Voluntary Intermodal Sealift Agreement; Changes to the Open Season Enrollment Period, 4552-4554 [2018-01851]
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Federal Register / Vol. 83, No. 21 / Wednesday, January 31, 2018 / Notices
criteria given in section 388.4 of
MARAD’s regulations at 46 CFR part
388.
Privacy Act
In accordance with 5 U.S.C. 553(c),
DOT/MARAD solicits comments from
the public to better inform its
rulemaking process. DOT/MARAD posts
these comments, without edit, to
www.regulations.gov, as described in
the system of records notice, DOT/ALL–
14 FDMS, accessible through
www.dot.gov/privacy. In order to
facilitate comment tracking and
response, we encourage commenters to
provide their name, or the name of their
organization; however, submission of
names is completely optional. Whether
or not commenters identify themselves,
all timely comments will be fully
considered. If you wish to provide
comments containing proprietary or
confidential information, please contact
the agency for alternate submission
instructions.
Authority: 49 CFR 1.93(a), 46 U.S.C.
55103, 46 U.S.C. 12121
*
*
*
*
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By Order of the Maritime Administrator.
Dated: January 26, 2018.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2018–01860 Filed 1–30–18; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket No. MARAD–2018–0012]
Requested Administrative Waiver of
the Coastwise Trade Laws: Vessel
DOWN UNDER; Invitation for Public
Comments
Maritime Administration, DOT.
Notice.
AGENCY:
ACTION:
The Secretary of
Transportation, as represented by the
Maritime Administration (MARAD), is
authorized to grant waivers of the U.S.build requirement of the coastwise laws
under certain circumstances. A request
for such a waiver has been received by
MARAD. The vessel, and a brief
description of the proposed service, is
listed below.
DATES: Submit comments on or before
March 2, 2018.
ADDRESSES: Comments should refer to
docket number MARAD–2018–0012.
Written comments may be submitted by
hand or by mail to the Docket Clerk,
U.S. Department of Transportation,
Docket Operations, M–30, West
sradovich on DSK3GMQ082PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
17:36 Jan 30, 2018
Jkt 244001
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE,
Washington, DC 20590. You may also
send comments electronically via the
internet at https://www.regulations.gov.
All comments will become part of this
docket and will be available for
inspection and copying at the above
address between 10:00 a.m. and 5:00
p.m., Monday through Friday, except
Federal holidays. An electronic version
of this document and all documents
entered into this docket is available at
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Bianca Carr, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE, Room W23–453,
Washington, DC 20590. Telephone 202–
366–9309, Email Bianca.carr@dot.gov.
SUPPLEMENTARY INFORMATION: As
described by the applicant the intended
service of the vessel DOWN UNDER is:
—Intended Commercial Use of Vessel:
‘‘Sunset Cruises’’
—Geographic Region: ‘‘Massachusetts
and Rhode Island’’
The complete application is given in
DOT docket MARAD–2018–0012 at
https://www.regulations.gov. Interested
parties may comment on the effect this
action may have on U.S. vessel builders
or businesses in the U.S. that use U.S.flag vessels. If MARAD determines, in
accordance with 46 U.S.C. 12121 and
MARAD’s regulations at 46 CFR part
388, that the issuance of the waiver will
have an unduly adverse effect on a U.S.vessel builder or a business that uses
U.S.-flag vessels in that business, a
waiver will not be granted. Comments
should refer to the docket number of
this notice and the vessel name in order
for MARAD to properly consider the
comments. Comments should also state
the commenter’s interest in the waiver
application, and address the waiver
criteria given in section 388.4 of
MARAD’s regulations at 46 CFR part
388.
Privacy Act
In accordance with 5 U.S.C. 553(c),
DOT/MARAD solicits comments from
the public to better inform its
rulemaking process. DOT/MARAD posts
these comments, without edit, to
www.regulations.gov, as described in
the system of records notice, DOT/ALL–
14 FDMS, accessible through
www.dot.gov/privacy. In order to
facilitate comment tracking and
response, we encourage commenters to
provide their name, or the name of their
organization; however, submission of
names is completely optional. Whether
or not commenters identify themselves,
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
all timely comments will be fully
considered. If you wish to provide
comments containing proprietary or
confidential information, please contact
the agency for alternate submission
instructions.
Authority: 49 CFR 1.93(a), 46 U.S.C. 55103,
46 U.S.C. 12121.
*
*
*
*
*
By Order of the Maritime Administrator.
Dated: January 26, 2018.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2018–01858 Filed 1–30–18; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Maritime Administration
Voluntary Intermodal Sealift
Agreement; Changes to the Open
Season Enrollment Period
Maritime Administration,
Department of Transportation.
ACTION: Notice.
AGENCY:
The Maritime Administration
(MARAD) announces that it is changing
the open season enrollment procedures
for U.S.-flag vessel operators wishing to
enroll their vessels in the Voluntary
Intermodal Sealift Agreement (VISA)
program. Specifically, MARAD will no
longer announce an annual open season
for enrollment. MARAD invites
interested U.S.-flag vessel operators that
are not currently in the program to
apply at any time throughout the year.
The open enrollment change will be in
line with new requirements in the
Department of Defense (DOD) VISA
contingency contract.
Any U.S.-flag vessel operator
organized under the laws of a state of
the United States or the District of
Columbia, and 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 access to vessels, vessel
space, intermodal systems and
equipment, terminal facilities, and
related management services, to the
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
SUMMARY:
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Federal Register / Vol. 83, No. 21 / Wednesday, January 31, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
participants priority for peacetime
cargos.
DATES: VISA program applications may
be submitted at any time.
ADDRESSES: Submit applications and
questions related to this notice to
William G. McDonald, Director, Office
of Sealift Support, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE, Washington, DC 20590.
Telephone (202) 366–0688; Fax (202)
366–5904.
FOR FURTHER INFORMATION CONTACT:
William G. McDonald, Director, Office
of Sealift Support, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE, Washington, DC 20590.
Telephone (202) 366–0688; Fax (202)
366–5904, electronic mail to
william.g.mcdonald@dot.gov or visit
https://www.marad.dot.gov.
SUPPLEMENTARY INFORMATION: The VISA
program was established pursuant to
Sec. 708 of the Defense Production Act
of 1950, as amended (DPA) (50 U.S.C.
4558). 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. Barge 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 Program
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
VerDate Sep<11>2014
17:36 Jan 30, 2018
Jkt 244001
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 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.
Change to Enrollment Process
Historically, the VISA program’s
annual open season enrollment period
was tied to DOD’s peacetime cargo
contracting cycle which was based on
the Government’s fiscal year (October 1
through September 30) and VISA
participants’ capacity commitments
were locked in for an annual period.
Currently, DOD’s new contract
requirements have been revised and
state that if any change in a VISA
participant’s U.S.-flag fleet is necessary
during the period of their contract, a
minimum 30-day notice must be
provided to USTRANSCOM identifying
the change. Therefore, MARAD is no
longer required to announce an annual
open season because DOD modifies
VISA participants’ capacity
commitments and contingency contracts
throughout the year. This new process
adds efficiency and eliminates
redundancy.
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.
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Fmt 4703
Sfmt 4703
4553
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 enroll
100% of their entire U.S.-flag militarily
useful capacity and associated services
to the VISA program and commit no less
than 50 percent of its total U.S.-flag
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 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
E:\FR\FM\31JAN1.SGM
31JAN1
4554
Federal Register / Vol. 83, No. 21 / Wednesday, January 31, 2018 / Notices
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 pt. 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 USTRANSCOM
resulting in prices in contingency
contracts between DOD and the
participant.
sradovich on DSK3GMQ082PROD with NOTICES
Security Clearances
All VISA applicants accepted for
VISA participation, but which do not
have 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 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 Program
Participation
New applicants may apply to
participate by obtaining a VISA
application package (Form MA–1020
(OMB Approval No. 2133–0532)) from
the Director, Office of Sealift Support.
Form MA–1020 includes instructions
for completing and submitting the
application, blank VISA Application
VerDate Sep<11>2014
17:36 Jan 30, 2018
Jkt 244001
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.
Applicants must provide the
following: U.S. citizenship
documentation; copy of their Articles of
Incorporation and bylaws; 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 of
performance; Drytime Contingency
terms and conditions; and Liner
Contingency terms and conditions, if
applicable. If any change is expected in
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Frm 00092
Fmt 4703
Sfmt 4703
the Contractor’s U.S. flag fleet during
the period of the applicable VISA
Contingency Contract, a minimum 30day 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 1.92, 1.93.
*
*
*
*
*
By Order of the Maritime Administrator.
Dated: January 26, 2018.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2018–01851 Filed 1–30–18; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket No. MARAD–2018–0013]
Requested Administrative Waiver of
the Coastwise Trade Laws: Vessel
SNOCKERED; Invitation for Public
Comments
Maritime Administration, DOT.
Notice.
AGENCY:
ACTION:
The Secretary of
Transportation, as represented by the
Maritime Administration (MARAD), is
authorized to grant waivers of the U.S.build requirement of the coastwise laws
under certain circumstances. A request
for such a waiver has been received by
MARAD. The vessel, and a brief
description of the proposed service, is
listed below.
DATES: Submit comments on or before
March 2, 2018.
ADDRESSES: Comments should refer to
docket number MARAD–2018–0013.
Written comments may be submitted by
hand or by mail to the Docket Clerk,
U.S. Department of Transportation,
Docket Operations, M–30, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE,
Washington, DC 20590. You may also
send comments electronically via the
internet at https://www.regulations.gov.
All comments will become part of this
docket and will be available for
SUMMARY:
E:\FR\FM\31JAN1.SGM
31JAN1
]]>Agencies
[Federal Register Volume 83, Number 21 (Wednesday, January 31, 2018)]
[Notices]
[Pages 4552-4554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01851]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Maritime Administration
Voluntary Intermodal Sealift Agreement; Changes to the Open
Season Enrollment Period
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Maritime Administration (MARAD) announces that it is
changing the open season enrollment procedures for U.S.-flag vessel
operators wishing to enroll their vessels in the Voluntary Intermodal
Sealift Agreement (VISA) program. Specifically, MARAD will no longer
announce an annual open season for enrollment. MARAD invites interested
U.S.-flag vessel operators that are not currently in the program to
apply at any time throughout the year. The open enrollment change will
be in line with new requirements in the Department of Defense (DOD)
VISA contingency contract.
Any U.S.-flag vessel operator organized under the laws of a state
of the United States or the District of Columbia, and 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 access to vessels, vessel
space, intermodal systems and equipment, terminal facilities, and
related management services, to the 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
[[Page 4553]]
participants priority for peacetime cargos.
DATES: VISA program applications may be submitted at any time.
ADDRESSES: Submit applications and questions related to this notice to
William G. McDonald, Director, Office of Sealift Support, U.S.
Department of Transportation, Maritime Administration, 1200 New Jersey
Avenue SE, Washington, DC 20590. Telephone (202) 366-0688; Fax (202)
366-5904.
FOR FURTHER INFORMATION CONTACT: William G. McDonald, Director, Office
of Sealift Support, U.S. Department of Transportation, Maritime
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590.
Telephone (202) 366-0688; Fax (202) 366-5904, electronic mail to
[email protected] or visit https://www.marad.dot.gov.
SUPPLEMENTARY INFORMATION: The VISA program was established pursuant to
Sec. 708 of the Defense Production Act of 1950, as amended (DPA) (50
U.S.C. 4558). 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. Barge 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 Program
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.
Change to Enrollment Process
Historically, the VISA program's annual open season enrollment
period was tied to DOD's peacetime cargo contracting cycle which was
based on the Government's fiscal year (October 1 through September 30)
and VISA participants' capacity commitments were locked in for an
annual period. Currently, DOD's new contract requirements have been
revised and state that if any change in a VISA participant's U.S.-flag
fleet is necessary during the period of their contract, a minimum 30-
day notice must be provided to USTRANSCOM identifying the change.
Therefore, MARAD is no longer required to announce an annual open
season because DOD modifies VISA participants' capacity commitments and
contingency contracts throughout the year. This new process adds
efficiency and eliminates redundancy.
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 enroll 100% of their
entire U.S.-flag militarily useful capacity and associated services to
the VISA program and commit no less than 50 percent of its total U.S.-
flag 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
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
[[Page 4554]]
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 pt. 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 USTRANSCOM resulting in prices in
contingency contracts between DOD and the participant.
Security Clearances
All VISA applicants accepted for VISA participation, but which do
not have 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 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 Program Participation
New applicants may apply to participate by obtaining a VISA
application package (Form MA-1020 (OMB Approval No. 2133-0532)) from
the 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.
Applicants must provide the following: U.S. citizenship
documentation; copy of their Articles of Incorporation and bylaws;
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 of performance; 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 1.92, 1.93.
* * * * *
By Order of the Maritime Administrator.
Dated: January 26, 2018.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2018-01851 Filed 1-30-18; 8:45 am]
BILLING CODE 4910-81-P
