[Federal Register Volume 69, Number 87 (Wednesday, May 5, 2004)]
[Notices]
[Pages 25166-25168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10202]


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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

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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.,

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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