[Federal Register Volume 69, Number 34 (Friday, February 20, 2004)]
[Notices]
[Pages 7992-7993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3668]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Maritime Security Act of 2003, Subtitle D--National Defense Tank 
Vessel Construction Assistance

AGENCY: Maritime Administration, DOT.

ACTION: Notice of request for competitive proposals for construction of 
new product tank vessels.

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SUMMARY: This notice solicits competitive proposals for the 
construction in the United States of new product tank vessels necessary 
to meet the commercial and national security needs of the United States 
and to be built with assistance under subtitle D of the Maritime 
Security Act of 2003.

FOR FURTHER INFORMATION CONTACT: Gregory V. Sparkman, Office of 
Insurance and Shipping Analysis, Maritime Administration, Room 8117, 
400 Seventh Street, SW., Washington, DC 20590; Telephone (202) 366-
2400; Fax: (202) 366-7901.

ADDRESSES: Applications must be mailed, delivered in person or faxed 
(in which case an original must be subsequently received) to the 
Secretary, Maritime Administration, Room 7218, 400 Seventh Street, SW., 
Washington, DC 20590; Fax (202) 366-9206.

SUPPLEMENTARY INFORMATION: Under subtitle D of the Maritime Security 
Act of 2003, Public Law 108-199, National Defense Tank Vessel 
Construction Assistance, the Secretary of Transportation, acting 
through the Maritime Administrator, has established a program to 
provide financial assistance for the construction in the United States 
of a fleet of up to 5 privately owned product tank vessels: (1) to be 
operated in commercial service in foreign commerce; and (2) to be 
available for national defense purposes in time of war or national 
emergency pursuant to an Emergency Preparedness Plan approved by the 
Secretary of Defense pursuant to section 3543(e) of subtitle D.
    This notice solicits requests for competitive proposals for the 
construction of new product tank vessels necessary to meet the 
commercial and national security needs of the United States and to be 
built with assistance under subtitle D of the Maritime Security Act of 
2003.
    Any citizen of the United States or any shipyard in the United 
States may submit a proposal to the Maritime Administrator. The 
Secretary, acting through the Maritime Administrator, with the 
concurrence of the Secretary of Defense, may enter into an agreement 
with the submitter of a proposal for construction of a new product tank 
vessel of not less than 35,000 deadweight tons and not greater than 
60,000 deadweight tons, that--
    (A) Will meet the requirements of foreign commerce;
    (B) Is capable of carrying militarily useful petroleum products, 
and will be suitable for national defense or military purposes in time 
of war, national emergency, or other military contingency; and
    (C) Will meet the construction standards necessary to be documented 
under the laws of the United States.
    The shipyard in which the vessel will be constructed must be 
determined to have the necessary capacity and expertise to successfully 
construct the proposed number and type of product tank vessels in a 
reasonable period of time as determined by the Secretary of 
Transportation, acting through the Maritime Administrator, taking into 
consideration the recent prior commercial shipbuilding history of the 
proposed shipyard in delivering a vessel or series of vessels on time 
and in accordance with the contract price and specifications. 
Additionally, the person proposed to be the operator of the proposed 
vessel must be determined to possess the ability, experience, financial 
resources, and any other qualifications determined to be necessary by 
the Secretary, acting through the Maritime Administrator, for the 
operation and maintenance of the vessel.
    Subject to the above considerations, the Secretary, acting through 
the Maritime Administrator, shall give priority consideration to a 
proposal submitted by a person that is a citizen of the United States 
under section 2 of the Shipping Act, 1916 (46 App. U.S.C. 802); and may 
give priority consideration to proposals that provide the best value to 
the Government, taking into consideration: (1) The costs of vessel 
construction; and (2) the commercial and national security needs of the 
United States.
    If it is determined that the proposal fulfills the requirements of 
subtitle D, the Secretary, acting through the Maritime Administrator, 
may enter into a contract with the proposed purchaser and the proposed 
shipyard for the construction of a product tank vessel with assistance 
under subtitle D. The contract shall provide for a payment, subject to 
the availability of appropriations, of up to 75 percent of the actual 
construction cost of the vessel, but in no case more than $50,000,000 
per vessel. The contract shall require that construction of a vessel 
with assistance under subtitle D shall be performed in a shipyard in 
the United States. The contract shall further require that, upon 
delivery of a vessel constructed with assistance under the contract, 
the vessel shall be documented under chapter 121 of title 46, United 
States Code with a registry endorsement only. A vessel constructed with 
assistance under subtitle D shall not be eligible for a certificate of 
documentation with a coastwise

[[Page 7993]]

endorsement. Section 9(g) of the Shipping Act, 1916, (46 App. U.S.C. 
808(g)) shall not apply to a vessel constructed with assistance under 
Subtitle D. Additionally, a contract under Subtitle D shall require 
that the person who will be the operator of a vessel constructed with 
assistance under the contract shall enter into an Emergency 
Preparedness Agreement for the vessel under section 53107 of title 46, 
United States Code, as amended by the Maritime Security Act of 2003.
    For purposes of the application, under paragraph (1), of section 
53107 of title 46, United States Code, to construct a vessel with 
assistance under subtitle D, the term ``contractor'' as used in that 
section means the person who will be the operator of a vessel 
constructed with assistance under subtitle D.
    The Secretary, acting through the Maritime Administrator, shall 
incorporate in the contract the requirements set forth in subtitle D, 
and may incorporate in the contract any additional terms considered 
necessary.
    The Secretary, acting through the Maritime Administrator, shall 
give priority to guarantees and commitments under section 1103 of the 
Merchant Marine Act, 1936 for vessels that are otherwise eligible for a 
guarantee under that section and that are constructed with assistance 
under subtitle D.

Request for Proposals

    The Maritime Administration has developed a detailed Request for 
Proposals (RFP) for those interested in participating in the National 
Defense Tank Vessel Construction Assistance Program. The RFP sets forth 
all requirements of the Program and any interested party should refer 
directly to that document. The RFP will be available on the Internet at 
http://www.fedbizopps.gov and http://www.marad.dot.gov on or about 
February 20, 2004. Hard copies of the RFP will be available in the 
office of the Secretary, Maritime Administration (see ADDRESSES section 
for contact information).

    Authority: 49 CFR 1.66.

    By Order of the Maritime Administrator.

    Dated: February 13, 2004.
Joel C. Richard,
Secretary.
[FR Doc. 04-3668 Filed 2-19-04; 8:45 am]
BILLING CODE 4910-81-P