Maritime Administration awards $2.68M contract for deep sea freight transportation services

Contract Overview

Contract Amount: $2,683,872 ($2.7M)

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: $7.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CAPE DECISION FISCAL YEAH 2024 BRIDGE CONTRACT PER DIEM

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $2.7 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE DECISION FISCAL YEAH 2024 BRIDGE CONTRACT PER DIEM Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty. 2. Duration of 386 days indicates a medium-term service requirement. 3. Awarded as a delivery order, suggesting it's part of a larger framework agreement. 4. No small business set-aside was applied to this award. 5. The contract is for deep sea freight transportation, a critical logistics function.

Value Assessment

Rating: fair

The contract value of $2.68 million for a 386-day period for deep sea freight transportation is difficult to benchmark without more specific service details. Given it was not competed, a direct comparison to market rates or similar contracts is not readily available. The firm-fixed-price structure helps manage cost overruns, but the absence of competition raises questions about whether the government secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed. The specific justification for this approach is not provided in the data. Sole-source awards can sometimes lead to higher prices and reduced innovation compared to fully competed contracts, as there is no competitive pressure to drive down costs or improve service.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the lack of open competition for these essential freight services.

Public Impact

The primary beneficiaries are likely the Department of Transportation and potentially other federal agencies requiring deep sea freight services. The service delivered is critical for the movement of goods and materials via maritime routes. The geographic impact is broad, covering deep sea routes essential for national and international trade. Workforce implications may include employment for maritime crews, logistics personnel, and support staff associated with Keystone Shipping Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises concerns about transparency and potential for inflated costs.
Absence of small business participation limits opportunities for smaller entities in this sector.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Award to an established entity (Keystone Shipping Services, Inc.) may indicate reliability.
Contract duration suggests a sustained need for these services.

Sector Analysis

The deep sea freight transportation sector is a vital component of global logistics and national security. This contract falls within the broader transportation and logistics industry, which is characterized by significant capital investment, complex regulatory environments, and global market dynamics. Benchmarking this specific award is challenging without knowing the exact cargo, routes, and service levels, but it represents a modest investment within the vast federal spending on transportation infrastructure and services.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award to Keystone Shipping Services, Inc., a single entity, suggests that opportunities for small businesses to participate in this specific delivery order were limited. This could mean that larger, established carriers were the primary focus for this requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. As a sole-source award, scrutiny may be higher to ensure the necessity and fairness of the pricing. Transparency could be enhanced by publicly detailing the justification for the sole-source procurement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Transportation - General Freight Services
Maritime Administration - Vessel Operations
Federal Supply Schedule - Transportation Services
Defense Logistics Agency - Freight Transportation

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for overpayment due to lack of competition.
Limited transparency regarding the necessity of sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.7 million to KEYSTONE SHIPPING SERVICES, INC.. CAPE DECISION FISCAL YEAH 2024 BRIDGE CONTRACT PER DIEM

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 $2.7 million.

What is the period of performance?

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

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

The provided data does not include the specific justification for awarding this contract on a sole-source basis. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available, or in cases of urgent and compelling need. Without this justification, it is difficult to assess whether the government acted appropriately in foregoing competition. Further investigation into the contract file or agency procurement records would be necessary to determine the rationale behind this decision and evaluate its validity.

How does the per-diem cost of this contract compare to industry benchmarks for similar deep sea freight services?

Calculating a precise per-diem cost from the provided data is not feasible as the total contract value ($2.68M) is for a duration of 386 days, and the specific services rendered daily are not detailed. Deep sea freight costs are highly variable, depending on factors like vessel size, cargo type, route, fuel costs, and market demand. Without knowing these specifics, a direct comparison to industry benchmarks is impossible. However, the absence of competition suggests that a thorough market analysis or benchmark comparison may not have been conducted, potentially leading to a less favorable rate for the government.

What is Keystone Shipping Services, Inc.'s track record with federal contracts, particularly with the Maritime Administration?

The provided data indicates that Keystone Shipping Services, Inc. is the contractor for this $2.68 million delivery order. To assess their track record, one would need to examine historical contract awards, performance reviews, and any past issues or successes with federal agencies, especially the Maritime Administration. A review of the Federal Procurement Data System (FPDS) or similar databases would reveal the extent of their federal contracting history, including the types of services provided, contract values, and performance ratings. A strong track record with similar services would lend confidence to their ability to fulfill this contract, while a history of issues might raise concerns.

What are the potential risks associated with a sole-source award for critical freight services?

Sole-source awards for critical freight services carry several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it may limit the government's access to innovative solutions or specialized capabilities that other, potentially smaller or newer, firms might offer. Thirdly, it can create a dependency on a single provider, which could be problematic if that provider experiences financial difficulties or operational issues. Finally, the absence of a competitive process can reduce transparency and accountability, making it harder to ensure the government is receiving fair value and high-quality service.

How does this contract's value and duration compare to historical spending patterns for similar services by the Maritime Administration?

To compare this contract's value and duration to historical spending patterns, one would need to analyze past Maritime Administration contracts for deep sea freight transportation. This would involve querying databases like FPDS for similar North American Industry Classification System (NAICS) codes (e.g., 483111 - Deep Sea Freight Transportation) awarded over previous fiscal years. Key metrics to compare would include average contract values, average durations, and the typical procurement methods used (competed vs. sole-source). Without this historical context, it's difficult to determine if $2.68 million for 386 days is typical, high, or low for the services rendered.

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: $2,683,872

Exercised Options: $2,683,872

Current Obligation: $2,683,872

Actual Outlays: $2,683,872

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