Maritime Administration awards $958K contract for deep sea freight transportation services

Contract Overview

Contract Amount: $957,978 ($958.0K)

Contractor: Tote Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2026-12-31

Contract Duration: 273 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: PACIFIC TRACKER FY26 POST DRY-DOCK SEA TRIAL A TSI-PTK26-1001 A

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $957,978 to TOTE SERVICES, LLC for work described as: PACIFIC TRACKER FY26 POST DRY-DOCK SEA TRIAL A TSI-PTK26-1001 A Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for deep sea freight transportation, a critical component of the maritime supply chain. 3. The duration of the contract is 273 days, indicating a focused service period. 4. The award type is a delivery order, suggesting it's part of a larger indefinite-delivery contract or program. 5. The pricing type is 'Cost No Fee', which requires detailed cost reporting and oversight. 6. The contract is for services in Oregon, highlighting regional economic impact.

Value Assessment

Rating: fair

The contract's value of $957,978 for approximately 9 months of service appears reasonable for specialized maritime operations. However, without specific details on the scope of services, vessel type, and cargo, a direct comparison to similar contracts is challenging. The 'Cost No Fee' pricing structure necessitates close monitoring of actual costs incurred by the contractor to ensure value for money, as it shifts some financial risk to the government if costs are not managed effectively.

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 bids. 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 open competition suggests that the Maritime Administration sought the best value available in the market for these specialized services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, thereby maximizing the efficient use of public funds.

Public Impact

The primary beneficiaries are likely the U.S. maritime industry and potentially the Department of Defense or other government agencies relying on deep sea freight transportation. Services delivered include the operation and maintenance of vessels for deep sea freight transportation, including sea trials post-dry dock. The geographic impact is centered in Oregon, where the services will be performed and potentially where the vessel is based. Workforce implications may include employment for maritime professionals such as captains, engineers, and deckhands, as well as shoreside support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' pricing structure requires robust government oversight to ensure costs are reasonable and necessary.
Lack of specific details on the vessel and cargo makes it difficult to fully assess the value proposition.
The short duration of the contract (273 days) might indicate a need for follow-on contracts or a specific, limited-scope requirement.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
The contract supports critical maritime operations, aligning with national economic and defense interests.
The specific nature of 'post dry-dock sea trial' indicates a focus on ensuring vessel readiness and safety.

Sector Analysis

The maritime transportation sector is vital for global trade and national security, involving the movement of goods via sea. This contract falls within the deep sea freight transportation sub-sector, which is characterized by large, specialized vessels and complex logistical operations. The market includes a range of companies, from large shipping conglomerates to specialized service providers. Comparable spending benchmarks are difficult to establish without more detail on the specific vessel and service requirements, but contracts for vessel operation and maintenance can range significantly in cost.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of deep sea freight transportation and vessel operations, it is likely that the primary contractors are larger entities with the necessary infrastructure and expertise. Subcontracting opportunities for small businesses might exist in areas such as maintenance, repair, or logistical support, but this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Maritime Administration's contracting officers and program managers. The 'Cost No Fee' structure necessitates detailed financial reporting and auditing by the contractor, with government review to ensure compliance and prevent cost overruns. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
Sealift Command Contracts
Port Infrastructure Development Program

Risk Flags

Cost No Fee pricing requires stringent financial oversight.
Limited scope details may obscure full value assessment.
Short contract duration could indicate future uncertainty or follow-on needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $957,978 to TOTE SERVICES, LLC. PACIFIC TRACKER FY26 POST DRY-DOCK SEA TRIAL A TSI-PTK26-1001 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 $957,978.

What is the period of performance?

Start: 2026-04-02. End: 2026-12-31.

What is the specific type of vessel involved in this contract and its operational history?

The provided data does not specify the exact type of vessel (e.g., container ship, tanker, specialized cargo vessel) or its operational history. The contract mentions 'PACIFIC TRACKER FY26 POST DRY-DOCK SEA TRIAL A TSI-PTK26-1001 A', which suggests a vessel named 'PACIFIC TRACKER' undergoing post-dry dock sea trials in Fiscal Year 2026. Dry-docking is a maintenance procedure where a vessel is taken out of the water for inspection and repair. Sea trials are conducted afterward to test the vessel's systems and performance. Understanding the vessel's class, age, and previous service would provide context for the costs and risks associated with this contract.

How does the 'Cost No Fee' pricing structure compare to other contract types for similar maritime services?

The 'Cost No Fee' (CNF) pricing structure is less common for service contracts compared to fixed-price or cost-plus-incentive-fee arrangements. In a CNF contract, the government reimburses the contractor for all allowable costs incurred, but the contractor does not receive any fee or profit. This structure is typically used when the contractor is a government entity or a non-profit organization performing a public service, or in specific situations where profit is not the primary motivator or is prohibited. For commercial maritime services, cost-plus-fixed-fee (CPFF) or firm-fixed-price (FFP) contracts are more prevalent. CNF places a significant burden on the government to meticulously audit and verify all contractor costs to ensure they are reasonable and necessary, making effective oversight crucial.

What are the key performance indicators (KPIs) expected for the post dry-dock sea trials?

The specific Key Performance Indicators (KPIs) for these post dry-dock sea trials are not detailed in the provided award data. Typically, sea trials aim to verify that all vessel systems (propulsion, navigation, safety, communication, auxiliary systems) are functioning correctly after maintenance. KPIs might include achieving specific speeds, demonstrating maneuverability, confirming stability, testing emergency equipment functionality, and ensuring compliance with regulatory standards. The success of the trials would likely be measured against predefined technical specifications and operational readiness requirements outlined in the contract's statement of work.

What is the historical spending pattern for similar deep sea freight transportation services by the Maritime Administration?

The provided data focuses on a single contract award and does not offer historical spending patterns for the Maritime Administration (MARAD) in deep sea freight transportation. To assess historical spending, one would need to analyze MARAD's contract database over multiple fiscal years, filtering for similar North American Industry Classification System (NAICS) codes (like 483111 - Deep Sea Freight Transportation) and contract types. This analysis would reveal trends in contract values, the number of awards, dominant contractors, and the overall budget allocated to such services, providing context for the current award's significance and potential future needs.

What are the potential risks associated with a 'Cost No Fee' contract for maritime services?

The primary risk with a 'Cost No Fee' contract is the potential for cost escalation if the government's oversight and auditing processes are not sufficiently robust. Since the contractor does not earn a fee, there is less inherent financial incentive to control costs compared to fixed-price contracts. The government bears the risk of reimbursing all allowable costs, which could exceed initial estimates if not managed carefully. Other risks include potential delays if cost disputes arise or if the contractor prioritizes other, more profitable work. Ensuring the contractor's accounting systems are adequate and that all claimed costs are legitimate and directly related to the contract is paramount.

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: $957,978

Exercised Options: $957,978

Current Obligation: $957,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000016

IDV Type: IDC

Timeline