DoD's $45.7M contract for diving equipment awarded to Atlantic Diving Supply, Inc. with 29 bids

Contract Overview

Contract Amount: $9,658,956 ($9.7M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-31

End Date: 2028-03-08

Contract Duration: 798 days

Daily Burn Rate: $12.1K/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: 4570382151!FULLY ASSEMBLED AND SELF CONTAINED MOBIL

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.7 million to ATLANTIC DIVING SUPPLY, INC. for work described as: 4570382151!FULLY ASSEMBLED AND SELF CONTAINED MOBIL Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics with 29 bids suggest a healthy market for these supplies. 3. Risk indicators are low due to a firm-fixed-price contract and established supplier. 4. Performance context is within the Defense Logistics Agency's established procurement framework. 5. Sector positioning is within the Defense Logistics and Merchant Wholesalers category.

Value Assessment

Rating: good

The total contract value of $45.7 million over its duration suggests a significant investment in specialized diving equipment. While a direct per-unit cost comparison is not available without detailed line-item data, the firm-fixed-price structure provides cost certainty. The high number of bids indicates that the pricing is likely competitive within the market for such specialized defense supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 29 bids received. This level of competition is a positive signal, suggesting that multiple capable vendors were aware of and participated in the bidding process. A robust competitive landscape generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are likely being used efficiently, as the award was made to the most advantageous offer after considering numerous proposals.

Public Impact

The primary beneficiaries are the U.S. Navy and other Department of Defense branches requiring specialized diving and salvage equipment. The contract will deliver fully assembled and self-contained diving equipment, crucial for underwater operations, search and rescue, and maintenance. Geographic impact is nationwide, supporting various naval bases and operational theaters. Workforce implications include ensuring military personnel have access to modern, reliable safety and operational equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the primary contractor faces unforeseen issues, though multiple bids suggest alternatives exist.
Ensuring the long-term availability of spare parts and maintenance support for specialized equipment.

Positive Signals

Award to an established supplier with a track record in defense contracting.
Firm-fixed-price contract limits cost overrun risks for the government.
High number of bidders indicates a healthy and accessible market for this type of equipment.

Sector Analysis

This contract falls within the broader defense logistics and equipment sector, specifically focusing on specialized diving gear. The market for such equipment is niche but critical for military operations. Comparable spending benchmarks would typically be found within DLA's historical procurement data for similar service establishment equipment and supplies, where competition levels often dictate price points.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Atlantic Diving Supply, Inc., is not listed as a small business. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business industrial base.

Oversight & Accountability

The contract is managed by the Defense Logistics Agency (DLA), which has established oversight mechanisms for procurement. The firm-fixed-price nature of the award simplifies some aspects of oversight by fixing the cost. Transparency is generally maintained through federal procurement databases, and the Inspector General's office would have jurisdiction over any allegations of fraud or mismanagement.

Related Government Programs

Defense Logistics Agency Procurement
Navy Diving and Salvage Equipment
Military Personal Protective Equipment
Service Establishment Equipment and Supplies

Risk Flags

Potential for long-term supportability issues with specialized equipment.
Dependence on a single prime contractor for delivery, though competition suggests alternatives exist.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.7 million to ATLANTIC DIVING SUPPLY, INC.. 4570382151!FULLY ASSEMBLED AND SELF CONTAINED MOBIL

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 $9.7 million.

What is the period of performance?

Start: 2025-12-31. End: 2028-03-08.

What is Atlantic Diving Supply, Inc.'s track record with the Department of Defense?

Atlantic Diving Supply, Inc. has a history of receiving contracts from the Department of Defense, as indicated by its presence in federal procurement data. While this specific award is for a substantial amount, further analysis would require examining the number and value of previous contracts, their performance ratings, and any past issues or commendations. Understanding their experience with similar types of equipment and their ability to meet delivery schedules and quality standards is crucial for assessing future performance on this contract.

How does the awarded price compare to similar diving equipment contracts?

A precise value comparison requires access to detailed line-item data for this contract and comparable awards. However, the total value of $45.7 million for specialized diving equipment over several years, awarded under full and open competition with 29 bids, suggests a potentially competitive price point. Benchmarking against other DLA or Navy contracts for similar 'Service Establishment Equipment and Supplies Merchant Wholesalers' categories, adjusted for inflation and specific equipment types, would provide a more definitive assessment of value for money.

What are the primary risks associated with this contract?

The primary risks for this contract are relatively low due to its firm-fixed-price nature and the competitive award process. Potential risks include delivery delays if the contractor encounters production or logistical issues, although the duration of the contract (798 days) allows for some flexibility. Another consideration is the long-term availability of spare parts and maintenance for the specialized equipment, which depends on the contractor's ongoing product support capabilities. The government's risk is mitigated by the competitive landscape, which implies multiple potential suppliers exist.

How effective is the Defense Logistics Agency in procuring specialized equipment like this?

The Defense Logistics Agency (DLA) is generally considered effective in procuring a wide range of equipment for the military, including specialized items. The successful award of this $45.7 million contract under full and open competition with 29 bids demonstrates DLA's capability to manage complex solicitations and achieve competitive outcomes. DLA's extensive experience in logistics and procurement, coupled with established processes for evaluating technical specifications and pricing, supports its effectiveness in acquiring necessary supplies for defense operations.

What are the historical spending patterns for diving equipment within the DoD?

Historical spending on diving equipment within the DoD can fluctuate based on operational needs, technological advancements, and budget allocations. Contracts like this one, valued in the tens of millions, are significant but represent a portion of the overall defense budget. Analyzing past spending would involve looking at DLA and Navy procurement histories for similar National Stock Numbers (NSNs) or Product Service Codes (PSCs) related to diving and salvage equipment. Trends might show increased spending during periods of heightened naval activity or modernization efforts.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (often abbreviated as FBOAES) indicates that the initial solicitation may have had some restrictions or exclusions, but ultimately, the contract was awarded through a process that allowed all responsible sources to submit an offer. This typically happens when a specific technology or capability is required, and after initial market research, it's determined that a broader competition is feasible. It suggests a deliberate effort to maximize competition while ensuring specific requirements are met, balancing broad market access with targeted needs.

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: $9,658,956

Exercised Options: $9,658,956

Current Obligation: $9,658,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1020

IDV Type: IDC

Timeline