DoD's Army Spends $15.7M on Lightweight Exposure Jackets via Full and Open Competition

Contract Overview

Contract Amount: $15,767,375 ($15.8M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-08-26

End Date: 2010-11-19

Contract Duration: 450 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Other

Official Description: LIGHTWEIGHT EXPOSURE JACKET-MD REGULAR

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to ATLANTIC DIVING SUPPLY, INC. for work described as: LIGHTWEIGHT EXPOSURE JACKET-MD REGULAR Key points: 1. Significant spending on a specific apparel item suggests potential for bulk discounts or specialized needs. 2. Full and open competition indicates a healthy market, but price discovery effectiveness needs scrutiny. 3. Fixed-price contract type limits upside for the government if costs decrease. 4. The contract duration of 450 days is moderate for this type of procurement.

Value Assessment

Rating: fair

The total award amount of $15.7M for 2 units is exceptionally high on a per-unit basis. Without knowing the exact specifications and quantity, it's difficult to benchmark accurately, but this appears concerning.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting multiple vendors could bid. However, the extremely high per-unit cost raises questions about the effectiveness of price discovery and negotiation during the bidding process.

Taxpayer Impact: Taxpayer funds may have been overspent due to the high per-unit cost, despite the competitive bidding process.

Public Impact

Military personnel receive specialized gear for operational readiness. Procurement processes impact the availability and cost of essential equipment for service members. Government spending on apparel contributes to the manufacturing and retail sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Potential for overpayment
Lack of detailed cost breakdown

Positive Signals

Full and open competition utilized
Fixed price contract awarded

Sector Analysis

Spending on apparel falls under general manufacturing and logistics within the defense sector. Benchmarks for similar specialized clothing items are highly variable based on material, features, and quantity.

Small Business Impact

While the contract was awarded to ATLANTIC DIVING SUPPLY, INC., the data does not indicate if this is a small business or if small businesses were involved as subcontractors. Further analysis is needed to assess small business participation.

Oversight & Accountability

The contract was awarded via a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the terms of the base IDIQ and the justification for this specific order's pricing.

Related Government Programs

All Other Miscellaneous Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Excessive per-unit cost
Potential for overpayment
Lack of transparency in cost breakdown
Questionable value for money despite competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to ATLANTIC DIVING SUPPLY, INC.. LIGHTWEIGHT EXPOSURE JACKET-MD REGULAR

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 $15.8 million.

What is the period of performance?

Start: 2009-08-26. End: 2010-11-19.

What is the typical per-unit cost for a lightweight exposure jacket of this specification within the DoD or similar agencies?

Benchmarking the per-unit cost is challenging without precise specifications. However, $7.8M per jacket (assuming 2 units were purchased for the total award) is astronomically high for any standard apparel. Typical military jackets, even specialized ones, would likely cost in the hundreds, not millions, per unit. This suggests a significant data anomaly or a highly unique, custom-developed item.

What specific factors contributed to the extremely high per-unit cost despite full and open competition?

The high per-unit cost could stem from several factors, including highly specialized technical requirements, extremely low quantity ordered (making unit cost high), unique materials, or potentially a data entry error. Full and open competition aims to drive down prices, so if the price remains exceptionally high, it warrants investigation into the solicitation's specifications and the evaluation criteria used.

How effectively did the full and open competition process ensure value for money for this procurement?

Given the apparent exorbitant per-unit cost, the effectiveness of the competition in ensuring value for money is questionable. While competition was present, the resulting price suggests either the requirements were so unique and costly that even competitive bids were high, or the evaluation and negotiation process failed to secure a reasonable price. Further investigation into the bid details and award justification is necessary.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADS Tactical, Inc. (UEI: 078857127)

Address: 1439 N GREAT NECK RD # 202, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $15,767,375

Exercised Options: $15,767,375

Current Obligation: $15,767,375

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F5965P

IDV Type: FSS

Timeline