Navy awards $13.5M contract for ship berthing services, highlighting a firm-fixed-price structure

Contract Overview

Contract Amount: $13,525,456 ($13.5M)

Contractor: Keystone Ship Berthing Inc

Awarding Agency: Department of Defense

Start Date: 2002-10-07

End Date: 2008-05-31

Contract Duration: 2,063 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: 200303!000014!1700!G0133 !MILITARY SEALIFT COMMAND HEADQUA!N0003303C1011 !A!N! !N! !20021007!20031130!175315100!175315100!175315100!N!KEYSTONE SHIP BERTHING INC !4443 HERSCHEL ST !JACKSONVILLE !FL!32210!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000001800000!N!N!000008475026!V999!OTHER TRANSPORTATION TRAVEL & RELOCATION SERVICES !A3 !SHIPS !2SJF!HOSPITAL SHIP-AH !488390!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!001!B! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to KEYSTONE SHIP BERTHING INC for work described as: 200303!000014!1700!G0133 !MILITARY SEALIFT COMMAND HEADQUA!N0003303C1011 !A!N! !N! !20021007!20031130!175315100!175315100!175315100!N!KEYSTONE SHIP BERTHING INC !4443 HERSCHEL ST !JACKSONVILLE !FL!32210!04000!510!24!BALTIMORE !BALTI… Key points: 1. Contract awarded for ship berthing services, indicating a need for logistical support. 2. The firm-fixed-price structure suggests predictable costs for the Navy. 3. Competition dynamics for this contract are not detailed, impacting price discovery assessment. 4. The contract duration of over 5 years implies a long-term requirement for these services. 5. Geographic focus on Baltimore, Maryland, points to specific operational needs. 6. The service falls under 'Other Support Activities for Water Transportation', a niche but critical sector.

Value Assessment

Rating: fair

The awarded amount of $13.5 million for ship berthing services over approximately 5.7 years (2063 days) needs further benchmarking against similar contracts. Without detailed breakdowns of services provided (e.g., duration of berthing, specific vessel types, included services), a precise value-for-money assessment is challenging. The firm-fixed-price contract type generally aims for cost certainty, but the absence of comparative data makes it difficult to definitively state if this represents excellent value.

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. However, the data does not specify the number of bidders that participated in the competition. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, while a lower number might suggest limited market capacity or specific technical requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and encourage innovation, leading to better use of public funds.

Public Impact

The primary beneficiaries are the U.S. Navy, receiving essential logistical support for its vessels. Services delivered include berthing for ships, likely supporting operational readiness and maintenance. The geographic impact is concentrated in Baltimore, Maryland, supporting naval operations in that region. Workforce implications may include employment opportunities for personnel involved in ship support and maritime services in the Baltimore area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it difficult to assess if the full value was obtained.
Limited information on the number of bidders prevents a thorough analysis of competitive pressure.
The duration of the contract could lead to price escalation if market conditions change significantly.

Positive Signals

Awarded under full and open competition, suggesting a broad search for the best value.
Firm-fixed-price contract provides cost certainty for the government.
The contract supports critical naval operations, ensuring readiness.

Sector Analysis

This contract falls within the broader 'Other Transportation' sector, specifically focusing on support activities for water transportation. This niche involves essential services that enable the efficient operation of maritime assets. The market for such services can be specialized, often requiring specific certifications and proximity to naval facilities. Benchmarking would ideally compare this to other contracts for similar berthing or port support services within the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Keystone Ship Berthing Inc., is likely a larger entity capable of fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, a component of the Department of Defense. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Berthing Services
Port Operations Support
Maritime Logistics Contracts
Department of Defense Ship Maintenance Contracts

Risk Flags

Potential for cost increases over the contract's long duration.
Limited transparency on the number of bidders impacting price discovery assessment.
Scope of 'ship berthing' services requires further clarification for full value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to KEYSTONE SHIP BERTHING INC. 200303!000014!1700!G0133 !MILITARY SEALIFT COMMAND HEADQUA!N0003303C1011 !A!N! !N! !20021007!20031130!175315100!175315100!175315100!N!KEYSTONE SHIP BERTHING INC !4443 HERSCHEL ST !JACKSONVILLE !FL!32210!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000001800000!N!N!000008475026!V999!OTHER TRANSPORTATION TRAVEL & RELOCATION SERVICES !A3 !SHIPS !2SJF!HOSPITAL SHIP-AH !488390!A!A!3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is KEYSTONE SHIP BERTHING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2002-10-07. End: 2008-05-31.

What specific services are included under 'ship berthing' in this contract?

The provided data identifies the contract's purpose as 'OTHER TRANSPORTATION TRAVEL & RELOCATION SERVICES' with a Product Service Code (PSC) of 'V999' and a description of 'OTHER TRANSPORTATION TRAVEL & RELOCATION SERVICES'. While the headline mentions 'ship berthing', the detailed service breakdown is not available in the provided data snippet. Typically, ship berthing services can encompass a range of support, including providing a secure location for vessels, utility connections (power, water), waste management, security, and potentially minor maintenance or personnel access facilitation. The exact scope would be detailed in the contract's statement of work (SOW), which is not included here. Understanding the precise services is crucial for a comprehensive value assessment.

How does the $13.5 million award compare to similar ship berthing contracts?

A direct comparison of the $13.5 million award for ship berthing services is challenging without access to a broader dataset of similar contracts. Factors influencing cost include the duration of the contract (approximately 5.7 years in this case), the specific location (Baltimore, MD), the types and sizes of vessels to be berthed, and the range of ancillary services provided. Contracts for berthing services can vary significantly based on these parameters. To benchmark effectively, one would need to identify contracts with comparable durations, geographic locations, and service scopes awarded by the Department of Defense or other federal agencies. The firm-fixed-price nature suggests cost predictability, but the actual value depends on the market rates for these specific services in the Baltimore region during the contract period.

What is the track record of Keystone Ship Berthing Inc. with federal contracts?

The provided data identifies 'KEYSTONE SHIP BERTHING INC' as the contractor. To assess their track record, a review of their past federal contract awards would be necessary. This would involve searching federal procurement databases (like FPDS or SAM.gov) for previous contracts awarded to this entity. Key aspects to examine would include the types of services previously provided, the total value of contracts awarded, their performance history (any reported issues or successes), and their experience with similar government agencies or requirements. Without this historical data, it's difficult to gauge their reliability and past performance in fulfilling government obligations.

What are the potential risks associated with a contract of this duration and type?

Contracts with a duration of over five years, like this one (2063 days, approx. 5.7 years), carry inherent risks. Market conditions, such as inflation or changes in the cost of labor and materials, can fluctuate significantly over such a period, potentially impacting the contractor's profitability or leading to requests for equitable adjustments if not adequately addressed in the contract terms. For a firm-fixed-price contract, the risk of cost overruns generally lies with the contractor, but unforeseen circumstances could still pose challenges. Additionally, long-term reliance on a single contractor could reduce flexibility if the government's needs evolve or if a better alternative emerges. Ensuring robust performance metrics and clear termination clauses are crucial risk mitigation strategies.

How does this spending align with broader federal transportation or maritime support budgets?

This $13.5 million contract for ship berthing services represents a specific allocation within the Department of the Navy's budget, likely falling under operational support or readiness accounts. To understand its alignment with broader federal budgets, one would need to examine the overall spending on maritime logistics, port services, and naval operational support. The Navy's budget is substantial, encompassing shipbuilding, personnel, training, and operational expenses. Contracts like this are essential components of maintaining fleet readiness and operational capability. Comparing this expenditure to the total budget for maritime support activities would provide context on its relative significance and efficiency within the larger federal transportation and defense spending landscape.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 4443 HERSCHEL ST, JACKSONVILLE, FL, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline