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

Positive Signals

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

Risk Flags

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 WarehousingDeep Sea, Coastal, and Great Lakes Water TransportationDeep Sea Freight Transportation

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE 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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