[Federal Register: April 30, 2003 (Volume 68, Number 83)]
[Notices]
[Page 23176-23178]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap03-113]
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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 fiscal year (FY) 2004
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 was
extended through February 13, 2005, and published in the Federal
Register on February 25, 2003 (68 FR 8800).
As implemented, VISA is open to U.S.-flag vessel operators of
militarily useful vessels, including 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
service through bareboat charter or ownership arrangements. Time
charters of U.S.-flag tugs will satisfy commitments to the VISA
program. By order of the Maritime Administrator on August 4, 1997,
participation of U.S.-flag deepwater tug/barge operators in VISA was
encouraged. 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 (MARAD), 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.
VISA Stages I and II provide for prenegotiated contracts between
the DOD and participants to provide sealift capacity to meet all
projected DOD
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contingency requirements. These contracts are executed in accordance
with approved DOD contracting methodologies. VISA Stage III will
provide for additional capacity to the DOD when Stage 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.
FY 2004 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 in the program for FY 2004 (October 1, 2003,
through September 30, 2004). Current participants in the VISA program
are not required to apply for FY 2004 reenrollment, as VISA
participation will be automatically extended for FY 2004. This is the
sixth annual enrollment period since the commencement of the VISA
program. The annual enrollment was initiated because VISA has been
fully integrated into DOD's priority for award of cargo to VISA
participants. It is necessary to link the VISA enrollment cycle with
DOD's peacetime cargo contracting cycle.
New VISA applicants are required to submit their applications for
the FY 2004 VISA program as described in this Notice no later than May
30, 2003. This 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 FY 2004 DOD peacetime cargo.
This is the only planned enrollment period for carriers to join
VISA and derive benefits for DOD peacetime contracts during FY 2004.
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 VISA provides the DOD with
assured access to sealift services during contingencies based on a
level of commitment, as well as a mechanism for joint planning, the 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:
[sbull] U.S.-flag vessel capacity operated by VISA participants,
and U.S.-flag Vessel Sharing Agreement (VSA) capacity held by VISA
participants.
[sbull] U.S.-flag vessel capacity operated by non-participants.
[sbull] 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.
[sbull] Combination U.S.-flag/foreign-flag vessel capacity operated
by non-participants.
[sbull] U.S.-owned or operated foreign-flag vessel capacity and VSA
capacity held by VISA participants.
[sbull] U.S.-owned or operated foreign-flag vessel capacity and VSA
capacity held by non-participants.
[sbull] 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. While vessel brokers 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 vessel ownership or
operation. However, brokers 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. A participant 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 military useful, oceangoing U.S-flag fleet capacity on an
annual basis. The 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 (CCA's) to
satisfy commercial or DOD requirements. VISA provides a defense against
antitrust laws in accordance with the DPA. CCA's must be submitted to
MARAD 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 February 25, 2003, VISA 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. 12102, and that it owns, or bareboat
charters and controls, oceangoing, militarily useful vessel(s) for
purposes of committing assets to VISA. As previously mentioned, VISA
applicants must return the completed VISA application documents to
MARAD not later than May 30, 2003. 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.
In addition, the applicant will be required to enter into a
contingency contract with the DOD. For the FY 2004 VISA open season,
and prior to being
[[Page 23178]]
enrolled in VISA, eligible VISA applicants will be required to execute
a joint VISA Enrollment Contract (VEC) with the DOD (Military Traffic
Management Command (MTMC) and Military Sealift Command (MSC)) which
will specify the participant's Stage III commitment for FY 2004. 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/or as applicable, a VISA Contingency Contract
(VCC) with MTMC (for Liner Operators). Upon completion of the DOD
contingency contract(s), the Maritime Administrator will confirm the
participant's enrollment by letter agreement, with a copy to all
appropriate parties.
For Additional Information and Applications Contact: Frances M.
Olsen, Deputy Director, Office of Sealift Support, U.S. Maritime
Administration, Room 7307, 400 Seventh Street, SW., Washington, DC
20590. Telephone (202) 366-2323. Fax (202) 493-2180. Other information
about the VISA can be found on MARAD's Internet Web page at http://www.marad.dot.gov
.
By Order of the Maritime Administrator.
Dated: April 24, 2003.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 03-10579 Filed 4-29-03; 8:45 am]
BILLING CODE 4910-81-P