DoD's $45.7B contract for service equipment and supplies awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $8,392,838 ($8.4M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-10

End Date: 2029-04-10

Contract Duration: 1,217 days

Daily Burn Rate: $6.9K/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: 4570254494!CONTROLLER

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4570254494!CONTROLLER Key points: 1. The contract's substantial value suggests a critical need for specialized equipment and supplies within the Defense sector. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type indicates a competitive process, though the exclusion of specific sources warrants further investigation. 3. The long duration (1217 days) implies a sustained demand and potential for long-term contractor performance. 4. The fixed-price contract type offers cost certainty for the government, shifting performance risk to the contractor. 5. The contract's focus on 'Service Establishment Equipment and Supplies' points to a broad range of potential goods, impacting various military operations. 6. The award to a single entity, Atlantic Diving Supply, Inc., highlights the concentration of specialized supply capabilities within the market.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its broad scope and long duration. The raw dollar amount of $45.7 billion over approximately 3.4 years suggests a significant investment. Without specific details on the goods and services procured, a precise value-for-money assessment is difficult. However, the fixed-price nature of the contract provides some cost predictability for the government. Further analysis would require a breakdown of the specific items and quantities to compare against market rates and historical spending for similar procurements.

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 the competition was intended to be broad, certain sources were excluded prior to the solicitation. The number of bidders is not explicitly stated, but the exclusion suggests a potentially narrowed field compared to a truly open competition. This type of award can sometimes be used when specific technical requirements or national security concerns necessitate limiting the pool of potential offerors.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources may have been justified by specific needs. Taxpayers benefit from a competitive process that aims to secure necessary goods and services, but the exclusion warrants scrutiny to ensure it did not unduly limit price discovery or lead to higher costs.

Public Impact

Military branches and personnel requiring specialized service establishment equipment and supplies will benefit from this contract. The contract ensures the availability of critical goods necessary for various military operations and readiness. The geographic impact is likely widespread, supporting defense activities across different installations and potentially overseas. The contract supports the defense industrial base, potentially impacting manufacturers and suppliers of specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition raises questions about the breadth of competition and potential cost implications.
The sheer scale of the contract ($45.7 billion) presents a significant financial commitment that requires robust oversight.
The long contract duration could lead to vendor lock-in if not managed carefully.
Lack of detailed itemization makes it difficult to assess the true value for money on specific components.
The broad category of 'Service Establishment Equipment and Supplies' could encompass a wide range of items, increasing complexity and potential for cost overruns if not precisely defined.

Positive Signals

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates an attempt to leverage competitive forces, even with limitations.
The firm fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The long-term nature of the contract suggests a stable and predictable supply chain for essential defense needs.
The award to Atlantic Diving Supply, Inc. suggests a contractor with established capabilities in this specialized market.
The contract's duration allows for potential economies of scale and streamlined procurement processes over time.

Sector Analysis

This contract falls within the Defense Logistics and Support Services sector, a critical component of the broader defense industrial base. This sector involves the procurement and distribution of a vast array of equipment, supplies, and services essential for military operations. The market is characterized by specialized suppliers, stringent quality requirements, and significant government spending. Comparable spending benchmarks would involve analyzing other large-scale indefinite-delivery/indefinite-quantity (IDIQ) contracts or prime vendor agreements for military equipment and supplies, which often run into billions of dollars over several years.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) is not a primary focus of this specific contract award. There is no indication of a small business set-aside. This suggests that the prime contractor, Atlantic Diving Supply, Inc., is likely a large business. The implications for small businesses would depend on subcontracting opportunities that may arise. Without specific subcontracting plans or goals mandated within this contract, the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes create downstream opportunities for specialized small business suppliers.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Defense and the Defense Logistics Agency. Given the contract's substantial value and duration, robust oversight mechanisms are crucial. This would typically involve contract performance monitoring, regular reporting requirements from the contractor, and potentially audits by the Defense Contract Audit Agency (DCAA). The Inspector General of the Department of Defense would also have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract. Transparency would be enhanced through public contract databases and reporting requirements.

Related Government Programs

Defense Logistics Agency Procurement
Military Equipment and Supplies
Service Establishment Equipment
General Services Administration (GSA) Schedules (for potential comparison)
Department of Defense Supply Chain Management

Risk Flags

Potential for limited competition due to source exclusion.
Significant financial commitment requires diligent oversight.
Long contract duration may lead to vendor lock-in.
Broad scope increases complexity and risk of undefined requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to ATLANTIC DIVING SUPPLY, INC.. 4570254494!CONTROLLER

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 $8.4 million.

What is the period of performance?

Start: 2025-12-10. End: 2029-04-10.

What specific types of 'Service Establishment Equipment and Supplies' are covered under this contract, and how were these items identified as critical needs?

The contract, valued at $45.7 billion, covers a broad category of 'Service Establishment Equipment and Supplies.' This designation typically includes items necessary for setting up and maintaining operational facilities, ranging from basic tools and hardware to specialized technical equipment, furniture, and logistical support items. The specific identification of these needs would stem from extensive requirements gathering by various branches of the Department of Defense, likely informed by operational readiness assessments, deployment plans, and modernization initiatives. Detailed item lists and specifications would be appended to the contract, often through delivery orders issued against the base contract. Without access to these detailed appendices, the precise scope remains generalized. The sheer volume of the contract suggests these are not niche items but rather foundational supplies critical across multiple defense functions.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process differ from standard full and open competition, and what are the potential implications for pricing?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) process is a variation of full and open competition where, after initial market research or solicitation, certain potential sources are excluded from the competition. This exclusion is typically based on specific justifications, such as national security concerns, unique capabilities, or prior performance issues. Unlike standard full and open competition, which aims to solicit offers from all responsible sources, FOUCAES narrows the field. This narrowing can have implications for pricing: while competition still exists among the remaining bidders, the reduced number of potential offerors might lessen the downward pressure on prices compared to a scenario where all capable sources could compete. The government must provide a clear justification for the exclusion to ensure fairness and prevent undue restriction of competition.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling large-scale defense contracts, particularly those involving a wide range of equipment and supplies?

Atlantic Diving Supply, Inc. (ADS) has a significant history of serving the Department of Defense and other federal agencies. They are known for providing a broad spectrum of products, including tactical gear, safety equipment, tools, and general supplies. ADS has previously held large indefinite-delivery/indefinite-quantity (IDIQ) contracts with various military branches and agencies, demonstrating their capacity to manage substantial order volumes and diverse product requirements. Their experience often involves complex logistics and supply chain management. While specific details on past performance metrics for contracts of this exact scale and scope are not publicly detailed in this summary, their sustained presence and numerous awards indicate a proven ability to meet the demands of large federal procurements. However, the scale of this $45.7 billion contract represents a significant undertaking, even for an experienced contractor like ADS.

How does the $45.7 billion contract value compare to historical spending patterns for similar types of equipment and supplies within the Department of Defense?

The $45.7 billion contract value is substantial and aligns with the significant investments the Department of Defense makes in maintaining its operational capabilities. Historical spending patterns for broad categories of military equipment and supplies often involve multi-billion dollar contracts, particularly for indefinite-delivery/indefinite-quantity (IDIQ) vehicles that span several years. For instance, major defense logistics agencies frequently award large contracts for general supplies, tactical gear, and operational equipment that can reach tens of billions over their performance periods. This contract's value, spread over its duration, is consistent with the scale of sustainment and readiness requirements for a global military force. To provide a precise comparison, one would need to analyze aggregate spending data for specific North American Industry Classification System (NAICS) codes related to 'Service Establishment Equipment and Supplies Merchant Wholesalers' or similar categories awarded by the DoD over comparable timeframes.

What are the primary risks associated with a contract of this magnitude and duration, and what mitigation strategies are likely in place?

The primary risks associated with a $45.7 billion contract spanning over three years include potential cost overruns if pricing assumptions are inaccurate, performance failures by the contractor leading to supply chain disruptions, scope creep, and contractor lock-in. Mitigation strategies typically involve robust contract management by the procuring agency (Defense Logistics Agency in this case), including detailed performance metrics, regular progress reviews, and clear deliverables. The firm fixed-price nature of the contract shifts some financial risk to the contractor. Furthermore, the 'exclusion of sources' clause, while potentially limiting competition, might be tied to specific risk mitigation related to source vetting. The government also retains rights to inspect goods, audit contractor records, and potentially terminate the contract for default or convenience if performance issues arise. Strong oversight from the Inspector General's office is also a key risk mitigation factor.

What is the anticipated impact of this contract on the market for 'Service Establishment Equipment and Supplies Merchant Wholesalers'?

This contract is likely to have a significant impact on the market for 'Service Establishment Equipment and Supplies Merchant Wholesalers.' As a massive award to a single prime contractor, it could consolidate a substantial portion of the government's demand within Atlantic Diving Supply, Inc. This may create opportunities for other wholesalers to act as subcontractors to ADS, provided they meet ADS's requirements and subcontracting goals. Conversely, it could also make it more challenging for smaller or less established wholesalers to compete directly for government contracts in this space. The long duration and large value signal a stable, long-term demand, which could influence investment decisions and market strategies among suppliers aiming to capture a share of this significant government spending.

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: $8,392,838

Exercised Options: $8,392,838

Current Obligation: $8,392,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline