Military equipment supplier Atlantic Diving Supply loses small business status

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The company settled charges in 2017 that it had engaged in an alleged scheme to fraudulently obtain small business contracts.

Employees of Atlantic Diving Supply in Virginia Beach. By Aaron Gregg Aaron Gregg Reporter covering the defense industry and government contractors. Email Bio Follow April 12 at 11:34 AM A dive shop that became one of the Pentagon’s biggest suppliers of military equipment, medical supplies and tactical special forces gear has been stripped of its small business status, pumping the brakes on a fantastical decade-long run for the Virginia Beach-based company.

The decision threatens to disrupt an astonishing growth arc that was fueled in large part by contracts set aside for small businesses. The company is not allowed to bid on new small business set-aside contracts unless the decision is overturned. “ADS expects the [SBA] to overrule the size determination and [the Defense Logistics Agency] to award ADS the contract at issue immediately thereafter,” Stojanovich said.

[Lockheed Martin got $35.2 billion from taxpayers last year. That's more than many federal agencies.] Two of those alleged affiliate businesses ― Karda Systems and SEK Solutions ― were named in a more recent small business contracting fraud case. Ron Villanueva, a former state lawmaker from Virginia Beach, last month pleaded guilty to charges that he conspired to defraud the United States.

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'The company received more than $2.5 billion from federal agencies last year ' I guess maybe that's small for the booming military industrial complex

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