81 FR 68104 - Acceptance of Applications for the Award of Two Maritime Security Program Operating Agreements

DEPARTMENT OF TRANSPORTATION
Maritime Administration

Federal Register Volume 81, Issue 191 (October 3, 2016)

The Maritime Administration (MARAD) is issuing this request for applications for eligible vessels to enroll in two Maritime Security Program (MSP) Operating Agreements, subject to the availability of appropriations, 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 MSP maintains a fleet of active, commercially viable, militarily useful, 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 vessel enrollment in the MSP.

[Federal Register Volume 81, Number 191 (Monday, October 3, 2016)]
[Notices]
[Pages 68104-68105]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23823]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Acceptance of Applications for the Award of Two 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 enroll in two Maritime 
Security Program (MSP) Operating Agreements, subject to the 
availability of appropriations, 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 MSP 
maintains a fleet of active, commercially viable, militarily useful, 
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 vessel enrollment in the MSP.

DATES: Applications for the enrollment of two vessels must be received 
no later than November 2, 2016. Applications should be submitted to the 
address listed in the ADDRESSES section below.

ADDRESSES: Application forms and instructions are available on the 
MARAD Web site at http://www.marad.dot.gov/ships-and-shipping/strategic-sealift/maritime-security-program-msp/. Applications shall be 
addressed to the Director, Office of Sealift Support, Maritime 
Administration, Department of Transportation, Maritime Administration, 
1200 New Jersey Avenue SE., W25-310, Washington, DC 20590.

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

SUPPLEMENTARY INFORMATION: 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. 
Payments to participating operators are subject to the availability of 
appropriations and are limited to the following amounts: $3.5 million 
per ship for FY 2016, $4.99995 million per ship for FY 2017, $5.0 
million per ship for FY 2018 through 2020, $5.233463 million per ship 
for FY 2021, and $3.7 million per ship for FY 2022 through FY 2025. 
Consistent with the National Security Requirements section below, 
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. 53103(c) for 
awarding new MSP Operating Agreements. Namely, it established a revised 
priority system whereby applications would first be evaluated on the 
basis of vessel type, as determined by Department of Defense (DOD) 
requirements, with secondary consideration then provided to the 
citizenship status of the applicant.

[[Page 68105]]

Vessel Requirements

    Acceptable vessels for these MSP Operating Agreements must meet the 
requirements of 46 U.S.C. 53102(b) and 46 CFR 296.11. In addition, the 
Commander, USTRANSCOM, has established DOD general evaluation criteria 
on the military requirements for eligible MSP vessels. Priority 
consideration, consistent with the requirements of 46 U.S.C. 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) Vessels.
    2. Multi-Purpose/Heavy Lift Vessels.
    3. Geared Container Ships.
    4. All other vessel types, which will be considered after all 
applications for the above listed vessels types have been reviewed.
    For each individual application, the offered vessel's class society 
vessel-type designation will serve as the primary factor in determining 
the priority category in which the vessel is placed.

National Security Requirements

    Successful applicants will be required to enter into an Emergency 
Preparedness Agreement (EPA) pursuant to 46 U.S.C. 53107. The EPA 
incorporates the terms of the Voluntary Intermodal Sealift Agreement 
(VISA), available in 79 FR 64462 (October 29, 2014).

Documentation

    Vessels must be documented in the United States under 46 U.S.C. 
chapter 121 prior to being eligible for MSP payments. Further, proof of 
U.S. Coast Guard vessel documentation and all relevant charter and 
management agreements must be approved by MARAD before the vessel will 
be eligible to receive MSP payments. If a vessel being considered is 
not currently under U.S. documentation, MARAD requires information 
regarding the time line proposed that would bring the vessel under U.S. 
Coast Guard documentation.

Vessel Operation

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

Prior Applicants

    Applicants who previously responded to MARAD's November 27, 2015, 
Notice of Application Period for the Maritime Security Program, 80 FR 
74209 (November 27, 2015), that wish to submit the same vessel(s) for 
consideration may do so by submitting a letter expressing their 
intention and providing any updated information and documentation.

Award

    MARAD does not guarantee the award of 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 with a written reason why the application 
was denied, consistent with the requirements of 46 U.S.C. 53103(c).

Protection of Confidential Commercial or Financial Information

    If the application includes information that the applicant 
considers to be a trade secret or confidential commercial or financial 
information, the applicant should do the following: (1) Note on the 
front cover that the submission ``Contains Confidential Commercial or 
Financial Information (CCFI)''; (2) mark each affected page ``CCFI''; 
and (3) highlight or otherwise denote the CCFI portions. MARAD will 
protect such information from disclosure to the extent allowed under 
applicable law. In the event MARAD receives a Freedom of Information 
Act (FOIA) request for the information, procedures described in the 
Department's FOIA regulation at 49 CFR 7.29 will be followed. Only 
information that is ultimately determined to be confidential under that 
procedure will be exempt from disclosure under FOIA.

(Authority: 46 U.S.C. 53102 and 53103; 46 CFR 296.24; 49 CFR 1.92 
and 1.93)

    By Order of the Maritime Administrator.

    Dated: September 28, 2016.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2016-23823 Filed 9-30-16; 8:45 am]
 BILLING CODE 4910-81-P