Transportation contract for freight services awarded to TOTE SERVICES, LLC for over $226,000

Contract Overview

Contract Amount: $2,264,359 ($2.3M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-12-23

End Date: 2026-09-30

Contract Duration: 281 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE SABLE FY26 REPAIRS A TSI-SBL26-1005 A THE PURPOSE OF THIS TASK ORDER IS TO ACCOMPLISH MARAD APPROVED SPECIFIC WORK ITEMS.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.3 million to TOTE SERVICES, LLC for work described as: CAPE SABLE FY26 REPAIRS A TSI-SBL26-1005 A THE PURPOSE OF THIS TASK ORDER IS TO ACCOMPLISH MARAD APPROVED SPECIFIC WORK ITEMS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is approximately 9 months, indicating a short-term need. 3. The contract type is a delivery order, suggesting it's part of a larger framework agreement. 4. The North American Industry Classification System (NAICS) code 483111 points to deep sea freight transportation services. 5. The contract is for specific work items approved by MARAD, implying a defined scope. 6. The contract value is approximately $226,435, which is a moderate expenditure for this type of service.

Value Assessment

Rating: good

The contract value of $226,435 for approximately 9 months of service appears reasonable for specialized freight transportation. Benchmarking against similar MARAD contracts for deep sea freight would provide a more precise value-for-money assessment. However, the cost-no-fee (CNF) pricing structure, if applicable, suggests that the contractor's profit is built into the cost of performance, which can sometimes lead to higher overall costs if not managed carefully. Without more detailed cost breakdowns or comparisons to market rates for similar services, a definitive value assessment is challenging.

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 price discovery and encourages competitive pricing. The Maritime Administration likely sought proposals from multiple qualified providers to ensure the best value was obtained for the required services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that federal funds are used efficiently.

Public Impact

The primary beneficiary is the Maritime Administration (MARAD), which will receive specific approved work items. The service delivered is deep sea freight transportation, crucial for national maritime commerce. The contract is geographically located in California, indicating a specific operational area. While not explicitly stated, the contract likely supports the U.S. maritime workforce through employment opportunities on vessels and related shore-side operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and efficiency of the delivered services.
The cost-no-fee (CNF) pricing structure, if used, may not incentivize cost-saving measures by the contractor.
Limited information on the specific 'work items' could obscure potential scope creep or unforeseen cost increases.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract is for a defined period and specific approved tasks, providing clarity on the scope of work.
The contractor, TOTE SERVICES, LLC, is likely experienced in deep sea freight transportation, implying a level of expertise.

Sector Analysis

The deep sea freight transportation sector is a critical component of global and domestic commerce, involving the movement of goods via large vessels across oceans. This contract falls within the broader transportation and logistics industry, which is characterized by significant capital investment, complex regulatory environments, and global competition. Comparable spending benchmarks for similar MARAD or Department of Defense freight contracts could provide context, but specific data is not readily available. The market size for such specialized services is substantial, driven by international trade and national security requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not appear to have specific subcontracting requirements mentioned (ss: false). Therefore, the direct impact on the small business ecosystem is likely minimal for this particular award. However, larger prime contractors like TOTE SERVICES, LLC may engage small businesses as subcontractors for specialized support services, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Maritime Administration. The contract's specific work items and delivery schedule would be monitored by MARAD contracting officers. While no specific Inspector General jurisdiction is mentioned, the DOT's Office of Inspector General typically oversees federal spending within the department to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Maritime Administration Vessel Operations
Department of Transportation Freight Services
Deep Sea Shipping Contracts
Federal Maritime Commission Oversight

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of service delays due to external factors (weather, port operations).
Dependence on contractor's performance for critical MARAD operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.3 million to TOTE SERVICES, LLC. CAPE SABLE FY26 REPAIRS A TSI-SBL26-1005 A THE PURPOSE OF THIS TASK ORDER IS TO ACCOMPLISH MARAD APPROVED SPECIFIC WORK ITEMS.

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 $2.3 million.

What is the period of performance?

Start: 2025-12-23. End: 2026-09-30.

What is the track record of TOTE SERVICES, LLC in performing similar deep sea freight transportation contracts for the federal government?

TOTE SERVICES, LLC is a well-established company with a significant history in providing maritime services, including Jones Act qualified vessels and integrated logistics solutions. They operate a fleet of vessels and have experience in various sectors, including government contracts. While specific details on past federal contracts are not provided in this data snippet, their general industry presence suggests a capacity to handle complex freight operations. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the extent and nature of their prior government work, including performance ratings and any past issues. Their experience likely encompasses a range of cargo types and operational requirements, making them a plausible candidate for this type of delivery order.

How does the awarded amount of $226,435 compare to the average cost of similar deep sea freight transportation contracts?

Benchmarking this $226,435 contract against similar deep sea freight transportation services is challenging without access to a comprehensive database of comparable federal contracts. The value of such contracts can vary significantly based on the duration, type of cargo, vessel size and specifications, route, and specific services required (e.g., loading, unloading, security). Given the contract duration of approximately 9 months (281 days) and the mention of 'specific work items,' this appears to be a moderately sized, task-order-based award rather than a large, long-term charter. To provide a precise comparison, one would need to analyze contracts with similar scope, duration, and service requirements awarded by MARAD or other agencies over the past few years.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential delays in service delivery due to weather, port congestion, or vessel mechanical issues, which could impact MARAD's operations. There's also a risk related to cost overruns if the 'specific work items' are more complex or resource-intensive than initially estimated, especially if the pricing structure doesn't allow for easy cost adjustments. Performance risk, ensuring the quality and reliability of the freight transportation, is another concern. Mitigation strategies likely involve clear contract language defining responsibilities and performance standards, regular communication between MARAD and TOTE SERVICES, LLC, and potentially contingency planning for unforeseen events. The full and open competition process itself helps mitigate price risk by fostering competitive bids.

What is the expected effectiveness of this contract in achieving MARAD's objectives?

The effectiveness of this contract hinges on its ability to reliably and efficiently deliver the 'MARAD approved specific work items' related to deep sea freight transportation. If these work items are critical for maintaining MARAD's operational readiness, supply chain integrity, or strategic sealift capabilities, then successful execution of this contract is vital. The contract's defined scope and duration suggest it addresses a specific, perhaps short-term, need. Its effectiveness will be measured by the timely completion of the specified tasks, adherence to quality standards, and whether it contributes to MARAD's broader mission objectives without undue cost or disruption.

What are the historical spending patterns for deep sea freight transportation services by the Maritime Administration?

Historical spending patterns for deep sea freight transportation by the Maritime Administration (MARAD) are generally tied to national defense needs, the maintenance of the U.S. merchant marine, and the operation of the Ready Reserve Force. MARAD utilizes various contract types, including time charters, voyage charters, and service contracts, to secure necessary transportation. Spending can fluctuate based on geopolitical events, global trade dynamics, and specific government requirements for cargo movement. Analyzing MARAD's budget allocations and contract awards over several fiscal years would reveal trends in their reliance on external freight services and the typical scale and cost of such procurements. This specific contract appears to be a smaller, task-order-based expenditure within that broader spending context.

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: $2,264,359

Exercised Options: $2,264,359

Current Obligation: $2,264,359

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