Transportation awards $1.78M contract for FY25 Sea Trial/Dock Trial B services to Keystone Shipping Services

Contract Overview

Contract Amount: $177,750 ($177.8K)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-06-30

Contract Duration: 316 days

Daily Burn Rate: $563/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: BOB HOPE FY25 SEA TRIAL/DOCK TRIAL B KEY-BHP25-1001 B

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97203

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $177,750 to KEYSTONE SHIPPING SERVICES, INC. for work described as: BOB HOPE FY25 SEA TRIAL/DOCK TRIAL B KEY-BHP25-1001 B Key points: 1. Contract value appears reasonable for specialized maritime trials, though specific benchmarks are needed. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 316 days is standard for such operational assessments. 4. Performance period aligns with typical fiscal year planning for trials. 5. Sector positioning is within deep sea freight transportation, a critical area for the Maritime Administration. 6. No small business set-aside was utilized, indicating larger prime contractors likely involved.

Value Assessment

Rating: fair

The contract value of $1.78 million for a 316-day period for sea and dock trials is difficult to benchmark without more specific details on the scope of services. However, given the specialized nature of maritime trials and the full and open competition, the pricing is likely within a reasonable range. Further analysis would require comparing this to similar trials conducted by other agencies or for different vessel types. The 'Cost No Fee' contract type suggests that the government is reimbursing the contractor for allowable costs, which can sometimes lead to less price certainty than 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 the use of this procurement method suggests that there is sufficient market capacity and interest in providing these specialized maritime services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, leading to potentially better value for the funds expended on these essential maritime trials.

Public Impact

The primary beneficiary is the Maritime Administration, which will receive critical data from the sea and dock trials. Services delivered include operational assessments and trials for the FY25 Sea Trial/Dock Trial B. The geographic impact is likely focused on areas where maritime trials can be conducted, potentially including coastal waters and designated testing facilities. Workforce implications may involve specialized maritime personnel, engineers, and technicians employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the trials.
The 'Cost No Fee' contract type can present a risk of cost overruns if not closely monitored.
Limited detail on the scope of 'KEY-BHP25-1001 B' requires further clarification to understand the full requirements.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract duration is clearly defined, providing a structured timeframe for the services.
The contract is for a specific fiscal year's trials, indicating timely planning.

Sector Analysis

This contract falls within the broader maritime transportation sector, specifically focusing on deep sea freight transportation services. The Maritime Administration (MARAD) plays a crucial role in supporting and promoting the U.S. merchant marine and maritime industry. Contracts like this are essential for testing and validating new technologies, operational procedures, or vessel modifications before they are widely adopted. Comparable spending benchmarks would involve looking at other MARAD contracts for vessel trials, operational support, or similar specialized maritime services, as well as potentially defense-related maritime testing contracts.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the prime contractor is Keystone Shipping Services, Inc. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contract is likely being performed by the prime contractor or potentially larger subcontractors. Further investigation into subcontracting goals and actual performance would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. Accountability measures would be tied to the successful completion of the sea and dock trials according to the contract's specifications and schedule. Transparency is facilitated by the contract award being made under full and open competition, with details typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Administration Operational Support
Vessel Testing and Trials
Deep Sea Freight Transportation Services
Federal Maritime Commission Oversight
U.S. Merchant Marine Support Programs

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Monitoring Complexity (Long Duration)
Scope Clarity (Specific Trial Details)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $177,750 to KEYSTONE SHIPPING SERVICES, INC.. BOB HOPE FY25 SEA TRIAL/DOCK TRIAL B KEY-BHP25-1001 B

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 $177,750.

What is the period of performance?

Start: 2025-08-18. End: 2026-06-30.

What is the specific scope of work for the FY25 Sea Trial/Dock Trial B (KEY-BHP25-1001 B)?

The provided data indicates the contract is for 'FY25 SEA TRIAL/DOCK TRIAL B KEY-BHP25-1001 B' and is valued at $1,777,500 with a performance period from August 18, 2025, to June 30, 2026. While the contract type is 'Cost No Fee' and it was awarded under 'Full and Open Competition' to Keystone Shipping Services, Inc., the precise technical requirements, objectives, and deliverables of the 'Sea Trial/Dock Trial B' are not detailed in this summary. These trials likely involve assessing the performance, capabilities, and operational readiness of specific maritime assets or systems under various conditions. Further documentation, such as the Statement of Work (SOW) or Performance Work Statement (PWS), would be necessary to fully understand the scope.

How does the $1.78 million contract value compare to similar maritime trial contracts?

Benchmarking the $1.78 million contract value for maritime trials requires access to a database of comparable contracts. Factors influencing cost include the type of vessel or system being tested, the duration and complexity of the trials (sea vs. dock), the specific performance metrics required, and the geographic location of the trials. Given that this contract was awarded under full and open competition, it suggests the price is competitive within the market for these specialized services. However, without specific details on the scope of work and comparison data from similar MARAD or Department of Defense maritime testing contracts, a definitive value-for-money assessment is challenging. The 'Cost No Fee' structure also means the final cost is subject to allowable expenses.

What are the potential risks associated with a 'Cost No Fee' contract for maritime trials?

A 'Cost No Fee' (CNF) contract, while allowing the government to reimburse the contractor for allowable costs, presents specific risks. The primary risk is the potential for cost overruns if the contractor's actual costs exceed the initially estimated amount. Without a fixed fee, the contractor has less direct financial incentive to control costs tightly, relying instead on the government's oversight to ensure expenses are reasonable and allocable. This necessitates robust government monitoring of expenditures, detailed cost reporting, and stringent auditing processes to prevent waste and ensure the government only pays for legitimate, contract-related expenses. Effective management and oversight are crucial to mitigate these risks and ensure the contract remains within budget expectations.

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

Information on Keystone Shipping Services, Inc.'s track record with federal contracts, especially with the Maritime Administration (MARAD), is not detailed in the provided data. To assess their reliability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review their contract history, including award amounts, contract types, performance ratings, and any past performance issues or disputes. Understanding their experience with similar maritime trials, vessel operations, and cost-reimbursable contracts would provide valuable insight into their capability to successfully execute this current award.

How does the duration of 316 days impact the assessment of this contract?

The contract duration of 316 days, spanning from August 18, 2025, to June 30, 2026, is significant as it covers a substantial portion of the fiscal year. This extended period suggests that the 'FY25 Sea Trial/Dock Trial B' is a comprehensive undertaking, likely involving multiple phases, extensive data collection, and analysis. A longer duration can imply greater complexity and potentially higher costs, but it also allows for thorough testing under various conditions. From an oversight perspective, a longer contract requires sustained attention to ensure progress is maintained and objectives are met throughout the performance period. It also aligns with the typical planning and execution cycle for major government-funded trials within a fiscal year.

What are the implications of this contract being awarded for 'Deep Sea Freight Transportation' services?

Awarding this contract for 'Deep Sea Freight Transportation' services, specifically for trials, indicates the Maritime Administration's focus on maintaining and advancing the capabilities within this critical sector of the U.S. economy and national security. Deep sea freight is fundamental to global trade and supply chain resilience. The trials likely aim to evaluate new technologies, operational efficiencies, or safety protocols relevant to this domain. Success in these trials could lead to improvements in the efficiency, safety, or environmental performance of U.S.-flagged vessels, ultimately benefiting the competitiveness of American shipping and ensuring the availability of vital transportation services.

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: $177,750

Exercised Options: $177,750

Current Obligation: $177,750

Actual Outlays: $94,949

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000017

IDV Type: IDC

Timeline