Transportation contract for ship repairs awarded to Keystone Shipping Services for $461,236 in FY25

Contract Overview

Contract Amount: $4,612,369 ($4.6M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-21

End Date: 2026-06-30

Contract Duration: 313 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: FISHER FISCAL YEAR (FY) 25 REPAIRS A THE PURPOSE OF THIS PROJECT IS TO ACCOMPLISH APPROVED SPECIFIC WORK ITEMS ON THE SHIP'S APPROVED BUSINESS PLAN.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97203

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $4.6 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: FISHER FISCAL YEAR (FY) 25 REPAIRS A THE PURPOSE OF THIS PROJECT IS TO ACCOMPLISH APPROVED SPECIFIC WORK ITEMS ON THE SHIP'S APPROVED BUSINESS PLAN. Key points: 1. Contract aims to address specific repair needs on a vessel's approved business plan. 2. The contract type is 'Full and Open Competition', indicating broad market solicitation. 3. Delivery Order awarded under a larger contract vehicle. 4. Performance period spans from late August 2025 to mid-June 2026. 5. The contract is for 'Deep Sea Freight Transportation' services. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract value of $461,236 for ship repairs appears reasonable for a single delivery order. Benchmarking against similar deep-sea freight transportation repair contracts would provide a clearer picture of value for money. The 'Cost No Fee' pricing structure suggests that the government reimburses allowable costs without an additional profit margin for the contractor, which can be cost-effective if costs are well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and allows the government to select the best value offer. The Maritime Administration likely sought proposals from qualified companies in the deep-sea freight transportation sector.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiary is the Maritime Administration, ensuring the operational readiness of its fleet. Services delivered include specific, approved repair work items on a vessel. The geographic impact is likely localized to where the vessel is docked for repairs and its operational routes. Workforce implications include employment for skilled trades involved in ship repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Details on the 'approved specific work items' are not provided, making it difficult to gauge the scope and complexity of repairs.
The 'Cost No Fee' structure requires diligent oversight to ensure costs are reasonable and allowable.

Positive Signals

Awarded under 'Full and Open Competition', suggesting a robust bidding process.
Contract duration is defined, providing a clear performance timeline.
The contract addresses necessary maintenance and repairs for operational readiness.

Sector Analysis

The maritime transportation sector is critical for global trade and national security. This contract falls within the deep-sea freight transportation sub-sector, focusing on the maintenance and repair of vessels. Spending in this area is essential for ensuring the reliability and efficiency of the U.S. maritime fleet. Comparable spending benchmarks would typically involve analyzing the costs of similar repair contracts for vessels of comparable size and type within the federal inventory or commercial market.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific award is likely minimal unless the prime contractor actively engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Maritime Administration's program management and contracting offices. Accountability measures would be tied to the successful completion of the specified work items within the agreed-upon timeline and budget. Transparency is facilitated through contract award databases, though detailed work item specifics might be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
Shipbuilding and Repair Contracts
U.S. Merchant Marine

Risk Flags

Potential for cost overruns due to 'Cost No Fee' structure.
Risk of schedule delays impacting vessel operational readiness.
Uncertainty regarding the specific scope and complexity of 'approved specific work items'.
Lack of detailed competition metrics (e.g., number of bidders) limits assessment of price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to KEYSTONE SHIPPING SERVICES, INC.. FISHER FISCAL YEAR (FY) 25 REPAIRS A THE PURPOSE OF THIS PROJECT IS TO ACCOMPLISH APPROVED SPECIFIC WORK ITEMS ON THE SHIP'S APPROVED BUSINESS PLAN.

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 $4.6 million.

What is the period of performance?

Start: 2025-08-21. End: 2026-06-30.

What is the historical spending pattern for Keystone Shipping Services with the Maritime Administration?

Analyzing the historical spending patterns of Keystone Shipping Services, Inc. with the Maritime Administration is crucial for assessing their track record and reliability. A review of past contracts would reveal the frequency of awards, the types of services rendered, and the total value of contracts awarded. Consistent awards for similar services, particularly ship repair and maintenance, would indicate a positive working relationship and demonstrated capability. Conversely, a history of disputes, contract terminations, or significant cost overruns could raise concerns. Without access to historical contract data, it is difficult to provide a definitive assessment of their past performance with the agency.

How does the $461,236 contract value compare to similar deep-sea freight transportation repair contracts?

The contract value of $461,236 for ship repairs is a specific figure for a single delivery order. To benchmark this value effectively, it needs to be compared against similar contracts for deep-sea freight transportation vessels. Factors such as vessel size, type, age, and the complexity of the required repairs significantly influence costs. A comparison would involve looking at the average cost of similar repair jobs awarded by the Maritime Administration or other federal agencies over the past few fiscal years. If this contract falls within the typical range for such services, it suggests fair pricing. However, if it is substantially higher or lower than comparable awards, it warrants further investigation into the scope of work and the contractor's pricing strategy.

What are the primary risks associated with this specific ship repair contract?

The primary risks associated with this ship repair contract include potential cost overruns, schedule delays, and quality issues. Given the 'Cost No Fee' pricing structure, there's a risk that actual costs could exceed initial estimates if not managed diligently by both the contractor and the government. Schedule delays can occur due to unforeseen complications during repairs, availability of parts, or labor shortages, impacting the vessel's operational readiness. Quality issues could arise if repairs are not performed to specification, potentially leading to future problems and additional costs. The Maritime Administration must implement robust oversight to mitigate these risks, including regular progress reviews, cost audits, and quality inspections.

How effective is the 'Full and Open Competition' process in ensuring value for this type of maritime service?

The 'Full and Open Competition' process is generally effective in ensuring value for maritime services like ship repair because it maximizes the pool of potential bidders, thereby fostering competition. This competitive environment encourages contractors to offer their best pricing and technical solutions to win the contract. For the Maritime Administration, this means a higher likelihood of securing services at a fair market price and selecting a contractor with the best capabilities. The effectiveness is further enhanced when the solicitation clearly defines the scope of work and evaluation criteria, allowing for a transparent and objective selection process. However, the ultimate value realized also depends on the agency's ability to manage the contract effectively post-award.

What is the typical duration and cost for similar deep-sea freight vessel repair contracts?

The typical duration and cost for similar deep-sea freight vessel repair contracts can vary widely based on the vessel's size, type, and the scope of work. The current contract has a performance period from August 21, 2025, to June 30, 2026, spanning approximately 10 months, with a value of $461,236. This suggests a project of moderate scope. Larger, more complex repairs, such as dry-docking, hull work, or major engine overhauls, could extend durations to several months and cost millions of dollars. Smaller, routine maintenance tasks might be completed within weeks for significantly less. Benchmarking requires comparing this contract's specifics against a database of similar repair actions to establish a norm.

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: $4,612,369

Exercised Options: $4,612,369

Current Obligation: $4,612,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000018

IDV Type: IDC

Timeline