Transportation Awards $3.2M Bridge Contract for Cape Domingo Repair to Keystone Shipping Services

Contract Overview

Contract Amount: $3,213,109 ($3.2M)

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: $8.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CAPE DOMINGO FISCAL YEAR 2024 BRIDGE CONTRACT SERVICE REPAIR

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23505

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.2 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE DOMINGO FISCAL YEAR 2024 BRIDGE CONTRACT SERVICE REPAIR Key points: 1. The contract is a firm-fixed-price delivery order valued at $3.2 million. 2. Keystone Shipping Services, Inc. is the sole awardee, raising questions about competition. 3. The contract duration is 386 days, spanning FY2024 into FY2025. 4. The service repair is for the Cape Domingo, falling under Deep Sea Freight Transportation.

Value Assessment

Rating: fair

The contract's value of $3.2 million for a bridge repair service needs comparison against similar maritime repair contracts. Without benchmark data, assessing if this price is competitive 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 repair services.

Public Impact

Ensures continued operation of the Cape Domingo vessel. Supports the Department of Transportation's maritime mission. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment

Positive Signals

Essential service provision
Fixed-price contract limits cost overrun risk

Sector Analysis

This contract falls within the Maritime Administration's sector, specifically for deep-sea freight transportation services. Spending in this area is crucial for national logistics and defense readiness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine potential small business participation.

Oversight & Accountability

The award process and justification for a sole-source contract require thorough review by oversight bodies to ensure fiscal responsibility and adherence to procurement regulations.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award
Lack of documented competition
Potential for price inflation
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.2 million to KEYSTONE SHIPPING SERVICES, INC.. CAPE DOMINGO FISCAL YEAR 2024 BRIDGE CONTRACT SERVICE REPAIR

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 $3.2 million.

What is the period of performance?

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

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical. Typically, this occurs when only one responsible source can provide the required services or supplies. For maritime repairs, this might be due to specialized knowledge, unique equipment, or urgent operational needs that only a specific contractor can meet within the required timeframe.

What is the risk associated with a sole-source contract for vessel repair?

The primary risk of a sole-source contract is the absence of competitive pressure, which can lead to inflated pricing and reduced quality. Taxpayers may overpay for services. Additionally, it limits opportunities for other qualified businesses and can create a dependency on a single provider, potentially impacting long-term availability and cost-effectiveness.

How effective is a firm-fixed-price contract in managing costs for this type of service?

A firm-fixed-price contract is generally effective in controlling costs for services where the scope of work is well-defined. It shifts the risk of cost overruns to the contractor. However, for complex or unforeseen repair issues, the initial fixed price might not accurately reflect the final cost, potentially leading to change orders or disputes if not managed carefully.

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: $3,213,109

Exercised Options: $3,213,109

Current Obligation: $3,213,109

Actual Outlays: $3,213,109

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