Maritime Administration awards $1.2M contract for Cape Ducato repair services to Keystone Shipping Services

Contract Overview

Contract Amount: $1,218,220 ($1.2M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-12-19

End Date: 2026-09-30

Contract Duration: 285 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE DUCATO FY26 REPAIRS A KEY-DCT26-1005A ISSUED TO FUND REPAIR SERVICES ONBOARD DUCATO

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $1.2 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE DUCATO FY26 REPAIRS A KEY-DCT26-1005A ISSUED TO FUND REPAIR SERVICES ONBOARD DUCATO Key points: 1. Contract focuses on essential repair services for a specific vessel, indicating a targeted operational need. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 285 days covers a significant period for vessel maintenance. 4. The contract type is a delivery order, implying it's part of a larger indefinite-delivery contract. 5. The pricing structure is 'Cost No Fee', which requires careful monitoring of incurred costs. 6. The vessel's operational domain is deep sea freight transportation, highlighting its role in commerce.

Value Assessment

Rating: fair

The contract value of $1.2 million for vessel repairs appears reasonable for a single vessel's extensive maintenance over a 285-day period. Benchmarking against similar deep-sea vessel repair contracts would provide a clearer picture of value for money. The 'Cost No Fee' pricing structure necessitates close oversight to ensure costs remain within expected parameters and do not inflate beyond necessity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the designation suggests a robust process.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

The primary beneficiary is the Maritime Administration, ensuring the operational readiness of the Cape Ducato. The services delivered are critical repairs to maintain the vessel's seaworthiness and functionality. The geographic impact is primarily related to the vessel's operational routes within deep sea freight transportation. Workforce implications may include skilled maritime repair technicians and associated support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' pricing structure requires diligent oversight to prevent cost overruns and ensure fair pricing.
Lack of specific details on the scope of repairs makes it difficult to assess the true value and potential for unforeseen costs.
The reliance on a single delivery order for extensive repairs might indicate a need for more proactive, long-term maintenance planning.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
The contract addresses essential repair needs for a critical maritime asset.
The Maritime Administration is ensuring the operational capability of a vessel involved in freight transportation.

Sector Analysis

This contract falls within the broader maritime transportation and logistics sector, specifically focusing on vessel maintenance and repair. The market for such services is specialized, involving companies with expertise in marine engineering and repair. Comparable spending benchmarks would typically involve analyzing the costs of similar repair contracts for vessels of comparable size and type, considering factors like age, condition, and complexity of required work.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not explicitly detailed, though larger prime contractors may engage small businesses for specialized repair services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Maritime Administration's contracting and program management offices. Accountability measures would involve performance monitoring against the delivery order's scope and schedule. Transparency is facilitated by the contract award notice, but detailed cost breakdowns and performance reports would be subject to agency policies and potential Freedom of Information Act requests.

Related Government Programs

Maritime Vessel Maintenance Contracts
Deep Sea Freight Transportation Services
Federal Fleet Repair and Maintenance
US Maritime Administration Contracts

Risk Flags

Cost-Plus contract type requires diligent oversight.
Scope of repairs not fully detailed, potential for cost escalation.
Contractor's historical performance needs further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.2 million to KEYSTONE SHIPPING SERVICES, INC.. CAPE DUCATO FY26 REPAIRS A KEY-DCT26-1005A ISSUED TO FUND REPAIR SERVICES ONBOARD DUCATO

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 $1.2 million.

What is the period of performance?

Start: 2025-12-19. End: 2026-09-30.

What is the historical track record of Keystone Shipping Services, Inc. with the Department of Transportation and specifically the Maritime Administration?

A review of federal procurement data would be necessary to fully assess Keystone Shipping Services, Inc.'s track record. This would involve examining past contract awards, performance evaluations, and any reported disputes or issues. Understanding their history with the Maritime Administration is crucial to gauge their reliability and capability in fulfilling this specific repair contract. Without access to detailed historical performance data, it's difficult to definitively assess their suitability beyond the fact they were selected through a competitive process for this award.

How does the $1.2 million cost compare to similar repair contracts for vessels of the Cape Ducato's size and type?

Benchmarking this $1.2 million contract against similar repair projects for vessels of comparable size, age, and operational profile is essential for a value-for-money assessment. Factors such as the specific type of repairs needed (e.g., hull, engine, electrical systems), the vessel's condition, and the duration of the repair period (285 days) significantly influence costs. A preliminary assessment suggests the amount is substantial, reflecting potentially extensive work. However, without access to a database of comparable contracts and their associated costs, a definitive comparison to market rates or industry benchmarks cannot be made. The 'Cost No Fee' structure also adds a layer of complexity to direct cost comparisons.

What are the primary risks associated with a 'Cost No Fee' contract for vessel repairs?

The primary risk associated with a 'Cost No Fee' (CNF) contract, also known as Cost-Plus-Fixed-Fee (CPFF) or Cost-Plus-Incentive-Fee (CPIF) if there's a fee component, is the potential for cost overruns. The government bears the risk of actual costs incurred by the contractor, while the contractor is reimbursed for allowable costs plus a predetermined fee. This structure can incentivize contractors to incur higher costs if the fee is a fixed percentage of costs. Effective oversight, detailed cost tracking, and robust auditing are critical to mitigate the risk of inflated expenses and ensure the government receives good value. The 'No Fee' aspect mentioned in the data might imply a variation where only costs are reimbursed, which would require even tighter controls.

What is the expected impact of these repairs on the operational effectiveness and availability of the Cape Ducato?

These repairs are expected to significantly enhance the operational effectiveness and availability of the Cape Ducato. By addressing necessary maintenance and potential issues, the contract aims to ensure the vessel is seaworthy, reliable, and capable of performing its intended deep-sea freight transportation duties. The 285-day duration suggests comprehensive work, likely including major system overhauls or repairs. Successful completion should lead to reduced downtime, improved performance, and extended service life for the vessel, thereby supporting the Maritime Administration's mission objectives.

How has federal spending on maritime vessel repair and maintenance evolved over the past five fiscal years?

Analyzing federal spending trends on maritime vessel repair and maintenance over the past five fiscal years would require accessing historical federal procurement databases (e.g., FPDS-NG, SAM.gov). This would involve filtering for contracts awarded by agencies like the Maritime Administration, Department of Transportation, Navy, and Coast Guard, specifically for vessel repair and maintenance services. Such an analysis would reveal patterns in overall spending, identify major contractors, and highlight any shifts in contract types or focus areas. It could also indicate whether spending has increased or decreased, potentially correlating with fleet readiness needs, budget allocations, or geopolitical factors affecting maritime operations.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1 BELMONT AVE STE 910, BALA CYNWYD, PA, 19004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,218,220

Exercised Options: $1,218,220

Current Obligation: $1,218,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000031

IDV Type: IDC

Timeline