Navy awards $22.4M for offshore petroleum distribution vessel ops and maintenance to TOTE SERVICES, LLC

Contract Overview

Contract Amount: $22,361,977 ($22.4M)

Contractor: Tote Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2025-07-31

Contract Duration: 546 days

Daily Burn Rate: $41.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N105A/PM3/S.FOLARON/OFFSHORE PETROLEUM DISTRIBUTION SYSTEM VESSEL OPERATIONS AND MAINTENANCE/CONTRACT AWARD FOR OPERATION AND MAINTENANCE OF VESSELS

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to TOTE SERVICES, LLC for work described as: N105A/PM3/S.FOLARON/OFFSHORE PETROLEUM DISTRIBUTION SYSTEM VESSEL OPERATIONS AND MAINTENANCE/CONTRACT AWARD FOR OPERATION AND MAINTENANCE OF VESSELS Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is 546 days, suggesting a medium-term operational need. 3. Awarded to a single vendor, raising questions about competitive pricing. 4. The service is classified under Deep Sea Freight Transportation. 5. The contract is a definitive contract, typically used for substantial procurements. 6. The vendor has been awarded this contract without prior competition.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar vessel operations and maintenance. The firm-fixed-price structure provides some cost certainty, but the lack of competition prevents a direct assessment of whether the price represents the best value achievable in a competitive market. Further analysis would require understanding the specific technical requirements and market rates for specialized vessel operations and maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of the Navy selected TOTE SERVICES, LLC without soliciting bids from other potential vendors. This approach bypasses the standard competitive process, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the availability of critical petroleum distribution vessels. Services delivered include the operation and maintenance of specialized vessels essential for logistical support. The geographic impact is primarily focused on Florida (ST, SN), where the vessels may be based or operate. This contract supports specialized maritime jobs within the TOTE SERVICES, LLC workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency in cost justification.
Potential for vendor lock-in due to absence of competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Award to an established vendor may ensure continuity of service.
Specific operational needs may justify a sole-source approach in certain circumstances.

Sector Analysis

This contract falls within the Maritime Transportation and Logistics sector, specifically focusing on specialized vessel operations and maintenance. The market for such services is often characterized by high barriers to entry due to specialized equipment, certifications, and expertise. Comparable spending benchmarks are difficult to establish without more detailed information on the vessel types and service scope, but large government contracts for vessel support are common within the defense sector.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of operating and maintaining deep-sea vessels, it is likely that larger, established companies with specific maritime capabilities are the primary contractors. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise if TOTE SERVICES, LLC engages them for specific maintenance or supply needs.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Navy Vessel Operations and Maintenance
Petroleum Logistics Support
Deep Sea Freight Transportation Services
Maritime Support Contracts

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to TOTE SERVICES, LLC. N105A/PM3/S.FOLARON/OFFSHORE PETROLEUM DISTRIBUTION SYSTEM VESSEL OPERATIONS AND MAINTENANCE/CONTRACT AWARD FOR OPERATION AND MAINTENANCE OF 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 $22.4 million.

What is the period of performance?

Start: 2024-02-01. End: 2025-07-31.

What is the historical spending pattern for offshore petroleum distribution vessel operations and maintenance by the Department of the Navy?

Analyzing historical spending for offshore petroleum distribution vessel operations and maintenance by the Department of the Navy requires access to detailed procurement data over several fiscal years. Without specific historical data for this exact service category, it's difficult to provide precise figures. However, the Navy consistently invests significant resources in maintaining its fleet and logistical capabilities, which include specialized vessels for fuel transport. Spending in this area can fluctuate based on operational tempo, vessel age, maintenance requirements, and the contracting strategies employed (e.g., competitive vs. sole-source awards). Trends might show increased spending during periods of heightened geopolitical activity or modernization efforts. A comprehensive review would involve querying databases like FPDS or USASpending for relevant contract actions over a multi-year period, filtering by agency, service description, and contract type.

How does the awarded price of $22.4 million compare to similar contracts for vessel operations and maintenance?

Directly comparing the $22.4 million award to similar contracts is challenging without knowing the specific types of vessels, their operational scope, and the duration of service for comparable agreements. Vessel operations and maintenance costs can vary dramatically based on vessel size, age, complexity of systems, and geographic operating area. Furthermore, this contract was awarded on a sole-source basis, which inherently limits the ability to benchmark against competitively bid contracts where price discovery is more robust. To perform a meaningful comparison, one would need to identify contracts with similar vessel classes (e.g., tankers, specialized support vessels), similar service requirements (e.g., crewing, maintenance, repair, fuel management), and comparable contract durations. The firm-fixed-price nature suggests a defined scope, but the absence of competition means the price may not reflect the lowest achievable market rate.

What are the key performance indicators (KPIs) TOTE SERVICES, LLC is expected to meet under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, typical KPIs for vessel operations and maintenance contracts often include metrics related to vessel availability and operational readiness, adherence to maintenance schedules, fuel efficiency, safety incident rates, compliance with environmental regulations, and timely response to operational tasking. For a petroleum distribution system, ensuring uninterrupted fuel supply chains and maintaining the vessels in a constant state of readiness would be paramount. The firm-fixed-price contract structure implies that TOTE SERVICES, LLC is responsible for delivering the contracted services within the agreed-upon price, and failure to meet critical performance standards could lead to penalties or contract termination, depending on the specific terms outlined in the full contract document.

What is the track record of TOTE SERVICES, LLC in performing similar government contracts?

TOTE SERVICES, LLC has a significant track record of performing government contracts, particularly within the maritime sector. They are known for operating and maintaining various types of vessels for the U.S. military and other government agencies, including Jones Act qualified vessels. Their experience often encompasses sealift operations, logistics support, and specialized vessel services. Publicly available contract databases (like FPDS or SAM.gov) would show a history of awards to TOTE SERVICES, LLC from agencies such as the Department of the Navy, Military Sealift Command, and potentially others. Assessing their performance typically involves reviewing past performance evaluations, any contract disputes or terminations, and the overall volume and complexity of contracts they have successfully executed. Their established presence suggests a capacity to handle complex maritime operations.

What are the potential risks associated with a sole-source award for critical maritime services?

The primary risk associated with a sole-source award for critical maritime services like offshore petroleum distribution vessel operations and maintenance is the potential for inflated costs. Without competition, the government loses the leverage to negotiate the best possible price, potentially paying a premium. Another risk is reduced innovation, as the incumbent contractor may have less incentive to improve efficiency or adopt new technologies if they are not facing competitive pressure. Furthermore, sole-source awards can sometimes indicate a lack of available qualified vendors or a failure in the government's acquisition planning process. This can lead to vendor lock-in, making it difficult to switch providers in the future even if performance or pricing becomes unsatisfactory. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N3220524R0006

Offers Received: 1

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: $22,361,977

Exercised Options: $22,361,977

Current Obligation: $22,361,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline