Navy Awards $59.5M for Offshore Petroleum Discharge System Vessels to TOTE Services, LLC
Contract Overview
Contract Amount: $59,464,307 ($59.5M)
Contractor: Tote Services, LLC
Awarding Agency: Department of Defense
Start Date: 2018-06-04
End Date: 2025-01-31
Contract Duration: 2,433 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: N103C/OBERG/ CONTRACT AWARD FOR THE OFFSHORE PETROLEUM DISCHARGE SYSTEM (OPDS) VESSELS.
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $59.5 million to TOTE SERVICES, LLC for work described as: N103C/OBERG/ CONTRACT AWARD FOR THE OFFSHORE PETROLEUM DISCHARGE SYSTEM (OPDS) VESSELS. Key points: 1. The contract is for the Offshore Petroleum Discharge System (OPDS) vessels, a critical component for fuel logistics. 2. TOTE Services, LLC, secured this award through full and open competition. 3. The contract duration is significant, spanning over 2400 days, indicating a long-term need. 4. The firm fixed-price structure aims to control costs for the Department of Defense.
Value Assessment
Rating: good
The award amount of $59.5 million for a definitive contract with a firm fixed price appears reasonable given the scope and duration. Benchmarking against similar large-scale vessel acquisition or long-term charter contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages market forces to drive down costs.
Public Impact
Ensures continued operational capability for fuel distribution in deployed environments. Supports U.S. Navy's strategic objectives for maritime logistics and power projection. Potential for job creation in shipbuilding and maritime support sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive, requiring careful monitoring for potential cost overruns or scope creep.
- Reliance on a single awardee for such a critical system warrants close performance management.
Positive Signals
- Awarded via full and open competition, promoting competitive pricing.
- Firm fixed-price contract type helps mitigate cost uncertainty for the government.
Sector Analysis
This contract falls within the Defense sector, specifically related to maritime logistics and transportation. Spending in this area is crucial for maintaining global operational readiness and projecting power.
Small Business Impact
The data indicates that the prime contractor is TOTE SERVICES, LLC. There is no explicit information provided regarding subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of the Navy, as the awarding agency, is responsible for oversight. The definitive contract structure and firm fixed-price terms provide a framework for accountability, but ongoing performance monitoring is essential.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may lead to cost escalation or technology obsolescence.
- Sole awardee for critical system increases dependency risk.
- Potential for increased maintenance and sustainment costs over the contract life.
- Need for vigilant oversight to ensure performance standards are met.
Tags
deep-sea-freight-transportation, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.5 million to TOTE SERVICES, LLC. N103C/OBERG/ CONTRACT AWARD FOR THE OFFSHORE PETROLEUM DISCHARGE SYSTEM (OPDS) VESSELS.
Who is the contractor on this award?
The obligated recipient is TOTE SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $59.5 million.
What is the period of performance?
Start: 2018-06-04. End: 2025-01-31.
What is the specific operational role of the OPDS vessels and how does this contract ensure mission readiness?
The Offshore Petroleum Discharge System (OPDS) vessels are designed to facilitate the transfer of fuel from larger tankers to smaller vessels or directly to shore facilities in forward-deployed locations. This contract ensures the availability and operational readiness of these critical assets, enabling the Navy to sustain its fuel supply chain and maintain operational tempo in theaters of operation where traditional port infrastructure may be limited or unavailable.
Are there any identified risks associated with the long duration of this contract and the reliance on TOTE SERVICES, LLC?
The extended duration (over 6 years) presents risks such as potential obsolescence of technology, increased maintenance costs, and the possibility of contractor performance degradation over time. Reliance on a single awardee for such a vital system also concentrates risk; any disruption to TOTE SERVICES, LLC's operations could significantly impact the Navy's fuel logistics capabilities. Mitigation strategies should include robust performance metrics and contingency planning.
How does the firm fixed-price contract type contribute to effective cost management for this significant defense expenditure?
The firm fixed-price (FFP) contract type is advantageous for cost management as it shifts the majority of the cost risk to the contractor, TOTE SERVICES, LLC. This means the government pays a set price regardless of the contractor's actual costs incurred. This structure incentivizes the contractor to control expenses efficiently and provides budget certainty for the Department of the Navy, making it a suitable choice for well-defined requirements like the OPDS vessels.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3220517R3002
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
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: $59,464,307
Exercised Options: $59,464,307
Current Obligation: $59,464,307
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-06-04
Current End Date: 2025-01-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2024-07-26
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