MARAD Funds $14.5M for Nuclear Vessel Technical Support Contract with TOTE Services, LLC

Contract Overview

Contract Amount: $47,496,200 ($47.5M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2018-09-28

End Date: 2021-05-30

Contract Duration: 975 days

Daily Burn Rate: $48.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDS FOR THE FUNDING OF THE REQUIREMENTS CONTRACT (TASK ORDER CONTRACT) FOR THE RENDITION OF TECHNICAL SUPPORT FOR THE INTEGRATED MANAGEMENT (TSIM) OF NUCLEAR LICENSE ACTIVITY FOR THE MARADS NUCLEAR VESSEL, N.S. SAVANNAH; THE TOTAL AMOUNT OF THIS TASK ORDER IS 14,555,559.49.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $47.5 million to TOTE SERVICES, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDS FOR THE FUNDING OF THE REQUIREMENTS CONTRACT (TASK ORDER CONTRACT) FOR THE RENDITION OF TECHNICAL SUPPORT FOR THE INTEGRATED MANAGEMENT (TSIM) OF NUCLEAR LICENSE ACTIVITY FOR THE MARADS NUCLEAR VESSEL, N.S. SAVANNAH; THE TOTAL AM… Key points: 1. Contract awarded for technical support of nuclear license activity for the N.S. Savannah. 2. The total task order amount is $14,555,559.49. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls within the Engineering Services sector.

Value Assessment

Rating: fair

The contract's value of $14.5M for a 32-month period appears reasonable for specialized technical support. However, without competitive bidding, it's difficult to benchmark against similar services to ensure optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed, indicating a sole-source or limited competition award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential engineering services.

Public Impact

Ensures continued operation and safety of the N.S. Savannah. Supports critical regulatory compliance for nuclear vessel activities. Maintains specialized technical expertise within the Maritime Administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Essential service for a unique asset
Clear contract duration and scope

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise. Spending benchmarks for such niche services can vary significantly based on complexity and duration.

Small Business Impact

The contract was awarded to TOTE SERVICES, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific task order.

Oversight & Accountability

The Maritime Administration is responsible for overseeing this contract. The lack of competition warrants closer scrutiny to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award
Lack of documented justification for sole-sourcing
Potential for uncompetitive pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $47.5 million to TOTE SERVICES, LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FUNDS FOR THE FUNDING OF THE REQUIREMENTS CONTRACT (TASK ORDER CONTRACT) FOR THE RENDITION OF TECHNICAL SUPPORT FOR THE INTEGRATED MANAGEMENT (TSIM) OF NUCLEAR LICENSE ACTIVITY FOR THE MARADS NUCLEAR VESSEL, N.S. SAVANNAH; THE TOTAL AMOUNT OF THIS TASK ORDER IS 14,555,559.49.

Who is the contractor on this award?

The obligated recipient is TOTE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $47.5 million.

What is the period of performance?

Start: 2018-09-28. End: 2021-05-30.

What is the justification for not competing this contract, and what steps were taken to ensure a fair price?

The justification for not competing this contract is not provided in the data. Typically, sole-source contracts are awarded when only one source is capable of meeting the requirement. However, the agency should have conducted market research to confirm this and employed negotiation strategies to secure a fair and reasonable price, even without competition.

What are the risks associated with a sole-source award for critical technical support?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Additionally, there's a risk of reduced innovation and service quality if the contractor faces no market-based incentives to improve. This also limits opportunities for other qualified firms to demonstrate their capabilities.

How does this spending contribute to the overall mission effectiveness of the Maritime Administration?

This spending is crucial for the operational readiness and regulatory compliance of the N.S. Savannah, a unique government asset. Ensuring continuous technical support for its nuclear license activity directly supports the Maritime Administration's mission to maintain and operate such vessels safely and effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saltchuk Resources, Inc. (UEI: 075108902)

Address: 10550 DEERWOOD PARK BLVD STE 602, JACKSONVILLE, FL, 32256

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,496,200

Exercised Options: $47,496,200

Current Obligation: $47,496,200

Actual Outlays: $36,587,068

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF718D000013

IDV Type: IDC

Timeline