80 FR 74209 - Acceptance of Applications for the Potential Award of Maritime Security Program Operating Agreements

DEPARTMENT OF TRANSPORTATION
Maritime Administration

Federal Register Volume 80, Issue 228 (November 27, 2015)

The Maritime Administration (MARAD) is issuing this request for applications for eligible vessels to potentially enroll in one or more MSP Operating Agreements in accordance with the provisions of the Maritime Security Act of 2003, Public Law 108-136, div. C, title XXXV, as amended by Section 3508 of the National Defense Authorization Act for Fiscal Year (FY) 2013, Public Law 112-239, (NDAA 2013). The Maritime Security Program (MSP) maintains a fleet of active, commercially-viable, privately-owned vessels to meet national defense and other security requirements and to maintain a United States presence in international commercial shipping. This request for applications provides, among other things, application criteria and a deadline for submitting applications for potential vessel enrollment in the MSP.

[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Notices]
[Pages 74209-74210]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30199]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Acceptance of Applications for the Potential Award of Maritime 
Security Program Operating Agreements

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of Application Period for the Maritime Security Program.

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SUMMARY: The Maritime Administration (MARAD) is issuing this request 
for applications for eligible vessels to potentially enroll in one or 
more MSP Operating Agreements in accordance with the provisions of the 
Maritime Security Act of 2003, Public Law 108-136, div. C, title XXXV, 
as amended by Section 3508 of the National Defense Authorization Act 
for Fiscal Year (FY) 2013, Public Law 112-239, (NDAA 2013). The 
Maritime Security Program (MSP) maintains a fleet of active, 
commercially-viable, privately-owned vessels to meet national defense 
and other security requirements and to maintain a United States 
presence in international commercial shipping. This request for 
applications provides, among other things, application criteria and a 
deadline for submitting applications for potential vessel enrollment in 
the MSP.

DATES: Applications for the potential enrollment of one or more vessels 
must be received no later than December 28, 2015. Applications should 
be submitted to the address listed in the ADDRESSES section below.

ADDRESSES: Application forms and instructions are available by 
electronic mail request addressed to [email protected].
    Submit applications for the enrollment of vessels in the MSP to 
William G. McDonald, Director, Office of Sealift Support, W25-310, U.S. 
Department of Transportation, Maritime Administration, 1200 New Jersey 
Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: William G. McDonald, Director, Office 
of Sealift Support, Maritime Administration, (202) 366-0688. For legal 
questions, call Ryan Kabacinski, Chief, Division of Maritime Programs, 
Maritime Administration, (202) 366-5176. For military-utility 
questions, call Mr. Tim Boemecke, United States Transportation Command, 
(618) 220-1452.

SUPPLEMENTARY INFORMATION: The NDAA 2013 extended the MSP from FY 2016 
through FY 2025 and revised the associated annual MSP payment schedule. 
This program provides financial assistance to operators of U.S.-flag 
vessels that meet certain qualifications. Section 53102(a) of Title 46, 
United States Code, directs the Secretary of Transportation 
(Secretary), in consultation with the Secretary of Defense (SecDef), to 
establish a fleet of active, commercially-viable, militarily-useful, 
privately-owned vessels to meet national defense and other security 
requirements. Section 53111 of Title 46, United States Code, authorizes 
$186 million annually for FYs 2012, 2013, 2014, 2015, 2016, 2017 and 
2018; $210 million annually for FYs 2019, 2020 and 2021; and $222 
million annually for each FY thereafter through FY 2025 to support the 
operation of up to 60 U.S.-flag vessels in the foreign commerce of the 
United States. Payment to participating operators are limited under 46 
U.S.C. Sec.  53106(a)(1) to $3.1 million per ship, per year, through FY 
2018; $3.5 million per ship per year for FY 2019 through 2021; and $3.7 
million per ship per year for FY 2022 through 2025. Payments are 
subject to the availability of appropriations. Participating operators 
are required to make their commercial transportation resources 
available upon request by SecDef during times of war or national 
emergency.

Application Criteria

    The NDAA 2013 amended the procedures in 46 U.S.C. Sec.  53103(c) 
for awarding new MSP Operating Agreements. The amended statute provides 
that the Secretary may enter into a new Operating Agreement with an 
applicant that meets the citizenship requirements of 46 U.S.C. Sec.  
53102(c), for

[[Page 74210]]

a vessel that meets the eligibility requirements of 46 U.S.C. Sec.  
53102(b). Priority for the award of Operating Agreements under the 
amended 46 U.S.C. Sec.  53103(c) shall be on the basis of vessel type 
established by military requirements of SecDef. The military 
requirements established by SecDef, through the United States 
Transportation Command (USTRANSCOM), are provided below. As provided by 
the amended statute, after consideration of military requirements, 
priority for the award of Operating Agreements shall be given to 
applicants that are United States citizens under 46 U.S.C. Sec.  50501.

Vessel Requirements

    Acceptable vessels for this MSP Operating Agreement must meet the 
requirements of 46 U.S.C. Sec.  53102(b) and 46 CFR Sec.  296.11. In 
addition, the Commander, USTRANSCOM, has established Department of 
Defense general evaluation criteria on the military requirements for 
eligible MSP vessels. Priority consideration, consistent with the 
requirements of 46 U.S.C. Sec.  53103(c), will be given to applications 
providing for enrollment of the following vessel types in order of 
priority:

1. Roll-on/Roll-off (RO/RO)
2. Tanker
3. Heavy Lift
4. Geared Containerships
5. All other vessel types will be considered after all applications for 
the above listed vessel types have been reviewed.

National Security Requirements

    If an applicant is chosen to receive a MSP Operating Agreement the 
applicant will be required to enter into an Emergency Preparedness 
Agreement (EPA) pursuant 46 U.S.C. Sec.  53107. The EPA shall be a 
document incorporating the terms of the Voluntary Intermodal Sealift 
Agreement (VISA), as approved by the Secretary and SecDef, or such 
other agreement as may be approved by the Secretaries.

Documentation

    If a vessel is chosen to be the subject of an MSP Operating 
Agreement, and if such vessel is currently documented under a foreign 
register, such vessel must be documented in the United States under 46 
U.S.C. Ch. 121 prior to being eligible for MSP payments. Further, proof 
of U.S. Coast Guard vessel documentation and all relevant charter and 
management agreements for the chosen vessels, if any, must be approved 
by MARAD before the vessel will be eligible to receive MSP payments.

Payments

    If an applicant is awarded an MSP Operating Agreement, the 
applicant will be eligible for payments in accordance with 46 U.S.C. 
Sec.  53106 and 46 CFR Sec.  296.41.

Vessel Operation

    The vessels under an MSP Operating Agreement shall be operated 
exclusively in foreign commerce as defined in 46 U.S.C. Sec.  53101(4) 
or in permissible mixed foreign commerce and domestic trade as provided 
by 46 U.S.C. Sec.  53105(a)(1)(A).

U.S. Merchant Marine Academy Cadets (Midshipmen)

    In the course of operation of the vessel, the MSP Operator shall 
agree to carry contemporaneously up to two U.S. Merchant Marine Academy 
midshipmen upon request.

Award

    No guarantee is provided that MARAD will award any MSP Operating 
Agreements in response to applications submitted under this Notice. In 
the event that no awards are made or an application is not selected for 
an award, the applicant will be provided a written reason why the 
application was denied, consistent with the requirements of 46 U.S.C. 
Sec.  53103(c).

(Authority: 49 CFR Sections 1.92 and 1.93)

    By Order of the Maritime Administrator.

    Dated: November 23, 2015.
Jay R. Gordon,
Acting Secretary, Maritime Administration.
[FR Doc. 2015-30199 Filed 11-25-15; 8:45 am]
 BILLING CODE 4910-81-P