[Federal Register Volume 68, Number 83 (Wednesday, April 30, 2003)]
[Notices]
[Pages 23176-23178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10579]


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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

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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