DoD's $5.4M contract for High Power Illuminator Radar systems awarded to Atlantic Diving Supply, Inc

Contract Overview

Contract Amount: $5,494,504 ($5.5M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-12

End Date: 2027-02-23

Contract Duration: 438 days

Daily Burn Rate: $12.5K/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: 4570279899!HIGH POWER ILLUMINATOR RADAR (AN/MPQ62)

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4570279899!HIGH POWER ILLUMINATOR RADAR (AN/MPQ62) Key points: 1. The contract value represents a modest investment within the broader defense electronics sector. 2. Competition was conducted after excluding sources, suggesting potential limitations in market reach. 3. The fixed-price contract type aims to control costs, but performance risks remain. 4. The duration of the contract is substantial, indicating a long-term need for these radar systems. 5. The awardee's specialization in equipment and supplies merchant wholesaling aligns with the contract's nature. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar radar system procurements. The fixed-price nature suggests an attempt to manage costs upfront. However, the absence of detailed performance metrics or cost-per-unit data makes a definitive value-for-money assessment difficult. Further analysis would require understanding the specific capabilities and technological advancements offered by these radar systems relative to their price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while competition was sought, certain sources were intentionally excluded, potentially due to specific technical requirements, existing relationships, or other strategic considerations. The number of bidders is not explicitly stated, but the exclusion of sources suggests a potentially narrower competitive landscape than a truly open competition.

Taxpayer Impact: The exclusion of sources may limit the potential for the most competitive pricing, as fewer vendors were able to participate. Taxpayers may not benefit from the full range of cost savings that could arise from broader market engagement.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units requiring advanced radar capabilities for illumination. The services delivered involve the provision of High Power Illuminator Radar (AN/MPQ62) systems. The geographic impact is likely concentrated within military operational areas where these radar systems are deployed. Workforce implications may include specialized technical personnel for the operation and maintenance of the radar systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could lead to suboptimal pricing.
The long contract duration may expose the government to risks associated with technological obsolescence.
Reliance on a single awardee for a critical component like radar systems could pose supply chain risks.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The awardee's specialization suggests a good understanding of the required equipment.
The contract is a delivery order, indicating it fits within an established framework, potentially streamlining future needs.

Sector Analysis

The defense electronics sector is characterized by high technological sophistication and significant government investment. Contracts for radar systems are crucial for national security, supporting surveillance, targeting, and command and control functions. The market includes a range of specialized manufacturers and suppliers. Spending benchmarks for similar radar systems can vary widely based on technological complexity, range, and specific application, but typically represent substantial investments.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) is not a primary focus for this specific contract. There is no indication of a small business set-aside. Consequently, the direct impact on the small business ecosystem for this particular award is likely minimal, with subcontracting opportunities for small businesses dependent on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and the relevant Department of Defense components. Accountability measures are embedded in the firm-fixed-price contract terms, which obligate the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance and cost data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

AN/MPQ-62 Radar System
Defense Logistics Agency Procurement
High Power Radar Systems
Service Establishment Equipment Procurement

Risk Flags

Limited competition
Potential for technological obsolescence
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to ATLANTIC DIVING SUPPLY, INC.. 4570279899!HIGH POWER ILLUMINATOR RADAR (AN/MPQ62)

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 $5.5 million.

What is the period of performance?

Start: 2025-12-12. End: 2027-02-23.

What is the specific technical capability of the AN/MPQ-62 High Power Illuminator Radar system and how does it compare to current market alternatives?

The AN/MPQ-62 is a component of the Improved Hawk air defense missile system, designed to provide target illumination for semi-active radar homing missiles. Its primary function is to continuously illuminate targets, allowing the missile's seeker to lock on and guide itself. Compared to current market alternatives, the AN/MPQ-62 represents a generation of radar technology that may be less advanced than newer solid-state or phased-array systems offering greater flexibility, lower probability of intercept, and enhanced electronic counter-countermeasures (ECCM) capabilities. However, its continued use suggests it still meets specific operational requirements or is part of a legacy system that is cost-effective to maintain and upgrade rather than replace entirely. Detailed technical specifications and performance benchmarks against modern systems would require access to classified or specialized defense analysis reports.

How does the awarded price of $5.4 million for 29 units translate to a per-unit cost, and how does this compare to historical or estimated market prices for similar radar illuminators?

The total contract value is $5,403,860.00 for an unspecified quantity of High Power Illuminator Radar (AN/MPQ62) systems, with the data indicating 29 units in the 'no' field, which likely refers to the number of delivery orders or a specific batch size rather than the total quantity. If we assume the $5.4M is for 29 units, the per-unit cost would be approximately $186,330. However, the 'no' field often represents the number of contract actions, not necessarily the total quantity of items. Without a clear quantity for the $5.4M, a precise per-unit cost is difficult to ascertain. Historical data for similar radar illuminators varies significantly based on technology, age, and specific features. Older systems might be cheaper, while advanced, modern systems could cost several times more. The 'fair' rating for value suggests this price is within an expected range but not exceptionally low or high, indicating a need for more granular cost data for a definitive comparison.

What are the primary risks associated with a firm-fixed-price contract for complex defense equipment like radar systems, especially over a multi-year period?

The primary risk with firm-fixed-price (FFP) contracts for complex defense equipment over extended periods is that the contractor may face unforeseen cost increases due to factors like material price volatility, labor rate changes, or unexpected technical challenges during production or integration. If the contractor underestimated these costs, they might be forced to cut corners on quality, use substandard materials, or even incur significant losses, potentially impacting delivery schedules or system performance. Conversely, if the contractor overestimated costs, the government may end up paying a premium. For long-duration contracts, the risk of technological obsolescence is also significant; the equipment delivered might be outdated by the time it is fully fielded or operational, diminishing its long-term value and effectiveness. Effective risk mitigation often involves robust contract clauses, clear performance specifications, and proactive government oversight.

Given the 'Full and Open Competition After Exclusion of Sources' method, what does this imply about the contractor selection process and potential for future procurements?

This procurement method suggests that the initial solicitation was intended to be open, but specific sources were later excluded. This exclusion could be based on stringent technical requirements that only a limited number of vendors could meet, security clearances, or perhaps a previous phase of a multi-stage procurement where only certain bidders advanced. It implies that the Defense Logistics Agency (DLA) had specific criteria that narrowed the field. For future procurements of similar systems, this method might be repeated if the technical requirements remain the same. However, it also raises questions about whether the exclusion was justified and if it truly resulted in the best possible competition. If the exclusion was based on non-essential criteria, it could limit future market access and potentially increase long-term costs for the government by restricting the supplier base.

What is Atlantic Diving Supply, Inc.'s track record with Department of Defense contracts, particularly for radar or complex electronic systems?

Atlantic Diving Supply, Inc. (ADS) has a significant history of contracting with the Department of Defense, primarily as a supplier of equipment and logistical support. While their core business often involves wholesaling and distribution, they have been involved in numerous contracts across various agencies, including the DLA. Their track record includes providing a wide array of items, from tactical gear and survival equipment to specialized technical systems. Information available through public contract databases shows a substantial volume of awards to ADS. However, specific details regarding their direct manufacturing or deep technical integration of complex radar systems like the AN/MPQ-62 might be less prominent compared to their role as a distributor or prime contractor managing specialized subcontractors. Assessing their specific expertise in radar technology would require a deeper dive into the nature of their past performance on similar, technically demanding contracts.

How does the $5.4 million spending on this radar system fit into the broader context of the Defense Logistics Agency's annual budget and priorities?

The Defense Logistics Agency (DLA) manages a vast and complex supply chain supporting all branches of the U.S. military. Its annual budget runs into tens of billions of dollars, covering a wide spectrum of goods and services, from fuel and food to spare parts and weapon system components. A $5.4 million contract for radar systems, while significant in absolute terms, represents a relatively small fraction of the DLA's overall spending. This specific contract likely falls under the DLA's purview of providing essential equipment and sustainment for military operations. Its priority within the DLA's budget would be determined by the operational readiness needs of the supported military branches and the strategic importance of the AN/MPQ-62 radar system within their existing defense architectures. It signifies a commitment to maintaining or upgrading critical surveillance and targeting capabilities.

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: $5,494,504

Exercised Options: $5,494,504

Current Obligation: $5,494,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline