[Federal Register Volume 75, Number 165 (Thursday, August 26, 2010)]
[Notices]
[Pages 52594-52595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21313]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
Voluntary Intermodal Sealift Agreement (VISA)
AGENCY: Maritime Administration, DOT.
ACTION: Notice of open season for enrollment in the VISA program.
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Introduction
The VISA program was established pursuant to section 708 of the
Defense Production Act of 1950, as amended (DPA), which provides for
voluntary agreements for emergency preparedness programs. VISA was
approved for a two year term on January 30, 1997, and published in the
Federal Register on February 13, 1997, (62 FR 6837). Approval is
currently extended until October 1, 2011, as published in the Federal
Register on March 24, 2010 (75 FR 14245).
As implemented, the VISA program is open to U.S.-flag vessel
operators of oceangoing militarily useful vessels, to include tugs and
barges. An operator is defined as an owner or bareboat charterer of a
vessel. Tug enrollment alone does not satisfy VISA eligibility.
Operators include vessel owners and bareboat charter operators if
satisfactory signed agreements are in place committing the assets of
the owner to the bareboat charterer for purposes of VISA. Voyage and
space charterers are not considered U.S.-flag vessel operators for
purposes of VISA eligibility.
VISA Concept
The mission of VISA is to provide commercial sealift and intermodal
shipping services and systems, including vessels, vessel space,
intermodal systems and equipment, terminal facilities, and related
management services, to the Department of Defense (DOD), as necessary,
to meet national defense contingency requirements or national
emergencies.
VISA provides for the staged, time-phased availability of
participants' shipping services/systems to meet contingency
requirements through prenegotiated contracts between the Government and
participants. Such arrangements are jointly planned with the Maritime
Administration, U.S. Transportation Command (USTRANSCOM), and
participants in peacetime to allow effective and best valued use of
commercial sealift capacity, to provide DOD assured contingency access,
and to minimize commercial disruption, whenever possible.
There are three time-phased stages in the event of VISA activation.
VISA Stages I and II provide for prenegotiated contracts between DOD
and participants to provide sealift capacity to meet all projected DOD
contingency requirements. These contracts are executed in accordance
with approved DOD contracting methodologies. VISA Stage III will
provide for additional capacity to DOD when Stages I and II commitments
or volunteered capacity are insufficient to meet contingency
requirements, and adequate shipping services from non-participants are
not available through established DOD contracting practices or U.S.
Government treaty agreements.
VISA Annual Enrollment Open Season
The purpose of this notice is to invite interested, qualified U.S.-
flag vessel operators that are not currently enrolled in the VISA
program to participate. The annual enrollment is intended to link the
VISA enrollment cycle with DOD's peacetime cargo contracting to ensure
eligible participants priority consideration for DOD awards of cargo.
Alignment of VISA enrollment and eligibility for VISA priority will
solidify the linkage between commitment of contingency assets by VISA
participants and receiving VISA priority consideration for the award of
DOD peacetime cargo. This is the only planned enrollment period for
carriers to join the VISA program and derive benefits for DOD peacetime
contracts during the time frame of October 1, 2010 through September
30, 2011. The only exception to this open season period for VISA
enrollment will be for a non-VISA carrier that reflags a vessel into
U.S. registry. That carrier may submit an application to participate in
the VISA program at any time upon completion of reflagging.
Advantages of Peacetime Participation
Because enrollment of carriers in the VISA program provides DOD
with assured access to sealift services during contingencies based on a
level of commitment, as well as a mechanism for joint planning, DOD
awards peacetime cargo contracts to VISA participants on a priority
basis. This applies to liner trades and charter contracts alike. Award
of DOD cargoes to meet DOD peacetime and contingency requirements is
made on the basis of the following priorities:
U.S.-flag vessel capacity operated by VISA participants
and U.S.-flag Vessel Sharing Agreement (VSA) capacity held by VISA
participants.
U.S.-flag vessel capacity operated by non-participants.
Combination U.S.-flag/foreign-flag vessel capacity
operated by VISA participants, and combination U.S.-flag/foreign-flag
VSA capacity held by VISA participants.
Combination U.S.-flag/foreign-flag vessel capacity
operated by non-participants.
U.S.-owned or operated foreign-flag vessel capacity and
VSA capacity held by VISA participants.
U.S.-owned or operated foreign-flag vessel capacity and
VSA capacity held by non-participants.
Foreign-owned or operated foreign-flag vessel capacity of
non-participants.
Participation
Any U.S.-flag vessel operator organized under the laws of a state
of the United States, or the District of Columbia, who is able and
willing to commit militarily useful sealift assets and assume the
related consequential risks of commercial disruption, may be eligible
to participate in the VISA program. The term ``operator'' is defined in
the VISA document as ``an ocean common carrier or contract carrier that
owns, controls or manages vessels by which ocean transportation is
provided''. Applicants wishing to become participants must provide
satisfactory evidence that the vessels being committed to the VISA
program are operational and that vessels are intended to be operated by
the applicant in the carriage of commercial or government preference
cargoes. While vessel brokers, freight forwarders and agents play an
important role as a
[[Page 52595]]
conduit to locate and secure appropriate vessels for the carriage of
DOD cargo, they may not become participants in the VISA program due to
lack of requisite vessel ownership or operation. However, brokers,
freight forwarders and agents should encourage the carriers they
represent to join the program.
Commitment
Any U.S.-flag vessel operator desiring to receive priority
consideration in the award of DOD peacetime contracts must commit no
less than 50 percent of its total U.S.-flag militarily useful capacity
in Stage III of the VISA program. Participants operating vessels in
international trade may receive top tier consideration in the award of
DOD peacetime contracts by committing the minimum percentages of
capacity to all three stages of VISA or bottom tier consideration by
committing the minimum percentage of capacity to only Stage III of
VISA. USTRANSCOM and the Maritime Administration will coordinate to
ensure that the amount of sealift assets committed to Stages I and II
will not have an adverse national economic impact. To minimize domestic
commercial disruption, participants operating vessels exclusively in
the domestic Jones Act trades are not required to commit the capacity
of those U.S. domestic trading vessels to VISA Stages I and II. Overall
VISA commitment requirements are based on annual enrollment.
In order to protect a U.S.-flag vessel operator's market share
during contingency activation, VISA allows participants to join with
other vessel operators in Carrier Coordination Agreements (CCAs) to
satisfy commercial or DOD requirements. VISA provides a defense against
antitrust laws in accordance with the DPA. CCAs must be submitted to
the Maritime Administration for coordination with the Department of
Justice for approval, before they can be utilized.
Vessel Position Reporting
If VISA applicants have the capability to track their vessels, they
must state which system is used in their VISA application and will be
required to provide the Maritime Administration with access to their
vessel tracking systems upon approval of their VISA application. If
VISA applicants do not have a tracking system, they must indicate this
in their VISA application. The VISA program requires enrolled ships to
comply with 46 CFR Part 307, Establishment of Mandatory Position
Reporting System for Vessels.
Compensation
In addition to receiving priority in the award of DOD peacetime
cargo, a participant will receive compensation during contingency
activation for that capacity activated under Stage I, II and III. The
amount of compensation will depend on the Stage at which capacity is
activated. During enrollment, each participant must select one of
several compensation methodologies. The compensation methodology
selection will be completed with the appropriate DOD agency, resulting
in prices in contingency contracts between DOD and the participant.
Application for VISA Participation
New applicants may apply to participate by obtaining a VISA
application package (Form MA-1020 (OMB Approval No. 2133-0532)) from
the Director, Office of Sealift Support, at the address indicated
below. Form MA-1020 includes instructions for completing and submitting
the application, blank VISA Application forms and a request for
information regarding the operations and U.S. citizenship of the
applicant company. A copy of the VISA document as published in the
Federal Register on March 24, 2010, will also be provided with the
package. This information is needed in order to assist the Maritime
Administration in making a determination of the applicant's
eligibility. An applicant company must provide an affidavit that
demonstrates that the company is qualified to document a vessel under
46 U.S.C. 12103, and that it owns, or bareboat charters and controls,
oceangoing, militarily useful vessel(s) for purposes of committing
assets to the VISA program.
New VISA applicants are required to submit their applications for
the VISA program as described in this Notice no later than 30 days
after the date of publication of this Federal Register notice.
Applicants must provide the following:
U.S. citizenship documentation;
Copy of their Articles of Incorporation and/or By Laws;
Copies of loadline documents from a recognized
classification society to validate oceangoing vessel capability;
U.S. Coast Guard Certificates of Documentation for all
vessels in their fleet;
Copy of Bareboat Charters, if applicable, valid through
the period of enrollment, which state that the owner will not interfere
with the charterer's obligation to commit chartered vessel(s) to the
VISA program for the duration of the charter; and
Copy of Time Charters, valid through the period of
enrollment, for tug services to barge operators, if sufficient tug
service is not owned or bareboat chartered by the VISA applicant. Barge
operators must provide evidence to MARAD that tug service of sufficient
horsepower will be available for all barges enrolled in the VISA
program.
Approved VISA participants will be responsible for ensuring that
information submitted with their application remains up to date beyond
the approval process. Any changes to VISA commitments must be reported
to the Maritime Administration and USTRANSCOM not later than seven days
after the change. If charter agreements are due to expire, participants
must provide the Maritime Administration with charters that extend the
charter duration for another 12 months or longer.
Once the Maritime Administration has reviewed the application and
determined VISA eligibility, the Maritime Administration will sign the
VISA application document which completes the eligibility phase of the
VISA enrollment process.
After VISA eligibility is approved by the Maritime Administration,
approved applicants are required to execute a joint VISA Enrollment
Contract (VEC) with DOD [USTRANSCOM and the Military Sealift Command
(MSC)] which will specify the participant's Stage III commitment, and
appropriate Stage I and/or II commitments for the period October 1,
2010 through September 30, 2011. Once the VEC is completed, the
applicant completes the DOD contracting process by executing a Drytime
Contingency Contract (DCC) with MSC and, if applicable, a VISA
Contingency Contract (VCC) with USTRANSCOM (for Liner Operators). The
Maritime Administration reserves the right to revalidate all
eligibility requirements without notice.
For Additional Information And Applications Contact: Jerome D. Davis,
Director, Office of Sealift Support, U.S. Maritime Administration, 1200
New Jersey Avenue, SE., Washington, DC 20590. Telephone (202) 366-0688;
Fax (202) 366-5904. Other information about the VISA can be found on
the Maritime Administration's Internet Web Page at http://www.marad.dot.gov.
(Authority: 49 CFR 1.66)
Dated: August 20, 2010.
By Order of the Maritime Administrator.
Christine Gurland,
Secretary, Maritime Administration.
[FR Doc. 2010-21313 Filed 8-25-10; 8:45 am]
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