DOT Awards $291.6M Firm-Fixed Price Contract for NSMV III Delivery to TOTE Services, LLC

Contract Overview

Contract Amount: $304,348,650 ($304.3M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-01-19

End Date: 2025-10-08

Contract Duration: 1,723 days

Daily Burn Rate: $176.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV III TO THE GOVERNMENT (IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT) AT A FIRM-FIXED PRICE OF $291,574,580.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($291,574,580.00) F

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $304.3 million to TOTE SERVICES, LLC for work described as: THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV III TO THE GOVERNMENT (IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT) AT A FIRM-FIXED PRICE OF $291,574,580.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($291,574,580.00) F Key points: 1. The contract is for the delivery of the NSMV III vessel. 2. The total value of the contract is $291,574,580.00. 3. The contract was awarded under full and open competition. 4. The contract duration is 1723 days, ending October 8, 2025.

Value Assessment

Rating: good

The firm-fixed price of $291.6 million for the NSMV III delivery appears reasonable given the complexity and specialized nature of shipbuilding. Benchmarking against similar naval or specialized vessel construction contracts 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 robust price discovery process. This method allows multiple qualified bidders to submit proposals, driving competitive pricing.

Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for the acquisition of this critical asset.

Public Impact

Ensures delivery of a new vessel for national security or economic purposes. Supports the shipbuilding and repair industry. Provides a critical asset for the Maritime Administration's fleet. The firm-fixed price limits the government's exposure to cost overruns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional requirements are added post-award.
Delivery timeline risks associated with complex shipbuilding projects.

Positive Signals

Firm-fixed price contract provides cost certainty.
Awarded under full and open competition, indicating market responsiveness.
Clear delivery order for a specific vessel.

Sector Analysis

The shipbuilding and repair sector (NAICS 336611) is capital-intensive and subject to global supply chain dynamics. Contract values in this sector can vary significantly based on vessel size, complexity, and specialized features.

Small Business Impact

While the primary contractor is TOTE SERVICES, LLC, the contract's execution likely involves numerous subcontractors, potentially including small businesses for specialized components, services, or labor. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Transportation, through the Maritime Administration, is responsible for overseeing this contract. Standard oversight mechanisms for shipbuilding contracts, including progress reviews and quality inspections, should be in place to ensure compliance and timely delivery.

Related Government Programs

Ship Building and Repairing
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Complexity of shipbuilding projects can lead to delays.
Potential for cost escalation if scope changes.
Dependence on specialized supply chains.
Ensuring long-term operational readiness and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $304.3 million to TOTE SERVICES, LLC. THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV III TO THE GOVERNMENT (IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT) AT A FIRM-FIXED PRICE OF $291,574,580.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($291,574,580.00) F

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 $304.3 million.

What is the period of performance?

Start: 2021-01-19. End: 2025-10-08.

What are the specific technical requirements and capabilities of the NSMV III that justify the $291.6 million price tag?

The NSMV III (National Security Multi-Mission Vessel) is designed with advanced capabilities for various government missions, including training, disaster response, and humanitarian aid. Its specifications likely include specialized propulsion, advanced navigation systems, significant cargo capacity, and robust construction to withstand diverse operational environments, contributing to its substantial cost.

What are the key performance indicators (KPIs) for the successful delivery of NSMV III, and how are penalties or incentives structured?

Key performance indicators would typically include adherence to the delivery schedule, meeting all specified technical and performance requirements, and successful completion of sea trials and government acceptance testing. Penalties might be associated with late delivery or failure to meet critical specifications, while incentives could be tied to early delivery or exceeding performance benchmarks, though specific details are not provided in this data.

How does the government plan to utilize the NSMV III post-delivery to maximize the return on investment for taxpayers?

The NSMV III is intended for multiple government uses, including training mariners, supporting disaster relief operations, and potentially serving national security needs. Its multi-mission design allows for flexible deployment across various agencies, maximizing its utility and ensuring the investment provides broad benefits beyond a single purpose, thereby enhancing its value to the public.

Industry Classification

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

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $304,348,650

Exercised Options: $304,348,650

Current Obligation: $304,348,650

Actual Outlays: $289,645,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF719D000002

IDV Type: IDC

Timeline