DoD Awards $16.8M for Diving Equipment to Atlantic Diving Supply, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $16,863,297 ($16.9M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2030-10-07

Contract Duration: 1,834 days

Daily Burn Rate: $9.2K/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: 4569643177!8 WAY DART

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4569643177!8 WAY DART Key points: 1. The contract is for service establishment equipment and supplies, with a significant value of $16.8 million. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. The contract duration is substantial, spanning over 1800 days, suggesting a long-term need. 4. The awarding agency is the Defense Logistics Agency, part of the Department of Defense.

Value Assessment

Rating: good

The contract value of $16.8 million for diving equipment appears reasonable given the long duration and specialized nature of the supplies. Benchmarking against similar large-scale equipment procurements would provide further context.

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, suggesting a robust process to ensure fair pricing and access for qualified vendors. This method typically leads to better price discovery.

Taxpayer Impact: The competitive nature of this award is expected to yield fair market prices, maximizing the value of taxpayer dollars spent on essential defense equipment.

Public Impact

Ensures readiness of naval forces by providing critical diving equipment. Supports specialized military operations requiring advanced underwater capabilities. Contributes to the operational effectiveness of the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 91 / 10

Warning Flags

Long contract duration could lead to price escalation risks if not managed.
Reliance on a single vendor for a long period might limit future innovation or cost savings.

Positive Signals

Full and open competition ensures a competitive market.
Award to a specific company suggests established capability and reliability.
Firm fixed price contract provides cost certainty for the government.

Sector Analysis

This procurement falls within the defense sector, specifically for specialized equipment. Spending benchmarks in this area are highly variable based on the specific equipment and technological requirements.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit indication of small business participation or subcontracting goals in the provided data. Further review would be needed to assess small business impact.

Oversight & Accountability

The award by the Defense Logistics Agency under full and open competition suggests adherence to standard procurement oversight. The long duration warrants periodic review to ensure continued value and performance.

Related Government Programs

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

Risk Flags

Long contract duration may expose government to price increases.
Potential for technological obsolescence of equipment over the contract period.
Lack of explicit small business participation data.
Dependence on a single awardee for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to ATLANTIC DIVING SUPPLY, INC.. 4569643177!8 WAY DART

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 $16.9 million.

What is the period of performance?

Start: 2025-09-29. End: 2030-10-07.

What specific types of diving equipment are included in this contract, and how do their costs compare to industry standards?

The provided data does not specify the exact types of diving equipment. A detailed breakdown of the equipment list and unit pricing would be necessary to compare against industry benchmarks and assess overall value. This information is crucial for understanding the cost drivers and ensuring fair pricing for specialized gear.

What are the potential risks associated with a long-term (over 5 years) contract for specialized equipment, and how are they mitigated?

Long-term contracts risk price escalation, technological obsolescence, and vendor lock-in. Mitigation strategies could include performance-based incentives, regular price reviews, options for early termination for convenience, and clear specifications for upgrades or replacements. The firm fixed price nature offers some cost certainty, but market fluctuations remain a concern.

How does the utilization of 'full and open competition after exclusion of sources' impact the overall effectiveness and cost-efficiency of this procurement?

This method, while competitive, implies that certain sources were initially excluded based on specific criteria before the final competition. If the exclusion criteria were justified and the subsequent competition was robust, it can lead to effective outcomes by focusing on capable vendors. However, overly restrictive exclusions could limit competition and potentially increase costs or reduce the pool of innovative solutions.

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: $16,863,297

Exercised Options: $16,863,297

Current Obligation: $16,863,297

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline