Transportation awards $3.5M for deep sea freight services, with delivery expected by April 2026

Contract Overview

Contract Amount: $3,517,893 ($3.5M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-05-02

End Date: 2026-04-30

Contract Duration: 728 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: PACIFIC COLLECTOR FY24 OPER MDA MISSION OPS 2B TSI-PCL24-2002 B

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $3.5 million to TOTE SERVICES, LLC for work described as: PACIFIC COLLECTOR FY24 OPER MDA MISSION OPS 2B TSI-PCL24-2002 B Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type is Cost No Fee, which shifts cost risk to the government. 3. Performance period spans 728 days, indicating a medium-term operational requirement. 4. The North American Industry Classification System (NAICS) code 483111 points to specialized freight transportation services. 5. The award is a delivery order under a larger contract vehicle, implying potential for follow-on work. 6. The contractor, TOTE SERVICES, LLC, has experience in maritime operations.

Value Assessment

Rating: fair

The contract value of $3.5 million for a 728-day period is difficult to benchmark without more specific service details. The Cost No Fee (CNF) contract type means the government bears the cost risk, which can sometimes lead to higher overall expenditures if not managed closely. Comparing this to similar deep sea freight contracts would require detailed analysis of the scope of work, vessel types, and operational complexities.

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. This process generally fosters a competitive environment, which can lead to better pricing and value for the government. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this award.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of contractors to offer their services.

Public Impact

The primary beneficiary is the Department of Transportation, specifically the Maritime Administration, for essential freight services. The contract supports deep sea freight transportation, crucial for national logistics and supply chains. Services are likely to impact port operations and potentially the broader maritime workforce. The geographic impact is primarily related to deep sea routes, with specific origins and destinations to be determined by operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type places cost risk on the government.
Lack of specific performance metrics makes it difficult to assess efficiency.
Delivery order under a larger contract may obscure true total cost and competition for the underlying IDIQ.

Positive Signals

Awarded via full and open competition, promoting market-based pricing.
Contractor has established experience in maritime services.
Clear delivery dates provide a defined performance timeline.

Sector Analysis

The maritime transportation sector is vital for global trade and national security, involving specialized vessels and logistics. This contract falls under deep sea freight, a segment characterized by significant capital investment in vessels and complex operational requirements. Spending in this area is influenced by global trade volumes, geopolitical factors, and government requirements for strategic sealift or specialized cargo movement. Benchmarking requires comparison with other government or commercial contracts for similar vessel classes and operational durations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, TOTE SERVICES, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, but larger prime contractors are often encouraged or required to engage small businesses in their supply chains for broader contract vehicles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. As a delivery order under a larger contract, oversight may be managed through the contracting officer's representative (COR) and program managers responsible for the underlying indefinite-delivery, indefinite-quantity (IDIQ) contract. Transparency is facilitated by public contract databases, but detailed operational oversight and performance reviews are internal government functions.

Related Government Programs

Maritime Security Program
Jones Act Vessels
Strategic Sealift Capability
Department of Transportation Operations

Risk Flags

Cost-Reimbursement Risk
Long-Term Performance Uncertainty
Market Volatility Exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.5 million to TOTE SERVICES, LLC. PACIFIC COLLECTOR FY24 OPER MDA MISSION OPS 2B TSI-PCL24-2002 B

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 $3.5 million.

What is the period of performance?

Start: 2024-05-02. End: 2026-04-30.

What is the track record of TOTE SERVICES, LLC with the federal government, particularly in similar deep sea freight contracts?

TOTE SERVICES, LLC has a significant history of federal contracting, primarily within the maritime sector. They operate a fleet of vessels and have been awarded numerous contracts for various government agencies, including the Department of Defense and the Department of Transportation. Their experience often involves operating specialized vessels, including LNG carriers and containerships, for both commercial and government purposes. For deep sea freight, their track record includes providing transportation services for military cargo, humanitarian aid, and other critical supplies. Analyzing their past performance on similar contracts would involve reviewing contract awards, performance evaluations (if publicly available), and any reported disputes or contract modifications to assess their reliability and cost-effectiveness in delivering deep sea freight services.

How does the Cost No Fee (CNF) contract type impact the government's financial exposure and oversight requirements compared to other contract types?

The Cost No Fee (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used when the scope of work is uncertain or when the government wants to incentivize performance without the contractor taking on significant financial risk. For the government, the primary impact is bearing all the cost risk; if costs escalate, the government pays more. This necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. Unlike fixed-price contracts, where the contractor assumes cost risk, CNF requires diligent monitoring of expenditures and contractor performance to prevent cost overruns and ensure the service is delivered efficiently. The absence of a fee means the contractor's incentive is primarily to fulfill the contract requirements rather than maximize profit, but careful management is still crucial.

What are the potential risks associated with a 728-day performance period for deep sea freight transportation?

A 728-day (approximately two-year) performance period for deep sea freight transportation presents several potential risks. Firstly, market volatility in fuel prices, shipping rates, and geopolitical stability can significantly impact operational costs and feasibility. Secondly, vessel maintenance and unexpected mechanical failures can lead to delays and increased expenses, especially if spare parts or specialized repair services are not readily available. Thirdly, regulatory changes concerning emissions, safety standards, or international shipping laws could necessitate costly modifications or operational adjustments. Finally, the long duration increases the risk of contractor performance degradation or changes in the contractor's operational capacity. Effective risk mitigation would involve contingency planning, robust maintenance schedules, and clear contract clauses addressing price adjustments and performance standards.

How does the NAICS code 483111 (Deep Sea Freight Transportation) typically align with government spending patterns and strategic needs?

The NAICS code 483111, Deep Sea Freight Transportation, aligns with government spending patterns related to national security, economic stability, and disaster relief. The Department of Defense frequently utilizes these services for deploying troops and equipment globally. The Department of Transportation, through agencies like the Maritime Administration, funds such services to maintain a viable domestic maritime industry and ensure the availability of shipping capacity during emergencies. Economic agencies may also fund or contract for these services to support international trade routes or ensure the flow of essential goods. Spending in this category can fluctuate based on global events, trade policies, and the need for strategic logistical capabilities, often involving large, specialized vessels capable of long-haul transport.

What are the implications of this award being a 'Delivery Order' under a larger contract vehicle?

When an award is a 'Delivery Order' under a larger contract vehicle (often an Indefinite-Delivery, Indefinite-Quantity or IDIQ contract), it signifies that the foundational contract terms, pricing structure, and competition have already been established. This specific award represents a task order for a defined quantity of goods or services to be delivered within a specified timeframe. The implications include: 1) Streamlined procurement: Issuing delivery orders is typically faster than awarding a new prime contract. 2) Potential for follow-on work: The existence of an IDIQ suggests the government anticipates future needs, and this delivery order is one instance of fulfilling that anticipated demand. 3) Bundled requirements: The IDIQ may have been competed broadly, and this delivery order is a specific call against it. 4) Oversight continuity: Oversight is often managed under the umbrella of the parent IDIQ contract, potentially simplifying administrative burdens but also requiring careful tracking across multiple orders.

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 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: $3,517,893

Exercised Options: $3,517,893

Current Obligation: $3,517,893

Actual Outlays: $3,501,389

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTMA98D16018

IDV Type: IDC

Timeline