DOT Awards $294.7M Firm-Fixed Price Contract for NSMV IV Delivery to TOTE Services, LLC

Contract Overview

Contract Amount: $306,249,145 ($306.2M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-01-19

End Date: 2025-09-30

Contract Duration: 1,715 days

Daily Burn Rate: $178.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV IV TO THE GOVERNMENT (IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT) AT A FIRM-FIXED PRICE OF $294,724,580.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($294,724,580.00) FO

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $306.2 million to TOTE SERVICES, LLC for work described as: THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV IV TO THE GOVERNMENT (IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT) AT A FIRM-FIXED PRICE OF $294,724,580.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($294,724,580.00) FO Key points: 1. The contract is a firm-fixed price for the delivery of NSMV IV. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is 1715 days, indicating a significant project timeline. 4. The primary sector is Ship Building and Repairing, a critical industrial area.

Value Assessment

Rating: good

The firm-fixed price of $294,724,580.00 for NSMV IV delivery appears to be within a reasonable range for a large shipbuilding project of this nature, though specific benchmarks are difficult without detailed specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and potentially more favorable pricing for the government. This method allows all responsible sources to submit a bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Delivery of NSMV IV is crucial for national maritime capabilities. The shipbuilding sector supports jobs and economic activity. Government contracts of this size can influence market dynamics for specialized vessels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction.
Dependence on contractor's ability to meet delivery schedule and quality standards.

Positive Signals

Firm-fixed price contract limits government's exposure to cost increases.
Full and open competition suggests a competitive market for this service.

Sector Analysis

The contract falls within the Ship Building and Repairing sector, which is capital-intensive and requires specialized expertise. Spending in this sector is often tied to national security, economic development, and infrastructure needs.

Small Business Impact

While the data does not explicitly state small business participation, large shipbuilding contracts often involve complex supply chains where small businesses can play a significant role as subcontractors. Further analysis would be needed to confirm their involvement.

Oversight & Accountability

The firm-fixed price and full and open competition suggest a structured procurement process. Oversight would focus on adherence to contract terms, delivery milestones, and quality assurance 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 impacting operational readiness.
Risk of quality defects in construction requiring costly rework.
Dependency on a single contractor for a critical asset delivery.
Fluctuations in material costs could impact contractor's profitability if not adequately managed within the FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $306.2 million to TOTE SERVICES, LLC. THE CONTRACTOR IS HEREBY TASKED TO DELIVER NSMV IV TO THE GOVERNMENT (IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT) AT A FIRM-FIXED PRICE OF $294,724,580.00. THIS DELIVERY ORDER ALSO PROVIDES AND OBLIGATES THE FUND ($294,724,580.00) FO

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 $306.2 million.

What is the period of performance?

Start: 2021-01-19. End: 2025-09-30.

What is the historical cost performance for similar NSMV (National Security Multi-Mission Vessel) classes or comparable large shipbuilding contracts awarded by the government?

Historical cost performance for similar large shipbuilding contracts can vary significantly based on vessel complexity, technological integration, and market conditions at the time of award. Without specific data on comparable NSMV classes or similar government shipbuilding projects, it's challenging to provide a precise benchmark. However, large, complex vessels often face cost pressures due to material fluctuations, labor costs, and unforeseen design or construction challenges.

What are the key performance indicators (KPIs) and quality assurance measures in place to mitigate risks associated with the contractor's ability to deliver NSMV IV on time and to specification?

Key performance indicators for such a contract would likely include adherence to the construction schedule, quality of materials used, compliance with maritime safety and regulatory standards, and successful completion of sea trials. Robust quality assurance measures would involve regular government inspections at various construction stages, independent third-party verification, and stringent acceptance testing protocols before final delivery.

How does the $294.7 million price point compare to industry benchmarks for vessels of similar size, complexity, and intended use, considering the firm-fixed-price nature of the contract?

The $294.7 million price point for NSMV IV needs to be evaluated against industry benchmarks for vessels of comparable size, complexity, and purpose. Firm-fixed-price contracts aim to lock in costs, but the initial price must reflect realistic construction expenses. Benchmarking would involve comparing this cost to similar government or commercial shipbuilding contracts, factoring in the specific technological requirements and the current market rates for labor and materials in the shipbuilding sector.

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: $306,249,145

Exercised Options: $306,249,145

Current Obligation: $306,249,145

Actual Outlays: $261,710,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF719D000002

IDV Type: IDC

Timeline