DoD's $119M Port Operations Contract Awarded to Keystone Ship Berthing Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $11,932,267 ($11.9M)
Contractor: Keystone Ship Berthing Inc
Awarding Agency: Department of Defense
Start Date: 2006-01-27
End Date: 2011-05-04
Contract Duration: 1,923 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: ORANGE PARK, CLAY County, FLORIDA, 32073
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $11.9 million to KEYSTONE SHIP BERTHING INC for work described as: Key points: 1. Significant contract value of $119.3 million over 5 years. 2. Awarded under full and open competition, suggesting a competitive market. 3. Potential risk associated with long-term contracts and service continuity. 4. Focuses on port and harbor operations, a critical defense infrastructure need.
Value Assessment
Rating: good
The contract value of $119.3 million over 1923 days (approximately 5.2 years) suggests a substantial investment. Without specific per-unit cost data or comparable contracts, a precise pricing assessment is difficult, but the duration and scope imply a significant operational requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for essential port and harbor operations.
Public Impact
Ensures continued operational readiness for naval ports and harbors. Supports critical logistics and infrastructure for national defense. Provides employment opportunities within the maritime services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation or service degradation if not managed.
- Dependence on a single contractor for critical port operations.
- Potential for unforeseen operational challenges impacting cost and schedule.
Positive Signals
- Awarded via full and open competition, indicating market responsiveness.
- Firm Fixed Price contract provides cost certainty for the government.
- Contract supports essential defense infrastructure.
Sector Analysis
Port and harbor operations are a specialized segment within the broader defense logistics and services sector. Spending in this area is driven by national security needs and the maintenance of naval infrastructure globally. Benchmarks are difficult without specific service details.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Larger firms likely dominate this specialized sector, potentially limiting opportunities for smaller, niche providers.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Department of the Navy to ensure performance standards are met and costs remain controlled. Regular performance reviews and audits are crucial.
Related Government Programs
- Port and Harbor Operations
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Firm Fixed Price contract.
- No small business participation noted.
- Critical infrastructure service.
Tags
port-and-harbor-operations, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 million to KEYSTONE SHIP BERTHING INC. See the official description on USAspending.
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 $11.9 million.
What is the period of performance?
Start: 2006-01-27. End: 2011-05-04.
What specific services are included under 'Port and Harbor Operations' to justify the $119M cost?
The $119.3 million contract for Port and Harbor Operations likely encompasses a wide range of services essential for naval facilities. This could include vessel docking and undocking, tugboat services, maintenance of port infrastructure, security, environmental monitoring, waste management, and potentially specialized cargo handling. The exact scope dictates the cost, and a detailed breakdown would be necessary for a full value assessment.
What are the primary risks associated with a 5-year firm-fixed-price contract for port operations?
A primary risk is that unforeseen operational challenges or market fluctuations (e.g., fuel costs, labor rates) could make the fixed price unsustainable for the contractor, potentially leading to performance issues or contract disputes. Conversely, if costs decrease significantly, the government might be overpaying. Ensuring clear performance metrics and change order clauses is vital.
How does the 'full and open competition' method ensure effectiveness and value for this type of service?
Full and open competition ensures effectiveness by allowing all qualified vendors to submit proposals, fostering innovation and efficiency. This competitive pressure drives down prices and encourages high-quality service delivery to win the contract. The government benefits from a wider pool of solutions and is more likely to secure the best value proposition, ensuring the critical port operations are performed effectively.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Port and Harbor Operations
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3971 DOCTORS LAKE DRIVE, ORANGE PARK, FL, 04
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-01-27
Current End Date: 2011-05-04
Potential End Date: 2011-05-04 00:00:00
Last Modified: 2011-10-24
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