Transportation's $2.5M FY26 contract for ship maintenance fees awarded to Keystone Shipping Services

Contract Overview

Contract Amount: $2,520,559 ($2.5M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: FISHER FISCAL YEAR (FY) 26 SHIP MANAGER FIXED FEES THE PURPOSE OF THIS PROJECT IS TO PROVIDE FUNDING FOR MAINTENANCE PHASE FIXED FEES.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97203

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $2.5 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: FISHER FISCAL YEAR (FY) 26 SHIP MANAGER FIXED FEES THE PURPOSE OF THIS PROJECT IS TO PROVIDE FUNDING FOR MAINTENANCE PHASE FIXED FEES. Key points: 1. Contract focuses on fixed fees for the maintenance phase of ship management. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of one year aligns with typical operational cycles for maintenance. 4. The contract type is a delivery order, indicating it's part of a larger agreement. 5. No small business set-aside was utilized for this procurement. 6. The North American Industry Classification System (NAICS) code points to deep sea freight transportation.

Value Assessment

Rating: fair

The contract value of approximately $2.5 million for a one-year period for ship maintenance fixed fees appears reasonable within the context of maritime operations. Benchmarking against similar contracts for ship management and maintenance services would be necessary for a definitive value-for-money assessment. However, the absence of specific performance metrics or detailed cost breakdowns in the provided data makes a precise comparison challenging. The cost-plus-no-fee (CPNF) structure, while common, requires careful oversight to ensure efficiency.

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, which can lead to better pricing and terms for the government. The Maritime Administration's use of this procurement approach suggests a commitment to exploring the widest possible range of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a broader pool of qualified vendors, potentially leading to cost savings.

Public Impact

The primary beneficiary is the Department of Transportation's Maritime Administration, ensuring the operational readiness of its fleet. Services delivered include essential maintenance and management functions for ships. The geographic impact is likely centered around the operational areas of the vessels managed under this contract, primarily in Oregon. Workforce implications include the employment of personnel by Keystone Shipping Services for the execution of maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The cost-plus-no-fee (CPNF) contract type can sometimes lead to less incentive for cost control if not managed rigorously.
Limited information on the specific scope of 'maintenance phase fixed fees' could obscure potential cost overruns.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The contract duration of one year provides a defined period for service delivery and performance evaluation.
The contractor, Keystone Shipping Services, Inc., is established in the maritime sector, implying relevant experience.

Sector Analysis

This contract falls within the broader maritime transportation sector, specifically focusing on the operational and maintenance aspects of deep-sea freight vessels. The market for ship management and maintenance services is global and highly specialized, involving significant capital investment and regulatory compliance. Comparable spending benchmarks would typically be found within the budgets of agencies like the Maritime Administration or the Navy for vessel upkeep and operational support. The value of this contract is modest relative to the overall spending on large-scale shipbuilding or fleet acquisition.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all eligible offerors, regardless of size. Consequently, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside provision in this particular award. The impact on the small business ecosystem is neutral, as it was not specifically designed to benefit them, nor does it appear to exclude them from potential future subcontracting opportunities if Keystone Shipping Services chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Maritime Administration. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the contract's award under full and open competition, making the process publicly visible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Maritime Administration Fleet Operations
Ship Maintenance and Repair Services
Federal Vessel Management
Deep Sea Freight Transportation Contracts

Risk Flags

Cost-Plus-No-Fee (CPNF) contract type requires diligent oversight to ensure cost reasonableness.
Limited detail on specific maintenance tasks and performance metrics.
Potential for cost escalation if not managed tightly, despite fixed fees.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.5 million to KEYSTONE SHIPPING SERVICES, INC.. FISHER FISCAL YEAR (FY) 26 SHIP MANAGER FIXED FEES THE PURPOSE OF THIS PROJECT IS TO PROVIDE FUNDING FOR MAINTENANCE PHASE FIXED FEES.

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 $2.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for ship manager fixed fees by the Maritime Administration?

Analyzing historical spending for ship manager fixed fees by the Maritime Administration requires access to detailed procurement data over multiple fiscal years. Without specific historical data, it's challenging to establish a precise pattern. However, agencies like the Maritime Administration typically allocate funds for vessel maintenance and operational support annually. The amount spent can fluctuate based on the size and age of the fleet, the condition of the vessels, and the specific maintenance phases required. Contracts for fixed fees are common for predictable operational costs. To provide a data-backed answer, one would need to query databases like FPDS or USASpending for similar contracts awarded by the Maritime Administration over the past 5-10 years, looking for trends in contract values, durations, and the types of services covered under 'fixed fees'.

How does the awarded amount compare to the benchmark for similar deep-sea freight transportation contracts?

The awarded amount of approximately $2.5 million for FY26 ship manager fixed fees is a specific figure for a one-year period. To benchmark this against similar deep-sea freight transportation contracts, one would need to identify comparable contracts based on scope of work (e.g., fleet size, types of vessels, specific maintenance requirements), duration, and the agency awarding the contract. Data from sources like USASpending or FPDS could reveal average contract values for similar services. Given that this is for fixed fees related to maintenance, it's likely a component of a larger operational budget. Without more granular data on the specific services included in these 'fixed fees' and the size/type of the fleet managed, a precise comparison is difficult. However, for a single year's fixed maintenance fees on a fleet, $2.5 million is a plausible figure within the maritime industry.

What are the key performance indicators (KPIs) used to evaluate Keystone Shipping Services under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract. Typically, for ship management and maintenance contracts, KPIs would focus on aspects such as vessel availability, adherence to maintenance schedules, safety incident rates, compliance with environmental regulations, and timely completion of required repairs. For fixed fee contracts, the emphasis might be more on the contractor's ability to manage costs within the agreed-upon fee while meeting operational uptime requirements. The Maritime Administration would likely have established performance standards within the contract's statement of work, which would be used to monitor Keystone Shipping Services' performance throughout the contract period.

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

To assess the track record of Keystone Shipping Services, Inc. with federal contracts, one would need to query federal procurement databases such as the Federal Procurement Data System (FPDS) or USASpending. These databases would provide a history of contracts awarded to the company, including the awarding agency, contract values, period of performance, and contract types. A review of this data would reveal the company's experience with government work, its performance history (if available through contract award data or past performance questionnaires), and any potential issues or successes in fulfilling federal obligations. Without direct access to this historical data, a specific assessment of their track record cannot be provided here.

What are the potential risks associated with a Cost-Plus-No-Fee (CPNF) contract structure for ship maintenance?

The Cost-Plus-No-Fee (CPNF) contract structure, while used here for fixed fees, can present certain risks if not managed diligently. The primary risk is that the government pays the actual costs incurred by the contractor, plus a predetermined fee (in this case, zero fee, implying costs are covered but no profit margin is added beyond cost recovery). This can reduce the contractor's incentive to control costs rigorously, as they are reimbursed for expenses. For the government, this necessitates robust oversight to ensure that all costs claimed are reasonable, allocable, and allowable. Without a profit motive tied to efficiency, there's a potential for inflated costs or less stringent cost management compared to fixed-price contracts. However, CPNF can be appropriate when the scope of work is uncertain or difficult to define precisely upfront, allowing for flexibility.

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: $2,520,559

Exercised Options: $2,520,559

Current Obligation: $2,520,559

Actual Outlays: $1,263,394

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