Maritime Administration awards $297,500 contract for ship repair services to TOTE Services, LLC

Contract Overview

Contract Amount: $297,500 ($297.5K)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-12-19

End Date: 2026-11-30

Contract Duration: 346 days

Daily Burn Rate: $860/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE TEXAS-TOTE SERVICES INCOPORATED-TEXAS26-1008A-FISCAL YEAR 26 MAINTENANCE AND REPAIR SHIP SUPPORT A-$87,500

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77701

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $297,500 to TOTE SERVICES, LLC for work described as: CAPE TEXAS-TOTE SERVICES INCOPORATED-TEXAS26-1008A-FISCAL YEAR 26 MAINTENANCE AND REPAIR SHIP SUPPORT A-$87,500 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is approximately one year, indicating a short-term need for services. 3. The service category is 'Deep Sea Freight Transportation', aligning with the agency's mission. 4. The contract type is 'Cost No Fee', which requires detailed cost reporting from the contractor. 5. The award amount is relatively modest, suggesting a specific, limited scope of work. 6. The contractor, TOTE Services, LLC, is likely experienced in maritime operations.

Value Assessment

Rating: good

The contract value of $297,500 for approximately one year of maintenance and repair ship support appears reasonable given the specialized nature of deep-sea freight transportation. Benchmarking against similar contracts is difficult without more specific details on the scope of work (e.g., type of vessel, specific repairs). However, the 'Cost No Fee' contract type implies that the government will reimburse the contractor for allowable costs, plus a fixed fee, which can be an effective way to manage costs for services where the final scope may evolve. The absence of a stated profit margin in the provided data suggests the fee is intended to cover the contractor's overhead and profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition', indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The Maritime Administration likely issued a solicitation that outlined the required services, and TOTE Services, LLC was selected as the best value offeror.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The primary beneficiary is the U.S. Maritime Administration, which will receive essential maintenance and repair services for its vessels. The services delivered will ensure the operational readiness and safety of deep-sea freight transportation assets. The geographic impact is likely concentrated around the operational areas of the vessels being serviced, potentially including U.S. ports and international waters. The contract supports jobs within the maritime repair and logistics sector, contributing to the skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'Cost No Fee' structure is not tightly managed.
Dependence on contractor performance for timely and quality repairs.
Limited competition data makes it hard to assess if the best possible price was achieved.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration is defined, providing clarity on the service period.
Contractor is likely experienced in the specialized field of maritime repair.

Sector Analysis

The maritime transportation sector is critical for global trade and national security. This contract falls within the 'Deep Sea Freight Transportation' sub-sector, which involves the operation and maintenance of large vessels for international cargo movement. The U.S. Maritime Administration plays a key role in supporting and regulating this sector. Spending in this area typically involves vessel operations, maintenance, repair, and shipbuilding. Comparable spending benchmarks would depend on the specific type and size of vessels requiring maintenance, but contracts for ship repair can range from tens of thousands to millions of dollars.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, TOTE Services, LLC, is likely a larger entity, and their subcontracting practices would need to be assessed separately if they engage in such activities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. As a 'Cost No Fee' contract, robust financial oversight and auditing of the contractor's incurred costs will be crucial to ensure that reimbursements are appropriate and that the fixed fee is reasonable. Transparency would be enhanced through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
Shipbuilding and Ship Repair Contracts
U.S. Merchant Marine

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Risk (Quality/Timeliness)
Scope Definition Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $297,500 to TOTE SERVICES, LLC. CAPE TEXAS-TOTE SERVICES INCOPORATED-TEXAS26-1008A-FISCAL YEAR 26 MAINTENANCE AND REPAIR SHIP SUPPORT A-$87,500

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 $297,500.

What is the period of performance?

Start: 2025-12-19. End: 2026-11-30.

What is the track record of TOTE Services, LLC with federal contracts, particularly with the Maritime Administration?

TOTE Services, LLC is a well-established maritime services company with a significant history of working with U.S. government agencies, including the Department of Defense and the Maritime Administration. They operate and manage a diverse fleet of vessels, including tankers and containerships, and provide a range of services such as crewing, vessel management, and maintenance. Their experience often involves complex logistical operations and compliance with stringent maritime regulations. A review of federal procurement databases would reveal the volume and types of contracts they have held, their performance ratings, and any past issues. Given their prominent role in the industry, it is likely they have a substantial portfolio of successful federal engagements, though specific performance metrics for this particular contract would need to be monitored.

How does the awarded amount of $297,500 compare to typical ship repair costs for similar vessels?

The awarded amount of $297,500 for approximately one year of maintenance and repair ship support is relatively modest for major ship repair work. This figure likely represents a specific scope of services, such as routine maintenance, minor repairs, or support for a particular class of vessel, rather than a complete overhaul or dry-docking. The cost of ship repair is highly variable, depending on the size and type of vessel, the complexity of the required work, the location of the repair facility, and the prevailing labor rates. For instance, a simple hull cleaning and inspection might cost tens of thousands, while a major engine overhaul or structural repair could easily run into millions. Without detailed specifications of the services to be rendered under this contract, a precise comparison is challenging. However, the amount suggests a focused service requirement.

What are the primary risks associated with a 'Cost No Fee' contract type for ship repair?

The primary risks associated with a 'Cost No Fee' (CNF) contract type, which is a variation of Cost Plus Fixed Fee (CPFF), revolve around cost control and contractor incentives. In a CNF contract, the government reimburses the contractor for all allowable costs incurred in performing the contract, plus a fixed fee representing profit. The main risk for the government is that the contractor may have less incentive to control costs rigorously, as their allowable costs are reimbursed. If the 'allowable costs' are not meticulously defined and audited, or if the contractor inflates costs, the total expenditure could exceed what might have been achieved under a fixed-price contract. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee adequately covers their overhead and profit, and that all incurred costs are deemed allowable by the government.

What is the expected effectiveness of this contract in ensuring vessel readiness for the Maritime Administration?

The effectiveness of this contract in ensuring vessel readiness hinges on several factors. Firstly, the scope of work must be comprehensive enough to address critical maintenance and repair needs for the targeted vessels. Secondly, the contractor, TOTE Services, LLC, must possess the technical expertise and resources to perform the work efficiently and to a high standard. Thirdly, the oversight provided by the Maritime Administration is crucial to ensure that the work is completed as specified and on time. If these conditions are met, the contract should contribute positively to maintaining the operational status and safety of the vessels, thereby supporting the agency's mission. However, the relatively modest award amount suggests this contract likely addresses specific, perhaps routine, maintenance rather than comprehensive readiness overhauls.

How has federal spending on ship maintenance and repair evolved over the past five fiscal years, and how does this contract fit into that trend?

Federal spending on ship maintenance and repair has historically been substantial, driven by the needs of the Navy, Coast Guard, and the Maritime Administration (MARAD). Spending fluctuates based on fleet size, age, operational tempo, and strategic priorities. For MARAD specifically, spending on maintenance and repair is tied to its mission of supporting U.S. merchant marine capabilities and ensuring the availability of sealift assets. This particular contract, valued at $297,500, represents a small fraction of the overall federal expenditure in this category. It fits into the trend as a component of ongoing, necessary upkeep for specific assets. Larger trends might involve shifts towards more complex repairs, upgrades for environmental compliance, or responses to aging fleets. This contract appears to be part of the routine operational budget for maintaining a segment of MARAD's assets.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 10401 DEERWOOD PARK BLVD, JACKSONVILLE, FL, 32256

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $297,500

Exercised Options: $297,500

Current Obligation: $297,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000037

IDV Type: IDC

Timeline