Transportation contract for Maritime Administration services awarded to TOTE SERVICES, LLC for over $25 million

Contract Overview

Contract Amount: $25,194,000 ($25.2M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-09-28

End Date: 2026-09-30

Contract Duration: 1,463 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: NSMV TS EMPIRE STATE GENERAL AGENT SUPPORT SERVICES COST REIMBURSABLE ITEMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $25.2 million to TOTE SERVICES, LLC for work described as: NSMV TS EMPIRE STATE GENERAL AGENT SUPPORT SERVICES COST REIMBURSABLE ITEMS Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Limited competition due to the nature of the requirement. 3. Potential risks include contractor performance and cost overruns. 4. Performance context is critical for ensuring effective service delivery. 5. This contract falls within the deep sea freight transportation sector.

Value Assessment

Rating: good

The contract value of $25.2 million over approximately four years for general agent support services seems within a reasonable range for specialized maritime operations. Benchmarking against similar contracts is challenging due to the specific nature of the services and the limited competition. However, the cost-reimbursable nature of the contract necessitates close monitoring to ensure efficient use of funds and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Maritime Administration identified a specific contractor deemed essential for these services. The lack of competition means that price discovery through a competitive bidding process was not utilized. This approach is typically reserved for situations where only one source can fulfill the requirement, potentially due to unique capabilities or existing infrastructure.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The absence of competition could lead to higher prices than might be obtained in an open market.

Public Impact

The primary beneficiaries are the U.S. government agencies requiring specialized maritime support services. Services delivered include general agent support for vessels, ensuring operational readiness and compliance. The geographic impact is likely focused on ports and operational areas where the supported vessels are deployed. Workforce implications may involve specialized maritime personnel and administrative support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the cost-reimbursable contract type.
Lack of competition may limit opportunities for innovation and cost reduction.
Dependence on a single contractor could create risks if performance falters.

Positive Signals

Contract supports critical maritime operations for the government.
Long-term contract duration provides stability for service delivery.
Focus on specialized support services indicates a tailored solution.

Sector Analysis

This contract operates within the broader maritime transportation sector, specifically focusing on deep sea freight transportation. This sector is characterized by significant capital investment, complex logistics, and stringent regulatory requirements. The market size for such specialized support services is niche, often involving a limited number of experienced providers capable of meeting the government's unique needs. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source award.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'ss' and 'sb' fields being false. There is no explicit information regarding subcontracting plans for small businesses. The absence of set-asides means that opportunities for small businesses to participate in this specific contract are limited unless they are part of the prime contractor's supply chain or subcontracting efforts are voluntarily pursued by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Maritime Administration's contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, focusing on performance standards and deliverables. Transparency may be limited due to the sole-source nature, but contract award details are generally publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
U.S. Merchant Marine
Government Vessel Operations

Risk Flags

Sole-source award may limit price competition.
Cost-reimbursable contract type requires diligent cost monitoring.
Contract duration extends over multiple fiscal years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.2 million to TOTE SERVICES, LLC. NSMV TS EMPIRE STATE GENERAL AGENT SUPPORT SERVICES COST REIMBURSABLE ITEMS

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 $25.2 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-09-30.

What is the track record of TOTE SERVICES, LLC in performing similar government contracts?

TOTE SERVICES, LLC has a history of performing maritime services for the U.S. government. They are known for operating and managing various vessels, including those for the Ready Reserve Force and other government agencies. Their experience often involves complex logistical and operational support in challenging environments. A detailed review of their past performance on similar cost-reimbursable contracts, including any past performance evaluations or awards/debarments, would be necessary to fully assess their suitability and reliability for this specific contract. This would involve examining metrics related to on-time delivery, quality of service, and adherence to budget.

How does the awarded amount compare to similar maritime support contracts?

Direct comparison of the $25.2 million award to similar contracts is challenging due to the 'NOT AVAILABLE FOR COMPETITION' status and the specific nature of 'GENERAL AGENT SUPPORT SERVICES'. Contracts for vessel operation and management can vary significantly based on vessel type, duration, geographic scope, and the specific services required. For instance, contracts involving crewing, maintenance, and logistical support for large government fleets over multiple years can easily reach tens of millions of dollars. The cost-reimbursable nature also means the final expenditure could differ from the initial award amount. Benchmarking would ideally involve analyzing contracts with similar service descriptions and contract types, but the sole-source nature limits direct price comparisons.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the lack of competition and the cost-reimbursable pricing structure. Without competitive bidding, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher costs for the government. The cost-reimbursable nature, while providing flexibility, increases the risk of cost overruns if not rigorously monitored and controlled. Contractor performance is another key risk; if TOTE SERVICES, LLC fails to meet performance standards or experiences operational issues, it could disrupt critical maritime operations. Furthermore, reliance on a single source can create vulnerabilities if the contractor faces financial instability or other unforeseen challenges.

How effective is the Maritime Administration in overseeing cost-reimbursable contracts?

The effectiveness of the Maritime Administration (MARAD) in overseeing cost-reimbursable contracts is generally dependent on the robustness of their internal controls, the expertise of their contracting officers, and the clarity of the contract's performance work statement. MARAD, like other federal agencies, is expected to adhere to Federal Acquisition Regulation (FAR) guidelines for managing such contracts, which include requirements for detailed cost proposals, regular audits, and performance monitoring. The success of oversight hinges on MARAD's ability to scrutinize incurred costs, ensure that expenditures are reasonable and allocable to the contract, and verify that the contractor is achieving the required performance outcomes. Publicly available data on MARAD's oversight effectiveness for specific contract types would provide further insight.

What is the historical spending trend for general agent support services by the Maritime Administration?

Analyzing historical spending trends for 'general agent support services' specifically by the Maritime Administration requires access to detailed historical contract databases. Without this specific data, it's difficult to provide a precise trend. However, federal agencies like MARAD often engage in long-term contracts for vessel support and operational services, especially for government-owned or controlled fleets. Spending in this area can fluctuate based on fleet readiness requirements, national security needs, and the operational tempo of maritime assets. The award of a $25.2 million contract suggests a significant and ongoing requirement for these services, indicating a sustained level of investment in this category.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10401 DEERWOOD PARK BLVD STE 1300, 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: $25,194,000

Exercised Options: $25,194,000

Current Obligation: $25,194,000

Actual Outlays: $11,750,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF721G000001

IDV Type: BOA

Timeline