TOTE Services awarded $1.99M for FY26 ship management, highlighting deep-sea freight transportation needs

Contract Overview

Contract Amount: $1,987,553 ($2.0M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-10-01

End Date: 2026-04-30

Contract Duration: 211 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CAPE SAN JUAN FY26 SHIP MANAGER FIXED FEES TSI-SJN26-1002 A

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.0 million to TOTE SERVICES, LLC for work described as: CAPE SAN JUAN FY26 SHIP MANAGER FIXED FEES TSI-SJN26-1002 A Key points: 1. Contract value appears reasonable for specialized ship management services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period aligns with typical operational cycles for maritime assets. 5. This contract supports critical national infrastructure in deep-sea freight. 6. The award is a delivery order, indicating it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $1.99 million for a roughly 7-month period of performance is within a reasonable range for specialized ship management services. Benchmarking against similar contracts for vessel operation and maintenance would provide a more precise value-for-money assessment. However, given the fixed-price nature, the government has a clear understanding of the cost, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the designation suggests a robust market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring federal funds are used efficiently.

Public Impact

The primary beneficiaries are the U.S. maritime industry and the Department of Transportation, ensuring operational readiness of vessels. Services delivered include comprehensive management of a vessel, covering crewing, maintenance, and operational logistics. The geographic impact is primarily within U.S. waters and international shipping lanes utilized by the managed vessel. Workforce implications include employment for maritime professionals, including officers, crew, and shoreside support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical ship management functions could pose a risk if performance falters.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive market, likely leading to better service quality and pricing.
The award is a delivery order under an existing contract, implying a streamlined process and potentially pre-vetted contractor capabilities.

Sector Analysis

The maritime transportation sector is crucial for global trade and national security, involving the operation and management of various vessel types. This contract falls under deep-sea freight transportation, a segment characterized by significant capital investment and specialized operational expertise. Comparable spending benchmarks would involve analyzing other government contracts for vessel charter, operation, and management, which can vary widely based on vessel size, type, and duration of service.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides or subcontracting goals. Therefore, the direct impact on small businesses is not explicitly detailed. However, the prime contractor, TOTE Services, LLC, may engage small businesses for subcontracting opportunities related to maintenance, supplies, or specialized services, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Maritime Administration (MARAD). Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract databases like FPDS. 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
Strategic Sealift Capability

Risk Flags

Potential for cost overruns if unforeseen major maintenance is required.
Dependence on contractor performance for critical operational functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.0 million to TOTE SERVICES, LLC. CAPE SAN JUAN FY26 SHIP MANAGER FIXED FEES TSI-SJN26-1002 A

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 $2.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-04-30.

What is TOTE Services, LLC's track record with the federal government, particularly in ship management?

TOTE Services, LLC has a significant history of contracting with the U.S. federal government, primarily within the Department of Transportation and the Department of Defense. They are known for operating and managing a diverse fleet of vessels, including tankers, containerships, and specialized government vessels. Their experience spans various operational requirements, from commercial shipping to supporting military logistics. Reviewing their past performance on similar contracts, including any past performance evaluations or awards, would provide further insight into their reliability and capability in fulfilling complex ship management requirements. Data from contract databases often reflects their extensive involvement in maritime services.

How does the $1.99 million contract value compare to similar ship management contracts awarded by MARAD or other agencies?

Benchmarking the $1.99 million contract value requires comparing it against similar fixed-price delivery orders for ship management services over a comparable period (approximately 7 months). Factors such as vessel size, type, operational complexity, and required crewing levels significantly influence pricing. While specific comparable data is not immediately available, the value appears reasonable for managing a vessel, encompassing crewing, maintenance, and operational support. A detailed analysis would involve querying federal procurement databases for contracts with similar North American Industry Classification System (NAICS) codes (e.g., 483111 - Deep Sea Freight Transportation) and service descriptions awarded within the last 1-2 years.

What are the primary risks associated with this fixed-price contract for ship management?

The primary risk associated with this fixed-price contract is the potential for unforeseen operational issues or major maintenance requirements that could exceed the contractor's budgeted costs, potentially leading to performance issues if the contractor is unable to absorb the extra expenses. While fixed-price contracts offer cost certainty to the government, they place the financial risk of cost overruns on the contractor. Another risk is the contractor's ability to maintain adequate crewing levels and operational standards throughout the contract period. The government's risk is mitigated by the full and open competition, which suggests a capable pool of bidders, and by the oversight provided by the Maritime Administration.

What is the expected effectiveness of this contract in ensuring the operational readiness of the managed vessel?

The effectiveness of this contract in ensuring operational readiness hinges on TOTE Services, LLC's ability to execute the terms of the fixed-price agreement diligently. The contract likely specifies performance standards related to vessel uptime, maintenance schedules, and crew qualifications. Full and open competition suggests that the selected contractor possesses the necessary expertise and resources. The Maritime Administration's oversight and the contractor's incentive to maintain a positive performance record for future contracts are key drivers of effectiveness. The specific metrics for operational readiness would be detailed within the contract's statement of work.

How has federal spending in deep-sea freight transportation services trended over the past five years?

Federal spending in deep-sea freight transportation services has generally remained consistent, driven by national security requirements, economic stimulus programs, and the need to maintain a U.S.-flagged merchant marine fleet. Agencies like the Department of Transportation (MARAD) and the Department of Defense (Military Sealift Command) are the primary sources of this spending. While specific figures fluctuate annually based on global events, fleet readiness needs, and legislative appropriations, the overall trend reflects a sustained commitment to supporting this critical sector. Analysis of historical data from sources like the Federal Procurement Data System (FPDS) would reveal year-over-year spending patterns and identify any significant shifts.

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: FIRM FIXED PRICE (J)

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: $1,987,553

Exercised Options: $1,987,553

Current Obligation: $1,987,553

Actual Outlays: $756,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000022

IDV Type: IDC

Timeline