Solicitation of Applications for the Award of Two Maritime Security Program Operating Agreements, 34221-34223 [2023-11287]

Agencies

• Maritime Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 88, Number 102 (Friday, May 26, 2023)]
[Notices]
[Pages 34221-34223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11287]


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

DEPARTMENT OF TRANSPORTATION

Maritime Administration


Solicitation of Applications for the Award of Two Maritime 
Security Program Operating Agreements

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice.

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

SUMMARY: The Maritime Administration (MARAD) requests applications from 
qualified candidates to enter into Maritime Security Program (MSP) 
Operating Agreements for the operation of two U.S.-registered merchant 
vessels in international trade, subject to the availability of 
appropriations. The MSP maintains a fleet of active, commercially 
viable, militarily useful, privately-owned U.S.-flagged vessels that 
are engaged in international trade and are capable of supporting both 
U.S. economic competitiveness in peacetime and national defense and 
security requirements in times of conflict or emergency. This request 
for applications provides, among other things, application criteria and 
a deadline for submitting applications for vessel enrollment into MSP.

DATES: Applications must be received no later than June 26, 2023.

ADDRESSES: Applications may be submitted in hard copy or 
electronically. Applications may be submitted electronically to 
[email protected] and in hard copy to the U.S. Department of 
Transportation, Maritime Administration, Maritime Security Program, 
Room W25-310, 1200 New Jersey Avenue SE, Washington, DC 20590. 
Application forms and instructions are available on the MARAD website 
at https://

[[Page 34222]]

maritime.dot.gov/national-security/strategic-sealift/maritime-security-
program-msp. Applicants with large electronic files should contact 
Richard Wanerman, Office of Sealift Support by telephone at (202) 366-
2306 or email at [email protected] for large file transfer 
options.

FOR FURTHER INFORMATION CONTACT: David Hatcher, Director, Office of 
Sealift Support, Telephone (202) 366-0688. For legal questions, contact 
Joseph Click, Office of Chief Counsel, Division of Maritime Programs, 
(202) 366-5882. For military utility questions, contact Tim Boemecke, 
U.S. Department of Defense, United States Transportation Command, (618) 
220-1452.

SUPPLEMENTARY INFORMATION: 

Background

    46 U.S.C. 53102(a) 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, U.S.-registered vessels to meet national defense and 
other security requirements and to maintain a United States presence in 
international commercial shipping. In accordance with 46 U.S.C. 
53103(d), MARAD may not enter into Operating Agreements for MSP 
covering more than 60 vessels in any given fiscal year. Payments to 
participating operators are subject to the availability of 
appropriations and are limited to the following amounts: $5.3 million 
per ship for fiscal years (FY) 2023 through 2025; $5.8 million per ship 
for FYs 2026 through 2028; $6.3 million per ship for FYs 2029 through 
2031; and $6.8 million per ship for FYs 2032 through 2035.
    On January 1, 2021, Congress established the Tanker Security 
Program (TSP) in section 3511(a) of the National Defense Authorization 
Act for FY 2021 (NDAA FY 21) (Pub. L. 116-283) (codified at 46 U.S.C. 
53401-12), directing the Secretary and SecDef to establish a 
substantially-similar program to MSP for product tankers. NDAA FY 21 
Sec. 3511(c)(3) further directed the Secretary to approve any 
applications for TSP from any MSP Operating Agreement holders that 
operated product tank vessels under MSP Operating Agreements at the 
time of NDAA FY 21's enactment. MARAD subsequently published the Tanker 
Security Program Application Solicitation in the Federal Register on 
December 9, 2022 (87 FR 75688-89), and received an application on 
January 31, 2023, from the sole operator of the two product tankers in 
MSP to operate them under TSP.
    Under 46 CFR 296.24(a), MARAD seeks to ensure that MSP Operating 
Agreement holders operate the maximum number of statutorily authorized 
vessels under MSP Operating Agreements at any given time. The maximum 
number is currently fixed at 60 vessels by 46 U.S.C. 53103(d). As the 
TSP application of January 31, 2023, will create two vacancies in the 
MSP fleet during FY 2023, MARAD is publishing this solicitation 
pursuant to 46 U.S.C. 53103(c) and 46 CFR 296.24 to select up to two 
eligible vessels from qualified applicants to operate in MSP and to 
award two MSP Operating Agreements to cover their operation (one 
agreement per vessel). MARAD expects to enter into MSP Operating 
Agreements with successful applicants as soon as practicable following 
the commencement of TSP. Consistent with the National Security 
Requirements section below, successful applicants will be required to 
make their commercial transportation resources available upon request 
by SecDef during times of war or national emergency.

Application Criteria

    46 U.S.C. 53103(c) and 46 CFR 296.24(a)(1)-(a)(3) establish a 
priority system whereby applications for subsequent award of MSP 
Operating Agreements are first evaluated on the basis of vessel type, 
as determined by Department of Defense (DoD) requirements, with 
secondary consideration based upon the citizenship status of the 
applicant, as defined in 46 U.S.C. 50501.

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. Geared Containerships and Multi-Purpose/Heavy Lift Vessels 
capable of carrying ammunition.
    3. All other vessel types, which will be considered after all 
applications for the above listed vessel types have been reviewed.
    For each individual application, the offered vessel's recognized 
classification 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 prior to or on 
the first effective date of the awarded MSP Operating Agreement. The 
Voluntary Intermodal Sealift Agreement (VISA), as published in Federal 
Register at 79 FR 64462 (Oct. 29, 2014) and renewed at 84 FR 51710 
(Sept. 30, 2019), is the designated EPA for all non-tank vessels 
operating in MSP.

Documentation

    Vessels must be documented in the United States under 46 U.S.C. 
chapter 121 prior to operation under any MSP Operating Agreement and 
receipt of any payments under those Operating Agreements. Further, 
MARAD must receive proof of U.S. Coast Guard vessel documentation and 
inspection and must approve all relevant charter and management 
agreements governing the prospective operation of the vessel before the 
vessel will be eligible to receive MSP payments. If a vessel being 
offered for consideration by an applicant is not currently registered 
in the United States, MARAD requires the applicant to provide MARAD 
with a proposed plan for bringing the vessel under U.S. vessel 
registration.

Vessel Operation

    Vessels operating 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). Additionally, in accordance with 46 U.S.C. 
53105(a)(2), any vessel selected under this solicitation may not engage 
in trades between points in the United States and its territories, 
either directly or via a foreign port, notwithstanding 46 U.S.C. 
12111(b) & 55101(b).

USMMA Cadet Safe Training Environment Requirements

    In accordance with 46 U.S.C. 51307, the operator of any vessel 
selected under this solicitation must implement and enforce a MARAD-
approved plan under 46 U.S.C. 51322 and the Every Mariner Builds A 
Respectful Culture (EMBARC) program to prevent and respond to sexual 
assault and harassment against any merchant marine cadet sailing aboard 
that vessel in fulfillment of their educational

[[Page 34223]]

requirements. If an applicant currently has a MARAD approved EMBARC 
plan in place for other vessels it operates at the time it applies 
under this solicitation, it must state so in its application and 
describe the steps it has taken to implement the plan on its other 
vessels. If an applicant does not currently have an EMBARC plan, it 
must describe the steps it will take to implement and enforce such a 
plan in the application. If awarded an MSP Operating Agreement, the 
applicant must fully implement, or be prepared to fully implement, a 
MARAD approved EMBARC plan onboard the selected vessel prior to the 
execution of the Operating Agreement and the receipt of payments under 
it.

Award

    MARAD does not guarantee the award of any MSP Operating Agreements 
in response to applications submitted under this notice. In the event 
that MARAD does not award any operating agreements or does not select 
an application for award, MARAD will provide the applicant with a 
written explanation 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 (CCFI), 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'' 
in the header or footer; and (3) highlight or otherwise denote those 
portions of each page that the applicant considers to contain CCFI. 
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.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2023-11287 Filed 5-25-23; 8:45 am]
BILLING CODE 4910-81-P