Wikipedia:Atlantic Diving Supply

Atlantic Diving Supply is an American contractor. They are one of the 100 largest federal contractors.

Overview
Atlantic Diving Supply is a reseller of military equipment based in Virginia Beach, Virginia. In 2019 they were the 24th largest federal contractor.

History
Atlantic Diving Supply started as a small dive shop in Virginia Beach, Virginia named Lynnhaven Dive Center which was opened in 1979 by Mike Hillier Sr. Due to its location many early customers had ties to the military. In 1997 the son of the company's founder Luke Hillier created an offshoot which would handle federal contracting with a focus on the military diving community. In 2000 they won their first major contract from the Defense Logistics Agency. Its growth was fueled by the post-9/11 military spending boom.

In 2011 ADS sued non-profit Bancroft Global Development for breach of contract over an order for 18,000 military boots and other equipment. Bancroft countersued them for providing sub-standard equipment, especially cheap costume quality military boots, allegations which were substantiated by reporting.

By 2012 ADS was doing $1 billion a year in government contracting and paid $9m in executive compensation. Company head Jason Wallace received $2.2 million.

In 2015 ADS bought Theodore Wille International, an international military logistics company. In that same year they won a five-year $72 million contract to deliver 1,249 Mk 153 Shoulder-Launched Multipurpose Assault Weapon (SMAW) systems to the US Marine Corps. These SMAW have a number of improvements from the original model including the replacement of the 9mm spotting gun with laser and thermal sights.

By 2017 ADS had more than $2 billion in years revenue.

In 2017 ADS agreed to pay $16 million to settle a case which centered on allegations that they had used smaller entities it controlled to fraudulently bid on federal contracts as small businesses. In 2019 Ron Villanueva was convicted for helping SEK Solutions, one of the small ADS controlled entities, improperly get contracts set aside for women and minority-owned small businesses.

In 2019 ADS was awarded a contract to supply the base model holsters for the Army's new M17 and M18 service pistols.

ADS was one of two companies selected to supply the exercise equipment to the US Army needed to implement the Army Combat Fitness Test (ACFT).

They were a significant vendor of personal protective equipment and other supplies to the federal government during the COVID-19 pandemic. They came under scrutiny during this period due to receiving millions of dollars in pandemic related loans earmarked for small businesses.

In July 2020 former CEO Luke Hillier paid $20 million to settle a personal fraud case against him stemming from his tenure as CEO at ADS.