DOT awards $740K for Cape Douglas repairs, highlighting need for vessel maintenance in freight transport

Contract Overview

Contract Amount: $740,000 ($740.0K)

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: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE DOUGLAS FY26 REPAIRS A KEY-DGL26-1005A ISSUED TO FUND REPAIR SERVICES ONBOARD DOUGLAS

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $740,000 to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE DOUGLAS FY26 REPAIRS A KEY-DGL26-1005A ISSUED TO FUND REPAIR SERVICES ONBOARD DOUGLAS Key points: 1. Contract addresses critical repair needs for a vessel vital to freight transportation. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration of 285 days indicates a significant scope of work. 4. The award value appears reasonable for specialized maritime repair services. 5. This contract supports the operational readiness of the Maritime Administration's fleet. 6. Geographic focus on South Carolina for repair services.

Value Assessment

Rating: good

The award of $740,000 for repair services on the Cape Douglas appears to be a fair market price given the specialized nature of maritime vessel maintenance. Benchmarking against similar repair contracts for large vessels would provide a more precise value assessment, but the absence of significant cost-plus elements suggests a focus on cost control. The contract type (COST NO FEE) implies that the contractor's fee is fixed, which can aid in predictable budgeting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust process was intended.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Transportation and the Maritime Administration, ensuring the operational capability of the Cape Douglas vessel. Services delivered include essential repairs to maintain the vessel's seaworthiness and operational readiness. The geographic impact is centered in South Carolina, where the repair work will be performed. Workforce implications include employment for skilled maritime repair technicians and support staff in the local South Carolina economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen repair issues arise beyond the initial scope.
Dependence on the availability of specialized maritime repair skills and parts.
Risk of delays impacting the vessel's operational schedule if repairs take longer than anticipated.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Contract type (COST NO FEE) provides cost predictability.
Clear definition of repair services required for the vessel.

Sector Analysis

The maritime transportation sector is critical for global trade and national security. This contract falls within the specialized services segment of this sector, focusing on vessel maintenance and repair. The market for such services is competitive, with a limited number of highly specialized firms capable of undertaking complex repairs on large vessels. Spending in this area is essential for maintaining the readiness of government-owned or operated maritime assets.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Keystone Shipping Services, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Transportation's Maritime Administration, which is responsible for awarding and managing the contract. Accountability measures are embedded in the contract terms, requiring the contractor to perform specified repairs within the agreed timeframe and budget. Transparency is facilitated through the federal procurement data system where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Vessel Maintenance Contracts
US Department of Transportation Procurement
Deep Sea Freight Transportation Services
Federal Ship Repair Contracts

Risk Flags

Potential for cost overruns
Schedule adherence risk
Availability of specialized parts/labor

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $740,000 to KEYSTONE SHIPPING SERVICES, INC.. CAPE DOUGLAS FY26 REPAIRS A KEY-DGL26-1005A ISSUED TO FUND REPAIR SERVICES ONBOARD DOUGLAS

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 $740,000.

What is the period of performance?

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

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

Information regarding Keystone Shipping Services, Inc.'s specific track record with federal maritime repair contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Federal procurement databases and agency performance rating systems (like CPARS) would be the primary sources for this information. Understanding their history with cost controls, adherence to schedules, and quality of work on comparable vessels is crucial for evaluating future performance risk.

How does the $740,000 award value compare to similar repair contracts for vessels of the Cape Douglas's size and type?

Without specific details on the Cape Douglas's size, type, and the exact scope of repairs, a direct comparison is challenging. However, $740,000 for specialized maritime repairs on a large vessel is within a plausible range, especially considering the complexity and potential for unforeseen issues. To benchmark effectively, one would need to analyze contracts for similar vessels (e.g., cargo ships, ferries) undergoing comparable repair work (e.g., hull, engine, systems). Factors like shipyard location, labor rates, and material costs significantly influence pricing. The 'COST NO FEE' structure suggests a fixed fee component, which aids in predictability but doesn't eliminate variability in direct costs.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen repair complexities, schedule delays impacting the vessel's operational readiness, and the availability of specialized parts or labor. Mitigation strategies are likely embedded within the contract's terms and oversight. The 'COST NO FEE' structure, while providing a fixed fee, still requires careful management of direct costs. The Maritime Administration's oversight will be critical in monitoring progress, approving any necessary change orders, and ensuring adherence to the repair schedule. A thorough pre-award assessment of the contractor's capabilities and a detailed statement of work are also risk mitigation tools.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of specialized maritime repair service?

Full and open competition is generally considered the most effective strategy for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, fostering price competition. For specialized services like maritime repair, its effectiveness depends on the number of capable firms in the market. If the market is highly concentrated with few qualified bidders, the competitive pressure might be less intense. However, it still provides a structured process for evaluating technical capabilities and pricing, ensuring that the selected contractor offers the best overall value. The Maritime Administration's evaluation criteria would determine how technical merit and price are balanced.

What has been the historical spending pattern for repairs and maintenance on the Cape Douglas or similar vessels within the Maritime Administration's fleet?

Historical spending data for the Cape Douglas or comparable vessels within the Maritime Administration's fleet is not provided. Analyzing past expenditures on maintenance, repairs, and dry-docking for similar assets would offer valuable context. This includes examining the frequency and cost of repairs over the vessel's lifecycle, identifying any recurring issues, and tracking spending trends. Such analysis helps in forecasting future maintenance budgets, identifying potential cost-saving opportunities, and assessing whether current spending aligns with historical norms or indicates a significant change in maintenance needs.

What are the implications of the 'COST NO FEE' contract type on contractor performance and government oversight?

The 'COST NO FEE' (CNF) contract type means the government reimburses the contractor for allowable costs incurred in performing the work, plus a predetermined fixed fee. This structure incentivizes the contractor to control costs, as their profit (the fee) is fixed regardless of the actual costs incurred. However, it requires robust government oversight to ensure that all claimed costs are reasonable, allocable, and allowable. The Maritime Administration must actively monitor expenditures, review invoices, and audit costs to prevent potential overspending. While it offers cost predictability for the fee, the total cost can still fluctuate based on actual expenses.

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: $740,000

Exercised Options: $740,000

Current Obligation: $740,000

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