Maritime Administration awards $5.5M for FY26 ship repairs, highlighting deep sea freight transportation needs

Contract Overview

Contract Amount: $5,506,528 ($5.5M)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-01-26

End Date: 2026-09-30

Contract Duration: 247 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: BRITTIN FISCAL YEAR (FY) 26 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 $5.5 million to KEYSTONE SHIPPING SERVICES, INC. for work described as: BRITTIN FISCAL YEAR (FY) 26 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 addresses essential maintenance for operational readiness in the deep sea freight sector. 2. Full and open competition suggests a potentially competitive bidding process. 3. Delivery order structure indicates a specific, defined scope of work. 4. The contract duration of 247 days aligns with typical repair cycles. 5. Focus on repairs underscores the importance of maintaining existing assets. 6. The award to Keystone Shipping Services, Inc. warrants a review of their past performance.

Value Assessment

Rating: fair

The contract value of $5.5 million for ship repairs appears reasonable given the scope of work, which includes specific approved items on a ship's business plan. Without detailed breakdowns of the repair items or comparisons to similar recent contracts for vessels of comparable size and type, a precise value-for-money assessment is challenging. However, the cost-no-fee pricing structure suggests that the contractor is incentivized to manage costs effectively, as their profit is not directly tied to the total cost incurred. Further analysis would require benchmarking against industry standards for similar repair projects.

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 is generally favored for maximizing competition and achieving the best possible pricing for the government. The number of bidders is not specified, but the use of full and open competition suggests a robust process designed to attract multiple proposals. This level of competition is expected to drive down costs and improve the quality of services offered.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive prices, preventing potential overcharges and ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are likely the users of the deep sea freight transportation services, who will benefit from a well-maintained vessel. The services delivered include specific, approved repair work essential for the ship's operational status. The geographic impact is primarily related to the operational routes of the vessel, supporting maritime trade. Workforce implications include employment for skilled labor involved in ship repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the repair items makes it difficult to assess if the $5.5M is fully justified.
The 'cost no fee' structure, while incentivizing cost control, can sometimes lead to disputes if not managed meticulously.
No information is provided on the contractor's specific experience with this type of vessel or repair.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
The contract addresses critical repairs, ensuring the continued operation of vital transportation assets.
The delivery order format implies a clear scope, reducing ambiguity in project execution.

Sector Analysis

This contract falls within the Maritime Transportation sector, specifically focusing on the maintenance and repair of vessels engaged in deep sea freight. The market for maritime vessel repair is substantial, driven by the global nature of shipping and the need for continuous operational readiness. This contract represents a portion of the government's investment in maintaining its maritime capabilities, ensuring the reliability of freight transportation services. Benchmarking against similar repair contracts for commercial or government vessels of comparable size and complexity would provide further context on cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Keystone Shipping Services, Inc., may engage small businesses as subcontractors based on their own procurement practices and the availability of specialized services required for the repairs. The overall impact on the small business ecosystem would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Maritime Administration (MARAD) within the Department of Transportation. Accountability measures would include adherence to the delivery order's scope of work, performance standards, and delivery schedules. Transparency is facilitated through the contract award process, which was conducted under full and open competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

Maritime Security Programs
Jones Act Vessels
U.S. Merchant Marine
Shipbuilding and Repair Industry

Risk Flags

Potential for cost overruns if unforeseen issues arise during repairs.
Risk of quality compromises under a 'cost no fee' structure without stringent oversight.
Dependence on contractor's past performance and technical expertise.
Potential delays impacting vessel availability for its intended freight operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.5 million to KEYSTONE SHIPPING SERVICES, INC.. BRITTIN FISCAL YEAR (FY) 26 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 $5.5 million.

What is the period of performance?

Start: 2026-01-26. End: 2026-09-30.

What is the specific nature of the 'approved specific work items' for the FY26 repairs, and how do they align with the vessel's overall maintenance plan?

The provided data does not detail the specific 'approved specific work items' for the FY26 repairs. These items are typically outlined in a ship's approved business plan or maintenance schedule, which is developed by the owner or operator in accordance with regulatory requirements and operational needs. For this contract, the Maritime Administration (MARAD) has identified these specific items as necessary for the vessel's upkeep. To understand the alignment, one would need access to the vessel's business plan and the detailed statement of work for this delivery order. Generally, such repairs could include hull maintenance, engine overhauls, system upgrades, or safety equipment replacements, all aimed at ensuring the vessel's seaworthiness, efficiency, and compliance with maritime regulations.

How does the $5.5 million award compare to historical spending on similar repairs for this vessel or comparable vessels within the Maritime Administration's fleet?

A direct comparison of the $5.5 million award to historical spending on similar repairs for this specific vessel or comparable vessels within the Maritime Administration's fleet is not possible with the provided data. Historical spending records, including previous repair contracts, their scope, and costs, would be necessary for such an analysis. Benchmarking against similar contracts awarded by MARAD or other government agencies for vessels of comparable size, age, and operational type (e.g., deep sea freight carriers) would also be crucial. Without this comparative data, it is difficult to definitively assess whether this award represents a favorable price or indicates potential cost escalations.

What is Keystone Shipping Services, Inc.'s track record with the Maritime Administration and other federal agencies, particularly concerning ship repair contracts?

The provided data identifies Keystone Shipping Services, Inc. as the contractor but does not include information on their specific track record with the Maritime Administration (MARAD) or other federal agencies. A comprehensive assessment of their performance history would require accessing contract databases (like SAM.gov or FPDS), past performance reviews, and any documented instances of successful project completion, cost overruns, or contract disputes. Understanding their experience with similar types of vessels and repair scopes is critical to evaluating their capability to successfully execute this $5.5 million contract and to gauge the associated performance risk.

What are the key performance indicators (KPIs) that will be used to measure the success of this repair contract, and what are the potential risks associated with achieving them?

The key performance indicators (KPIs) for this repair contract are not explicitly stated in the provided data but would typically include adherence to the delivery schedule (contract end date of September 30, 2026), completion of all specified work items within the approved scope, and meeting quality standards for the repairs. Potential risks associated with achieving these KPIs include unforeseen technical challenges during repairs, delays in material procurement, labor shortages, or scope creep if additional necessary work is identified and requires modification. The 'cost no fee' structure also introduces a risk of the contractor potentially cutting corners on quality to manage costs, necessitating robust government oversight to ensure all work is performed to standard.

Given the 'cost no fee' pricing structure, what mechanisms are in place to ensure cost control and prevent potential inefficiencies or overcharging by the contractor?

The 'cost no fee' (CNF) pricing structure means the contractor is reimbursed for allowable costs incurred, plus a fixed fee that is not tied to the total cost. While this incentivizes cost control, the primary mechanism for ensuring cost efficiency and preventing overcharging lies in robust government oversight and auditing. MARAD officials will need to meticulously review and approve all claimed costs, ensuring they are reasonable, allocable, and allowable under the contract terms. This involves verifying invoices, timesheets, and material receipts. Furthermore, the contract likely includes clauses that allow the government to audit the contractor's records. Clear definitions of allowable costs and a well-defined scope of work are crucial to prevent ambiguity that could lead to disputes or inflated costs.

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: $5,506,528

Exercised Options: $5,506,528

Current Obligation: $5,506,528

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