Nice Q+A Dave, but I think Dave 1 was right, and Dave 2 is messing with him. As a singular group the first "equipo" should use the singular "necesita" and as non-specific equipment the second "equipo" should not require the article. On a different point, "equipo" must be confusing as most teams have equipment. If the manager asks "Donde esta el equipo?" how would you know if he/she is asking about the team's whereabouts or their gear's?
Haha... so funny. But you four (Davids and jellonzes) are wrong.
Equipment can, in Spanish, mean equipo, equipación or equipamiento (but not equipaje) So, if you are using the word equipo (team) in your speech, you should use another word for equipment:
el equipo necesita equipación.
Repeating the same word in just one sentence is a bit silly (or funny if you're joking)
Gracias Securinega. I've noticed that in Spanish sometimes I say something and a native speaker comments that it is technically ok, but would not normally be heard, because two of the words just don't sound right together, or sound too similar, or now, sound the same. In English choosing words that sound best together is very common with the written word, but not as much in the spoken.