[Federal Register Volume 83, Number 21 (Wednesday, January 31, 2018)]
[Notices]
[Pages 4552-4554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01851]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
Voluntary Intermodal Sealift Agreement; Changes to the Open
Season Enrollment Period
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Notice.
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SUMMARY: The Maritime Administration (MARAD) announces that it is
changing the open season enrollment procedures for U.S.-flag vessel
operators wishing to enroll their vessels in the Voluntary Intermodal
Sealift Agreement (VISA) program. Specifically, MARAD will no longer
announce an annual open season for enrollment. MARAD invites interested
U.S.-flag vessel operators that are not currently in the program to
apply at any time throughout the year. The open enrollment change will
be in line with new requirements in the Department of Defense (DOD)
VISA contingency contract.
Any U.S.-flag vessel operator organized under the laws of a state
of the United States or the District of Columbia, and 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 access to vessels, vessel
space, intermodal systems and equipment, terminal facilities, and
related management services, to the 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
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participants priority for peacetime cargos.
DATES: VISA program applications may be submitted at any time.
ADDRESSES: Submit applications and questions related to this notice to
William G. McDonald, 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: William G. McDonald, 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, electronic mail to
[email protected] or visit http://www.marad.dot.gov.
SUPPLEMENTARY INFORMATION: The VISA program was established pursuant to
Sec. 708 of the Defense Production Act of 1950, as amended (DPA) (50
U.S.C. 4558). 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. Barge 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 Program
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, U.S. Transportation Command
(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.
Change to Enrollment Process
Historically, the VISA program's annual open season enrollment
period was tied to DOD's peacetime cargo contracting cycle which was
based on the Government's fiscal year (October 1 through September 30)
and VISA participants' capacity commitments were locked in for an
annual period. Currently, DOD's new contract requirements have been
revised and state that if any change in a VISA participant's U.S.-flag
fleet is necessary during the period of their contract, a minimum 30-
day notice must be provided to USTRANSCOM identifying the change.
Therefore, MARAD is no longer required to announce an annual open
season because DOD modifies VISA participants' capacity commitments and
contingency contracts throughout the year. This new process adds
efficiency and eliminates redundancy.
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 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 enroll 100% of their
entire U.S.-flag militarily useful capacity and associated services to
the VISA program and commit no less than 50 percent of its total U.S.-
flag 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
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
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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 pt. 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 USTRANSCOM resulting in prices in
contingency contracts between DOD and the participant.
Security Clearances
All VISA applicants accepted for VISA participation, but which do
not have 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 will
initiate the clearance process with DSS. Participants must have a FCL
and individual 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 Program 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 October 29, 2014,
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.
Applicants must provide the following: U.S. citizenship
documentation; copy of their Articles of Incorporation and bylaws;
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.
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.
Approved VISA participants will be responsible for ensuring that
information submitted with their application remains up to date beyond
the approval process. If charter agreements are due to expire,
participants must provide MARAD with charters that extend the charter
duration for another 12 months or longer.
After VISA eligibility is approved by MARAD, approved applicants
are required to execute a VISA Contingency Contract with USTRANSCOM.
The USTRANSCOM VISA Contingency Contract will specify the following:
Participant's Stage III commitment, and appropriate Stage I and/or II
commitments for the period of performance; Drytime Contingency terms
and conditions; and Liner Contingency terms and conditions, if
applicable. If any change is expected in the Contractor's U.S. flag
fleet during the period of the applicable VISA Contingency Contract, a
minimum 30-day notice shall be provided to MARAD and USTRANSCOM
identifying the change and to alter the VISA Capacity Commitment
indicated on Attachment 1 of the VISA Contingency Contract.
Execution of the USTRANSCOM VISA Contingency 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, 1.93.
* * * * *
By Order of the Maritime Administrator.
Dated: January 26, 2018.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2018-01851 Filed 1-30-18; 8:45 am]
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