Maritime Administration awards $2.79M contract for FY25 ship repairs to Keystone Shipping Services

Contract Overview

Contract Amount: $2,792,000 ($2.8M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-21

End Date: 2026-07-31

Contract Duration: 344 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: BRITTIN 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 $2.8 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: BRITTIN 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 focuses on specific, approved work items for ship maintenance. 2. Full and open competition was utilized, suggesting a broad search for qualified bidders. 3. The contract duration is 344 days, indicating a substantial repair or maintenance period. 4. The award type is a Delivery Order, suggesting it's part of a larger contract vehicle. 5. The contract is for Deep Sea Freight Transportation services, aligning with the agency's mission. 6. The base award amount is $2,792,000, with potential for adjustments based on work performed.

Value Assessment

Rating: good

The contract value of $2.79 million for ship repairs appears reasonable given the 344-day duration and the nature of deep-sea freight transportation maintenance. Without specific details on the scope of work, direct comparison is challenging. However, the use of full and open competition suggests that pricing was likely vetted against multiple market participants, which typically leads to more competitive rates. The contract type (Cost No Fee) implies that the contractor is reimbursed for allowable costs, with profit being a fixed amount, which can provide cost control if well-managed.

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 a competitive environment, allowing the agency to select the best value offer. The open nature of the bidding process is a positive sign for price discovery and ensuring a fair market price is achieved.

Taxpayer Impact: Taxpayers benefit from a process that aims to secure the most competitive pricing by allowing any qualified company to bid, rather than restricting the pool of potential contractors.

Public Impact

The primary beneficiaries are likely the vessels managed or overseen by the Maritime Administration, ensuring their operational readiness. Services delivered include essential repairs and maintenance to support the functionality of deep-sea freight transportation assets. The geographic impact is primarily related to the operational areas of the specific ship(s) undergoing repairs, potentially impacting U.S. maritime trade routes. Workforce implications include employment for skilled tradespeople and maritime professionals involved in ship repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to fully assess the value for money.
The 'Cost No Fee' contract type requires diligent oversight to ensure costs remain reasonable and within budget.
Potential for cost overruns if unforeseen issues arise during the repair period, despite the fixed fee structure for profit.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract duration of 344 days suggests a comprehensive approach to maintenance needs.
Clear alignment with the Maritime Administration's mission to support U.S. maritime capabilities.

Sector Analysis

The contract falls within the broader maritime transportation and logistics sector, specifically focusing on vessel maintenance and repair. This sector is critical for national security and economic activity, involving a complex ecosystem of shipyards, suppliers, and service providers. Spending in this area is often driven by regulatory requirements, vessel age, and operational demands. Comparable spending benchmarks would typically involve analyzing historical repair costs for similar vessel types and sizes, as well as the pricing structures of major maritime repair facilities.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, there is a possibility for small businesses to participate as prime contractors or subcontractors if they meet the qualifications. However, without explicit set-aside goals or subcontracting plans detailed in the award, the direct impact on the small business ecosystem is uncertain. Further review of the contract details would be needed to ascertain subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Maritime Administration (MARAD), responsible for ensuring the work is completed according to specifications and within budget. As a delivery order, it likely falls under a broader contract vehicle that may have its own oversight mechanisms. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and cost breakdowns are typically found in internal agency reports or through Freedom of Information Act requests. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
U.S. Merchant Marine
Shipbuilding and Repair Contracts
National Defense Reserve Fleet

Risk Flags

Potential for cost overruns in Cost No Fee contract
Lack of specific scope of work details
Uncertainty regarding contractor's past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.8 million to KEYSTONE SHIPPING SERVICES, INC.. BRITTIN 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 $2.8 million.

What is the period of performance?

Start: 2025-08-21. End: 2026-07-31.

What is the specific scope of work covered by this $2.79 million contract for FY25 ship repairs?

The provided data indicates the purpose is to 'accomplish approved specific work items on the ship's approved business plan.' However, the exact nature of these work items (e.g., hull maintenance, engine overhaul, system upgrades, safety equipment checks) is not detailed in the summary. Understanding the specifics is crucial for assessing the value for money and comparing it to industry standards. The 'Cost No Fee' structure suggests that the contractor will be reimbursed for allowable costs incurred in performing this work, plus a fixed fee for profit, necessitating clear definition and tracking of the work performed.

How does the $2.79 million award compare to historical spending on similar ship repair contracts by the Maritime Administration?

To benchmark this $2.79 million award, historical data on similar contracts awarded by the Maritime Administration (MARAD) for vessel repair and maintenance would be necessary. Key comparison points would include the size and type of vessel, the duration of the contract (344 days here), the scope of work performed, and the total contract value. Without this historical context, it's difficult to definitively state whether this award represents a favorable or unfavorable price. The fact that it was awarded under full and open competition suggests a competitive pricing environment, but specific cost analysis requires more detailed historical spending patterns for comparable assets.

What are the primary risks associated with a 'Cost No Fee' contract for ship repairs, and how are they mitigated?

A 'Cost No Fee' (CNF) contract, often used when the extent or nature of the work is uncertain, reimburses the contractor for allowable costs but includes a fixed fee for profit. The primary risk is that the contractor may have less incentive to control costs, as their profit is fixed regardless of the final cost. Mitigation strategies include robust oversight by the agency (MARAD), detailed cost accounting standards, clear definitions of allowable costs, and potentially performance incentives tied to cost savings or efficiency. The agency must diligently audit incurred costs to ensure they are reasonable, allocable, and necessary for the work performed.

What does the 'Deep Sea Freight Transportation' classification imply for the type of vessel and the nature of the repairs?

The 'Deep Sea Freight Transportation' NAICS code (483111) indicates that the contract pertains to vessels engaged in transporting freight over long distances across oceans. This suggests the repairs are likely for cargo ships, container ships, tankers, or similar large commercial vessels. The nature of the repairs could range from routine maintenance and inspections to more significant structural work, propulsion system repairs, or cargo handling equipment servicing, all essential for maintaining the operational capability and safety of these critical assets in international trade.

What is the track record of Keystone Shipping Services, Inc. in performing similar government contracts, particularly with the Maritime Administration?

Information regarding Keystone Shipping Services, Inc.'s track record with government contracts, especially with the Maritime Administration, is not provided in the summary data. A thorough assessment would require reviewing their past performance history, including contract awards, completion records, any past performance evaluations, and any history of disputes or contract terminations. Understanding their experience with similar vessel types, repair scopes, and contract types (like CNF) would be crucial for evaluating the risk associated with this award and predicting successful project execution.

What are the implications of the 344-day duration for the operational readiness of the affected vessel(s)?

A contract duration of 344 days for ship repairs signifies a substantial period where the vessel will likely be out of service or significantly restricted in its operations. This extended downtime has direct implications for the operational readiness and revenue-generating capacity of the affected vessel. The Maritime Administration must have factored this downtime into its strategic planning, potentially by reallocating other assets or adjusting schedules to mitigate any disruption to freight transportation services. The efficiency of the repair process during this period is critical to minimizing the impact on the fleet's overall availability.

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: $2,792,000

Exercised Options: $2,792,000

Current Obligation: $2,792,000

Actual Outlays: $377,880

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