Army awards $21.8M for PASGT helmets, with 3 bidders competing for firm-fixed-price contract

Contract Overview

Contract Amount: $21,802,238 ($21.8M)

Contractor: Atlantic Diving Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-04-28

End Date: 2012-02-22

Contract Duration: 300 days

Daily Burn Rate: $72.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PASGT HELMETS

Place of Performance

Location: HEBRON, LICKING County, OHIO, 43025

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to ATLANTIC DIVING SUPPLY, INC. for work described as: PASGT HELMETS Key points: 1. Contract awarded through full and open competition, suggesting a competitive market for helmet supply. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially leading to more predictable government spending. 3. The contract duration of 300 days indicates a relatively short-term need for these specific helmets. 4. The award value of $21.8 million falls within a moderate spending range for defense equipment. 5. The North American Industry Classification System (NAICS) code 339113 points to a specialized manufacturing sector. 6. The contract was awarded by the Department of the Army, a major consumer of military equipment.

Value Assessment

Rating: good

The contract value of $21.8 million for PASGT helmets appears reasonable given the competitive nature of the award. With three bidders, there was likely pressure to offer competitive pricing. Benchmarking against similar defense equipment contracts would provide further insight, but the firm-fixed-price type generally indicates a well-defined scope and predictable cost for the government. The award amount does not appear excessively high or low without more specific cost data per unit or comparison to market rates for similar protective gear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of three bidders indicates a healthy level of competition for this particular requirement. This suggests that the market for PASGT helmets is not overly concentrated and that multiple manufacturers or suppliers are capable of meeting the Army's specifications. The competition likely contributed to achieving a fair market price.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among suppliers.

Public Impact

Soldiers requiring PASGT helmets for protection will benefit from this contract. The Department of the Army will receive a supply of helmets to equip its personnel. The contract supports the defense industrial base, specifically manufacturers within the surgical appliance and supplies sector. The geographic impact is primarily within the United States, supporting domestic manufacturing and supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of PASGT helmets as newer models are developed and fielded.
Reliance on a limited number of bidders in future competitions could impact price and availability.
Ensuring consistent quality and compliance with safety standards across all delivered helmets.

Positive Signals

Awarded through full and open competition, indicating a robust market.
Firm-fixed-price contract provides cost certainty for the government.
Contract supports a critical defense need for soldier protection.

Sector Analysis

The defense sector, particularly the procurement of personal protective equipment, is a significant area of government spending. The market for helmets and other ballistic protection is driven by technological advancements, evolving threats, and military requirements. This contract for PASGT helmets falls within the broader category of military hardware manufacturing and supply. Comparable spending benchmarks would involve looking at other contracts for body armor, helmets, and related protective gear awarded by various branches of the U.S. military.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary award went to Atlantic Diving Supply, Inc., which is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Atlantic Diving Supply, Inc. actively engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified goods within the agreed price. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or fulfillment process.

Related Government Programs

Body Armor Procurement
Personal Protective Equipment
Department of the Army Contracts
Defense Logistics Agency Contracts
Military Helmet Systems

Risk Flags

Potential for obsolescence of PASGT helmet technology.
Contract awarded to a single entity, requiring monitoring of supply chain resilience.
Limited number of bidders (3) could indicate potential market concentration risks in future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to ATLANTIC DIVING SUPPLY, INC.. PASGT HELMETS

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 $21.8 million.

What is the period of performance?

Start: 2011-04-28. End: 2012-02-22.

What is the track record of Atlantic Diving Supply, Inc. in fulfilling defense contracts, particularly for protective equipment?

Atlantic Diving Supply, Inc. has a history of receiving defense contracts, including those related to protective gear. While this specific award for PASGT helmets is for $21.8 million, a deeper analysis of their contract history would reveal the volume, types, and success rates of their previous awards. Examining past performance evaluations, on-time delivery rates, and any contract disputes or terminations would provide a comprehensive understanding of their reliability as a government contractor. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance databases would be crucial for this assessment.

How does the unit cost of these PASGT helmets compare to market rates or similar historical procurements?

The provided data does not include the quantity of helmets procured, making a direct per-unit cost calculation impossible. To benchmark the value, we would need the total number of helmets awarded under this $21.8 million contract. Once the quantity is known, the per-unit cost could be calculated and compared against industry benchmarks for PASGT helmets or similar ballistic protection systems. Historical data from previous Army or other service branch procurements of PASGT helmets, adjusted for inflation, would also serve as a valuable comparison point to assess if this contract represents good value for money.

What are the specific risks associated with procuring PASGT helmets, considering potential technological obsolescence?

A primary risk with procuring PASGT helmets is technological obsolescence. The PASGT (Personnel Armor System for Ground Troops) helmet is an older design, and newer, more advanced helmet systems offering superior protection (e.g., against fragmentation, higher ballistic threats, and with improved comfort and modularity) have been developed and fielded by various military forces. If the Army is procuring a significant quantity of PASGT helmets, there's a risk that these helmets may become outdated relatively quickly, especially if newer threat assessments or technological advancements necessitate a faster transition to next-generation head protection. This could lead to underutilization or premature replacement of the procured assets.

What is the effectiveness of using firm-fixed-price contracts for procuring military hardware like helmets?

Firm-fixed-price (FFP) contracts are generally considered effective for procuring military hardware like helmets when the scope of work and specifications are well-defined and unlikely to change significantly. This contract type places the primary risk of cost overruns on the contractor, providing the government with cost certainty. For the Army, this means the $21.8 million award represents the maximum liability. The effectiveness hinges on the accuracy of the initial cost estimates and the contractor's ability to manage their expenses. If the contractor underestimates costs, they may incur losses; if they overestimate, the government may pay a premium. However, FFP contracts incentivize contractors to control costs efficiently, which can be beneficial for predictable procurements.

How has the Department of the Army's spending on helmets and related protective gear evolved over the past five years?

Analyzing the Department of the Army's spending on helmets and related protective gear over the past five years would require accessing historical procurement data. This would involve querying databases like FPDS for contracts categorized under relevant NAICS codes (e.g., 339113, 315999) or Product Service Codes (PSCs) related to helmets, body armor, and protective clothing. Such an analysis would reveal trends in spending volume, identify key contractors, and potentially highlight shifts in the types of protective gear being procured (e.g., from older PASGT models to newer ballistic helmets). It could also indicate whether spending has increased due to evolving operational needs or decreased due to budget constraints or the fielding of existing inventories.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB11R0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 2505 AVIATOR DR, VIRGINIA BEACH, VA, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,802,238

Exercised Options: $21,802,238

Current Obligation: $21,802,238

Contract Characteristics

Cost or Pricing Data: NO

Timeline