National Defense Tank Vessel Construction Program - Request for Proposals (RFP)

For information contact Greg Sparkman at 202-366-2400 greg.sparkman@marad.dot.gov

Although MARAD may employ procedures borrowed from the Federal Acquisition Regulation System to administer the National Defense Tank Vessel Construction Program (NDTVC), it is intended instead that MARAD would enter into a cooperative agreement with the shipyard and ship operator.

MARAD has determined that an acquisitions contract is not the appropriate funding vehicle because the United States government is not procuring either property or services. Instead, we intend to use a cooperative agreement, because the award of tank vessel construction assistance serves the public purpose of fostering a modern and necessary U.S. merchant marine supported by efficient facilities for shipbuilding and ship repair.

PHASE I COMPLETE

On August 6, 2004, the Maritime Administrator, with respect to Phase I proposals submitted in response to the Request for Competitive Proposals (RFP) offered by the Maritime Administration pursuant to the Maritime Security Act of 2003, Subtitle D, National Defense Tank Vessel Construction Assistance, took the following actions:

A.    Noted that eight respondents submitted proposals under Phase I by the due date of July 2, 2004. The respondents are Overseas Shipholding Group, Inc., AHL Shipping Company, Seabulk International, Inc., Maritrans, Inc., Ocean Shipholding, Inc., Northern Marine, Marine Transport Corporation and National Steel and Shipbuilding Company.

B.   Determined that the Phase I submissions of Overseas Shipholding Group, Inc., AHL Shipping Company, Seabulk International, Inc., Maritrans, Inc., Ocean Shipholding, Inc., Marine Transport Corporation and National Steel and Shipbuilding Company comply with the Phase I requirements contained in the RFP and all are eligible to participate in Phase II of the tanker program.

C.   Noted that Northern Marine has not fully met certain of the technical and financial requirements of the RFP and determined that such information as set forth in Attachment 1 must be provided in its entirety no later than September 30, 2004 in order for the company to become eligible to participate in Phase II of the RFP.

D.   Noted that Seabulk International, Inc. has not met the citizenship requirements to qualify for priority and determined that such requirements must be met when it submits its Phase II application in order to qualify for priority consideration.

E.   Confirmed that all Phase II proposals are due no later than October 22, 2004, unless otherwise modified by the Maritime Administration.

MODIFICATION OF PHASE II SCHEDULE
Please note that the due date for Phase II applications has been changed to October 22, 2004 and the final award will now be made by January 5, 2005. All Phase I applications are still due July 2, 2004 and MARAD’s evaluation of these applications will be completed by August 4, 2004. The revised schedule is available by clicking on schedule link above.

1. Clarification with respect to certain aspects of RFP:
   This website notice clarifies the RFP, as follows:
   1. With respect to U.S. content requirements:
      For the purpose of vessels constructed under this RFP, a foreign component of the hull and superstructure is not considered to be a “major component” of the hull and superstructure if the component constitutes five percent or less of the total steel weight of the vessel. Components meeting this definition can be included in the hull and superstructure of the vessel up to an aggregate maximum of 10 percent of the total steel weight of the vessel.
      
   2. With respect to the Capital Construction Fund:
      The Capital Construction Fund (CCF) regulation at 46 CFR 390.5(c)(i) requires that a qualified agreement vessel be built in the United States. Section 390.5(c)(8) defines “United States construction” and includes the following requirement: “(ii) All components of the hull and superstructure are fabricated in the United States;…”. The Maritime Administration interprets this requirement to mean that no CCF monies can be used for components of the hull and superstructure that are not fabricated in the United States. A foreign component is not deemed to be a “component” within the meaning of this section unless it exceeds the parameters set forth in 1. above. However, the fact of foreign fabrication of hull and superstructure components within the parameters set forth in 1. above does not by itself disqualify a vessel from being considered a qualified agreement vessel. Therefore, CCF monies can be used for other parts of the vessel that are U.S. built or fabricated.
      
      
2. With respect to vessel characteristics:
   The proposed vessels must be suitable for Panama Canal transit.

June 3, 2004 - Additional information regarding U.S. content requirements and Consol Capability:

• Regarding U.S. content requirements:
  If the total steel weight of the foreign content in the hull and superstructure exceeds an aggregate maximum of 10 percent of the total steel weight of the vessel, the vessel will be ineligible for the National Defense Tank Vessel Construction Program.
  
  
• Regarding Consol Capability:
  Consol Capability calls for a platform sized as necessary for the movement of two fuel hoses from either the port or starboard side deck edge to the manifold connection. The manifold connections (either port or starboard side, not both) shall be capable of accepting NATO Breakable Spool fittings. Above each manifold connection a hard-point (pad-eye) capable of handling approximately 30,000 lbs line pull shall be placed to accept the connecting wire supporting the fuel hoses from the MSC/Navy oiler.
  
  CORRECTION: Change 30,000 lbs to 36,000 lbs and platform and manifold connection shall be on both port and starboard side of the vessel.
  
  
• June 7, 2004 - EXTENSION OF FILING DATE:
  The deadline for filing Phase I applications has been extended by two weeks to July 2, 2004. The other dates set forth in the approval schedule have been extended by two weeks as well. Click on the link to the schedule above for the new dates.