rate) of 81847 suggests a potential area for cost scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition method 'Full and Open Competition After Exclusion of Sources' is unusual and suggests potential limitations or specific requirements that may have restricted the pool of bidders. This could impact the effectiveness of price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: The impact on taxpayers is unclear due to the competition method. While intended to be open, the exclusion of sources might have limited competitive pressure, potentially increasing costs.

Public Impact

Military readiness may be impacted by the availability and cost of these critical communication components. The specific nature of the 'exclusion of sources' could indicate unique technological requirements or supply chain vulnerabilities. Transparency in defense procurement is crucial for public trust, especially when competition methods are complex.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ambiguous competition method ('Exclusion of Sources')
Lack of detailed unit cost data for benchmarking
Potential for limited price discovery

Positive Signals

Contract awarded under a 'Full and Open' framework
Clear delivery dates and contract duration

Sector Analysis

This contract falls within the Defense Logistics Agency's purview, specifically for Service Establishment Equipment and Supplies Merchant Wholesalers. Spending in this sub-sector can vary significantly based on military modernization efforts and operational demands.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The 'Delivery Order' nature of the award suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the justification for the exclusion of sources and the overall pricing strategy.

Related Government Programs

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

Risk Flags

Ambiguous competition justification
Potential for limited price competition
Lack of detailed unit cost transparency
Dependence on a single supplier due to source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to ATLANTIC DIVING SUPPLY, INC.. 4569643316!WAVE RELAY MPU5 TWIST LOCK BATTERY

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 $34.8 million.

What is the period of performance?

Start: 2025-09-28. End: 2026-11-27.

What specific technical or logistical reasons necessitated the exclusion of certain sources in this 'Full and Open Competition'?

The exclusion of sources typically arises from unique technical specifications, proprietary technology, urgent operational needs, or existing interoperability requirements that limit the viable pool of suppliers. For the WAVE RELAY MPU5, this could relate to specific encryption standards, form factors, or integration with existing military communication networks, requiring specialized manufacturing capabilities.

How does the benchmark rate (BR) of 81847 compare to similar military communication equipment contracts?

A benchmark rate of 81847, without context on the specific unit being benchmarked (e.g., per battery, per system component), is difficult to interpret. If this represents a per-unit cost, it would need to be compared against historical pricing for similar MPU5 batteries or comparable military-grade communication power sources to determine if it's competitive or inflated.

What is the potential risk to operational effectiveness if the chosen supplier faces disruptions?

Disruptions to ATLANTIC DIVING SUPPLY, INC. could pose a significant risk to operational effectiveness, as the WAVE RELAY MPU5 and its batteries are likely critical for communication in deployed environments. The 'exclusion of sources' might imply limited alternative suppliers, potentially leading to extended downtime or reliance on less optimal substitutes if the primary source fails.

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: $34,785,182

Exercised Options: $34,785,182

Current Obligation: $34,785,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline