Voluntary Intermodal Sealift Agreement (VISA), 45298-45300 [E7-15825]

Agencies

• Maritime Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 72, Number 155 (Monday, August 13, 2007)]
[Notices]
[Pages 45298-45300]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15825]


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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 the 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 is 
currently extended through September 30, 2007, as published in the 
Federal Register on September 23, 2005 (70 FR 55947).

[[Page 45299]]

    As implemented, the VISA program is open to U.S.-flag vessel 
operators of oceangoing militarily useful vessels. Operators include 
vessel owners and bareboat charter operators if satisfactory signed 
agreements are in place committing the assets of the owner to the 
bareboat charterer for purposes of VISA. While tug/barge operators must 
own or bareboat charter barges committed to the VISA program, it is not 
required that these operators commit tug services through bareboat 
charter or ownership arrangements. Time charters of U.S.-flag tugs will 
satisfy tug commitments to the VISA program. However, participation in 
the VISA program is not satisfied by tug commitment only. Tug/barge 
VISA participants must commit capacity of at least one barge to the 
VISA program. 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 systems and equipment, terminal facilities, 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 are jointly planned with the Maritime 
Administration, 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.
    There are three time-phased stages in the event of VISA activation. 
VISA Stages I and II provide for prenegotiated 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 will 
provide 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.

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. This is the tenth annual enrollment period 
since the commencement of the VISA program. The annual enrollment is 
intended to link the VISA enrollment cycle with DOD's peacetime cargo 
contracting to ensure eligible participants priority consideration for 
DOD awards of cargo.
    New VISA applicants are required to submit their applications for 
the VISA program as described in this Notice no later than August 31, 
2007. Applicants must provide copies of loadline documents from a 
recognized classification society to validate oceangoing vessel 
capability, and U.S. Coast Guard Certificates of Documentation for all 
vessels in their fleet. If vessels are bareboat chartered or time 
chartered (applicable to tugs only) by the applicant, charter 
agreements shall be provided along with the application. Bareboat 
charter and time charter agreements must, at a minimum, be valid from 
the time of application through September 30, 2008. Bareboat charter 
agreements must also 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. Approved VISA participants 
will be responsible for assuring that information submitted with their 
application remains up to date beyond the approval process. Any changes 
to VISA commitments must be reported to the Maritime Administration and 
USTRANSCOM not later than seven days after the change. If charter 
agreements are due to expire, participants must provide the Maritime 
Administration with charters that extend the charter duration for 
another 12 months or longer.
    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 the award of 
DOD peacetime cargo. This is the only planned enrollment period for 
carriers to join the VISA program and derive benefits for DOD peacetime 
contracts during the time frame of October 1, 2007 through September 
30, 2008. 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 submit an application to participate in 
the VISA program at any time upon completion of reflagging.

Advantages of Peacetime Participation

    Because enrollment of carriers in the VISA program provides DOD 
with assured access to sealift services during contingencies based on a 
level of commitment, as well as a mechanism for joint planning, 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. The term ``operator'' is defined in 
the VISA document as ``an ocean common carrier or contract carrier that 
owns, controls or manages vessels by which ocean transportation is 
provided''. Applicants wishing to become participants must provide 
satisfactory evidence that the vessels being committed to the VISA 
program are operational and that vessels are intended to be operated by 
the applicant in the carriage of commercial or government preference 
cargoes. 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 may not become participants in the 
VISA program due to lack of requisite

[[Page 45300]]

vessel ownership or operation. However, brokers, freight forwarders and 
agents should encourage the carriers they represent to join the 
program.

Commitment

    Any U.S.-flag vessel operator desiring to receive priority 
consideration 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. Participants operating vessels in 
international trade and 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 militarily useful, 
oceangoing U.S-flag international trading fleet capacity on an annual 
basis. USTRANSCOM and the Maritime Administration 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 
the Maritime Administration 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 with 
the appropriate DOD agency.

Enrollment

    New applicants may enroll by obtaining a VISA application package 
(Form MA-1020 (OMB Approval No. 2133-0532)) from the Director, Office 
of Sealift Support, at the address indicated below. 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 September 23, 
2005, will also be provided with the package. This information is 
needed in order to assist the Maritime Administration 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., section 12103, and that it owns, or 
bareboat charters and controls, oceangoing, militarily useful vessel(s) 
for purposes of committing assets to the VISA program. As previously 
mentioned, VISA applicants must return the completed VISA application 
documents to the Maritime Administration not later than August 31, 
2007. Once the Maritime Administration has reviewed the application and 
determined VISA eligibility, the Maritime Administration will sign the 
VISA application document which completes the eligibility phase of the 
VISA enrollment process.
    After VISA eligibility is approved by the Maritime Administration, 
approved applicants are required to execute a joint VISA Enrollment 
Contract (VEC) with DOD [USTRANSCOM and the Military Sealift Command 
(MSC)] which will specify the participant's Stage III commitment for 
the period October 1, 2007 through September 30, 2008. 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 if applicable, a VISA Contingency Contract (VCC) with 
USTRANSCOM (for Liner Operators). The Maritime Administration reserves 
the right to revalidate all eligibility requirements without notice.
    For Additional Information and Applications Contact: Taylor E. 
Jones II, Director, Office of Sealift Support, U.S. Maritime 
Administration, 1200 New Jersey Avenue, SE., Washington, DC 20590. 
Telephone (202) 366-2323. Fax (202) 366-3128. Other information about 
the VISA can be found on the Maritime Administration's Internet Web 
Page at https://www.marad.dot.gov.

(Authority: 49 CFR 1.66)

    Dated: August 6, 2007.

    By order of the Maritime Administrator.
Daron Threet,
Secretary, Maritime Administration.
 [FR Doc. E7-15825 Filed 8-10-07; 8:45 am]
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