DOT awards $4.04M for FY26 Bob Hope repairs, focusing on deep sea freight transport

Contract Overview

Contract Amount: $4,036,460 ($4.0M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-12-27

End Date: 2026-09-30

Contract Duration: 277 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: BOB HOPE FY26 REPAIRS A KEY-BHP26-1005 A

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97203

State: Oregon Government Spending

Plain-Language Summary

Department of Transportation obligated $4.0 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: BOB HOPE FY26 REPAIRS A KEY-BHP26-1005 A Key points: 1. Value for money appears fair given the scope of repairs and duration. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are low, with a fixed-price contract type. 4. Performance context is tied to maintaining a specific vessel's operational readiness. 5. Sector positioning is within the maritime transportation services industry.

Value Assessment

Rating: fair

The contract value of $4.04 million for a 277-day period appears reasonable for vessel repair services. Benchmarking against similar large-scale maritime repair contracts would provide a clearer picture of value. The 'COST NO FEE' contract type suggests that the government will reimburse allowable costs, which can introduce some risk if costs exceed estimates, but the fixed fee component aims to control overall expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, leading to potentially better pricing and service offerings for the government. The number of bidders is not specified, but the method itself suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wide range of offers and encourages contractors to provide their best pricing.

Public Impact

The primary beneficiary is the Maritime Administration (MARAD) through the maintenance of its asset. Services delivered include essential repairs and maintenance for the vessel 'Bob Hope'. Geographic impact is localized to the repair facility and operational areas of the vessel. Workforce implications include employment for skilled trades in the maritime repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under 'COST NO FEE' contract type if not closely monitored.
Dependence on a single vessel's repair schedule could impact broader fleet readiness if delays occur.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Clear defined period of performance (277 days) aids in project management.
Contract type aims to control costs while ensuring necessary repairs are completed.

Sector Analysis

This contract falls within the broader maritime transportation sector, specifically focusing on vessel maintenance and repair. The market for such services is characterized by specialized shipyards and repair facilities capable of handling large vessels. Spending in this area is crucial for maintaining the operational readiness of government-owned or operated fleets, ensuring national security and economic interests are supported.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the specialized nature and scale of major vessel repairs, it is likely that larger, established maritime repair companies would be the primary participants. Subcontracting opportunities for smaller businesses may exist, but are not explicitly detailed in the award information.

Oversight & Accountability

Oversight will likely be managed by the Maritime Administration's contracting officers and program managers responsible for vessel maintenance. Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported.

Related Government Programs

Vessel Maintenance and Repair Contracts
Maritime Sealift Command Contracts
Government Fleet Operations Support

Risk Flags

Cost Reimbursement Risk
Performance Schedule Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.0 million to KEYSTONE SHIPPING SERVICES, INC.. BOB HOPE FY26 REPAIRS A KEY-BHP26-1005 A

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 $4.0 million.

What is the period of performance?

Start: 2025-12-27. End: 2026-09-30.

What is the historical spending pattern for the maintenance and repair of the 'Bob Hope' vessel?

Analyzing historical spending for the 'Bob Hope' vessel is crucial for understanding long-term maintenance costs and identifying any trends in repair needs or expenditures. Without specific historical data for this particular vessel, we can look at broader trends for similar MARAD or Navy-owned vessels. Typically, large vessels require significant maintenance budgets that can fluctuate based on age, operational tempo, and the type of repairs needed. For instance, major overhauls or dry-docking periods can represent substantial one-time costs. Comparing the current $4.04 million award to previous repair cycles for the 'Bob Hope' or comparable vessels would reveal if this expenditure is within expected ranges or represents an anomaly. Consistent high spending might indicate recurring issues, while significant increases could signal the need for more extensive, long-term solutions or upgrades.

How does the 'COST NO FEE' contract type compare to other contract types used for similar vessel repair services?

The 'COST NO FEE' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This is typically used when the scope of work is uncertain or when the government has a strong interest in ensuring the work is performed regardless of the final cost, often for urgent or essential services. For vessel repairs, other common contract types include Firm-Fixed-Price (FFP), which offers price certainty but less flexibility for unforeseen issues, and Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a predetermined profit. CNF contracts place the risk of cost overruns primarily on the government, making robust oversight and cost control essential. Compared to FFP, CNF offers more flexibility but potentially higher overall costs if not managed tightly. Compared to CPFF, it removes the contractor's profit motive, which could theoretically lead to more focus on efficient execution, but also removes the incentive for the contractor to control costs aggressively.

What are the specific risks associated with the 'Deep Sea Freight Transportation' NAICS code in relation to vessel repair contracts?

The NAICS code 483111, 'Deep Sea Freight Transportation,' primarily describes the business of operating and leasing deep sea or coastal freight transportation vessels. While this contract is for repairs *to* such a vessel, the risks associated with the NAICS code itself are more about the operational aspects of transportation rather than the repair services. However, in the context of a repair contract for a deep-sea freight vessel, risks can include the vessel's operational environment (e.g., exposure to harsh conditions impacting repair quality or longevity), the complexity of systems required for deep-sea operations (e.g., specialized navigation, propulsion, or cargo handling systems that require expert repair knowledge), and the potential for delays impacting the vessel's transportation schedule. Furthermore, the economic viability of the transportation service itself can indirectly affect the urgency and funding availability for repairs.

What is the track record of KEYSTONE SHIPPING SERVICES, INC. in performing similar government contracts?

Assessing the track record of KEYSTONE SHIPPING SERVICES, INC. is vital for understanding their capability and reliability in executing this contract. Information on past performance, including successful completion of similar vessel repair or maintenance contracts, adherence to schedules, quality of work, and any history of disputes or contract terminations, would be crucial. Government contract databases and past performance reviews (if available) can provide insights. A strong track record with government agencies, particularly MARAD or the Department of Defense, would indicate a lower risk for this specific award. Conversely, any history of performance issues would warrant closer scrutiny of their current capacity and management approach for the 'Bob Hope' repairs.

How does the $4.04 million award compare to the total federal spending on maritime vessel maintenance and repair?

The $4.04 million award for the 'Bob Hope' FY26 repairs represents a specific expenditure within the broader category of federal spending on maritime vessel maintenance and repair. Federal agencies like MARAD, the Navy, Coast Guard, and others operate and maintain significant fleets, leading to substantial annual investments in upkeep. Total federal spending in this area can range in the billions of dollars annually, encompassing everything from routine maintenance to major overhauls and new construction/acquisition. This particular contract, while significant for the individual vessel, is likely a fraction of the total federal outlay for maritime readiness. Comparing it to the overall budget for MARAD's fleet maintenance or to similar repair contracts awarded across different agencies would provide context on its relative scale and significance.

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: $4,036,460

Exercised Options: $4,036,460

Current Obligation: $4,036,460

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