DoD awards $32.7M for 18,304 equipment sets, with Atlantic Diving Supply Inc. securing the contract

Contract Overview

Contract Amount: $32,673,189 ($32.7M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-06-26

End Date: 2020-12-31

Contract Duration: 554 days

Daily Burn Rate: $59.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD DELIVER ORDER (DO) FOR 18,304 EQUIPMENT SETS - FIRST ORDERING PERIOD.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to ATLANTIC DIVING SUPPLY, INC. for work described as: AWARD DELIVER ORDER (DO) FOR 18,304 EQUIPMENT SETS - FIRST ORDERING PERIOD. Key points: 1. The contract value represents a significant investment in specialized equipment for the Department of the Army. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance is assessed over a 554-day period, allowing for evaluation of delivery and quality. 5. The equipment sets fall under sporting and athletic goods manufacturing, a niche within the broader defense supply chain. 6. The award is a single delivery order, suggesting it's part of a larger potential contract vehicle.

Value Assessment

Rating: good

The award of $32.7 million for 18,304 equipment sets translates to approximately $1,785 per set. Benchmarking this against similar defense equipment procurements requires detailed analysis of the specific equipment's complexity and features. However, for a large quantity of specialized gear, this per-unit cost appears within a reasonable range, especially considering the fixed-price nature of the contract which shifts some risk to the contractor. Further comparison to commercial equivalents or previous government purchases of similar items would provide a more precise value-for-money assessment.

Cost Per Unit: Approximately $1,785 per equipment set.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and multiple bidders were likely considered. The specific exclusion of sources clause suggests a potential prior relationship or specific requirement that led to a limited initial pool, but the final award was still subject to broad competition. The presence of competition is generally positive for price discovery and ensures the government receives offers from various qualified vendors.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most advantageous terms.

Public Impact

The primary beneficiaries are Department of the Army personnel who will receive the equipment sets. The services delivered involve the provision of 18,304 equipment sets, crucial for operational readiness. The geographic impact is likely focused on military installations where the Army operates. Workforce implications are minimal for the government, with the primary labor involved in manufacturing and delivery by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence if equipment is highly specialized and technology advances rapidly.
Dependence on a single contractor for this specific order could pose a risk if future needs arise.
Quality control and timely delivery are critical for operational effectiveness.

Positive Signals

Fixed-price contract limits cost escalation risks for the government.
Full and open competition suggests a robust selection process.
Award to an established entity like Atlantic Diving Supply, Inc. may indicate reliability.

Sector Analysis

This contract falls within the Sporting and Athletic Goods Manufacturing sector (NAICS 339920), a segment of the broader durable goods manufacturing industry. While not a primary defense manufacturing sector, specialized equipment for training and operational support is essential for military branches. The market for such goods can be competitive, with established players and niche manufacturers. The contract size is moderate within the context of large defense procurements, but significant for the specific product category.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this specific award (ss: false, sb: false). While Atlantic Diving Supply, Inc. may have small business subcontractors, the primary award was not directed towards small businesses. This means the direct impact on the small business ecosystem for this particular contract is limited, though the prime contractor's own subcontracting practices could still involve small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified equipment by a certain date. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Equipment Procurement
Army Training and Readiness Supplies
Specialized Gear Manufacturing Contracts
Defense Logistics Agency (DLA) Support

Risk Flags

Potential for equipment obsolescence
Durability concerns for non-combat gear in military environments
Ensuring relevance of 'sporting/athletic' goods to military training objectives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to ATLANTIC DIVING SUPPLY, INC.. AWARD DELIVER ORDER (DO) FOR 18,304 EQUIPMENT SETS - FIRST ORDERING PERIOD.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.7 million.

What is the period of performance?

Start: 2019-06-26. End: 2020-12-31.

What is the specific nature of the 'equipment sets' being procured?

The provided data identifies the contract under NAICS code 339920, 'Sporting and Athletic Goods Manufacturing.' This suggests the 'equipment sets' are likely related to training, recreation, or specialized operational gear used by the Army that falls under this classification. Without further details in the award description, it's difficult to pinpoint the exact items. They could range from advanced training simulators and protective gear to specialized sports equipment used for physical readiness programs. The quantity of 18,304 sets indicates a large-scale deployment or equipping initiative for a significant number of personnel.

How does the per-unit cost of $1,785 compare to similar government or commercial procurements?

Benchmarking the per-unit cost of approximately $1,785 requires a detailed understanding of the specific 'equipment sets.' If these are high-tech training devices or specialized protective gear, the cost might be competitive. However, if they are simpler athletic goods, it could be on the higher side. A direct comparison would involve searching for similar contracts for 'training equipment sets,' 'athletic gear,' or 'specialized operational kits' awarded by the DoD or other federal agencies. Without knowing the exact specifications, it's challenging to definitively assess value. The fixed-price nature, however, suggests the contractor has factored in their costs and profit margin, and the government has accepted this price point as reasonable for the scope.

What are the potential risks associated with procuring sporting and athletic goods for military use?

The primary risks revolve around the relevance and durability of the equipment for military applications. 'Sporting and athletic goods' might imply items intended for physical training, which, while important for readiness, may not have the same stringent durability or operational requirements as combat gear. Risks include: 1) **Relevance:** Ensuring the equipment directly supports military training objectives and isn't just recreational. 2) **Durability:** Military environments can be harsh; standard sporting goods might not withstand such conditions, leading to premature failure. 3) **Obsolescence:** If the equipment is technology-dependent, it could become outdated quickly. 4) **Misallocation of Funds:** If the procurement is perceived as non-essential compared to core combat equipment, it could be seen as a misallocation of defense resources. The fixed-price nature mitigates cost overrun risks, but doesn't address the risk of acquiring unsuitable or short-lived equipment.

What does the 'full and open competition after exclusion of sources' clause imply for this contract?

This clause suggests a nuanced procurement process. 'Full and open competition' means the solicitation was made available to all responsible sources. However, 'after exclusion of sources' indicates that prior to the final solicitation, certain potential sources were intentionally excluded. This exclusion could be based on various factors, such as specific technical capabilities, past performance issues, or a prior determination that only a limited number of vendors could meet the requirement. Despite the initial exclusion, the subsequent 'full and open' phase implies that among the remaining eligible sources, a competitive bidding process occurred. This approach aims to balance the need for specialized capabilities with the principle of broad competition, potentially leading to better pricing than a sole-source award but perhaps less competition than a completely unrestricted process.

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

Atlantic Diving Supply, Inc. (ADS) is a known entity within the defense contracting space, often supplying a wide range of equipment, including tactical gear, survival equipment, and general supplies. Their history with the Department of Defense likely includes numerous awards across various branches and agencies. A deeper dive into their contract history would reveal the types and values of previous awards, their performance ratings, and any significant issues or accolades. Given they secured this $32.7 million order, it suggests a positive track record and capability to meet the DoD's requirements, at least in the eyes of the contracting officers.

How does this $32.7 million award fit into the broader context of Department of the Army spending?

The $32.7 million award for equipment sets represents a relatively small fraction of the Department of the Army's overall annual budget, which typically runs into the hundreds of billions of dollars. However, within specific categories like training equipment, operational gear, or sporting goods, this award could be substantial. It signifies a specific need being addressed for a particular set of personnel or units. Analyzing this award in the context of historical spending on similar items (e.g., previous years' procurements of training equipment) would provide better insight into whether this represents an increase, decrease, or stable level of investment in this particular area.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Sporting and Athletic Goods Manufacturing

Product/Service Code: RECREATIONAL/ATHLETIC EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADS Tactical, Inc.

Address: 621 LYNNHAVEN PKWY STE 400, 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: $32,673,189

Exercised Options: $32,673,189

Current Obligation: $32,673,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV19D0070

IDV Type: IDC

Timeline