DOT Awards $3.37M Firm Fixed Price Delivery Order to Keystone Shipping for Deep Sea Freight Transportation

Contract Overview

Contract Amount: $3,374,231 ($3.4M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-07-27

End Date: 2025-08-17

Contract Duration: 386 days

Daily Burn Rate: $8.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CAPE DOUGLAS FY24 FIXED FEES KEY-DGL24-1002 B ISSUED TO FUND FIXED FEES THRU 09-30-2024.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $3.4 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE DOUGLAS FY24 FIXED FEES KEY-DGL24-1002 B ISSUED TO FUND FIXED FEES THRU 09-30-2024. Key points: 1. The contract is a fixed-price delivery order for freight transportation services. 2. Keystone Shipping Services, Inc. is the sole awardee. 3. The contract duration is 386 days, ending in August 2025. 4. The award value is $3,374,230.53.

Value Assessment

Rating: fair

The firm fixed price contract type is appropriate for the defined scope of services. However, without a competitive benchmark, assessing the pricing's fairness is difficult.

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 potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services.

Public Impact

Ensures continued operation of critical deep-sea freight transportation services. Supports the Maritime Administration's mission. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Firm fixed price contract
Clear delivery period

Sector Analysis

This contract falls under the Deep Sea Freight Transportation sector, which is essential for national logistics and supply chains. Spending in this area can vary significantly based on global trade demands and geopolitical factors.

Small Business Impact

The awardee, Keystone Shipping Services, Inc., is not identified as a small business. There is no indication of small business participation in this contract.

Oversight & Accountability

The contract is a delivery order under a larger framework, suggesting some level of prior oversight. However, the sole-source nature warrants scrutiny to ensure fair pricing.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award
Lack of documented justification for non-competition
Potential for overpayment due to lack of competition
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.4 million to KEYSTONE SHIPPING SERVICES, INC.. CAPE DOUGLAS FY24 FIXED FEES KEY-DGL24-1002 B ISSUED TO FUND FIXED FEES THRU 09-30-2024.

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 $3.4 million.

What is the period of performance?

Start: 2024-07-27. End: 2025-08-17.

What is the justification for not competing this delivery order, and what steps were taken to ensure the price is fair and reasonable?

The provided data does not specify the justification for the sole-source award. Typically, agencies must document reasons like urgency, lack of available sources, or specific technical requirements. Without this documentation, it's difficult to assess if fair and reasonable pricing was achieved through adequate price analysis or negotiation.

What are the risks associated with awarding a fixed-price contract on a sole-source basis for freight transportation?

The primary risk is paying an inflated price due to the absence of competition. The government loses the benefit of market forces driving down costs. Additionally, without competitive pressure, there might be less incentive for the contractor to optimize efficiency or offer innovative solutions.

How does this contract contribute to the overall effectiveness of the Maritime Administration's mission?

This contract directly supports the Maritime Administration's mission by ensuring the availability of essential deep-sea freight transportation services. These services are likely critical for various government operations, including national security, disaster relief, or the movement of strategic resources, thereby maintaining operational readiness.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 BALA PLZ 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: $3,374,231

Exercised Options: $3,374,231

Current Obligation: $3,374,231

Actual Outlays: $3,374,231

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF724D000009

IDV Type: IDC

Timeline