DoD Awards $4.84M Firm Fixed Price Contract to TOTE Services for Offshore Petroleum Distribution System Operation and Maintenance
Contract Overview
Contract Amount: $4,840,949 ($4.8M)
Contractor: Tote Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-08-01
End Date: 2026-09-30
Contract Duration: 425 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CONTRACT AWARD FOR THE OPERATION AND MAINTENANCE OF THE OFFSHORE PETROLEUM DISTRIBUTION SYSTEM VESSELS. FY25 FUNDING.
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32256
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $4.8 million to TOTE SERVICES, LLC for work described as: CONTRACT AWARD FOR THE OPERATION AND MAINTENANCE OF THE OFFSHORE PETROLEUM DISTRIBUTION SYSTEM VESSELS. FY25 FUNDING. Key points: 1. The contract is for the operation and maintenance of critical offshore petroleum distribution system vessels. 2. This is a sole-source award, raising questions about potential price discovery. 3. The contract duration is 425 days, covering FY25 funding. 4. The North American Industry Classification System (NAICS) code 483111 indicates Deep Sea Freight Transportation.
Value Assessment
Rating: fair
The contract is firm fixed price, which provides cost certainty. However, without competition, it's difficult to assess if the $4.84M price is optimal compared to market alternatives.
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 higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this essential service could lead to a higher taxpayer burden due to potentially inflated pricing.
Public Impact
Ensures continued operation of vital offshore petroleum distribution systems. Supports national energy security by maintaining fuel supply lines. Potential for increased costs to taxpayers due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in pricing due to no-bid nature.
Positive Signals
- Ensures continuity of essential petroleum distribution services.
- Firm fixed price contract provides cost certainty for the government.
Sector Analysis
This contract falls under the Deep Sea Freight Transportation sector, crucial for national logistics and energy infrastructure. Spending benchmarks for similar services are difficult to ascertain without competitive data.
Small Business Impact
The awardee, TOTE Services, LLC, is not identified as a small business. The contract does not appear to include specific provisions for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable, and that future requirements are competitively procured where possible.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
Tags
deep-sea-freight-transportation, department-of-defense, fl, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.8 million to TOTE SERVICES, LLC. CONTRACT AWARD FOR THE OPERATION AND MAINTENANCE OF THE OFFSHORE PETROLEUM DISTRIBUTION SYSTEM VESSELS. FY25 FUNDING.
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 $4.8 million.
What is the period of performance?
Start: 2025-08-01. End: 2026-09-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's presumed the Department of Defense has determined TOTE Services, LLC possesses the exclusive qualifications or that competitive procurement is not feasible. Oversight should focus on verifying the necessity of this approach and scrutinizing the pricing to mitigate potential overspending.
What are the risks associated with a sole-source contract for critical infrastructure maintenance?
Sole-source contracts carry inherent risks, primarily the potential for inflated costs due to the absence of competitive pressure. There's also a risk of complacency from the contractor, as there's no immediate threat of losing the business. Furthermore, it can stifle innovation and limit the government's ability to leverage market advancements or secure better terms through negotiation.
How does this contract contribute to the overall effectiveness of the nation's energy supply chain?
This contract is vital for maintaining the operational readiness of the offshore petroleum distribution system. Ensuring these vessels are maintained and operated effectively directly supports the reliability and security of the nation's energy supply chain, particularly for strategic petroleum reserves or military fuel needs. Its effectiveness hinges on the contractor's performance and the system's uptime.
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: N3220525R4148
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: $16,230,746
Exercised Options: $4,840,949
Current Obligation: $4,840,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-08
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