Maritime Administration Awards $3.7M for Cape Diamond Port Activation, Sole-Source Contract

Contract Overview

Contract Amount: $3,725,094 ($3.7M)

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: $28.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: KEY-DCS25-2002A 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 $3.7 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: KEY-DCS25-2002A 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. The contract focuses on activating the Cape Diamond port and canal charges for FY25. 2. Key Keystone Shipping Services, Inc. is the sole awardee, raising competition concerns. 3. The fixed-price contract aims to cover activation costs, but detailed cost breakdowns are absent. 4. This spending falls within the Deep Sea Freight Transportation sector.

Value Assessment

Rating: questionable

The contract is a firm fixed price delivery order. Without a competitive process or benchmark data, assessing the value for money is difficult. The total award amount is $3,725,093.78.

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 as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for this $3.7M contract means taxpayers may not have received the most cost-effective solution.

Public Impact

Ensures operational readiness for the Cape Diamond port and canal for FY25. Supports critical maritime infrastructure and transportation capabilities. Potential for increased costs due to sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of detailed justification for sole-source award.
No clear performance metrics provided in the data.

Positive Signals

Supports essential maritime operations.
Clear activation plan cited as justification.

Sector Analysis

This contract falls under the Deep Sea Freight Transportation sector, which is crucial for national supply chains and international trade. Spending benchmarks for similar port activation services are not readily available, making direct comparison challenging.

Small Business Impact

The awardee, KEYSTONE SHIPPING SERVICES, INC., is not indicated as a small business. The contract data does not specify any set-asides for small businesses.

Oversight & Accountability

The Maritime Administration is responsible for this award. Further oversight would involve reviewing the justification for the sole-source award and ensuring adherence to the approved activation plan.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpayment
Absence of clear performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.7 million to KEYSTONE SHIPPING SERVICES, INC.. KEY-DCS25-2002A 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 $3.7 million.

What is the period of performance?

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

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

The provided data states the contract was 'NOT COMPETED'. A full justification for a sole-source award typically requires detailed documentation explaining why full and open competition was not feasible or would not be in the government's best interest. This might include unique capabilities, urgent needs, or lack of available sources. Without this documentation, the rationale remains unclear.

How does the $3.7M cost compare to similar port activation contracts, and what cost controls are in place?

Benchmarking this $3.7M cost against similar port activation contracts is difficult without access to historical data or industry-standard pricing for such services. As a sole-source award, there's an inherent risk of inflated pricing. The firm fixed-price structure offers some cost certainty, but the absence of competitive bidding means the government may not have secured the lowest possible price.

What are the key performance indicators (KPIs) for this activation task order, and how will success be measured?

The provided data does not explicitly list Key Performance Indicators (KPIs) or specific metrics for measuring the success of this task order. Success is implied to be the activation of the Cape Diamond port and canal charges in accordance with the MARAD approved Ship Managers Activation Plan. Detailed performance monitoring would likely be outlined in the full contract documentation.

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: $3,725,094

Exercised Options: $3,725,094

Current Obligation: $3,725,094

Actual Outlays: $3,669,686

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