DOT Awards $2.2M Fixed Fee for FY26 Ship Management to TOTE Services, LLC
Contract Overview
Contract Amount: $2,221,317 ($2.2M)
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: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CAPE SABLE FY26 SHIP MANAGER FIXED FEES TSI-SBL26-1002 A
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124
Plain-Language Summary
Department of Transportation obligated $2.2 million to TOTE SERVICES, LLC for work described as: CAPE SABLE FY26 SHIP MANAGER FIXED FEES TSI-SBL26-1002 A Key points: 1. Contract Value: $2.22 million for ship management services. 2. Competition: Awarded under full and open competition. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Maritime Administration within the Department of Transportation.
Value Assessment
Rating: good
The $2.22 million fixed fee for approximately 7 months of service appears reasonable given the scope of ship management. Benchmarking against similar contracts for vessel operation and maintenance would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential maritime services.
Public Impact
Ensures continued operation of maritime assets critical for national supply chains. Supports the U.S. maritime industry and associated jobs. Provides essential services for the Maritime Administration's fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if additional services are required beyond the fixed fee.
- Dependence on a single contractor for critical operational management.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded through full and open competition.
- Clear performance period and defined services.
Sector Analysis
This contract falls within the transportation sector, specifically deep sea freight transportation. Spending in this area is crucial for maintaining national and international trade routes and supporting defense readiness.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation in this contract.
Oversight & Accountability
The Maritime Administration is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure performance and compliance with contract terms.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Contract duration is relatively short (approx. 7 months).
- Firm Fixed Price contract type.
- Awarded via Full and Open Competition.
- Contractor has experience in the maritime sector.
Tags
deep-sea-freight-transportation, department-of-transportation, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $2.2 million to TOTE SERVICES, LLC. CAPE SABLE FY26 SHIP MANAGER FIXED FEES TSI-SBL26-1002 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 $2.2 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-04-30.
What is the historical cost performance of TOTE Services, LLC on similar maritime contracts?
Historical cost performance data for TOTE Services, LLC on similar contracts would be valuable for assessing the reasonableness of the current fixed fee. Analyzing past contract execution, including any cost overruns or savings, can provide insights into the contractor's efficiency and pricing strategies. This information helps determine if the current fee aligns with their demonstrated capabilities and market rates.
Are there any potential risks associated with the firm fixed price contract type for this specific service?
While a firm fixed price contract offers cost certainty, risks can arise if unforeseen operational challenges or regulatory changes significantly increase costs beyond what was reasonably anticipated. The government must ensure the scope of work is clearly defined to prevent contractor claims for additional compensation due to scope creep or unforeseen circumstances not covered by the contract.
How does the awarded fee compare to industry benchmarks for similar ship management services?
Comparing the awarded fixed fee of $2.22 million to industry benchmarks for comparable ship management services is crucial for validating value. Benchmarking against rates charged by other reputable maritime service providers for similar vessel types, operational scope, and contract durations will indicate if the fee is competitive and reflects fair market value.
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: $2,221,317
Exercised Options: $2,221,317
Current Obligation: $2,221,317
Actual Outlays: $815,299
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
Start Date: 2025-10-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-15
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