Transportation awards $19.7M for Cape Race drydocking to Keystone Shipping Services, Inc
Contract Overview
Contract Amount: $19,669,343 ($19.7M)
Contractor: Keystone Shipping Services, Inc.
Awarding Agency: Department of Transportation
Start Date: 2024-04-01
End Date: 2025-06-30
Contract Duration: 455 days
Daily Burn Rate: $43.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CAPE RACE FY 24 DRYDOCK KEY-RAC24-1006A
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23707
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $19.7 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE RACE FY 24 DRYDOCK KEY-RAC24-1006A Key points: 1. The contract value is $19.7 million, awarded for a 455-day period. 2. Keystone Shipping Services, Inc. is the sole awardee. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. This award falls under the Deep Sea Freight Transportation sector.
Value Assessment
Rating: fair
The award amount of $19.7 million for a 455-day drydocking period appears reasonable given the scope. Benchmarking against similar large-scale maritime vessel maintenance contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: Taxpayer funds are utilized for this contract, with the expectation of receiving value for services rendered in maintaining critical maritime assets.
Public Impact
Ensures operational readiness of maritime assets. Supports the U.S. maritime industry and associated jobs. Contributes to national security and economic stability through reliable transportation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during drydocking.
- Dependence on a single contractor for this specific service.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Awarded under full and open competition.
Sector Analysis
This contract falls within the Maritime Administration's purview, supporting the nation's deep sea freight transportation capabilities. Spending in this sector is crucial for global trade and national defense readiness.
Small Business Impact
The awardee, Keystone Shipping Services, Inc., is not indicated as a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
The Department of Transportation and its Maritime Administration are responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under existing contracts would apply.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Contract duration is substantial (455 days).
- Potential for unforeseen repair costs.
- Reliance on a single contractor for a critical service.
- Limited information on specific performance metrics.
Tags
deep-sea-freight-transportation, department-of-transportation, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $19.7 million to KEYSTONE SHIPPING SERVICES, INC.. CAPE RACE FY 24 DRYDOCK KEY-RAC24-1006A
Who is the contractor on this award?
The obligated recipient is KEYSTONE SHIPPING SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Maritime Administration).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-06-30.
What is the historical performance of Keystone Shipping Services, Inc. on similar contracts?
Historical performance data for Keystone Shipping Services, Inc. on similar maritime drydocking contracts would be crucial for assessing reliability and quality. Past performance can indicate their ability to meet deadlines, manage costs effectively, and deliver satisfactory results, thereby mitigating risks associated with this significant award.
Are there any specific performance metrics or milestones tied to this delivery order?
The presence of specific performance metrics and milestones is vital for ensuring accountability and timely completion of the drydocking. These metrics allow the Maritime Administration to track progress, identify potential delays or issues early, and ensure the vessel is returned to service according to specifications and schedule.
What is the potential impact of this drydocking on the overall operational capacity of the relevant fleet?
The drydocking's impact on operational capacity depends on the vessel's role and the duration of its unavailability. Understanding this allows for strategic planning to minimize disruptions to freight transportation services and assess any potential economic consequences or reliance on alternative assets during the maintenance period.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 BALA PLAZA E STE 600, BALA CYNWYD, PA, 19004
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,669,343
Exercised Options: $19,669,343
Current Obligation: $19,669,343
Actual Outlays: $19,669,343
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTMA98D16002
IDV Type: IDC
Timeline
Start Date: 2024-04-01
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-10-28
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