DoD Awards $43M for USNS SBX-1 Operations & Maintenance to TOTE Services, LLC
Contract Overview
Contract Amount: $43,188,683 ($43.2M)
Contractor: Tote Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $118.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OPERATION AND MAINTENANCE OF USNS SBX-1
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $43.2 million to TOTE SERVICES, LLC for work described as: OPERATION AND MAINTENANCE OF USNS SBX-1 Key points: 1. Contract awarded to TOTE Services, LLC for operation and maintenance of USNS SBX-1. 2. The contract has a value of $43,188,682.65 and a duration of 364 days. 3. Competition method is 'FULL AND OPEN COMPETITION', suggesting a competitive bidding process. 4. The sector is primarily Defense, specifically Deep Sea Freight Transportation.
Value Assessment
Rating: good
The contract value of $43.19M for a 364-day period appears reasonable for specialized vessel operations and maintenance. Benchmarking against similar deep-sea freight transportation contracts for government vessels would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for this critical operational support.
Public Impact
Ensures continued operation of the USNS SBX-1, a key asset for national security and missile defense. Supports TOTE Services, LLC, a company involved in maritime transportation and logistics. The contract's fixed-price nature provides cost certainty for the Department of Defense. Potential impact on related industries supporting vessel maintenance and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise.
- Dependence on a single contractor for critical operational support.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost predictability.
- Supports a key national security asset.
Sector Analysis
This contract falls within the Defense sector, specifically related to maritime operations and logistics. Spending benchmarks for similar vessel operation and maintenance contracts can vary significantly based on vessel type, age, and operational requirements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made by the Department of the Navy, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, focusing on performance, delivery, and financial accountability.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is less than one year.
- Contract awarded to a single entity.
- Potential for sole-source follow-on contracts.
- Specialized nature of the asset may limit future competition.
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 $43.2 million to TOTE SERVICES, LLC. OPERATION AND MAINTENANCE OF USNS SBX-1
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 $43.2 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific operational role of the USNS SBX-1 and how critical is its continuous operation to national security objectives?
The USNS SBX-1 (Sea-Based X-band Radar) is a mobile, ocean-based platform equipped with a powerful radar system designed to support missile defense testing and operations. Its critical role involves tracking and discriminating ballistic missiles, particularly during their mid-course phase. Continuous operation is vital for maintaining readiness, supporting ongoing research and development, and providing essential data during potential national security events.
Are there any identified risks associated with TOTE Services, LLC's ability to perform the operation and maintenance requirements for the USNS SBX-1?
The provided data does not explicitly detail any performance risks associated with TOTE Services, LLC. However, risks inherent in operating and maintaining specialized government vessels include potential equipment failures, logistical challenges at sea, and the need for highly skilled personnel. A thorough review of the contractor's past performance and technical capabilities would be necessary to fully assess these risks.
How does the firm fixed price contract structure impact the government's ability to manage costs and ensure value for this specialized service?
A firm fixed price (FFP) contract provides the government with cost certainty, as the price is set and generally not subject to adjustment based on the contractor's cost experience. This structure incentivizes the contractor to control costs efficiently. For specialized services like vessel operation and maintenance, FFP can be advantageous if the scope of work is well-defined, but it may also lead to higher initial pricing to account for contractor risk.
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: N3220524R2262
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: $253,390,810
Exercised Options: $75,818,390
Current Obligation: $43,188,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2031-03-31 00:00:00
Last Modified: 2026-01-15
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