Maritime Administration awards $7M task order for FY26 cost reimbursements to TOTE Services, LLC

Contract Overview

Contract Amount: $7,000,000 ($7.0M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-10-01

End Date: 2026-09-30

Contract Duration: 2,190 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: NSMV EMPIRE STATE-FY2026 COST REIMBURSABLES TASK ORDER TO FUND FY26 COST REIMBURSABLES PER APPROVED STATEMENT OF WORK

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 $7.0 million to TOTE SERVICES, LLC for work described as: NSMV EMPIRE STATE-FY2026 COST REIMBURSABLES TASK ORDER TO FUND FY26 COST REIMBURSABLES PER APPROVED STATEMENT OF WORK Key points: 1. Task order funds cost reimbursements for services through FY26, indicating ongoing operational needs. 2. Contract awarded to TOTE Services, LLC, a single provider for this specific task. 3. The contract duration extends over multiple fiscal years, suggesting a long-term requirement. 4. The service falls under Deep Sea Freight Transportation, a critical component of maritime logistics. 5. The contract type is Firm Fixed Price, which generally offers cost certainty to the government. 6. The award value is $7 million, representing a significant investment in maritime operations.

Value Assessment

Rating: fair

The $7 million award for FY26 cost reimbursements appears to be a standard operational expense for the Maritime Administration. Without specific details on the services rendered or comparable contracts for similar vessels or operational periods, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an attempt to control costs. Benchmarking against historical spending for this vessel or similar services would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium, as the government did not leverage competitive market forces to secure the best possible price.

Public Impact

The primary beneficiaries are TOTE Services, LLC, who will receive payment for services rendered. The services delivered are essential for the operational readiness and maintenance of maritime assets, likely supporting national security or economic interests. The geographic impact is likely focused on the operational routes and ports served by the vessel under this task order. Workforce implications include the continued employment of personnel by TOTE Services, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
The sole-source nature limits opportunities for new entrants or smaller businesses to compete for this work.
Transparency in the justification for a sole-source award is crucial for public trust.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
The extended duration suggests a stable, ongoing need that TOTE Services, LLC is positioned to meet.
The award supports critical maritime transportation services, aligning with agency missions.

Sector Analysis

The maritime transportation sector is vital for global trade and national security, involving complex logistics and specialized vessels. This contract falls within the deep sea freight transportation sub-sector. Spending in this area often involves significant capital investment and operational costs due to the nature of large vessels and international shipping. Comparable spending benchmarks would typically involve the operational costs of similar government-chartered or owned vessels, including crewing, maintenance, fuel, and insurance.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a stated factor in this specific award. As a sole-source contract, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored through a competitive process. This limits the potential for small businesses to engage with this particular contract, though they may participate in other aspects of the broader maritime industry.

Oversight & Accountability

Oversight for this contract would primarily fall under the Maritime Administration's program management and contracting officers. Accountability measures are inherent in the firm fixed-price structure, requiring TOTE Services, LLC to deliver services within the agreed-upon cost. Transparency is dependent on the public availability of contract details and justifications, particularly for sole-source awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
Government Vessel Charters
Strategic Sealift Capability

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost escalation if not closely monitored.
Limited transparency in the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.0 million to TOTE SERVICES, LLC. NSMV EMPIRE STATE-FY2026 COST REIMBURSABLES TASK ORDER TO FUND FY26 COST REIMBURSABLES PER APPROVED STATEMENT OF WORK

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 $7.0 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-09-30.

What specific services are covered under the 'FY26 Cost Reimbursables' for the NSMV EMPIRE STATE?

The term 'FY26 Cost Reimbursables' typically refers to expenses incurred by the contractor that are eligible for reimbursement by the government under the terms of the contract. For a vessel like the NSMV EMPIRE STATE, this could encompass a wide range of operational costs such as crew wages and benefits, fuel, maintenance and repair parts, port fees, insurance, and supplies necessary for the vessel's operation during Fiscal Year 2026. The exact breakdown would be detailed in the approved Statement of Work (SOW) referenced in the task order. Without access to the SOW, the precise nature of these reimbursable costs remains unspecified, but they are fundamental to maintaining the vessel's operational status and fulfilling its intended mission for the Maritime Administration.

How does the $7 million award compare to historical spending on this vessel or similar services?

Direct comparison of the $7 million award for FY26 cost reimbursements to historical spending is difficult without specific historical data for the NSMV EMPIRE STATE or comparable vessels. However, the duration of the task order (spanning from October 1, 2020, to September 30, 2026, with a significant portion likely falling into FY26) suggests this is a recurring operational expense. If this represents a full year's cost reimbursements, $7 million might be considered reasonable for the operation of a large vessel, depending on its size, type, and operational tempo. A more thorough analysis would require examining prior year task orders for this vessel or similar government-owned/chartered vessels to establish a trend and identify any significant deviations or escalations in costs.

What are the primary risks associated with a sole-source award for maritime services?

The primary risks associated with a sole-source award for maritime services, such as this task order to TOTE Services, LLC, include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, it limits the government's ability to explore alternative solutions or providers that might offer better value or specialized capabilities. Ensuring the sole-source justification is robust and that the negotiated price is fair and reasonable becomes paramount in mitigating these risks.

What is the significance of the NSMV EMPIRE STATE to the Maritime Administration's mission?

The NSMV EMPIRE STATE, as a National Security Multi-Mission Vessel (NSMV), is a critical asset for the Maritime Administration (MARAD). These vessels are designed to support various government missions, including disaster response, humanitarian aid, and potentially military support operations. They are equipped with training facilities to educate the next generation of U.S. mariners, addressing a critical workforce need. The operational readiness and maintenance of such a vessel, as supported by this task order, are therefore directly linked to MARAD's ability to fulfill its strategic objectives related to national security, economic stability, and maritime workforce development.

How does the Firm Fixed Price (FFP) contract type impact cost management for this task order?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government in managing costs, as it shifts the risk of cost overruns to the contractor, TOTE Services, LLC. Under an FFP agreement, the contractor is obligated to perform the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to control expenses and operate efficiently. For this task order, it means the $7 million represents the ceiling for reimbursable costs, providing a degree of budget certainty. However, the 'cost reimbursable' aspect within the FFP structure suggests that while the overall price is fixed, the government will reimburse specific, allowable costs up to that fixed amount, requiring careful monitoring of the incurred costs against the contract terms.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

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: $7,000,000

Exercised Options: $7,000,000

Current Obligation: $7,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF721G000001

IDV Type: BOA

Timeline