Transportation awards $262.5K for FY26 ship support, with Keystone Shipping Services Inc. winning via full and open competition

Contract Overview

Contract Amount: $262,500 ($262.5K)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-01-01

End Date: 2026-11-30

Contract Duration: 333 days

Daily Burn Rate: $788/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE EDMONT FY26 SHIP SUPPORT KEY-EDM26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $262,500 to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE EDMONT FY26 SHIP SUPPORT KEY-EDM26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order, indicating it's part of a larger contract vehicle. 3. Services are for ship support, crucial for maintaining operational readiness of vessels. 4. The duration of the contract is 333 days, covering a significant portion of the fiscal year. 5. The contract type is Cost No Fee, meaning the contractor is reimbursed for allowable costs but does not receive a fee. 6. The North American Industry Classification System (NAICS) code 483111 points to Deep Sea Freight Transportation.

Value Assessment

Rating: fair

The award amount of $262,500 for 333 days of ship support services appears to be within a reasonable range for specialized maritime operations. Without specific benchmarks for 'ship support' under a Cost No Fee structure, a direct value-for-money assessment is challenging. However, the competitive nature of the award suggests that pricing was scrutinized. Further analysis would require comparing this to similar support contracts for vessels of comparable size and complexity, as well as understanding the specific services included.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value. The open competition suggests a healthy market for these services, potentially leading to more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces and ensures that the government is not overpaying for services. It also promotes transparency and fairness in the procurement process.

Public Impact

The primary beneficiary is the Department of Transportation's Maritime Administration, ensuring the operational capability of its fleet. Services provided include essential support for ships, likely encompassing maintenance, logistics, and operational assistance. The geographic impact is likely focused on ports and operational areas where the supported ships are located. Workforce implications include employment for personnel involved in ship management and support services, potentially within the South Carolina region where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or key performance indicators (KPIs) in the provided data makes it difficult to assess contractor performance beyond cost reimbursement.
The Cost No Fee contract type, while common, can sometimes lead to less incentive for cost efficiency compared to fixed-price contracts if not managed carefully.
The absence of a specific Product Service Code (PSC) might indicate a less standardized service offering, requiring closer scrutiny of the scope of work.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contractor, Keystone Shipping Services, Inc., is being entrusted with critical ship support functions, suggesting a level of confidence in their capabilities.
The contract is a delivery order, implying it is part of a pre-established, potentially competitively awarded, contract vehicle, which can streamline acquisition.

Sector Analysis

The Deep Sea Freight Transportation sector (NAICS 483111) is a vital component of global commerce, involving the movement of goods via large vessels. Federal spending in this area supports national security, economic stability, and the maintenance of strategic assets. Comparable spending benchmarks would typically involve analyzing other contracts for vessel operation, maintenance, and logistical support within the Department of Transportation and the Department of Defense. The market size for such specialized services is significant, driven by the operational needs of government fleets and commercial shipping.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by small business set-aside requirements. However, the prime contractor, Keystone Shipping Services, Inc., may still engage small businesses as subcontractors, contributing to the broader small business ecosystem. Analysis of their subcontracting plan, if available, would provide further insight into their impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. Accountability measures are typically embedded within the contract terms, focusing on the delivery of required ship support services. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Maritime Security Program
Operational Support Services
Vessel Maintenance Contracts
Deep Sea Freight Transportation Services
Federal Fleet Support

Risk Flags

Cost-reimbursement contract type requires diligent oversight to manage costs.
Scope of 'ship support services' needs clear definition and monitoring for effectiveness.
Contract duration is significant, necessitating sustained performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $262,500 to KEYSTONE SHIPPING SERVICES, INC.. CAPE EDMONT FY26 SHIP SUPPORT KEY-EDM26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES.

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 $262,500.

What is the period of performance?

Start: 2026-01-01. End: 2026-11-30.

What is the track record of Keystone Shipping Services, Inc. with federal contracts, particularly within the Department of Transportation?

Keystone Shipping Services, Inc. has a history of federal contracting, primarily within the Department of Transportation. While the provided data focuses on a single award, a deeper dive into their contract history would reveal the volume, value, and types of services previously rendered. Examining past performance reviews, on-time delivery rates, and any instances of contract disputes or terminations would provide a comprehensive understanding of their reliability and capability. This context is crucial for assessing the risk associated with the current award and for benchmarking their performance against industry standards and other federal contractors.

How does the awarded amount of $262,500 for 333 days of ship support compare to similar contracts for vessels of comparable size and operational scope?

Benchmarking the $262,500 award for 333 days of ship support requires access to a broader dataset of similar federal contracts. Factors such as vessel type, size, age, operational tempo, and the specific services included (e.g., routine maintenance, emergency repairs, logistical coordination) significantly influence costs. Without these details, a precise comparison is difficult. However, the fact that this was awarded under full and open competition suggests that the pricing was deemed competitive. A thorough analysis would involve identifying comparable contracts within the Maritime Administration or other agencies with similar vessel support needs and comparing the daily or monthly cost rates, adjusting for any known differences in scope or complexity.

What are the primary risks associated with a Cost No Fee (CNF) contract for ship support services, and how are they mitigated in this award?

A primary risk with Cost No Fee (CNF) contracts is that the contractor may have less incentive to control costs, as they are reimbursed for allowable expenses without a direct profit margin tied to efficiency. This can potentially lead to higher overall costs for the government if not managed diligently. Mitigation strategies typically involve robust government oversight, detailed auditing of contractor expenses, and clearly defined allowable cost principles. For this specific award, the duration and scope of services would need careful monitoring. The Maritime Administration's contracting officers are responsible for ensuring that all costs submitted by Keystone Shipping Services, Inc. are reasonable, allocable, and allowable according to the contract terms and federal acquisition regulations.

What is the expected effectiveness of the ship support services provided under this contract in ensuring the operational readiness of the vessels?

The effectiveness of the ship support services hinges on the specific tasks outlined in the contract's Statement of Work (SOW), which is not detailed here. Assuming the SOW is comprehensive and covers essential maintenance, repair coordination, logistical support, and potentially crewing assistance, these services are critical for maintaining the operational readiness of the vessels. The contract's duration of 333 days suggests ongoing support rather than a one-time fix. The government's oversight and performance monitoring will be key determinants of effectiveness. Regular reporting from the contractor and periodic inspections by the Maritime Administration will help ensure that the services meet the required standards and contribute to the vessels' availability for their intended missions.

How does this $262,500 award fit into the broader historical spending patterns for ship support services by the Department of Transportation's Maritime Administration?

This $262,500 award represents a specific instance of spending within the Maritime Administration's budget for operational support. To understand its place in historical spending patterns, one would need to analyze aggregate data over several fiscal years. This would involve looking at the total amount spent annually on ship support, maintenance, and related services, as well as the number and value of contracts awarded. Comparing this award's value to the average contract size and the total annual expenditure would indicate whether it is a typical, above-average, or below-average award. Trends in spending, such as increases or decreases over time, could also reveal shifts in program priorities or operational needs.

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: $262,500

Exercised Options: $262,500

Current Obligation: $262,500

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