DoD Awards $98.4M Bridge Contract for SBX-1 Operations to TOTE Services, LLC
Contract Overview
Contract Amount: $98,407,119 ($98.4M)
Contractor: Tote Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2025-09-30
Contract Duration: 547 days
Daily Burn Rate: $179.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: N105C / PM2 E. WILLIAMS & C. JAKOBOWSKI OPERATION & MAINTENANCE OF SBX-1 / BRIDGE CONTRACT AWARD
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $98.4 million to TOTE SERVICES, LLC for work described as: N105C / PM2 E. WILLIAMS & C. JAKOBOWSKI OPERATION & MAINTENANCE OF SBX-1 / BRIDGE CONTRACT AWARD Key points: 1. Significant contract value for essential operational support. 2. Lack of competition raises concerns about price discovery. 3. Potential risk associated with a sole-source award for critical infrastructure. 4. Deep Sea Freight Transportation sector sees substantial investment.
Value Assessment
Rating: questionable
The contract value of $98.4M for a 547-day period appears high given the lack of competitive bidding. Without market comparison, assessing true value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers than a competitive process.
Taxpayer Impact: The absence of competition for this substantial contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Ensures continued operation of the SBX-1 platform, vital for national security. Potential for increased costs due to lack of competitive pressure. Impacts the Deep Sea Freight Transportation market by awarding a large contract without open bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Ensures continuity of critical operations
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Deep Sea Freight Transportation sector, supporting the operation of the Sea-Based X-Band Radar (SBX-1). Spending in this niche area is often driven by specific national security requirements rather than market dynamics.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the awardee is TOTE Services, LLC, a larger entity. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services at a fair and reasonable price. Transparency in the justification for the sole-source award is crucial.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns without market oversight.
- Limited transparency in price justification.
- High contract value for a non-competed service.
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 $98.4 million to TOTE SERVICES, LLC. N105C / PM2 E. WILLIAMS & C. JAKOBOWSKI OPERATION & MAINTENANCE OF SBX-1 / BRIDGE CONTRACT AWARD
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 $98.4 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the unavailability of other qualified sources. For the SBX-1, it's possible that TOTE Services, LLC possesses specialized assets or expertise critical for its operation and maintenance, making competition impractical or detrimental to national security objectives.
What are the risks associated with a sole-source contract of this magnitude?
The primary risks of a sole-source contract of this magnitude include inflated pricing due to the absence of competitive pressure, potential for reduced innovation, and a lack of transparency in cost justification. Taxpayers may bear a higher cost than if the contract had been competed, and there's a risk of contractor complacency without market accountability.
How does this contract ensure the effective operation of the SBX-1?
This contract ensures the effective operation of the SBX-1 by providing essential services for its maintenance and deployment. The firm fixed price structure incentivizes the contractor to manage costs effectively while meeting performance requirements. However, the lack of competition means effectiveness is primarily assessed through contract performance monitoring rather than market validation.
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
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: $99,750,675
Exercised Options: $99,750,675
Current Obligation: $98,407,119
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-29
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