[Federal Register Volume 86, Number 2 (Tuesday, January 5, 2021)]
[Notices]
[Pages 355-356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29159]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket Number MARAD-2020-0175]


Request for Applications To Be Considered for Enrollment in the 
Cable Security Fleet

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of application period for the cable security fleet 
program.

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SUMMARY: The Maritime Administration (MARAD) requests applications from 
owners and/or operators of eligible vessels to enroll such vessels in 
the Cable Security Fleet (CSF). The CSF Program is a newly-authorized 
program intended to maintain a fleet of active, commercially viable, 
privately owned United States-flag cable vessels to meet national 
security requirements and to maintain a United States presence in the 
international submarine cable services market. The CSF will consist of 
two vessels. This Notice describes, among other things, statutory 
requirements to apply and to participate in the CSF, recommendations as 
to the form and substance of applications, and a deadline for 
submitting applications for vessel enrollment in the CSF program. The 
Maritime Administration will negotiate agreements ready for execution 
with the successful applicants.

DATES: Applications to enroll vessels into the CSF should be made by 
February 4, 2021. Applications should be submitted to the address 
listed in the ADDRESSES section below.

ADDRESSES: Applications should be addressed to the Director, Office of 
Sealift Support, Maritime Administration, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, Room W25-310, Washington, DC 
20590.

FOR FURTHER INFORMATION CONTACT: Rhonda Davis, Office of Sealift 
Support, Maritime Administration, U.S. Department of Transportation, 
Telephone (202) 366-6379, or [email protected]. For legal questions, 
contact Joseph Click, Attorney Advisor, Maritime Administration, U.S. 
Department of Transportation, Telephone (202) 366-5882, or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Program Overview

    46 U.S.C. 53202(a)(1) directs the Secretary of Transportation 
(Secretary), in consultation with the Secretary of Defense (SecDef), to 
establish a fleet of active, commercially-viable cable vessels to meet 
national security requirements. The Cable Security Fleet, which will be 
known as the CSF, will consist of privately owned, United States-
documented cable vessels, whose owners or operators will enter into 
Operating Agreements with MARAD to set forth operating qualifications 
and criteria in exchange for payments. Program participants will enter 
into Operating Agreements that will require participants to: 
Continuously and actively operate the subject vessels in the commercial 
submarine cable services market (including the laying, maintenance, and 
repair of submarine cables) and provide the United States Government 
access to participating vessels in times of national emergency. In 
administering the CSF Program, MARAD will work with a designated agency 
of the Department of Defense (DoD) to evaluate vessels and operators 
and to confirm that operating agreements meet the objectives of 
supporting economic activity and national security. Establishment of 
the CSF is set forth in the United States Code, Title 46, Chapter 532, 
referred to as ``the statute'' below.

A. Citizenship Requirements for Owners and Operators

    An applicant seeking to enroll its vessels in CSF must meet certain 
qualifications for vessel control and citizenship. First, an applicant 
must be a vessel's registered owner or operate the vessel as its 
principal demise charterer, such that it operates the vessel at its own 
risk and expense. MARAD will not consider applications from sub-demise 
charterers, time charterers, vessel managers, or other vessel 
stakeholders. Additionally, candidate vessel ownership or operation 
must meet the requirements of one of four citizenship categories:
    1. Vessel owned and operated by United States citizens, known as 
50501 Citizens, within the meaning of Section 50501 of Title 46, United 
States Code;
    2. Vessel owned by a U.S. citizen, known as a 50501 Citizen, under 
46 U.S.C. 50501 or United States Citizen Trust under 46 U.S.C. 
53201(11) and chartered to a United States citizen eligible to document 
vessels, known as a Documentation Citizen, under Chapter 121 of Title 
46, United States Code, subject to:
    a. Verifications of the U.S.-citizenship of the board and principal 
officers of the charterer; and
    b. Certifications by the charterer that no treaty, statute, or 
person would influence the vessel's operations in a

[[Page 356]]

manner contrary to the interests of the United States;
    3. Vessel owned and operated by an entity that contracts with the 
Department of Defense to operate vessels for, or charters vessels to, 
the United States; or
    4. Vessel owned by a Documentation Citizen and chartered to a 50501 
Citizen.

B. Vessel Technical Considerations

    Vessels proposed for enrollment in the CSF must meet certain 
minimum technical and legal requirements as of the time of application. 
In addition to the citizenship requirements for each vessel's owner and 
operator, each vessel must be:
    1. 40 years of age or less on the date on which the vessel is 
enrolled in CSF (unless waived by the Secretary under 46 U.S.C. 
53202(e));
    2. Found suitable by DoD for cable servicing work in the interest 
of national security;
    3. Found commercially viable by MARAD for submarine cable services.
    4. Classed as a cable vessel by the American Bureau of Shipping or 
another classification society accepted by the United States Coast 
Guard (USCG); and
    5. Documented by USCG under Chapter 121 of Title 46, United States 
Code, or have its owners demonstrate their intent to document the 
vessel under Chapter 121 of Title 46.

C. Terms of the CSF Operating Agreements

    If MARAD deems an applicant and its proposed vessel to be most 
qualified for the CSF, then MARAD will negotiate and enter into an 
Operating Agreement with the applicant for one year, subject to the 
availability of appropriations with payment for participation at the 
annual rate of $5 million after the availability of funding and 
execution of agreements as provided by statute and appropriation.

II. Application for Entry Into the Cable Ship Fleet

A. Application Elements

    Qualified cable vessel owners and/or operators seeking to apply for 
a CSF Operating Agreement may submit applications (one (1) original 
with two (2) copies) with the following information and materials for 
ease of review; however, conformity with this applicant guidance, 
except where explicit in the statute, is voluntary only. MARAD will 
review and consider all applications it receives and may contact 
applicants for additional information:
    1. Full name of Applicant and address of principal executive 
office;
    2. Notarized affidavit of citizenship status, whether as a 50501 
Citizen or Documentation Citizen;
    3. Certificate of incorporation;
    4. Copy of corporate by-laws or other governing instruments;
    5. Description of domestic and international corporate 
affiliations;
    6. Financial data;
    7. Vessel's base port where it may be inspected by MARAD or a 
designated marine surveyor, and a description of the vessel's regular 
area of operation;
    8. Locations and descriptions of any marine depots worldwide where 
the vessel has access to servicing, spare cables, amplifiers, and other 
equipment necessary for undersea cable repair;
    9. Description of applicant's vessel's regular operations, which 
may include a listing of submarine cables laid or repaired within the 
preceding three (3) years, detailing the name of the cable systems laid 
and repaired, approximate location of repair work, and approximate 
depths of cable repaired, marine depots used for replenishment of 
spares, and a listing of marine crew and mission specialist positions 
(splicers, cable test technicians, cable transmission technicians, and 
cable engineers), including years of experience.
    10. Demise or bareboat charter arrangements, if applicable;
    11. Applicant's stated assessment of the vessel's national security 
value to DoD with respect to cable services;
    12. Copies of any Special Security Agreements into which the 
Applicant has entered with DoD, per 46 U.S.C. 53202(c)(3)(A)(iii).

B. Protection of Confidential Commercial or Financial Information

    If an application includes information that the applicant considers 
to be a trade secret or confidential commercial or financial 
information, the applicant should do the following: (1) Note on the 
front cover that the submission ``Contains Confidential Commercial or 
Financial Information (CCFI)''; (2) mark each affected page ``CCFI''; 
and (3) highlight or otherwise denote the CCFI portions. MARAD will 
protect such information from disclosure to the extent allowed under 
applicable law. In the event MARAD receives a Freedom of Information 
Act (FOIA) request for the information, procedures described in the 
Department's FOIA regulation at 49 CFR 7.29 will be followed. Only 
information that is ultimately determined to be confidential under that 
procedure will be exempt from disclosure under FOIA.

(Authority: National Defense Authorization Act for Fiscal Year 2020, 
Pub. L. 116-92, section 3521; 49 CFR 1.93(a))

    Dated: December 30, 2020.

    By Order of the Maritime Administrator.
Gabriel Chavez,
Secretary, Maritime Administration.
[FR Doc. 2020-29159 Filed 1-4-21; 8:45 am]
BILLING CODE 4910-81-P