[Federal Register Volume 62, Number 135 (Tuesday, July 15, 1997)]
[Rules and Regulations]
[Pages 37733-37741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18559]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 295
[Docket No. R-163]
RIN 2133-AB24
Maritime Security Program
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Final rule.
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SUMMARY: The Maritime Administration (MARAD) is issuing this final rule
to provide procedures to implement the provisions of the Maritime
Security Act of 1996 (MSA). The MSA establishes a new Maritime Security
Program (MSP), which authorizes payments through FY 2005. The MSP
supports the operations of U.S.-flag vessels in the foreign commerce of
the United States through assistance payments. Participating vessel
operators are required to make their ships and other commercial
transportation resources available to the Government during times of
war or national emergency.
DATES: This final rule is effective July 17, 1997.
FOR FURTHER INFORMATION CONTACT: Raymond R. Barberesi, Director, Office
of Sealift Support, Telephone 202-366-2323.
SUPPLEMENTARY INFORMATION:
Background
Section 2 of the MSA amended Title VI of the Merchant Marine Act,
1936, as amended, 46 App. U.S.C. 1171 et seq. (Act), by adding a new
Subtitle B, which authorizes MSP to provide assistance for operators of
U.S.-flag vessels that meet certain qualifications. It requires the
Secretary of Transportation (Secretary) to establish a fleet of active,
militarily useful, privately owned vessels to meet national defense and
other security requirements, while also maintaining an American
presence in international commercial shipping. Section 655 of the MSA
authorized $100 million annually through fiscal year 2005 to support
the operation of up to 47 U.S.-flag vessels in the foreign commerce of
the United States. Payments to participating operators are $2.1 million
per ship, per year. Participating operators are required to make their
ships available upon request by the Secretary of Defense during times
of war or national emergency. Unlike the operating-differential subsidy
(ODS) program, the MSP has few restrictions on vessels operating in the
U.S.-foreign commerce and eligible vessels may be built in foreign
shipyards.
Interim Final Rule
As authorized by section 8 of the MSA, MARAD issued an interim
final rule on October 16, 1996, (61 FR 53861), which added a new 46 CFR
Part 295. That rule provides procedures to implement the MSA with
respect to the application for, and award of, MSP operating agreements
that provide financial assistance to operators of vessels enrolled in
the program. The program will be administered on the basis of one-year
renewable contracts, provided funding is available in subsequent years.
The rule provides that participating operators will be required to
operate eligible vessels in the foreign commerce of the United States,
and certain specified mixed foreign and domestic areas, with a minimum
of operating restrictions, for at least 320 days in any fiscal year. It
provides that payments will be made on a prorated basis for vessels
operated less than 320 days in any year, exclusive of days a MSP vessel
is being drydocked, surveyed or repaired. In addition, no payments will
be made for each day any vessel carries civilian bulk preference
cargoes of 7,500 tons or more.
The interim final rule issued on October 16, 1996, allowed an
initial comment period ending November 15, 1996. This comment period
was later extended to December 2, 1996 by notice published in the
Federal Register (61 FR 58663; November 18, 1996). MARAD received 13
comments from persons or entities with an interest in the MSP,
including vessel operators, labor unions, representatives of U.S.
shipyards, and U.S. insurers providing U.S. marine hull insurance. In
addition, on October 11, 1996, MARAD invited applications for
participation in the MSP by
[[Page 37734]]
advertisement in the Federal Register (61 FR 53483) using the
application approved under OMB Approval No. 2133-0525. Based on these
applications MARAD awarded 47 contracts for annual payment of $98.7
million. Accordingly, the application process has been closed until
such time as additional funding may become available.
Editorial and Clarifying Comments Adopted
The commentors submitted many helpful, editorial and clarifying
comments which MARAD is incorporating in the final rule. In general,
the final rule drops all references to FY 1996. The term Eligible
Contractor is being deleted as it is confusing and now holds no
relevance. The reference in Sec. 295.10(b)(3) will read ``applicant,''
not ``contractor'' and reference will be made to the Maritime Security
Fleet Program instead of Maritime Security Program in Sec. 295.1
``Purpose.'' With respect to the hull insurance comments affecting the
marine insurance industry, MARAD will encourage use of the American
market for marine hull insurance to the maximum extent possible when
rates, terms and conditions offered by American underwriters are
competitive with those offered by foreign underwriters. In order to
satisfy the Congressional intent of providing a less restrictive
program, this requirement will not be mandatory.
Summary of Substantive Comments by Section
Definition of Militarily Useful
Sec. 295.2(q)
Comment: MARAD received three comments, two that requested
clarification of the term ``militarily useful'' and one that requested
that the term be deleted entirely. According to that commentor, the
Department of Defense (DOD) is the expert in the area of military
utility and, as written, the definition exceeds the authority of the
MSA.
Response: MARAD disagrees with the comment that a definition of
``militarily useful'' exceeds the MSA. Under the MSA, responsibility
for the determination of military utility belongs to MARAD in
conjunction with DOD, pursuant to authority contained in section
651(b)(1)(c) of the Act. MARAD agrees that DOD criteria should be
considered and therefore will use the Joint Strategic Capabilities Plan
(JSCAP) definition of ``militarily useful'' in the final rule to define
the type of vessel utility that would qualify a vessel as being
eligible for the MSP. MARAD agrees with the comments that requested
clarification and will include the applicable JSCAP definition
describing vessel types deemed acceptable for MSP use. The regulation
at Sec. 295.2(q) will be amended accordingly.
Definition of ``Related Party''
Sec. 295.2(x)(New)
Comment: MARAD received five comments from carriers on the issue of
clarifying the term ``related party'' used in numerous provisions of
the Interim Final Rule. Three commentors requested clarification of the
definition of the term and two commentors requested that the reference
be deleted from Sec. 295.12(a)(1).
Response: The term ``related party'' is defined in the MSA in
section 656(h), which specifies that the definition is for the purposes
of section 656 only. At the time the Interim Final Rule was published,
many questions concerning the interpretation of section 656 had not
been resolved and references to the non-contiguous domestic trades were
not finalized. As a result, no definition of this term was
contemplated. However, in view of the comments received and the use of
the term in section 652(i) of the Act and its reflective language in
Sec. 295.12 of the regulations, MARAD agrees that a general definition
is required. Accordingly, MARAD believes consistency requires that the
definition used in section 656(h) of the Act be used in general in the
regulations. That definition will be added to the definitions section
of the regulations with a new Sec. 295.2(x) ``Related Party.''
With regard to the reference to related parties in
Sec. 295.12(a)(1), that section was intended to mirror the language of
section 652(i)(1)(A)(i) of the Act relating to the ordering of
priorities in the granting of MSP awards. However, while the pertinent
language of that section of the Act reserves the highest first priority
eligibility to citizens of the United States, the language of
Sec. 295.12(a)(1) of the interim final rule extended that priority to
include related parties. Commentors requested that the term ``related
party'' be deleted from Sec. 295.12(a)(1), ``U.S. Citizen Ownership.''
MARAD agrees and this reference will be deleted.
Applications
Sec. 295.11(a)(2) (Revised)
Since MSP is authorized only through fiscal year 2005 and since it
has been fully implemented with annual renewable contracts,
applications will only be accepted in response to public invitation by
MARAD. Section 295.11(a)(2) has been clarified to establish the limits
within which applications will be accepted by MARAD.
Reflagging U.S. Vessels on the Basis of MSP Denial
Sec. 295.11(a)(4)
Comment: One commentor suggested that MARAD make clear that the
rejection for enrollment in the MSP of any U.S.-flag vessel which
requires, but did not receive either an affirmative defense or military
purposes determination or an age waiver, does not entitle the vessel to
be transferred to foreign registry without approval by DOT under
section 9 of the Shipping Act, 1916 (46 App. U.S.C. 808) (1916 Act).
Response: Generally, section 9(c)(2) of the 1916 Act provides that
a U.S.-documented vessel may not be transferred to a foreign registry
or operated under the authority of a foreign country without the
approval of the Secretary. Section 6 of the MSA adds a new subsection
(e) to section 9 of the 1916 Act. Pursuant to paragraph (2) of the new
subsection (e) an eligible vessel which has applied for an operating
agreement under the MSP, and which has not received an award within 90
days of application, may transfer to a foreign registry without
approval by the Secretary. After careful analysis, MARAD has determined
that the new section 9(e)(2) would not remove the requirement for
approval by MARAD for transfer to foreign registry of a U.S.-flag
vessel that applied for MSP but was not qualified for award other than
by reason of age. The statute applies only to vessels eligible under
section 651(b)(1), which encompasses all vessel eligibility
requirements, with the exception of age. Therefore, if MARAD has
determined that the applicant is qualified and the vessel is eligible
under the provisions of section 651(b)(1), but does not award a MSP
operating agreement due to lack of funds or an inadequate program
level, the applicant may remove the subject vessel from U.S. registry
and reflag the vessel under a foreign registry without section 9
approval by MARAD. This reflag would only apply to vessels eligible for
awards within a priority in which awards have been authorized. Vessels
under ODS contract or on MSC charter for which MSP applications have
been denied would be eligible to reflag only after those obligations
have expired.
[[Page 37735]]
Proration
Sec. 295.12(d)(1)
Comment: Rounding problems may produce more eligible vessels than
available slots.
Response: One comment was received regarding rounding of fractional
eligibility in the proration process. The point was that inclusion of
all fractional eligibility could result in a number of eligible vessels
that exceeds the funding available for a particular priority. MARAD
agrees. However, the problem of fractional vessels versus slots was
anticipated by the language of section 652(o)(2) of the Act.
Specifically, that section states that, if the number of vessels
eligible in a priority exceeds the available funding for the priority,
the number of awards to each person shall be made in approximately the
same ratio as the number of vessels that the individual applied for
bears to the total number of vessels applied for in the priority. The
term grants latitude within the process to round awards up or down, as
needed, to correct rounding problems and adjust awards. Accordingly,
Sec. 295.12(d)(1) provides a mechanism for dealing with rounding
problems and no changes are required.
Replacement Vessels
Sec. 295.20(c)
Comment: One comment was received concerning the statutory
authority and practical application of Sec. 295.20(c), which permits
the replacement of vessels enrolled in the MSP.
Response: In section 8(a), the MSA authorizes the Secretary to
prescribe rules as necessary to carry out the MSA. Providing for the
orderly replacement of vessels enrolled in the program, should such
replacement become necessary, falls within the purview of the
Secretary's mandate under section 8(a). Practical application of such
replacement would result from the loss of an enrolled vessel, or from
an enrolled vessel otherwise becoming ineligible for participation in
the program, for example, by becoming overage. The intent of
Sec. 295.20(c) is to provide the mechanism for such replacement.
Criteria are already established. Section 295.20(c) refers back to
Sec. 295.10, which establishes the eligibility criteria and reflects
section 651 of the Act. No change will be made in Sec. 295.20(c).
Notice to Shipbuilders
Sec. 295.20(d)
Comment: MARAD received four comments on Sec. 295.20(d). Two of the
commentors stated that the section exceeded the statutory authority of
the MSA by providing that MARAD issue notice in the Federal Register of
a contractor's intent to build a vessel in a foreign shipyard, and a
third commentor stated that this notice may be harmful to MSP
contractors. The commentors suggested that MARAD simply develop a list
of shipyards capable of building various types of vessels and make the
list available to the MSP contractors. A contractor then could satisfy
the requirements of section 652(b) of the MSA by directly providing
notice to the shipbuilders. One commentor suggested that the
prohibition against entering a contract with a foreign shipbuilder be
extended from 5 to 10 working days after MARAD's publication of notice
of the applicant's intent, and also that any interested U.S.
shipbuilder should be allowed not less than 30 days, and not more than
120 days, to submit a design and price to the Maritime Administration.
Further, the commentor suggested that MARAD require MSP contractors to
make both foreign and domestic bid prices known to MARAD. MARAD would
determine whether the U.S. bid is competitive and then notify the
contractor that, if they select the foreign offer, the vessel would not
be eligible for MSP payments.
Response: MARAD's role in issuing notices in instances where an MSP
contractor proposes construction of a vessel or vessels by a foreign
shipbuilder was intended to expedite the notification process while
ensuring that every shipbuilder in the United States would have proper
and timely notice. The agency considered the idea of providing a list
of shipbuilders to each MSP contractor. However, after review, MARAD
decided that such a list would be an inadequate notification tool when
considering the ever changing maritime environment. It is appropriate
for MARAD to exercise its discretion to provide adequate notice to U.S.
shipbuilders, and it would satisfy Congressional intent that they be
given an opportunity to compete for contracts. MARAD believes that
publishing in the Federal Register is in the best interest of U.S.
shipbuilders, since these notices are public documents and potential
U.S. shipbuilders have access to the information. MARAD agrees with the
comment concerning the length of the notice period because it will
allow a more reasonable time period for U.S. shipbuilders to learn of
the notice and respond to it. Section 295.20(d) will be amended to
provide that MARAD publish notice of a contractor's intent within 10
days of notification by the contractor, and that the contractor will be
required to wait an additional 10 days from the date of publication
before entering into any contract with a foreign shipyard.
With regard to a mandatory delay of 30 to 120 days for U.S.
shipyards to respond to a foreign contracting notice published by
MARAD, MARAD does not believe that it has authority under the MSA to
require such extended delay. The apparent intent of the legislation was
only that notification be given, not that an extended delay should be
imposed. Since the notification from the contractor is required ``not
later than 30 days'' after a solicitation of a bid from a foreign yard,
the bidding process should not be sufficiently advanced that U.S.
shipyards could not provide bids in an expeditious manner. Accordingly,
MARAD will not attempt to impose any further restriction on the
contractors by requiring a longer waiting period.
With respect to the comment that MARAD evaluate bids and withhold
MSA payments if the MSP operator selects a foreign shipyard, the MSA
contains no authority for MARAD to deny an award or withhold MSP
payments based on its evaluation of the U.S. bid being competitive.
Early Termination
Sec. 295.20(e)
Comment: One commentor suggested that Sec. 295.20(e) should be
rewritten substantially in the form of section 652(m) of the Act, or
that the phrase ``* * * to the extent and for the period * * *,'' be
inserted before, ``* * * contained in section 652(m) of the Act.''
Response: Section 295.20(e) concerns the obligations of a
contractor to keep an Agreement Vessel documented under U.S. registry
if the contractor voluntarily elects to terminate the MSP Agreement
before its termination date. The inclusion of the language ``* * * to
the extent and for the period * * *'' would add some clarity to this
provision by directly linking Sec. 295.20(e) to the period of time
specified for retention under U.S. registry in section 652(m) of the
Act. Section 295.20(e) will be amended accordingly.
Termination for Lack of Funds
Sec. 295.20(f)
Comment: One commentor has proposed that the title of this part be
changed to ``Nonrenewal for Lack of Funds.'' In addition, the commentor
suggested that vessels transferred to another registry under this
regulation should be transferred to ``Effective United States Control''
registries deemed acceptable by MARAD.
[[Page 37736]]
Response: The first proposed amendment, i.e., the use of
``Nonrenewal'' vs. ``Termination,'' would conform the regulation to the
language of section 652(n) of the Act. Section 295.20(f) will be
amended accordingly. With regard to the language on ``Effective United
States Control,'' it should be noted that the language contained in
that section of the Act specifies that ``* * * the vessel owner or
operator may transfer and register such vessel under a foreign registry
deemed acceptable by the Secretary of Transportation, notwithstanding
any other provision of law.'' The language adopted in Sec. 295.20(f)
states ``* * * the contractor may transfer and register the applicable
vessel under a foreign registry deemed acceptable to the Maritime
Administration.'' Since the Administrator has been delegated authority
by the Secretary to authorize such transfers, MARAD believes that the
language contained in Sec. 295.20(f) adequately covers this situation
and that no additional change is required.
Transfer of Operating Agreements
Sec. 295.20(i)
In light of the issues raised by many commentors regarding possible
transfers of MSP operating agreements, additional safeguards have been
included in Sec. 295.20(i) to ensure that, in the event an Agreement is
transferred by a Contractor to another person or entity, the person or
entity to whom an Agreement is transferred, and the vessel to be
covered by the Agreement after transfer, meet the original eligibility
requirements.
Limitations
Sec. 295.21(e)
Comment: One commentor noted that section 804 of the Act was
substantially changed by section 5 of the MSA, and recommended that ``*
* * as amended,'' be added to the first sentence of Sec. 295.21(e)
after ``* * * section 804.''
Response: MARAD agrees, and will make the change.
Determination of Section 656 Service Level Criteria
Sec. 295.21(f)
Comment: MARAD received four extensive comments regarding how it
should interpret the statute with regard to service levels and provide
objective criteria to determine the allowable levels of service
provided by MSP contractors in noncontiguous domestic trades. Most of
the commentors requested that the service levels be determined at their
historical levels, not anticipated carrying capacity. One commentor, in
addition to advocating the use of historical capacity figures for this
purpose, suggested that the applicant or contractor submit this
information under oath, subject to validation by an objective source,
and that the number of TEU's carried in the noncontiguous trades be
reported annually by MSP contractors under oath, and subject to audit.
Response: Upon receipt of the applications for the MSP, MARAD
published notification of those applications wherein the applicants
requested approval to continue existing noncontiguous domestic
operations. These notices were separate from the Interim Final Rule,
and the comments were received separately from those of this
rulemaking. Notices were published for Sea-Land Service, Inc., for
services to Hawaii, Puerto Rico and Alaska; Crowley Maritime Corp., for
Alaska; and OSG Car Carriers, Inc., for Alaska, Hawaii, Puerto Rico and
the U.S. Virgin Islands.
Comments were received from seven commentors on the published
levels of existing service claimed by the applicants, particularly
where service to Alaska and Hawaii is involved. However, the volume and
complexity of those comments mandated a thorough and separate
examination of the implementation of section 656 of the Act.
MARAD is reserving a section in the Final Rule for determination of
limitations on operations in the non-contiguous domestic trades, and
will publish a Notice of Proposed Rulemaking regarding those provisions
after the issue has been resolved. Section 295.21(f) has been reserved
for that purpose.
Need for Financial Data
Sec. 295.23
Comment: MARAD received numerous comments which stated that the
requirement for filing form MA-172 and an audited financial statement
was beyond the statutory authority contained in the MSP and should be
removed.
MARAD does not agree. In collecting such information, MARAD is
exercising its discretion to require information necessary to perform
its responsibilities and to monitor the efficiency and effectiveness of
the maritime industry. However, in an effort to minimize the
administrative burden on the contractor, the rule has been changed.
MARAD is not requiring the submission of Form MA-172. The Final Rule
will provide that, in the alternative, an applicant may submit an
audited financial statement and vessel operating cost data submitted as
part of its Emergency Preparedness Program Agreement. Final approval of
the MSP data collection requirement was made by OMB on February 24,
1997, under approval number 2133-0525.
Reduction in Amount Payable
Sec. 295.30 (b)
Comment: MARAD received three comments which requested that the 30-
day limitation on the number of days a vessel may be drydocked,
surveyed, inspected or repaired be made more flexible.
Response. MARAD agrees in part with the commentors regarding the
30-day limitation. Some legitimate shipyard periods may require a
greater length of time. However, in its capacity as funds
administrator, the agency must assess some reasonable time frame for
work or maintenance to be performed in order to ensure that the program
is for operating vessels. Therefore, the final rule at
Sec. 295.30(b)(1) will be revised to permit greater than 30-day periods
upon approval from MARAD.
Calculation for Partial Months
Sec. 295.31(a)(3) (New)
After experience gained in the start-up of the MSP in December 1996
and January 1997, MARAD realized that clarification was required
regarding billing and payment for partial months. To remedy the
problems experienced, a new Sec. 295.31(a)(3) was developed. The new
paragraph provides for potential prorating. The original
Sec. 295.31(a)(3) has been redesignated Sec. 295.31(a)(4), and
subsequent material has been redesignated accordingly.
Withholding 10 Percent of Funds Payable Until Final Review of the
Billing Period
Sec. 295.31(a)(4)
Comment: MARAD received two comments stating that withholding 10
percent of funds payable until final review of the billing period
exceeds the authority of the MSA.
Response: MARAD disagrees with the commentors that withholding of
funds exceeds the authority granted by the MSA. Pursuant to 46 App.
U.S.C. 1114(b), the Secretary, acting through the Administrator by
delegation, has the authority to adopt all necessary rules and
regulations to carry out the Act.
The intent of Sec. 295.31(a)(4) is to provide a readily available
source for the recapture of funds in the event that
[[Page 37737]]
a Contractor fails to meet the requirements of Sec. 295.21(d). Section
295.21(d) reflects the language of section 652(b) of the Act, which
requires that a vessel must be operated in U.S.-foreign, or specified
mixed foreign and domestic trade, and must remain documented under 46
U.S.C., Chapter 121. However, MARAD agrees with the commentors that the
establishment of an across-the-board level of 10 percent would not be
necessary in all cases under the MSP. Therefore, MARAD will exercise
its discretion to withhold funds based on a carrier's normal operating
experience. Section 295.31(a)(4) is being amended accordingly.
Rulemaking Analysis and Notices
Executive Order 12866 (Regulatory Planning and Review), and Department
of Transportation (DOT) Regulatory Policies
This rulemaking is not considered to be an economically significant
regulatory action under section 3(f) of E.O. 12866. This Final Rule
also is not considered a major rule for purposes of Congressional
review under P.L. 104-121. Since the program is designed to support 47
vessels in FY 1997, each receiving up to $2.1 million annually, the
Maritime Administrator finds that the program will not have an annual
effect on the economy of $100 million or more. However, it is
considered to be a significant rule under Executive Order 12866 and
DOT's Regulatory Policies and Procedures (44 FR 11034, February 26,
1979). Accordingly, it has been reviewed by the Office of Management
and Budget.
The program is subject to annual appropriations to provide payments
to the participants of $2.1 million for each Agreement Vessel for each
fiscal year in which the agreement is in effect. These payments are
approximately 50 percent less, per vessel, than the average payments
made under the existing ODS program. A full regulatory evaluation is
not necessary since this rule only establishes the procedures to
implement the Act, which imposes conditions for enrollment of vessels
in the MSP.
Federalism
MARAD has analyzed this rulemaking in accordance with principles
and criteria contained in E.O. 12612 and has determined that these
regulations do not have sufficient federalism implications to warrant
the preparation of a Federalism Assessment.
Regulatory Flexibility
Although the Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et
seq, does not apply to final rules for which a proposed rulemaking was
not required, MARAD has evaluated this rule under that Act and
certifies that this rule will not have a significant economic impact on
a substantial number of small entities. The participants in this
program are not small entities.
Environmental Assessment
MARAD has concluded that this final rule falls into a class of
actions that are categorically excluded from review under the National
Environmental Policy Act of 1969 (NEPA) because they would not
individually or cumulatively have a significant impact on the human
environment, as determined by section 4.05 and Appendices 1 and 2 of
Maritime Administrative Order MAO-600-1, which contains MARAD
Procedures for Considering Environmental Impacts (50 FR 11606, March
22, 1985) implementing NEPA. The final rule does not change the
environmental effect of the current ODS program, which the MSP
supersedes (and which is currently under a categorical exclusion
pursuant to MAO-600-1), because the vessels eligible for the MSP (1)
Will continue to operate under the U.S. flag, and will continue to be
governed by U.S.-flag state control while operating in the global
commons; and (2) are and will continue to be designed, constructed,
equipped and operated in accordance with stringent United States Coast
Guard and International Maritime Organization standards for maritime
safety and marine environmental protection. Therefore, this rule does
not require an environmental impact statement or an environmental
assessment pursuant to NEPA.
Paperwork Reduction
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507 et seq.), this rulemaking contains new information collection or
recordkeeping requirements, which were approved by OMB (approval number
2133-0525) under emergency approval authority until February 28, 1997.
This approval was subsequently extended by OMB for the customary three
years on February 24, 1997.
This rule does not impose any unfunded mandates.
List of Subjects in 46 CFR Part 295
Assistance payments, Maritime carriers, Reporting and recordkeeping
requirements.
Accordingly, Part 295 of 46 CFR Chapter II, Subchapter C, is
revised to read as follows:
PART 295--MARITIME SECURITY PROGRAM (MSP)
Subpart A--Introduction
Sec.
295.1 Purpose.
295.2 Definitions.
295.3 Waivers.
Subpart B--Establishment of MSP Fleet and Eligibility
295.10 Eligibility requirements.
295.11 Applications.
295.12 Priority for awarding agreements.
Subpart C--Maritime Security Program Operating Agreements
295.20 General conditions.
295.21 MSP assistance conditions.
295.22 Commencement and termination of operations.
295.23 Reporting requirements.
Subpart D--Payment and Billing Procedures
295.30 Payment.
295.31 Criteria for payment.
Subpart E--Appeals Procedures
295.40 Administrative determinations.
Authority: 46 App. U.S.C. 1171 et seq., 46 App. U.S.C. 1114 (b),
49 CFR 1.66.
Subpart A--Introduction
Sec. 295.1 Purpose.
This part prescribes regulations implementing the provisions of
Subtitle B (Maritime Security Fleet Program) of Title VI of the
Merchant Marine Act, 1936, as amended, governing Maritime Security
Program payments for vessels operating in the foreign trade or mixed
foreign and domestic commerce of the United States allowed under a
registry endorsement issued under 46 U.S.C. 12105.
Sec. 295.2 Definitions.
For the purposes of this part:
(a) Act, means the Merchant Marine Act, 1936, as amended by the
Maritime Security Act of 1996 (MSA)(46 App. U.S.C. 1101 et seq.).
(b) Administrator, means the Maritime Administrator, U.S. Maritime
Administration (MARAD), U.S. Department of Transportation, who is
authorized to administer the MSA.
(c) Agreement Vessel, means a vessel covered by a MSP Operating
Agreement.
(d) Applicant, means an applicant for a MSP Operating Agreement.
(e) Bulk Cargo, means cargo that is loaded and carried in bulk
without mark or count.
(f) Chapter 121, means the vessel documentation provisions of
chapter 121 of Title 46, United States Code.
(g) Citizen of the United States, means an individual or a
corporation, partnership or association as
[[Page 37738]]
determined under section 2 of the Shipping Act, 1916, as amended (46
App. U.S.C. 802).
(h) Contracting Officer, means the Associate Administrator for
National Security, MARAD.
(i) Contractor, means the owner or operator of a vessel that enters
into a MSP Operating Agreement for the vessel with MARAD pursuant to
Sec. 295.20 of this part.
(j) DOD, means the U.S. Department of Defense.
(k) Domestic Trade, means trade between two or more ports and/or
points in the United States.
(l) Eligible Vessel, means a vessel that meets the requirements of
Sec. 295.10(b) of this part.
(m) Emergency Preparedness Program Agreement, means the agreement,
required by section 653 of the Act, between a Contractor and the
Secretary of Transportation (acting through MARAD) to make certain
commercial transportation resources available during time of war or
national emergency.
(n) Enrollment, means the entry into a MSP Operating Agreement with
the MARAD to operate a vessel(s) in the MSP Fleet in accordance with
Sec. 295.20 of this part.
(o) Fiscal Year, means any annual period beginning on October 1 and
ending on September 30.
(p) LASH Vessel, means a lighter aboard ship vessel.
(q) Militarily Useful, is defined according to DOD Joint Strategic
Planning Capabilities Plan (JSCAP) guidance as follows:
(1) U.S. Sources--All active and inactive ocean-going ships (and
certain other specially selected vessels) within the following types
and criteria from United States sources with a minimum speed of 12
knots.
(2) Dry Cargo--All dry cargo ships, including integrated tug/barges
(ITBs) with a minimum capacity of 6,000 tons (DWT) capable of carrying,
without significant modification, any of the following cargoes: unit
equipment, ammunition, or sustaining supplies.
(r) MSP Fleet, means the fleet of vessels operating under MSP
Operating Agreements.
(s) MSP Operating Agreement, means the MSP Operating Agreement,
providing for MSP payments entered into by a Contractor and MARAD.
(t) MSP Payments, means the payments made for the operation of
U.S.-flag vessels in the foreign trade or mixed foreign and domestic
trade of the United States allowed under a registry endorsement issued
under 46 U.S.C. 12105, to maintain intermodal shipping capability and
to meet national defense and security requirements in accordance with
the terms and conditions of the MSP Operating Agreement.
(u) Ocean Common Carrier, means a carrier that meets the
requirements of the MSA, section 654(3).
(v) ODS, means Operating-Differential Subsidy provided by Subtitle
A, Title VI, of the Act.
(w) Operating Day, means any day during which a vessel is operated
in accordance with the terms and conditions of the MSP Operating
Agreement.
(x) Related party, means:
(1) a holding company, subsidiary, affiliate, or associate of a
contractor who is a party to an operating agreement under Subtitle B,
Title VI, of the Act; and
(2) an officer, director, agent, or other executive of a contractor
or of a person referred to in paragraph (x)(1) of this section.
(y) Roll-on/Roll-off Vessel, means a vessel that has ramps allowing
cargo to be loaded and discharged by means of wheeled vehicles so that
cranes are not required.
(z) Secretary, means the Secretary of Transportation.
(aa) United States Documented Vessel, means a vessel documented
under Chapter 121 of Title 46, United States Code.
Sec. 295.3 Waivers.
In special circumstances, and for good cause shown, the procedures
prescribed in this part may be waived in writing by the Maritime
Administration, by mutual agreement of the Maritime Administration and
the Contractor, so long as the procedures adopted are consistent with
the Act and with the objectives of these regulations.
Subpart B--Establishment of MSP Fleet and Eligibility
Sec. 295.10 Eligibility requirements.
(a) Applicant. Any person may apply to MARAD for Enrollment of
Eligible Vessels in MSP Operating Agreements for inclusion in the MSP
Fleet pursuant to the provisions of Subtitle B, Title VI, of the Act.
Applications shall be addressed to the Secretary, Maritime
Administration, 400 Seventh Street, S.W., Washington, D.C. 20590.
(b) Eligible Vessel. A vessel eligible for enrollment in a MSP
Operating Agreement shall be self-propelled and meet the following
requirements:
(1) Vessel Type. (i) Liner Vessel. The vessel shall be operated by
a person as an Ocean Common Carrier.
(ii) Specialty vessel. Whether in commercial service, on charter to
the DOD, or in other employment, the vessel shall be either:
(A) a Roll-on/Roll-off vessel with a carrying capacity of at least
80,000 square feet or 500 twenty-foot equivalent units; or
(B) a LASH vessel with a barge capacity of at least 75 barges; or
(iii) Other vessel. Any other type of vessel that is determined by
the MARAD to be suitable for use by the United States for national
defense or military purposes in time of war or national emergency; and
(2) Vessel Requirements. (i) U.S. Documentation. Except as provided
in paragraph (b)(2)(iv) of this section, the vessel is a U.S.-
documented vessel; and
(ii) Age. Except as provided in paragraph (b)(2)(iii), on the date
a MSP Operating Agreement covering the vessel is first entered into is:
(A) a LASH Vessel that is 25 years of age or less; or
(B) any other type of vessel that is 15 years of age or less.
(iii) Waiver Authority. In accordance with section 651(b)(2) of the
Act, MARAD is authorized to waive the application of paragraph
(b)(2)(ii) of this section if MARAD, in consultation with the Secretary
of Defense, determines that the waiver is in the national interest.
(iv) Intent to document U.S. Although the vessel may not be a U.S.-
documented vessel, it shall be considered an Eligible Vessel if the
vessel meets the criteria for documentation under 46 U.S.C. Chapter
121, the vessel owner has demonstrated an intent to have the vessel
documented under 46 U.S.C. Chapter 121, and the vessel will be less
than 10 years of age on the date of that documentation; and
(3) MARAD's determination. MARAD determines that the vessel is
necessary to maintain a United States presence in international
commercial shipping and the applicant possesses the ability,
experience, resources and other qualifications necessary to execute the
obligations of the MSP Operating Agreement, or MARAD, after
consultation with the Secretary of Defense, determines that the vessel
is militarily useful for meeting the sealift needs of the United
States.
Sec. 295.11 Applications.
(a) Action by MARAD. (1) Time Deadlines. Not later than 30 days
after the enactment of the Maritime Security Act of 1996, Pub. L. 104-
239, MARAD shall accept applications for Enrollment of vessels in the
MSP Fleet. Within 90 days after receipt of a completed application,
MARAD shall enter into a MSP Operating Agreement with the
[[Page 37739]]
applicant or provide in writing the reason for denial of that
application.
(2) Closure of Applications. Applications for MSP Operating
Agreements shall be made only at such time as, and in response to,
publication of invitations to apply by MARAD in the Federal Register.
After the Administrator has fully allocated authorized contracting
authority through the award of the maximum number of vessels allowed
under Sec. 295.30(a), MARAD will not accept any applications for award
of new Operating Agreements until additional contracting authority
becomes available, or existing contracting authority reverts back to
MARAD.
(3) Reflagging for Eligible vessels. Except as provided in
paragraph (a)(4) of this section, an applicant may remove a vessel from
U.S. registry without MARAD approval if an application for a MSP
Operating Agreement has been filed for that vessel, the applicant is
qualified, and it has been determined by MARAD to be eligible under MSA
section 651(b)(1) under a priority for which sufficient funds are
available and the Administrator has not awarded an Operating Agreement
for the vessel within 90 days of that application.
(4) Reflagging ODS and MSC chartered vessels. Vessels eligible
under MSA section 651(b)(1) which are also subject to ODS contracts or
on charter to MSC, and for which applications have been denied pursuant
to Sec. 295.11(a)(1) of this part, may be removed from U.S. registry
only after those agreements have expired and only after the age
requirement in section 9(e)(3) of the Shipping Act, 1916 (46 App.
U.S.C. 808) has been met.
(b) Action by the Applicant. Applicants for MSP Payments shall
submit information on the following:
(1) Intermodal network. A statement describing its operating and
transportation assets, including vessels, container stocks, trucks,
railcars, terminal facilities, and systems used to link such assets
together;
(2) Diversity of trading patterns. A list of countries and trade
routes serviced along with the types and volumes of cargo carried;
(3) Vessel construction date;
(4) Vessel type and size; and
(5) Military Utility. An assessment of the value of the vessel to
DOD sealift requirements.
(Approved by the Office of Management and Budget under Control Number
2133-0525)
Sec. 295.12 Priority for awarding agreements.
Subject to the availability of appropriations, MARAD shall enter
into individual MSP Operating Agreements for Eligible Vessels according
to the following priorities:
(a) First priority requirements. First priority shall be accorded
to any Eligible Vessel meeting the following requirements:
(1) U.S. citizen ownership. Vessels owned and operated by persons
who are Citizens of the United States as defined in Sec. 295.2; or
(2) Other corporations. Vessels less than 10 years of age and owned
and operated by a corporation that is:
(i) eligible to document a vessel under 46 U.S.C. Chapter 121; and
(ii) affiliated with a corporation operating or managing for the
Secretary of Defense other vessels documented under 46 U.S.C. Chapter
121, or chartering other vessels to the Secretary of Defense.
(3) Limitation on number of vessels. Limitation on the total number
of Eligible Vessels awarded under paragraph (a) of this section shall
be:
(i) For any U.S. citizen under paragraph (a)(1), the number of
vessels may not exceed the sum of:
(A) the number of U.S.-flag documented vessels that the Contractor
or a related party operated in the foreign commerce of the United
States on May 17, 1995, except mixed coastwise and foreign commerce;
and
(B) the number of U.S.-flag documented vessels the person chartered
to the Secretary of Defense on that date; and
(ii) For any corporation under paragraph (a)(2) of this section,
not more than five Eligible Vessels.
(4) Related party. For the purpose of this section a related party
with respect to a person shall be treated as the person.
(b) Second priority requirements. To the extent that appropriated
funds are available after applying the first priority in paragraph (a)
of this section, the MARAD shall enter into individual MSP Operating
Agreements for Eligible Vessels owned and operated by a person who is:
(1) U.S. citizen. A Citizen of the United States, as defined in
Sec. 295.2(g), that has not been awarded a MSP Operating Agreement
under the priority in paragraph (a) of this section, or
(2) Other. A person (individual or entity) eligible to document a
vessel under 46 U.S.C. Chapter 121, and affiliated with a person or
corporation operating or managing other U.S.-documented vessels for the
Secretary of Defense or chartering other vessels to the Secretary of
Defense.
(c) Third priority. To the extent that appropriated funds are
available after applying the first and second priority, any other
Eligible Vessel.
(d) Number of MSP Operating Agreements Awarded. If appropriated
funds are not sufficient to award agreements to all vessels within a
priority set forth herein, MARAD shall award to each eligible applicant
in that priority a number of Operating Agreements that bears
approximately the same ratio to the total number of Operating
Agreements requested under that priority, and for which timely
applications have been made, as the amount of appropriations available
for MSP Operating Agreements for Eligible Vessels in the priority bears
to the amount of appropriations necessary for MSP Operating Agreements
for all Eligible Vessels in the priority.
Subpart C--Maritime Security Program Operating Agreements
Sec. 295.20 General conditions.
(a) Approval. MARAD may approve applications to enter into a MSP
Operating Agreement and make MSP Payments with respect to vessels that
are determined to be necessary to maintain a United States presence in
international commercial shipping or those that are deemed, after
consultation with the Secretary of Defense, to be militarily useful for
meeting the sealift needs of the United States in national emergencies.
(b) Effective date. (1) General Rule. Unless otherwise provided in
the contract, the effective date of a MSP Operating Agreement is the
date when executed by the Contractor and MARAD.
(2) Exceptions. In the case of an Eligible Vessel to be included in
a MSP Operating Agreement that is subject to an ODS contract under
Subtitle A, Title VI, of the Act or on charter to the U.S. Government,
other than a charter under the provisions of an Emergency Preparedness
Program Agreement provided by Section 653 of the Act, unless an earlier
date is requested by the applicant, the effective date for a MSP
Operating Agreement shall be:
(i) The expiration or termination date of the ODS contract or
Government charter covering the vessel, respectively, or
(ii) Any earlier date on which the vessel is withdrawn from that
contract or charter.
(c) Replacement Vessels. MARAD may approve the replacement of an
Eligible Vessel in a MSP Operating Agreement provided the replacement
vessel is eligible under Sec. 295.10.
(d) Notice to shipbuilders. The Contractor agrees that no later
than 30
[[Page 37740]]
days after soliciting any offer or bid for the construction of any
vessel in a foreign shipyard, and before entering into any contract for
construction of a vessel in a foreign shipyard, the Contractor shall
provide notice of its intent to enter into such a contract (for vessels
being considered for U.S.-flag registry) to MARAD. Within 10 business
days after the receipt of such notification, MARAD shall issue a notice
in the Federal Register of the Contractor's intent. The Contractor is
prohibited from entering into any such contract until 10 business days
after the date of publication of such notice.
(e) Early termination. A MSP Operating Agreement shall terminate on
a date specified by the Contractor if the Contractor notifies MARAD not
later than 60 days before the effective date of the proposed
termination, that the Contractor intends to terminate the Agreement.
The Contractor shall be bound by the provisions relating to vessel
documentation and national security commitments to the extent and for
the period contained in section 652(m) of the Act.
(f) Non-renewal for lack of funds. If, by the first day of a fiscal
year, insufficient funds have been appropriated under Section 655 of
the Act for that fiscal year, MARAD shall notify the Congress that MSP
Operating Agreements for which insufficient funds are available will be
terminated on the 60th day of that fiscal year if sufficient funds are
not appropriated or otherwise made available by that date. If only
partial funding is appropriated by the 60th day of such fiscal year,
then MSP Operating Agreements for which funds are not available shall
be terminated using the pro rata distribution method used to award MSP
Operating Agreements set forth in Sec. 295.12(d). With respect to each
terminated agreement the Contractor shall be released from any further
obligation under the agreement, and the Contractor may transfer and
register the applicable vessel under a foreign registry deemed
acceptable by MARAD. In the event that no funds are appropriated, then
all MSP Operating Agreements shall be terminated and each Contractor
shall be released from its obligations under the agreement. Final
payments under the terminated agreements shall be made in accordance
with Sec. 295.30. To the extent that funds are appropriated in a
subsequent fiscal year, existing operating agreements may be renewed if
mutually acceptable to the Administrator and the Contractor and the MSP
vessel remains eligible.
(g) Operation under a Continuing Resolution. In the event a
Continuing Resolution (CR) is in place that does not provide sufficient
appropriations to fully meet obligations under MSP Operating
Agreements, a Contractor may request termination of the agreement in
accordance with paragraph (f), herein, and Sec. 295.30.
(h) Requisition authority. To the extent section 902 of the Act is
applicable to any vessel transferred foreign under this section, the
vessel shall remain available to be requisitioned by the Maritime
Administration under that provision of law.
(i) Transfer of Operating Agreements. A Contractor subject to an
Agreement may transfer that Agreement (including all rights and
obligations thereunder) to any person eligible to enter into an
Agreement under the same priority established in section 652(i)(1)(A)
of the Act as the Contractor, provided that:
(1) The Contractor gives notice of any such transfer to the
Maritime Administrator by filing a completed application;
(2) The transfer is not disapproved in writing by the Maritime
Administrator within 90 days of the notification; and
(3) the vessel to be covered by the Agreement after transfer is the
same vessel originally covered by the Agreement or is an eligible
vessel under section 651(b) of the Act and is the same type, and
comparable to, the vessel originally covered by the Agreement.
Sec. 295.21 MSP Assistance Conditions.
(a) Term of MSP Operating Agreement. MSP Operating Agreements shall
be effective for a period of not more than one fiscal year, and unless
otherwise specified in the Agreement, shall be renewable, subject to
the availability of appropriations or amounts otherwise made available,
for each subsequent fiscal year through the end of FY 2005. In the
event appropriations are enacted after October 1 with respect to any
subsequent fiscal year, October 1 shall be considered the effective
date of the renewed agreement, provided sufficient funds are made
available and subject to the Contractor's rights for early termination
pursuant to section 652(m) of the Act.
(b) Terms under a Continuing Resolution (CR). In the event funds
are available under a CR, the terms and conditions of the MSP Operating
Agreements shall be in force provided sufficient funds are available to
fully meet obligations under MSP Operating Agreements, and only for the
period stipulated in the applicable CR. If funds are not appropriated
at sufficient levels for any portion of a fiscal year, the terms and
conditions of any applicable MSP Operating Agreement may be voided and
the Contractor may request termination of the MSP Operating Agreement
in accordance with Sec. 295.20(f).
(c) National security requirements. Each MSP Operating Agreement
shall require the owner or operator of an Eligible Vessel included in
that agreement to enter into an Emergency Preparedness Program
Agreement pursuant to Section 653 of the Act.
(d) Vessel operating requirements. The MSP Operating Agreement
shall require that during the period an Eligible Vessel is included in
that Agreement, the Eligible Vessel shall:
(1) Documentation. Be documented as a U.S.-flag vessel under 46
U.S.C. Chapter 121; and
(2) Operation. Be operated exclusively in the U.S.-foreign trade or
in mixed foreign and domestic trade allowed under a registry
endorsement issued under 46 U.S.C. 12105, and shall not otherwise be
operated in the coastwise trade of the United States.
(e) Limitations. Limitations on Contractors with respect to the
operation of foreign-flag vessels shall be in accordance with section
804 of the Act, as amended. The operation of vessels, other than
Agreement Vessels, in the noncontiguous trades shall be limited in
accordance with service levels and conditions permitted in section 656
of the Act.
(f) Non-Contiguous Domestic Trade. [Reserved]
(g) Obligation of the U.S. Government. The amounts payable as MSP
Payments under a MSP Operating Agreement shall constitute a contractual
obligation of the United States Government to the extent of available
appropriations.
Sec. 295.22 Commencement and termination of operations.
(a) Time frames. A Contractor that has been awarded a MSP Operating
Agreement shall commence operations of the Eligible Vessel, under the
applicable agreement or a subsequently renewed agreement, within the
time frame specified as follows:
(1) Existing vessel. Within one year after the initial effective
date of the MSP Operating Agreement in the case of a vessel in
existence on that date and after notification to MARAD within 30 days
of the Contractor's intent; or
(2) New building. Within 30 months after the initial effective date
of the MSP Operating Agreement in the case of a vessel to be
constructed after that date.
(b) Unused authority. In the event of a termination of unused
authority pursuant to paragraph (a) of this section, such authority
shall revert to MARAD.
[[Page 37741]]
Sec. 295.23 Reporting requirements.
The Contractor shall submit to the Director, Office of Financial
Approvals, Maritime Administration, 400 Seventh St., SW., Washington,
DC 20590, one of the following reports, including management footnotes
where necessary to make a fair financial presentation:
(a) Form MA-172. Not later than 120 days after the close of the
Contractor's semiannual accounting period, a Form MA-172 on a
semiannual basis, in accordance with 46 CFR 232.6; or
(b) Financial Statement. Not later than 120 days after the close of
the Contractor's annual accounting period, an audited annual financial
statement in accordance with 46 CFR 232.6 and the most recent vessel
operating cost data submitted as part of its Emergency Preparedness
Agreement.
(Approved by the Office of Management and Budget under Control Number
2133-0525.)
Subpart D--Payment and Billing Procedures
Sec. 295.30 Payment.
(a) Amount payable. A MSP Operating Agreement shall provide,
subject to the availability of appropriations and to the extent the
agreement is in effect, for each Agreement Vessel, an annual payment of
$2,100,000 for each fiscal year. This amount shall be paid in equal
monthly installments at the end of each month. The annual amount
payable shall not be reduced except as provided in paragraph (b) of
this section and Sec. 295.31(a)(3).
(b) Reductions in amount payable. (1) The annual amount otherwise
payable under a MSP Operating Agreement shall be reduced on a pro rata
basis for each day less than 320 in a fiscal year that an Agreement
Vessel is not operated exclusively in the U.S.-foreign trade or in
mixed foreign and domestic trade allowed under a registry endorsement
issued under 46 U.S.C. 12105. Days during which the vessel is drydocked
or undergoing survey, inspection, or repair shall be considered to be
days during which the vessel is operated, provided the total of such
days within a fiscal year does not exceed 30 days, unless prior to the
expiration of a vessel's 30 day period, approval is obtained from MARAD
for an extension of the 30 day provision.
(2) There shall be no payment for any day that a MSP Agreement
Vessel is engaged in transporting more than 7,500 tons (using the U.S.
English standard of short tons, which converts to 6,696.75 long tons,
or 6,803.85 metric tons) of civilian bulk preference cargoes pursuant
to section 901(a), 901(b), or 901b of the Act, provided that it is bulk
cargo.
Sec. 295.31 Criteria for payment
(a) Submission of voucher. For contractors operating under more
than one MSP Operating Agreement, the contractor may submit a single
monthly voucher applicable to all its agreements. Each voucher
submission shall include a certification that the vessel(s) for which
payment is requested were operated in accordance with Sec. 295.21(d)
and applicable MSP Operating Agreements with MARAD, and consideration
shall be given to reductions in amounts payable as set forth in
Sec. 295.30. All submissions shall be forwarded to the Director, Office
of Accounting, MAR-330 Room 7325, Maritime Administration, 400 Seventh
Street, SW., Washington, DC 20590. Payments shall be paid and processed
under the terms and conditions of the Prompt Payment Act, 31 U.S.C.
3901.
(1) Payments shall be made per vessel, in equal monthly
installments, of $175,000.
(2) To the extent that reductions under Sec. 295.30(b) are known,
such reductions shall be applied at the time of the current billing.
The daily reduction amounts shall be based on the annual amounts in
295.30(a) of this part divided by 365 days (366 days in leap years) and
rounded to the nearest cent. Daily reduction amounts shall be applied
as follows:
FY 1997--$5,753.42
FY 1998--$5,753.42
FY 1999--$5,753.42
FY 2000--$5,737.70
FY 2001--$5,753.42
FY 2002--$5,753.42
FY 2003--$5,753.42
FY 2004--$5,737.70
FY 2005--$5,753.42
(3) In the event a monthly payment is for a period less than a
complete month, that month's payment shall be calculated by multiplying
the appropriate daily rate in Sec. 295.31(a)(2) by the actual number of
days the Eligible Vessel operated in accordance with Sec. 295.21.
(4) MARAD may require, for good cause, that a portion of the funds
payable under this section be withheld if the provisions of
Sec. 295.21(d) have not been met.
(5) Amounts owed to MARAD for reductions applicable to a prior
billing period shall be electronically transferred using MARAD's
prescribed format, or a check may be forwarded to the Maritime
Administration, P.O. Box 845133, Dallas, Texas 75284-5133, or the
amount owed can be credited to MARAD by offsetting amounts payable in
future billing periods.
(b) [Reserved]
Subpart E--Appeals Procedures
Sec. 295.40 Administrative determinations.
(a) Policy. A Contractor who disagrees with the findings,
interpretations or decisions of the Contracting Officer with respect to
the administration of this part may submit an appeal to the Maritime
Administrator. Such appeals shall be made in writing to the Maritime
Administrator, within 60 days following the date of the document
notifying the Contractor of the administrative determination of the
Contracting Officer. Such an appeal should be addressed to the Maritime
Administrator, Att.: MSP Contract Appeals, Maritime Administration, 400
Seventh St., S.W. Washington, D.C. 20590.
(b) Process. The Maritime Administrator may require the person
making the request to furnish additional information, or proof of
factual allegations, and may order any proceeding appropriate in the
circumstances. The decision of the Maritime Administrator shall be
final.
By order of the Maritime Administrator.
Dated: July 10, 1997.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 97-18559 Filed 7-14-97; 8:45 am]
BILLING CODE 4910-81-P