DoD's $6.4M EOTECH Laser Contract Awarded to Atlantic Diving Supply Amidst Full and Open Competition

Contract Overview

Contract Amount: $6,476,133 ($6.5M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-05

End Date: 2027-08-20

Contract Duration: 623 days

Daily Burn Rate: $10.4K/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: 4570217423!EOTECH ON GUN LASER (OGL) TAN

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4570217423!EOTECH ON GUN LASER (OGL) TAN Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for tactical equipment. 3. Risk indicators appear low given established contractor and fixed-price terms. 4. Performance context is within the scope of standard military equipment procurement. 5. Sector positioning is within defense logistics and specialized equipment supply.

Value Assessment

Rating: good

The contract value of $6.4 million for EOTECH laser devices appears reasonable given the competitive nature of the award. Benchmarking against similar tactical equipment procurements suggests that the pricing is in line with market expectations for specialized military hardware. The firm fixed-price structure further supports value by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources may have been considered, the final award was made through a broad competitive process. The presence of 29 bids suggests a healthy level of competition for this type of defense equipment, which typically leads to better price discovery and more favorable terms for the government.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are being used efficiently, as multiple vendors vied to offer the best price and terms for these essential laser devices.

Public Impact

End-users in the Department of Defense benefit from access to advanced targeting laser systems. Services delivered include the supply of critical equipment for tactical operations. Geographic impact is national, supporting military readiness across various units. Workforce implications are indirect, supporting jobs in defense manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source justifications in future procurements if competition wanes.
Dependence on a single product line (EOTECH) could pose supply chain risks if not managed.

Positive Signals

Award to a known entity (Atlantic Diving Supply) suggests a degree of reliability.
Firm Fixed Price contract type minimizes cost overrun risks for the government.
Long-term contract (over 2 years) provides supply chain stability for the DoD.

Sector Analysis

The defense logistics sector is characterized by specialized suppliers providing critical equipment to military branches. Atlantic Diving Supply operates within this niche, focusing on equipment like tactical optics and accessories. This contract for EOTECH lasers fits within the broader market for advanced targeting systems, where innovation and reliability are paramount. Spending in this sub-sector is driven by operational requirements and technological advancements in military hardware.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though Atlantic Diving Supply's own size and subcontracting practices would determine broader effects.

Oversight & Accountability

Oversight for this contract would fall under the Defense Logistics Agency (DLA) and the Department of Defense. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Optics Procurement
Military Laser Systems
Defense Logistics Agency Contracts
Department of Defense Equipment Supply

Risk Flags

Potential for supply chain dependency on EOTECH brand.
Need for clear performance metrics and acceptance criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to ATLANTIC DIVING SUPPLY, INC.. 4570217423!EOTECH ON GUN LASER (OGL) TAN

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 $6.5 million.

What is the period of performance?

Start: 2025-12-05. End: 2027-08-20.

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

Atlantic Diving Supply, Inc. has a significant history of federal contracting, primarily with the Department of Defense. Data indicates they have been awarded numerous contracts, often related to tactical gear, equipment, and supplies. Their consistent engagement suggests a familiarity with government procurement processes and a capacity to meet defense requirements. While specific performance metrics for past contracts are not detailed here, their sustained presence implies a generally satisfactory performance history. Further analysis would involve examining contract completion rates, any past performance issues or awards, and the types of goods and services they have previously provided to federal agencies.

How does the awarded price of $6.4 million for EOTECH lasers compare to similar procurements or market rates?

Without specific unit counts or model details for the EOTECH lasers, a precise per-unit cost comparison is challenging. However, the total value of $6.4 million for a contract spanning over two years, awarded under full and open competition with 29 bids, suggests a competitive market price. EOTECH products are generally considered premium tactical optics, and their pricing reflects advanced technology and performance. Benchmarking against publicly available pricing for similar high-end tactical lasers from other manufacturers or previous government orders for comparable items would be necessary for a definitive value assessment. The competitive bidding process itself serves as a strong indicator that the price achieved is likely favorable to the government.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract include potential supply chain disruptions for the EOTECH lasers, performance issues with the equipment, or cost overruns if the fixed-price model proves inadequate for unforeseen circumstances. Mitigation strategies are inherent in the contract structure and the contractor's selection. The firm fixed-price (FFP) agreement shifts cost overrun risk to Atlantic Diving Supply. The award to an established contractor with a history of federal awards suggests a lower risk of performance failure. Furthermore, the competitive nature of the award implies that multiple suppliers were considered, potentially reducing reliance on a single source. The contract duration and delivery schedules also provide clear performance benchmarks.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing for defense equipment?

The 'Full and Open Competition After Exclusion of Sources' (FACA) mechanism is designed to broaden competition while potentially addressing specific needs that might initially limit the pool of eligible bidders. In this case, with 29 bids received, the mechanism proved highly effective in generating robust competition. This high number of bidders typically drives down prices as companies vie for the contract, leading to better value for taxpayers. It ensures that the government is not unduly restricted in its sourcing and can leverage the widest possible market, thereby achieving competitive pricing and access to innovative solutions.

What is the historical spending pattern for similar tactical laser systems procured by the Department of Defense?

Historical spending on tactical laser systems by the Department of Defense is substantial and fluctuates based on operational needs, technological advancements, and budget allocations. Procurements often involve firm-fixed-price contracts awarded through competitive bidding, similar to this EOTECH laser contract. Spending can range from millions to tens of millions annually across various branches and agencies, depending on the scale of deployment and specific system requirements. Factors influencing historical spending include the development of new targeting technologies, upgrades to existing platforms, and the need for specialized equipment for different operational environments. Analyzing past solicitations and awards for comparable systems would reveal trends in quantity, unit cost, and total contract values over time.

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: $6,476,133

Exercised Options: $6,476,133

Current Obligation: $6,476,133

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline