Voluntary Intermodal Sealift Agreement Open Season, 37730-37732 [2015-16179]

Agencies

• Maritime Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 80, Number 126 (Wednesday, July 1, 2015)]
[Notices]
[Pages 37730-37732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16179]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Maritime Administration


Voluntary Intermodal Sealift Agreement Open Season

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of open season for enrollment in the VISA program.

-----------------------------------------------------------------------

SUMMARY: The Maritime Administration (MARAD) announces that the open 
season for Fiscal Year 2016 applications for participation in the 
Voluntary Intermodal Sealift Agreement (VISA) program will run for 30 
days beginning today and ending July 31, 2015. 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 apply. This is 
the only planned enrollment period for carriers to join the VISA 
program and derive benefits for Department of Defense (DOD) peacetime 
contracts initiated during the period from October 1, 2015, through 
September 30, 2016.
    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 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. Carriers enrolled in the VISA program provide DOD with 
assured access to such services during contingencies. In return for 
their VISA commitment, DOD gives VISA participants priority for 
peacetime cargos.

DATES: VISA Program applications must be received on or before July 31, 
2015.

ADDRESSES: Submit applications and questions related to this notice to 
William G. Kurfehs, Acting Director, Office of Sealift Support, U.S. 
Department of Transportation, Maritime Administration, 1200 New Jersey 
Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: William G. Kurfehs, Acting Director, 
Office of Sealift Support, U.S. Department of Transportation, Maritime 
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590.

[[Page 37731]]

Telephone (202) 366-2318; Fax (202) 366-5904, electronic mail to 
Bill.Kurfehs@dot.gov or visit https://www.marad.dot.gov.

SUPPLEMENTARY INFORMATION: The VISA program was established pursuant to 
Section 708 of the Defense Production Act of 1950, as amended (DPA). 
The VISA program was created to provide for voluntary agreements for 
emergency preparedness programs. Pursuant to the DPA, voluntary 
agreements for preparedness programs, including the VISA program expire 
five (5) years after the date they became effective.
    The VISA program is open to U.S.-flag vessel operators of 
oceangoing militarily useful vessels, to include tugs and barges. An 
operator is defined as an owner or bareboat charterer of a vessel. Tug 
enrollment alone does not satisfy VISA eligibility. Operators include 
vessel owners and bareboat charter operators if satisfactory signed 
agreements are in place committing the assets of the owner to VISA. 
Voyage and space charterers are not considered U.S.-flag vessel 
operators for purposes of VISA eligibility.

VISA Concept

    The VISA program provides for the staged, time-phased availability 
of participants' shipping services/systems through pre-negotiated 
contracts between the Government and participants. Such arrangements 
are jointly planned with the MARAD, U.S. Transportation Command 
(USTRANSCOM), and participants in peacetime to allow effective and best 
valued use of commercial sealift capacity, provide DOD assured 
contingency access, and to minimize commercial disruption.
    There are three time-phased stages in the event of VISA activation. 
VISA Stages I and II provide for pre-negotiated 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 provides 
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.

Exceptions to This Open Season

    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

    In return for their VISA commitment, DOD awards peacetime cargo 
contracts to VISA participants on a priority basis. 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; and Foreign-owned or 
operated foreign-flag vessel capacity of non-participants.

Participation

    Applicants must provide satisfactory evidence that the vessels 
being committed to the VISA program are operational and are intended to 
be operated by the applicant in the carriage of commercial or 
government preference cargoes. Operator is defined as an ocean common 
carrier or contract carrier that owns, controls or manages vessels by 
which ocean transportation is provided. 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 are 
not eligible to participate in the VISA program due to lack of 
requisite vessel ownership or operation.

Commitment

    Any U.S.-flag vessel operator desiring to receive priority 
consideration for 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 may receive top tier consideration in the award of DOD peacetime 
contracts by committing the minimum percentages of capacity to all 
three stages of VISA or bottom tier consideration by committing the 
minimum percentage of capacity to only Stage III of VISA. 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 (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 MARAD for coordination with the Department of Justice for approval, 
before they can be utilized.

Vessel Position Reporting

    If VISA applicants have the capability to track their vessels, they 
must include the tracking system used in their VISA application. Such 
applicants are required to provide MARAD access to their vessel 
tracking systems upon approval of their VISA application. If VISA 
applicants do not have a tracking system, they must indicate this in 
their VISA application. The VISA program requires enrolled ships to 
comply with 46 CFR part 307, Establishment of Mandatory Position 
Reporting System for Vessels.

Compensation

    In addition to receiving priority in the award of DOD peacetime 
cargo, a participant will receive compensation during contingency 
activation for that capacity activated under Stage I, II and III. The 
amount of compensation will depend on the Stage at which capacity is 
activated. During enrollment, each participant must select one of 
several compensation methodologies. The compensation methodology 
selection will be completed with the appropriate DOD agency, resulting 
in prices in contingency contracts between DOD and the participant.

Security Clearances

    All VISA applicants accepted for VISA participation, not having a 
Facility Security Clearance (FCL), will be required to pursue the 
clearance process with the Defense Security Service (DSS). If the 
accepted applicant does not have a clearance, MARAD will initiate the 
clearance process with DSS. Participants must have a FCL and individual 
security clearances, at a

[[Page 37732]]

minimum of SECRET level, for key personnel in order for them to 
participate in the VISA Joint Planning Advisory Group (JPAG) meetings 
and to meet VISA contingency contract obligations. One of the 
objectives of the JPAG is to provide the USTRANSCOM, MARAD and VISA 
participants a planning forum to analyze DOD contingency sealift/
intermodal service and resource requirements against industry 
commitments. JPAG meetings are often SECRET classified sessions. 
Eligibility for VISA participation will be terminated if an applicant 
is rejected for a facility clearance or if it fails to progress in a 
timely manner in the clearance process.

Application for VISA Participation

    New applicants may apply to participate by obtaining a VISA 
application package (Form MA-1020 (OMB Approval No. 2133-0532)) from 
the Acting Director, Office of Sealift Support. 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 October 29, 2014 
will also be provided with the package. This information is needed in 
order to assist MARAD 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. 12103, and that it owns, or bareboat charters and controls, 
oceangoing, militarily useful vessel(s) for purposes of committing 
assets to the VISA program.
    New VISA applicants are required to submit their applications for 
the VISA program as described in this Notice no later than 30 days 
after the date of publication of this Federal Register notice. 
Applicants must provide the following: U.S. citizenship documentation; 
Copy of their Articles of Incorporation and/or By Laws; Copies of 
loadline documents from a recognized classification society to validate 
oceangoing vessel capability; U.S. Coast Guard Certificates of 
Documentation for all vessels in their fleet; Copy of Bareboat 
Charters, if applicable, valid through the period of enrollment, which 
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; and Copy of Time Charters, valid through the period of 
enrollment, for tug services to barge operators, if sufficient tug 
service is not owned or bareboat chartered by the VISA applicant. Barge 
operators must provide evidence to MARAD that tug service of sufficient 
horsepower will be available for all barges enrolled in the VISA 
program.
    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. 
Approved VISA participants will be responsible for ensuring that 
information submitted with their application remains up to date beyond 
the approval process. If charter agreements are due to expire, 
participants must provide MARAD with charters that extend the charter 
duration for another 12 months or longer.
    After VISA eligibility is approved by MARAD, approved applicants 
are required to execute a VISA Contingency Contract with USTRANSCOM. 
The USTRANSCOM VISA Contingency Contract will specify the following: 
Participant's Stage III commitment, and appropriate Stage I and/or II 
commitments for the period October 1, 2015 through September 30, 2016; 
Drytime Contingency terms and conditions; and Liner Contingency terms 
and conditions, if applicable. If any change is expected in the 
Contractor's U.S. flag fleet during the period of the applicable VISA 
Contingency Contract, a minimum 30-day notice shall be provided to 
MARAD and USTRANSCOM identifying the change and to alter the VISA 
Capacity Commitment indicated on Attachment 1 of the VISA Contingency 
Contract.
    Execution of the USTRANSCOM VISA Contingency Contract completes the 
enrollment process and establishes the approved applicant as a VISA 
Participant. The Maritime Administration reserves the right to 
revalidate all eligibility requirements without notice. USTRANSCOM 
reserves the right to revalidate eligibility for VISA priority for DOD 
business at any time without notice.

    Authority:  49 CFR Sections 1.92 and 1.93.
* * * * *

    By Order of the Maritime Administrator.

    Dated: June 25, 2015.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015-16179 Filed 6-30-15; 8:45 am]
BILLING CODE 4910-81-P