DOT Awards $18.4M for Drydock Services to Keystone Shipping, Highlighting Full and Open Competition

Contract Overview

Contract Amount: $18,392,065 ($18.4M)

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: $40.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CAPE RISE FY 24 DRYDOCK KEY-RIS24-1006A

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23707

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $18.4 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE RISE FY 24 DRYDOCK KEY-RIS24-1006A Key points: 1. Contract Value: $18.4 million for drydock services. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Firm fixed-price contract mitigates cost overrun risk for the government. 4. Sector: Maritime Administration (MARAD) spending in transportation services.

Value Assessment

Rating: good

The contract value of $18.4 million for 455 days of service appears reasonable given the scope. Benchmarking against similar deep-sea freight transportation contracts would provide a more precise assessment, but the firm fixed-price structure suggests a controlled cost environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally leads to competitive pricing and ensures the government receives the best value through a transparent process.

Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, maximizing taxpayer value for essential maritime services.

Public Impact

Ensures continued operation and maintenance of critical maritime assets. Supports the U.S. maritime industry and associated supply chains. Provides essential services for national defense and economic stability. Demonstrates government commitment to competitive procurement practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional services are required beyond the initial contract.
Dependence on a single awardee for a critical service period.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Awarded under full and open competition.
Supports U.S. maritime infrastructure.

Sector Analysis

This contract falls within the Maritime Administration's (MARAD) purview, focusing on deep-sea freight transportation and vessel maintenance. Spending in this sector is crucial for maintaining national security, economic competitiveness, and the readiness of the U.S. merchant marine fleet.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Keystone Shipping Services, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The award through full and open competition suggests a robust process. However, ongoing oversight will be necessary to ensure performance aligns with contract terms and to manage any potential changes or disputes effectively.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for unforeseen repair needs extending beyond the fixed price.
Reliance on a single contractor for critical maintenance.
Limited visibility into subcontractor performance if applicable.
Need for robust government oversight to ensure quality and adherence to schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $18.4 million to KEYSTONE SHIPPING SERVICES, INC.. CAPE RISE FY 24 DRYDOCK KEY-RIS24-1006A

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 $18.4 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-06-30.

What is the specific scope of 'drydock services' included in this contract, and how does it align with MARAD's operational needs?

The contract specifies 'Deep Sea Freight Transportation' services, with the drydocking period likely encompassing essential maintenance, repair, and inspection activities required to ensure vessel seaworthiness and operational readiness. This aligns with MARAD's mission to support and maintain a U.S. merchant marine capable of meeting national security and economic requirements.

What are the key performance indicators (KPIs) used to evaluate Keystone Shipping Services, Inc.'s performance under this contract?

While specific KPIs are not detailed in the provided data, typical performance metrics for such contracts include adherence to schedule, quality of repairs, safety compliance, and timely completion of all specified drydocking tasks. MARAD would likely monitor these aspects closely to ensure the vessel's readiness and the contractor's adherence to contractual obligations.

How does the $18.4 million cost compare to historical spending on similar drydocking services for comparable vessels within MARAD?

Without historical data or specific vessel details, a direct comparison is difficult. However, the firm fixed-price nature suggests a negotiated cost based on anticipated requirements. A benchmark analysis against similar MARAD contracts or industry standards for vessels of comparable size and complexity would be necessary to definitively assess cost-effectiveness.

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: $18,392,065

Exercised Options: $18,392,065

Current Obligation: $18,392,065

Actual Outlays: $18,392,065

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