[Federal Register Volume 78, Number 208 (Monday, October 28, 2013)]
[Notices]
[Pages 64287-64289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25376]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
Voluntary Intermodal Sealift Agreement Open Season
AGENCY: Maritime Administration, DOT.
ACTION: Notice of open season for enrollment in the VISA program.
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SUMMARY: The Maritime Administration (MARAD) announces that the open
season for Fiscal Year 2014 applications for participation in the
Voluntary Intermodal Sealift Agreement (VISA) program will run for 30
days beginning today and ending November 27, 2013. 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 apply. This is
the only planned enrollment period for carriers to join the VISA
program and derive benefits for Department of Defense (DOD) peacetime
contracts initiated during the period from October 1, 2013, through
September 30, 2014.
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 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. Carriers enrolled in the VISA program provide DOD with
assured access to such services during contingencies. In return for
their VISA commitment, DOD gives VISA participants priority for
peacetime cargos.
DATES: VISA Program applications must be received on or before November
27, 2013.
ADDRESSES: Submit applications and questions related to this notice to
Jerome D. Davis, Director, Office of Sealift Support, U.S. Department
of Transportation, Maritime Administration, 1200 New Jersey Avenue SE.,
Washington, DC 20590. Telephone (202) 366-0688; Fax (202) 366-5904.
FOR FURTHER INFORMATION CONTACT: Jerome D. Davis, Director, Office of
Sealift Support, U.S. Department of Transportation, Maritime
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590.
Telephone (202) 366-0688; Fax (202) 366-5904, or visit http://www.marad.dot.gov.
SUPPLEMENTARY INFORMATION: The VISA program was established pursuant to
Section 708 of the Defense Production Act of 1950, as amended (DPA).
The VISA program was created to provide for voluntary agreements for
emergency preparedness programs. Pursuant to the DPA, voluntary
agreements for preparedness programs, including the VISA program expire
five (5) years after the date they became effective.
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 VISA.
Voyage and space charterers are not considered U.S.-flag vessel
operators for purposes of VISA eligibility.
VISA Concept
The VISA program provides for the staged, time-phased availability
of participants' shipping services/systems through pre-negotiated
contracts between the Government and participants. Such arrangements
are jointly planned with the MARAD, USTRANSCOM, and participants in
peacetime to allow effective and best valued use of commercial sealift
capacity, provide DOD assured contingency access, and to minimize
commercial disruption.
There are three time-phased stages in the event of VISA activation.
VISA Stages I and II provide for pre-negotiated 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 provides
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.
Exceptions to This Open Season
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
In return for their VISA commitment, DOD awards peacetime cargo
contracts to VISA participants on a priority basis. 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; and
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Foreign-owned or operated foreign-flag vessel capacity of non-
participants.
Participation
Applicants must provide satisfactory evidence that the vessels
being committed to the VISA program are operational and are intended to
be operated by the applicant in the carriage of commercial or
government preference cargoes. Operator is defined as an ocean common
carrier or contract carrier that owns, controls or manages vessels by
which ocean transportation is provided. While vessel brokers, freight
forwarders, and agents play an important role as a conduit to locate
and secure appropriate vessels for the carriage of DOD cargo, they are
not eligible to participate in the VISA program due to lack of
requisite vessel ownership or operation.
Commitment
Any U.S.-flag vessel operator desiring to receive priority
consideration for 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 MARAD 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 MARAD 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 include the tracking system used in their VISA application. Such
applicants are required to provide MARAD 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.
Security Clearances
All VISA applicants accepted for VISA participation, not having a
Facility Security Clearance (FCL), will be required to pursue the
clearance process with the Defense Security Service (DSS). If the
accepted applicant does not have a clearance, MARAD and USTRANSCOM will
initiate the clearance process with DSS. Participants must have a FCL
and security clearances at a minimum of SECRET level for key personnel
in order for them to participate in the VISA Joint Planning Advisory
Group (JPAG) meetings and to meet VISA contingency contract
obligations. One of the objectives of the JPAG is to provide the
USTRANSCOM, MARAD and VISA participants a planning forum to analyze DOD
contingency sealift/intermodal service and resource requirements
against industry commitments. JPAG meetings are often SECRET classified
sessions. Eligibility for VISA participation will be terminated if an
applicant is rejected for a facility clearance or if it fails to
progress in a timely manner in the clearance process.
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. 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 MARAD 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 MARAD and USTRANSCOM not later than seven days after the change. If
charter agreements are due to expire, participants must provide MARAD
with charters that extend the charter duration for another 12 months or
longer.
Once MARAD has reviewed the application and determined VISA
eligibility, MARAD will sign the VISA application document which
completes the eligibility phase of the VISA enrollment process.
After VISA eligibility is approved by MARAD, approved applicants
are required to execute a VISA contingency contract with USTRANSCOM.
The USTRANSCOM VISA contract will specify the following: Participant's
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Stage III commitment, and appropriate Stage I and/or II commitments for
the period October 1, 2013 through September 30, 2014; Drytime
Contingency terms and conditions; and Liner Contingency terms and
conditions, if applicable.
Execution of the USTRANSCOM VISA contract completes the enrollment
process and establishes the approved applicant as a VISA Participant.
The Maritime Administration reserves the right to revalidate all
eligibility requirements without notice. USTRANSCOM reserves the right
to revalidate eligibility for VISA priority for DOD business at any
time without notice.
Authority: 49 CFR 1.92 and 1.93.
* * * * *
By Order of the Maritime Administrator.
Dated: October 22, 2013.
Julie P. Agarwal,
Secretary, Maritime Administration.
[FR Doc. 2013-25376 Filed 10-25-13; 8:45 am]
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