[Federal Register: May 5, 2004 (Volume 69, Number 87)]
[Notices]
[Page 25166-25168]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05my04-123]
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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 was
extended through February 13, 2005, and published in the Federal
Register on February 25, 2003 (68 FR 8800).
As implemented, the VISA program 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 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 (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.
There are three time-phased stages in the event of VISA activation.
VISA Stages I and II provide for prenegotiated contracts between the
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 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.
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. Approved participants' VISA
contingency contracts will coincide with the DOD contracting cycle of
September 1, 2004 through August 31, 2005. Current participants in the
VISA program are not required to apply for this enrollment, as VISA
participation will be automatically extended for this period, provided
that current participants have approved contingency contracts on file
with the appropriate DOD contracting agency. This is the seventh annual
enrollment period since the commencement of the VISA program. The
annual enrollment
[[Page 25167]]
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 VISA program as described in this Notice no later than June 1,
2004. 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 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 September 1, 2004 through August 31, 2005. 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 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:
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. 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. 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. 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 (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.
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., section 12102, 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 MARAD not later than June 1, 2004. 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 VISA open season applicants,
and prior to being enrolled in VISA, eligible VISA applicants will be
required to execute a joint VISA Enrollment Contract (VEC) with the DOD
[Surface Deployment Distribution Center (SDDC) and the Military Sealift
Command (MSC)] which will specify the participant's Stage III
commitment for the period September 1, 2004 through August 31, 2005.
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 SDDC (for Liner Operators).
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.,
[[Page 25168]]
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.
Authority: 49 CFR 1.66.
By Order of the Maritime Administrator.
Dated: April 30, 2004.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 04-10202 Filed 5-4-04; 8:45 am]
BILLING CODE 4910-81-P