Maritime Administration Awards $301.2M Firm-Fixed Price Contract for NSMV II Delivery

Contract Overview

Contract Amount: $307,950,279 ($308.0M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-04-06

End Date: 2024-01-08

Contract Duration: 1,372 days

Daily Burn Rate: $224.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV II TO THE GOVERNMENT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT AT A FIRM-FIXED PRICE OF $301,230,750.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($301,230,750.00) FOR

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $308.0 million to TOTE SERVICES, LLC for work described as: THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV II TO THE GOVERNMENT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT AT A FIRM-FIXED PRICE OF $301,230,750.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($301,230,750.00) FOR Key points: 1. The contract is for the delivery of the NSMV II vessel. 2. The total value of the contract is $301,230,750.00. 3. The contract was awarded under full and open competition. 4. The contract duration is 1372 days.

Value Assessment

Rating: good

The firm-fixed price of $301.2 million for the NSMV II delivery appears reasonable given the complexity of shipbuilding. Benchmarking against similar naval vessel construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. This method generally ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to maximize taxpayer value by ensuring a fair market price for the vessel.

Public Impact

Enhances national security and economic interests through increased maritime capabilities. Supports the shipbuilding industry and associated supply chains. Contributes to the modernization of the U.S. government's non-combatant fleet. Ensures the availability of specialized vessels for critical government missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during construction.
Dependency on the contractor's ability to meet delivery timelines and quality standards.

Positive Signals

Firm-fixed price contract mitigates cost escalation risk for the government.
Awarded under full and open competition, indicating a competitive market.
Clear delivery schedule and defined scope of work.

Sector Analysis

The shipbuilding and repair sector is capital-intensive and subject to complex regulations and long lead times. This contract falls within the broader defense and transportation industrial base, where large-scale vessel construction represents significant government investment.

Small Business Impact

While this specific contract is with TOTE SERVICES, LLC, the broader shipbuilding and repair sector involves numerous small businesses in the supply chain. Further analysis would be needed to determine the extent of small business participation in this particular contract's execution.

Oversight & Accountability

The firm-fixed price structure provides a degree of cost certainty. Oversight will be critical to ensure adherence to specifications, quality standards, and timely delivery throughout the construction and delivery phases.

Related Government Programs

Ship Building and Repairing
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for schedule delays
Risk of cost escalation if not managed tightly
Dependency on contractor's technical expertise
Ensuring compliance with all regulatory and safety standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $308.0 million to TOTE SERVICES, LLC. THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV II TO THE GOVERNMENT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT AT A FIRM-FIXED PRICE OF $301,230,750.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($301,230,750.00) FOR

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 $308.0 million.

What is the period of performance?

Start: 2020-04-06. End: 2024-01-08.

What are the key performance metrics for the NSMV II and how will they be verified?

Key performance metrics for the NSMV II would likely include speed, cargo capacity, fuel efficiency, and operational readiness. Verification would involve rigorous testing and inspection protocols during construction and sea trials, as outlined in the contract's technical specifications and acceptance criteria. The government's quality assurance representatives would monitor these processes closely.

What are the potential risks associated with the long delivery timeline (1372 days)?

The extended delivery timeline presents risks such as potential increases in material costs, labor rate fluctuations, and the possibility of design obsolescence if technology advances significantly. Furthermore, delays in delivery could impact the government's operational planning and readiness. Mitigation strategies may include contract clauses for price adjustments or incentives for early completion.

How does the NSMV II contribute to the overall effectiveness of the Maritime Administration's fleet?

The NSMV II, as a new vessel, is expected to enhance the operational effectiveness of the Maritime Administration's fleet by providing modern capabilities, potentially improved efficiency, and increased capacity. Its specific role, whether for training, logistics, or specialized missions, will determine its precise contribution to the fleet's overall mission accomplishment and modernization efforts.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saltchuk Resources, Inc.

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: $307,950,279

Exercised Options: $307,950,279

Current Obligation: $307,950,279

Actual Outlays: $305,401,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF719D000002

IDV Type: IDC

Timeline