Transportation awards $2.6M for ship support services to Keystone Shipping Services, Inc

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 DOUGLAS FY26 SHIP SUPPORT KEY-DGL26-1008A 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 DOUGLAS FY26 SHIP SUPPORT KEY-DGL26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is approximately 11 months, indicating a short-term need for services. 3. The contract type is Cost No Fee, which typically means the contractor is reimbursed for allowable costs but does not receive a fee. 4. The North American Industry Classification System (NAICS) code 483111 points to services within the Deep Sea Freight Transportation sector. 5. The award is a delivery order, suggesting it's part of a larger contract vehicle. 6. The contract value is $2.625 million, which needs to be benchmarked against similar services.

Value Assessment

Rating: fair

The contract value of $2.625 million for approximately 11 months of ship support services appears to be within a reasonable range for specialized maritime operations. However, without specific details on the scope of services, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for ship management and support in the deep-sea freight sector would provide a clearer picture of whether the pricing is competitive. The Cost No Fee (CNF) structure suggests a focus on cost recovery for the contractor rather than profit, which can sometimes lead to different cost management behaviors compared to fixed-price contracts.

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 procurement method generally fosters a competitive environment, which is expected to drive down prices and improve the quality of services offered. The Maritime Administration's use of full and open competition suggests a commitment to leveraging market forces to obtain the best value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous prices and terms, reducing the risk of overpayment for essential maritime support.

Public Impact

The primary beneficiaries are the U.S. Maritime Administration and potentially the vessels managed under their purview, ensuring operational readiness. Services delivered include essential ship support, crucial for the maintenance and operation of deep-sea freight vessels. The geographic impact is likely focused on ports and operational areas where the supported vessels are located, with a potential national scope depending on the fleet's deployment. Workforce implications may include employment for maritime professionals, engineers, and support staff involved in ship operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the support services.
The Cost No Fee contract type can sometimes lead to less incentive for cost efficiency compared to fixed-price contracts.
Limited information on the specific scope of 'ship support services' hinders a detailed analysis of value and potential risks.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract is for a defined period, allowing for periodic reassessment of needs and contractor performance.
The Maritime Administration's involvement suggests a focus on critical national maritime infrastructure.

Sector Analysis

The contract falls within the Deep Sea Freight Transportation sector, a critical component of global and domestic commerce. This sector involves the operation of large vessels for transporting goods across oceans. Spending in this area is often driven by the need to maintain and operate a fleet, whether for commercial purposes or national security interests. Comparable spending benchmarks would involve analyzing other government contracts for vessel management, maintenance, and operational support, as well as private sector expenditures on similar services.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Keystone Shipping Services, Inc., may still engage small businesses as subcontractors, depending on their own procurement practices and the nature of the services required. The impact on the small business ecosystem would be indirect, based on whether Keystone chooses to utilize small business suppliers.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Transportation's Maritime Administration, which is responsible for awarding and administering the contract. Accountability measures would be embedded in the contract terms, requiring Keystone Shipping Services, Inc. to meet specific performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where award details are made public. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract.

Related Government Programs

Maritime Security Program
Jones Act Vessels
U.S. Merchant Marine
Ship Operations and Maintenance Contracts
Department of Transportation Procurement

Risk Flags

Cost Control Risk (CNF Contract)
Performance Monitoring Difficulty (Lack of Detail)
Scope Definition Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $262,500 to KEYSTONE SHIPPING SERVICES, INC.. CAPE DOUGLAS FY26 SHIP SUPPORT KEY-DGL26-1008A 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 specific scope of 'ship support services' covered under this contract?

The provided data snippet for contract FY26 SHIP SUPPORT KEY-DGL26-1008A does not detail the specific scope of 'ship support services.' Generally, such services in the maritime industry can encompass a wide range of activities, including but not limited to, vessel maintenance and repair coordination, logistical support for crew and supplies, operational planning, regulatory compliance assistance, and potentially technical management. For a precise understanding, one would need to consult the detailed Statement of Work (SOW) or Performance Work Statement (PWS) associated with this delivery order. Without this detailed scope, it is difficult to fully assess the value, risks, and performance expectations.

How does the $2.625 million contract value compare to similar ship support contracts awarded by the government?

Benchmarking the $2.625 million contract value requires comparing it to similar contracts for ship support services, particularly those awarded by the Department of Transportation or other agencies managing maritime assets. Factors such as vessel type, size, age, operational tempo, and the specific services included (e.g., technical management, crewing, maintenance, dry-docking coordination) significantly influence contract costs. A preliminary assessment suggests that $2.625 million for approximately 11 months of support is a substantial amount, but its reasonableness hinges on the complexity and scope of services. Further analysis would involve querying contract databases for comparable awards over the past few fiscal years, filtering by agency, NAICS code (483111), and contract duration to establish a more accurate market rate.

What are the potential risks associated with a Cost No Fee (CNF) contract structure for ship support?

A Cost No Fee (CNF) contract structure, where the contractor is reimbursed for allowable costs but receives no additional fee, presents unique risk considerations. While it can be beneficial for the government by avoiding contractor profit margins, it may reduce the contractor's incentive for aggressive cost control. The primary risk is that the contractor might not be as motivated to minimize expenses as they would be under a fixed-price contract where cost savings directly increase their profit. Oversight becomes critical to ensure that all costs incurred are reasonable, allocable, and necessary for performing the contract. There's also a potential risk of scope creep if not managed tightly, as the contractor is guaranteed cost recovery regardless of efficiency.

What is Keystone Shipping Services, Inc.'s track record with government contracts, particularly with the Department of Transportation?

Keystone Shipping Services, Inc. has a history of receiving government contracts, including those with the Department of Transportation. Publicly available data indicates past awards for various maritime services. To assess their track record thoroughly, one would need to examine their performance history on previous contracts, looking for indicators such as timely delivery, quality of service, adherence to budget, and any past performance issues or disputes. A review of contract databases and potentially past performance evaluations (if accessible) would provide insights into their reliability and capability in fulfilling government requirements, especially within the complex domain of ship management and support.

How does the Maritime Administration utilize delivery orders under larger contract vehicles for services like ship support?

The Maritime Administration, like many federal agencies, often uses Indefinite Delivery/Indefinite Quantity (IDIQ) contracts or other types of multiple-award contract vehicles to procure services such as ship support. A delivery order, such as KEY-DGL26-1008A, is then issued against one of these established vehicles. This approach allows the agency to have pre-vetted contractors and pre-negotiated terms in place, streamlining the procurement process for specific needs that arise over time. It provides flexibility to order services as required, up to a certain ceiling amount, and allows the agency to select the most appropriate contractor for a specific task based on factors like price, technical approach, and availability, often through a fair opportunity process among awardees.

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

Actual Outlays: $2,017

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