[Federal Register Volume 64, Number 136 (Friday, July 16, 1999)]
[Notices]
[Pages 38499-38501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18119]
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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 fiscal year (FY) 2000
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 was
extended through February 13, 2001, and published in the Federal
Register on February 18, 1999 (64 FR 8214).
As implemented, VISA is open to U.S.-flag vessel operators of
militarily useful vessels, including bareboat charter operators if
satisfactory signed agreements are in place committing the assets of
the owner to the bareboat charterer for purposes of VISA. By order of
the Maritime Administrator on August 4, 1997, participation of U.S.-
flag deepwater tug/barge operators in VISA was encouraged. Time,
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 equipment 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 will be jointly planned with MARAD,
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.
VISA Stages I and II provide for prenegotiated contracts between
the DoD and participants to provide sealift
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capacity to meet all projected DoD contingency requirements. These
contracts will be executed in accordance with approved DoD contracting
methodologies. VISA Stage III will provide for additional capacity to
the 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.
FY 2000 VISA 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 in the program for FY 2000 (October 1, 1999
through September 30, 2000). Current participants in the VISA program
are not required to apply for FY 2000 reenrollment, as VISA
participation will be automatically extended for FY 2000. This is the
second annual enrollment period since the commencement of VISA. The
annual enrollment was initiated because VISA has been fully integrated
into DoD's priority for award of cargo to VISA participants. It is
necessary to link the VISA enrollment cycle with DoD's peacetime cargo
contracting cycle.
New applicants are required to enroll for the FY 2000 VISA program
as described in this Notice. This 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 award of FY 2000 DoD peacetime cargo.
It is the only planned enrollment period for carriers to join VISA
and derive benefits for DoD peacetime contracts during FY 2000. 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 join VISA upon completion of reflagging at any time during
the fiscal year.
Advantages of Peacetime Participation
Because enrollment of carriers in VISA provides the DoD with
assured access to sealift services during contingencies based on a
level of commitment, as well as a mechanism for joint planning, the 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.
Participants
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. While vessel brokers and agents
play an important role as a 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 and agents should encourage the carriers
they represent to join the program.
Commitment
Any U.S.-flag vessel operator desiring to receive preference 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. A participant desiring to bid on DoD peacetime contracts will
be required to provide commitment levels to meet DoD-established Stages
I and/or II minimum percentages of the participant's military useful,
oceangoing U.S-flag fleet capacity on an annual basis. The 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 (CCA's) to
satisfy commercial or DoD requirements. VISA provides a defense against
antitrust laws in accordance with the DPA. CCA's must be submitted to
MARAD for coordination with the Department of Justice for approval,
before they can be utilized.
Compensation
In addition to receiving priority in the award of DoD peacetime
cargo, a participant will receive compensation during contingency
activation. During enrollment, each participant may choose a
compensation methodology which is commensurate with risk and service
provided. The compensation methodology selection will be completed the
with the appropriate DoD agency.
Enrollment
New applicants may enroll by obtaining a VISA application package
from the Director, Office of Sealift Support, at the address indicated
below. The application package will include the February 18, 1999 VISA
Agreement, 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 in order
to assist MARAD in making a determination of the applicant's
eligibility. An applicant company must be able to provide an affidavit
that demonstrates that the company is a citizen of the United States,
at least for purposes of vessel documentation, within the meaning of 46
U.S.C., section 12102, and that it owns, or bareboat charters and
controls, oceangoing, militarily useful vessel(s) for purposes of
committing assets to VISA. VISA applicants must return completed FY
2000 VISA application documents to MARAD not later than August 31,
1999. 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.
In addition, the applicant will be required to enter into a
contingency contract with the DoD. For the FY 2000 VISA open season,
and prior to being enrolled in VISA, eligible VISA applicants will be
required to execute a
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joint Voluntary Enrollment Contract (VEC) with the DoD [Military
Traffic Management Command (MTMC) and Military Sealift Command (MSC)]
which will specify the participant's Stage III commitment for FY 2000.
Once the VEC is completed, the applicant completes the DoD contracting
process by executing a Drytime Contingency Contract (DCC) with MSC (for
Charter Operators) and/or as applicable, a VISA Contingency Contract
(VCC) with MTMC (for Liner Operators). Once the DoD contingency
contract(s) are completed, the Maritime Administrator will confirm the
participant's enrollment by letter agreement, with a copy to all
appropriate parties.
FOR ADDITIONAL INFORMATION AND APPLICATIONS CONTACT: Raymond Barberesi,
Director, Office of Sealift Support, U.S. Maritime Administration, Room
7307, 400 Seventh Street, SW, Washington, DC 20590. Telephone (202)
366-2323. Fax (202) 493-2180. The full text of this Federal Register
Notice and other information about the VISA can be found on MARAD's
Internet Web Page at http://www.marad.dot.gov.
By Order of the Maritime Administrator.
Dated: July 9, 1999.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 99-18119 Filed 7-15-99; 8:45 am]
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