Transportation contract for Cape Diamond port activation awarded to Keystone Shipping Services for $441,912

Contract Overview

Contract Amount: $441,912 ($441.9K)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-12-23

End Date: 2025-05-01

Contract Duration: 129 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: KEY-DCS25-2009A THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FOR THE ACTIVATION OF THE CAPE DIAMOND FY25 PORT AND CANAL CHARGES IN ACCORDANCE WITH THE MARAD APPROVED SHIP MANAGERS ACTIVATION PLAN.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $441,912 to KEYSTONE SHIPPING SERVICES, INC. for work described as: KEY-DCS25-2009A THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FOR THE ACTIVATION OF THE CAPE DIAMOND FY25 PORT AND CANAL CHARGES IN ACCORDANCE WITH THE MARAD APPROVED SHIP MANAGERS ACTIVATION PLAN. Key points: 1. Contract value appears reasonable for port activation services. 2. Sole-source award limits price discovery and potential savings. 3. Short contract duration suggests a specific, time-bound need. 4. Performance risk is moderate given the specialized nature of port operations. 5. This contract falls within the broader category of freight transportation services. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $441,912 for port activation services over approximately 5 months seems within a reasonable range for specialized maritime operations. However, without specific benchmarks for 'Cape Diamond FY25 Port and Canal Charges' or comparable activation plans, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition may have led to a higher price than could have been achieved through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Keystone Shipping Services, Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they typically result in less price competition and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of the lowest possible price that could have been achieved through a bidding process. This could represent a missed opportunity for cost savings.

Public Impact

The primary beneficiary is the Maritime Administration (MARAD) and potentially the Department of Transportation, ensuring operational readiness of port facilities. The service delivered is the activation of the Cape Diamond port and canal charges for FY25. The geographic impact is localized to the port and canal facilities associated with Cape Diamond. Workforce implications are likely internal to Keystone Shipping Services, managing the activation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if pricing was not thoroughly vetted without competition.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract duration is clearly defined, limiting long-term financial commitment.
Award to an established entity (Keystone Shipping Services) may imply some level of prior experience.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on maritime operations and port services. The market for specialized port activation and management services can be niche, often involving companies with specific expertise and certifications. Comparable spending benchmarks are difficult to establish without more granular data on port activation costs, but MARAD's overall budget for such operational readiness activities would provide a broader context.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the description. The award to Keystone Shipping Services, Inc., a single entity, suggests a focus on direct service delivery rather than a strategy to leverage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Maritime Administration. Accountability measures are embedded in the firm-fixed-price contract terms and the defined delivery period. Transparency regarding the justification for the sole-source award would be a key aspect of oversight, along with performance monitoring to ensure activation is completed as planned.

Related Government Programs

Maritime Administration Operations
Port Infrastructure Support
Deep Sea Freight Transportation
Federal Port Security Contracts

Risk Flags

Sole-source award may limit cost savings.
Lack of detailed performance metrics in provided data.
Potential for insufficient competition leading to suboptimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $441,912 to KEYSTONE SHIPPING SERVICES, INC.. KEY-DCS25-2009A THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE FOR THE ACTIVATION OF THE CAPE DIAMOND FY25 PORT AND CANAL CHARGES IN ACCORDANCE WITH THE MARAD APPROVED SHIP MANAGERS ACTIVATION PLAN.

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 $441,912.

What is the period of performance?

Start: 2024-12-23. End: 2025-05-01.

What is the specific justification provided by MARAD for awarding this contract on a sole-source basis to Keystone Shipping Services, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as only one responsible source being available, or in cases of urgent and compelling need where competition is not feasible. MARAD would have a formal justification document outlining the rationale, which might relate to unique capabilities of Keystone Shipping Services, proprietary knowledge of the Cape Diamond port, or specific regulatory requirements that only this contractor can meet. Without this document, it is difficult to fully assess the necessity of bypassing the competitive process.

How does the $441,912 contract value compare to historical spending for similar port activation tasks by MARAD or other agencies?

The provided data does not contain historical spending information for similar port activation tasks, making a direct comparison difficult. To benchmark this $441,912 contract, one would need to analyze MARAD's past expenditures on activating ports or managing canal charges, or look at contracts awarded by other agencies for comparable services. Factors such as the size and complexity of the port, the duration of the activation period, and the specific services required (e.g., personnel, equipment, logistical support) would influence cost. A firm-fixed-price contract suggests the government has a defined scope and budget, but without comparative data, assessing value for money remains challenging.

What are the key performance indicators (KPIs) or deliverables expected under this contract for the activation of Cape Diamond port and canal charges?

The provided data indicates the purpose is 'to provide for the activation of the Cape Diamond FY25 Port and Canal Charges in accordance with the MARAD approved Ship Managers Activation Plan.' While specific KPIs are not detailed, the core deliverable is the successful activation of these port and canal charges. This likely entails ensuring all necessary operational, administrative, and potentially security protocols are in place and functional by the start of FY25 (October 1, 2024), as per the approved plan. Performance would be measured against the successful execution of this plan within the contract period (ending May 1, 2025).

What is the track record of Keystone Shipping Services, Inc. in performing similar maritime activation or port management contracts for the federal government?

The provided data identifies Keystone Shipping Services, Inc. as the contractor but does not offer details on their track record with federal contracts. A comprehensive assessment would require reviewing their past performance history, including any previous contracts with MARAD or other agencies, client feedback, and any instances of contract disputes or awards. Their experience in deep sea freight transportation (NAICS code 483111) suggests relevant industry knowledge, but specific experience with port activation and adherence to MARAD's activation plans would be crucial to evaluate their capability for this particular task.

What is the potential risk associated with the short contract duration (129 days) and the sole-source nature of this award?

The short contract duration of 129 days (approximately 4.3 months) for activating port and canal charges suggests a focused, time-sensitive requirement. The primary risk associated with this short duration, especially under a sole-source award, is the potential for rushed execution or unforeseen delays impacting the FY25 activation timeline if not managed meticulously. The sole-source nature amplifies this risk, as there's no competitive pressure to ensure efficiency or proactive problem-solving. If Keystone Shipping Services encounters issues, the government's options for recourse or alternative solutions within the contract period might be limited without incurring additional costs or delays.

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: $441,912

Exercised Options: $441,912

Current Obligation: $441,912

Actual Outlays: $438,511

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