Transportation Dept. Awards $6.9M for Fisher Fiscal Year Repairs to Keystone Shipping Services
Contract Overview
Contract Amount: $6,909,744 ($6.9M)
Contractor: Keystone Shipping Services, Inc.
Awarding Agency: Department of Transportation
Start Date: 2026-01-12
End Date: 2026-09-30
Contract Duration: 261 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Transportation
Official Description: FISHER FISCAL YEAR (FY) 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 $6.9 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: FISHER FISCAL YEAR (FY) REPAIRS A THE PURPOSE OF THIS PROJECT IS TO ACCOMPLISH APPROVED SPECIFIC WORK ITEMS ON THE SHIP'S APPROVED BUSINESS PLAN. Key points: 1. The contract is for specific work items on a ship's approved business plan. 2. Key data points include a $6.9M award and a 261-day duration. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Deep Sea Freight Transportation, a critical part of the economy.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which can sometimes lead to less price certainty compared to fixed-price contracts. The award amount of $6.9M needs to be benchmarked against similar ship repair contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the 'COST NO FEE' structure might influence the final cost discovery process.
Taxpayer Impact: Taxpayer funds are being used for essential ship maintenance, ensuring the operational readiness of maritime assets.
Public Impact
Ensures the operational readiness of critical maritime assets. Supports the deep sea freight transportation sector, vital for global trade. Award to Keystone Shipping Services, Inc. contributes to economic activity in the maritime industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type may lead to cost overruns.
- Limited visibility into specific repair details and necessity.
Positive Signals
- Full and open competition utilized.
- Clear project scope defined by approved work items.
Sector Analysis
This contract falls within the Deep Sea Freight Transportation sector, which is crucial for national and international commerce. Spending benchmarks for ship repair can vary significantly based on vessel type and scope of work.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight would involve monitoring the execution of the specific work items, ensuring adherence to the approved business plan, and managing costs associated with the 'COST NO FEE' contract type.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Cost-plus contract type.
- Potential for cost overruns.
- Limited contractor incentive for cost control.
- Need for detailed cost tracking and oversight.
Tags
deep-sea-freight-transportation, department-of-transportation, or, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $6.9 million to KEYSTONE SHIPPING SERVICES, INC.. FISHER FISCAL YEAR (FY) 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 $6.9 million.
What is the period of performance?
Start: 2026-01-12. End: 2026-09-30.
What is the typical cost range for similar 'FISHER FISCAL YEAR' repairs on vessels of this type?
Benchmarking the $6.9M award against historical data for similar repairs on comparable vessels is crucial. Factors like vessel age, specific system requirements, and the complexity of the approved work items will influence this range. Without specific details on the 'specific work items', a precise benchmark is difficult, but a review of prior Maritime Administration contracts for vessel maintenance would provide a starting point.
What are the potential risks associated with a 'COST NO FEE' contract for ship repairs?
A 'COST NO FEE' contract, while potentially beneficial for ensuring all necessary work is completed, carries the risk of cost escalation. The government bears the risk of cost overruns, and without a fixed fee, the contractor has less incentive to control expenses. Robust oversight and detailed cost tracking are essential to mitigate this risk and ensure value for taxpayer money.
How effectively does this contract contribute to the long-term operational readiness of the vessel?
The effectiveness hinges on the quality and necessity of the 'approved specific work items' and their execution. If the repairs address critical maintenance needs and are performed to high standards, they will significantly contribute to the vessel's long-term readiness. Regular inspections and performance reviews during and after the contract period are necessary to assess this effectiveness.
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: $6,909,744
Exercised Options: $6,909,744
Current Obligation: $6,909,744
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
Start Date: 2026-01-12
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-12
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- 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 — $4.6M (Department of Transportation)
- BOB Hope FY26 Repairs a Key-Bhp26-1005 a — $4.0M (Department of Transportation)
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