pt. 325 46 cfr ch. ii (10–1–98 edition) · form his audit and review functions ... ity, marad,...

270

46 CFR Ch. II (10–1–98 Edition)Pt. 325

Sec. 9. Maintenance of documents.

The agent shall maintain the origi-nals of all documents at his principaloffice. All documents originating atother domestic ports and at foreignports shall be transmitted as currentlyas possible to the principal office of theagent. The agent shall in all cases per-form his audit and review functionspromptly and shall be in a position tosupply complete documentation for acurrent audit by representatives of theowner. The agent shall maintain to themaximum extent possible a completeand orderly file of all authorizationsfor facilities, services and supplies, andcomplete tariffs and port schedulescovering charges at domestic and for-eign ports incident to the operation ofthe vessels assigned under the agencyagreement.

Sec. 10. Lost documents.

In the event of the loss of documents,photostat, carbon, or other suitablecopies may be substituted therefor, inwhich event the following certificationshall be placed on such copies:

I certify that, to the best of my knowledgeand belief, this is a true copy of an originalthat has been lost.

Branch house or sub-agentBy: —————————————————

Name Title

REPORTS AND AUDIT

Sec. 11. Reports to the owner.

The agent shall submit to the localDistrict Finance Officer of the owner,in triplicate, not later than 20 daysafter the end of each month, its generalledger trial balance and such schedulesand support thereof as may be re-quired. The agent shall also submit tothe owner, in original and four copies,not later than 10 days after the end ofeach month a statement in the formand content to be prescribed reflectingcash receipts and cash disbursementsfor the preceding month and cumu-lative totals for the year to date; theoriginal and one copy will be transmit-ted to the local District Finance Offi-cer and three copies will be transmit-

ted to the Chief, Office of Finance,Maritime Administration, Washington.

[FIS–1, 16 FR 2885, Apr. 3, 1951, as amended at33 FR 5952, Apr. 18, 1968. Redesignated at 45FR 44587, July 1, 1980]

Sec. 12. Audit.(a) The owner will audit as currently

as possible subsequent to audit by theagent, all documents relating to theactivities, maintenance and business ofthe vessels assigned under agencyagreements.

(b) The agent shall maintain all doc-uments in his principal office, for thetime being in accordance with his cus-tomary practice of filing.

(c) Subsequent to audit by the owner,at such intervals as may be deter-mined, the owner will authorize entriesto be made to revenue and expense ac-counts and to accounts reflecting rela-tions between the owner and the agent.

NOTE: Books of accounts and documentsreferred to in the above order, shall be re-tained until the completion of the audit bythe General Accounting Office, at whichtime the Maritime Administration will takecustody of the records.

[16 FR 2885, Apr. 3, 1951, as amended at 21 FR8105, Oct. 23, 1956. Redesignated at 45 FR44587, July 1, 1980]

PART 325—PROCEDURE TO BE FOL-LOWED BY GENERAL AGENTS INPREPARATION OF INVOICES ANDPAYMENT OF COMPENSATIONPURSUANT TO PROVISIONS OFNSA ORDER NO. 47

Sec.1. What this order does.2. Terms.3. Preparation of invoices.4. Method of payment.5. Accounting.

AUTHORITY: Sec. 204, 49 Stat. 1987, asamended; 46 U.S.C. 1114.

SOURCE: FIS–2, 16 FR 10026, Oct. 2, 1951. Re-designated at 45 FR 44587, July 1, 1980, unlessotherwise noted.

Section 1. What this order does.This order prescribes procedures for

the preparation of invoices for, andpayment and the accounting for, com-pensation payable to General Agents of

VerDate 12-JAN-99 11:40 Jan 16, 1999 Jkt 179185 PO 00000 Frm 00264 Fmt 8010 Sfmt 8010 Y:\LOC_OUT\179185T.XXX pfrm01 PsN: 179185T

271

Maritime Administration, DOT § 326.1

the National Shipping Authority forservices rendered in connection withthe husbanding and conduct of thebusiness of dry cargo vessels assignedto General Agents under the standardform of Service Agreement GAA,March 19, 1951, as prescribed in NSAOrder No. 47. (AGE–4 of this chapter).

Sec. 2. Terms.The terms employed in this order

shall have the same meaning as thosecontained in NSA Order No. 47.

Sec. 3. Preparation of invoices.(a) Pursuant to Article 4 of the Serv-

ice Agreement, the General Agent shallprepare monthly invoices for com-pensation earned during the precedingmonth under the applicable provisionsof NSA Order No. 47.

(1) Invoices shall be prepared so as toshow separately husbanding servicesand other services in conducting thebusiness of the vessels.

(2) Husbanding services shall be stat-ed to indicate the names of all vesselsdelivered to the General Agent duringthe month involved, the number ofdays each vessel was serviced or oper-ated by the General Agent during themonth, rate of compensation per day,and the amount produced by the cal-culation.

(3) Services in conducting the busi-ness of the vessels shall be stated to in-dicate the name of the vessel, the voy-age number, the amount of revenue,the rate of compensation, and theamount produced by the calculation;and, in the instance of vessels em-ployed in MSTS service, the number ofdays the vessels were so employed, therate of compensation per day, and theamount produced by the calculation.

(b) Invoices shall be certified by aduly authorized officer of the GeneralAgent as follows:

I certify that this invoice is correct andjust, that it is a correct statement of thecompensation calculated in accordance withthe provisions of NSA Order No. 47 due theundersigned General Agent for the month oflllll under Service Agreement No.lll made as of lll with the NationalShipping Authority, and that paymentthereof has not been received.

llllllllllllllllllName of General Agent

llllllllllllllllllSignature

llllllllllllllllllTitle

Sec. 4. Method of payment.The General Agent shall prepare

check drawn on the NSA Special bankaccount for countersignature by an au-thorized representative of the Owner.All such payments to the GeneralAgent shall be considered as paymentson account and are subject to post-audit by the Owner.

Sec. 5. Accounting.The General Agent shall record the

amounts of compensation paid fromthe NSA Special bank account in itsagency books, in the following des-ignated accounts:

Account 887—Husbanding Compensation.Account 888—All Other Compensation.This account shall be maintained to show

separately compensation paid under sections3(a), 3(b), 3(c), and 3(d) of NSA Order No. 47.

NOTE: Invoices and account books referredto in the above order, shall be retained untilthe completion of the audit by the GeneralAccounting Office, at which time the Mari-time Administration will take custody of therecords.

[16 FR 2885, Apr. 3, 1951, as amended at 21 FR8105, Oct. 23, 1956. Redesignated at 45 FR44587, July 1, 1980]

PART 326—MARINE PROTECTIONAND INDEMNITY INSURANCEUNDER AGREEMENTS WITHAGENTS

Sec.326.1 Purpose.326.2 Insurer.326.3 Insured.326.4 Reports of accidents and occurrences.326.5 Report of claims.326.6 Settlement of claims.326.7 Litigation.

AUTHORITY: 50 U.S.C. App. 1744; 46 U.S.C.121a; 1114(b); 49 CFR 1.66.

SOURCE: 53 FR 37572, Sept. 27, 1988, unlessotherwise noted.

§ 326.1 Purpose.This part states that the Maritime

Administration (MARAD) shall be re-sponsible for providing or obtainingmarine protection and indemnity (P&I)


272

46 CFR Ch. II (10–1–98 Edition)§ 326.2

insurance for any vessel that has beenplaced in the National Defense ReserveFleet (NDRF), which includes theReady Reserve Force component,which vessel is assigned under a Gen-eral Agency Agreement. These variousforms of Agreements are entered intoby the United States, acting by andthrough the National Shipping Author-ity, MARAD, and a private company(Agent). An agreement also containsprocedures for the Agent to report ac-cidents and occurrences of a P&I na-ture to MARAD and to report and set-tle P&I claims.

§ 326.2 Insurer.

MARAD shall be responsible for pro-viding or obtaining P&I insurance forall vessels assigned to Agents under anAgreement. At its election, MARADmay be a self-insurer of any one ormore vessels covered by the Agree-ment, or may obtain P&I insurancecoverage under one or more policieswritten by underwriters of marine in-surance. MARAD shall determine theamount of coverage to be provided orobtained.

§ 326.3 Insured.

The insureds are: The United Statesof America, acting by and through theDirector, National Shipping Authority,Maritime Administration, Departmentof Transportation, and its Agents (in-cluding Agents’ employees). Sub-agents shall be insureds only as ex-pressly provided in the Agreement.Independent contractors of the Agentsare not insureds.

§ 326.4 Reports of accidents and occur-rences.

The Agent shall report every acci-dent or occurrence of a P&I naturepromptly to both the Director, Officeof Trade Analysis and Insurance, Mari-time Administration, 500 SeventhStreet, SW., Room 8121, Washington,DC 20590, Tel. (202) 366–1461, and thecontracting officer named in theAgreement. If MARAD has obtainedP&I insurance through a marine insur-ance underwriter, the Agent also shallconcurrently file a report of such acci-dent or occurrence with the under-writer. MARAD shall disclose full de-

tails as the identity of such under-writer to the Agent.

§ 326.5 Report of claims.

The Agent also shall submit a quar-terly report of all claims of a P&I in-surance nature to the Director, Officeof Trade Analysis and Insurance. Thereport shall contain all relevant infor-mation, e.g., the names of the vesselsand of the claimant, the date of the in-jury or occurrence, the amountclaimed, the basis for any payments al-ready disbursed in behalf of the UnitedStates, estimated future costs and anevaluation of the claim of the merits.

§ 326.6 Settlement of claims.

(a) After ascertaining from MARADthe availability of funds, the Agent isauthorized to settle individual claimsof a P&I insurance nature that do notexceed $5,000. For a settlement in ex-cess of $5,000, the Agent shall obtainMARAD’s prior approval through theDirector, Office of Trade Analysis andInsurance. If MARAD has placed theP&I insurance with an insurance un-derwriter, the Agent also shall obtainthe prior approval of the underwriterto settle claims.

(b) The amount of individual claimsthat do not exceed the Agent’s limitfor settlement shall be chargeable bythe Agent to the vessel expense andshall be accounted for in accordancewith current accounting instructionsof MARAD.

(c) When settling any such claim, theAgent shall advise the claimant thatsuch settlement shall be accounted forin accordance with current accountinginstructions, and shall also advise theclaimant that such settlement is not tobe construed as an admission of liabil-ity by or on behalf of the UnitedStates, the Agent or any other person.

(d) The Agent shall apply sound judg-ment and follow standard practices ofvessel operators in the settlement orother disposition of such P&I insuranceclaims, and shall settle such claimsonly when the settlement is adequatelysupported by all the facts and cir-cumstances and is in the best interestof the United States.


273


§ 326.7 Litigation.(a) If a court suit of a P&I nature is

filed which arises out of the activitiesof the Agent under its Agreement,wherein the Agent is named as theparty defendant or one of the parties’defendant irrespective of whether therisk is covered by P&I insurance, theAgent shall immediately forward cop-ies of the pleading and all other relatedlegal documents, by first class mail, tothe Chief Counsel, Maritime Adminis-tration, Department of Transportation,Washington, DC 20590, and to the At-torney General, Attn: Civil Division,Torts Branch, Department of Justice,Washington, DC 20530. No agent or au-thorized subagent shall incur any legalexpenses in connection with any claimof a P&I nature, unless approved in ad-vance by MARAD, and by the under-writer, where applicable. However, theAgent may incur legal expenses if themission of the vessel will be frustratedor impeded and/or time will not permitsuch prior approval.

(b) In the event of any attachment orseizure of a vessel, whether or not therisk is of a P&I nature, the Agent shallimmediately notify the Chief Counsel,Maritime Administration, Washington,DC 20590, Tel. (202) 366–05711, by tele-gram, radio, or cable.

PART 327—SEAMEN’S CLAIMS; AD-MINISTRATIVE ACTION AND LITI-GATION

Sec.327.1 Purpose.327.2 Statutory provisions.327.3 Required claims submission.327.4 Claim requirements.327.5 Filing of claims.327.6 Notice of allowance or disallowance.327.7 Administrative disallowance presump-

tion.327.8 Court action.

AUTHORITY: 46 app. U.S.C. sections: 1114(b),1241a; 50 U.S.C. app. 1291(a).

SOURCE: 56 FR 50275, Oct. 4, 1991, unlessotherwise noted.

§ 327.1 Purpose.This part prescribes rules and regula-

tions pertaining to the filing of claimsdesignated in § 327.3 of this part and theadministrative allowance, or disallow-ance (actual and presumed), of such

claims, in whole or in part, filed by of-ficers and members of crews (hereafterreferred to as ‘‘seamen’’) employed onvessels as employees of the UnitedStates through the National ShippingAuthority (NSA), Maritime Adminis-tration (MARAD), or successor.

§ 327.2 Statutory provisions.

(a) In connection with the Vessel Op-erations Revolving Fund created forthe purpose of carrying out the vesseloperating functions of the Secretary ofTransportation, the Third Supple-mental Appropriation Act, 1951 (46 app.U.S.C. 1241a), provides, in part:

That the provisions of sections 1(a), 1(c),3(c) and 4 of Public Law 17, Seventy-eighthCongress (57 Stat. 45), as amended, shall beapplicable in connection with such oper-ations and to seamen employed through gen-eral agents as employees of the UnitedStates, who may be employed in accordancewith customary commercial practices in themaritime industry, notwithstanding the pro-visions of any law applicable in terms to theemployment of persons by the United States.

(b) Section 1(a) of Public Law 17 (50U.S.C. app. 1291(a)), as amended, pro-vides that:

(a) Officers and members of crews (herein-after referred to as ‘‘seamen’’) employed onUnited States or foreign flag vessels as em-ployees of the United States through theWar Shipping Administration shall, with re-spect to (1) laws administered by the PublicHealth Service and the Social Security Act,as amended by subsection (b) (2) and (3) ofthis section; (2) death, injuries, illness, main-tenance and cure, loss of effects, detention,or repatriation, or claims arising therefromnot covered by the foregoing clause (1); and(3) collection of wages and bonuses and mak-ing of allotments, have all of the rights, ben-efits, exemptions, privileges, and liabilities,under law applicable to citizens of theUnited States employed as seamen on pri-vately owned and operated American vessels.* * *. Claims arising under clause (1) hereofshall be enforced in the same manner as suchclaims would be enforced if the seamen wereemployed on a privately owned and operatedAmerican vessel. Any claim referred to inclause (2) or (3) hereof shall, if administra-tively disallowed in whole or in part, be en-forced pursuant to the provisions of theSuits in Admiralty Act, notwithstanding thevessel on which the seaman is employed isnot a merchant vessel within the meaning ofsuch Act. * * *. When used in this subsectionthe term ‘‘administratively disallowed’’


274

46 CFR Ch. II (10–1–98 Edition)§ 327.3

means a denial of a written claim in accord-ance with rules or regulations prescribed bythe Administrator, War Shipping Adminis-tration. When used in this subsection theterms ‘‘War Shipping Administration’’ and‘‘Administrator, War Shipping Administra-tion’’ shall be deemed to include the UnitedStates Maritime Commission with respect tothe period beginning October 1 1941, and end-ing February 11, 1942, and the term ‘‘sea-man’’ shall be deemed to include any seamanemployed as an employee of the UnitedStates through the War Shipping Adminis-tration on vessels made available to or sub-chartered to other agencies or departmentsof the United States.

(c) The functions of the War ShippingAdministrator and War Shipping Ad-ministration were transferred for liq-uidation purposes by title II of PublicLaw 492, 79th Congress (60 Stat. 501) tothe United States Maritime Commis-sion and, on August 20, 1949, by Reorga-nization Plan No. 6 of 1949 (63 Stat.1069) to the Chairman of said Commis-sion; certain of the functions of theUnited States Maritime Commissionand of its Chairman were transferredon May 24, 1950, by part II of Reorga-nization Plan No. 21 of 1950 (64 Stat.1273, 1276; 46 U.S.C. 1111–1114) to theSecretary of Commerce, and thereafterredelegated by the Secretary of Com-merce to the Maritime Administrator(Department Order No. 117 (Amended),Manual of Orders, Department of Com-merce); vessel operating functions wereredelegated by the Maritime Adminis-trator to the Director, National Ship-ping Authority, Maritime Administra-tion (Administrator’s Order No. 11(Amended), Manual of Orders, FederalMaritime Board/Maritime Administra-tion). In 1981, Public Law 99–31 (95 Stat.165) transferred the Maritime Adminis-tration from the Department of Com-merce to the Department of Transpor-tation. By DOT Order 1100.60A, the Sec-retary of Transportation has delegatedto the Maritime Administrator the au-thority to carry out the Act of June 2,1951 (46 app. U.S.C. 1241a), regarding theVessel Operations Revolving Fund (49CFR 1.66). The Maritime Administratorhas redelegated that authority to theAssociate Administrator for Shipbuild-ing and Ship Operations (Maritime Ad-ministrative Order 70–1).

§ 327.3 Required claims submission.All claims specified in 50 U.S.C. app.

1291(a) (2) and (3), quoted in § 327.2(b) ofthis part, shall be submitted for admin-istrative consideration, as provided in§§ 327.4 and 327.5 of this part, prior toinstitution of court action thereon.

§ 327.4 Claim requirements.(a) Form. The claim may be in any

form and shall be(1) In writing,(2) Designated as a claim,(3) Disclose that the object sought is

the administrative allowance of theclaim,

(4) Comply with the requirements ofthis part, and

(5) Filed as provided in § 327.5 of thispart.The claim need not be sworn or at-tested to by the claimant. However,the statements made in the claim aresubject to the provision of 18 U.S.C. 287and 1001 and all other penalty provi-sions for making false, fictitious, orfraudulent claims, statements or en-tries, or falsifying, concealing, or cov-ering up a material fact in any matterwithin the jurisdiction of any depart-ment or agency of the United States.Any lawsuits filed contrary to the pro-visions of section 5 of the Suits in Ad-miralty Act, as amended by Public Law877, 81st Congress (64 Stat. 1112; 46 app.U.S.C. 745), shall not be in compliancewith the requirements of this part.

(b) Contents. Each claim shall includethe following information:

(1) With respect to the seaman:(i) Name;(ii) Mailing address;(iii) Date of birth;(iv) Legal residence address;(v) Place of birth; and(vi) Merchant mariner license or doc-

ument number and social securitynumber.

(2) With respect to the basis for theclaim:

(i) Name of vessel on which the sea-man was serving when the incident oc-curred that is the basis for the claim;

(ii) Place where the incident oc-curred;

(iii) Time of incident—year, monthand day, and the precise time of day, tothe minute, where possible;


275

Maritime Administration, DOT Pt. 328

(iv) Narrative of the facts and cir-cumstances surrounding the incident;and

(v) The names of others who can sup-ply factual information about the inci-dent and its consequences.

(3) The dollar amount of claim for:(i) Past loss of earnings or earning

capacity;(ii) Future loss of earnings or earning

capacity;(iii) Medical expenses paid out of

pocket;(iv) Pain and suffering; and(v) Any other loss arising out of the

incident (describe).(4) All medical and clinical records of

physicians and hospitals related to aseaman’s claim for injury, illness, ordeath shall be attached. If the claimantdoes not have a copy of each record,the claimant shall identify every phy-sician and hospital having records re-lating to the seaman and shall providewritten authorization for MARAD toobtain all such records. The claim shallalso include the number of days theseaman worked as a merchant marinerand the earnings received for the cur-rent calendar year, as well as for thetwo preceding calendar years.

(5) If the claim does not involve aseaman’s death, the following informa-tion shall be submitted with the claim:

(i) Date the seaman signed a reem-ployment register as a merchant mari-ner;

(ii) Copy of the medical fit-for-dutycertificate issued to the seaman;

(iii) Date and details of next employ-ment as a seaman; and

(iv) Date and details of next employ-ment as other than a seaman.

(6) If the claim is for other than per-sonal injury, illness or death, the claimshall provide all supporting informa-tion concerning the nature and dollaramount of the loss.

§ 327.5 Filing of claims.(a) Claims may be filed by or on be-

half of seamen or their surviving de-pendents or beneficiaries, or by theirlegal representatives. Claims shall befiled either by personal delivery or byregistered mail.

(b) Each claim shall be filed with theShip Manager or General Agent of thevessel with respect to which such claim

arose. The claimant shall send a copydirectly to the Chief, Division of Ma-rine Insurance, Maritime Administra-tion, Department of Transportation,400 Seventh Street SW., Washington,DC 20590.

§ 327.6 Notice of allowance or disallow-ance.

MARAD shall give prompt notice inwriting of the allowance or disallow-ance of each claim, in whole or in part,by mail to the last known address of,or by personal delivery to, the claim-ant or the claimant’s legal representa-tive. In the case of administrative dis-allowance, in whole or in part, such no-tice shall contain a brief statement ofthe reason for such disallowance.

§ 327.7 Administrative disallowancepresumption.

If MARAD fails to give written no-tice of allowance or disallowance of aclaim in accordance with § 327.6 of thispart within sixty (60) calendar days fol-lowing the date of the receipt of suchclaim by the proper person designatedin § 327.5 of this part, such claim shallbe presumed to have been ‘‘administra-tively disallowed,’’ within the meaningin section 1(a) of 50 U.S.C. app. 1291(a),quoted in § 327.2(b) of this part.

§ 327.8 Court action.No seamen, having a claim specified

in subsections (2) and (3) of section 1(a)of 50 U.S.C. 1291(a), quoted in § 327.2(b)of this part, their surviving dependentsand beneficiaries, or their legal rep-resentatives shall institute a court ac-tion for the enforcement of such claimunless such claim shall have been pre-pared and filed in accordance with§§ 327.4 and 327.5 of this part and shallhave been administratively disallowedin accordance with § 327.6 or 327.7 ofthis part.

PART 328—SLOP CHESTS

Sec.1. What this order does.2. General Agent’s requirements.3. Master’s requirements.4. General provisions.

AUTHORITY: Sec. 204, 49 Stat. 1987, asamended; 46 U.S.C. 1114. Interpret or applysec. 11, 23 Stat. 56; 46 U.S.C. 670.


276


Section 1. What this order does.In accordance with the provisions of

section 11 of the act of Congress ap-proved June 26, 1884, 23 Stat. 56; 46U.S.C. 670, this order requires all ves-sels operated by the National ShippingAuthority under General AgencyAgreement 3–19–51, Amendment 8–65, tobe provided with a slop chest subject toall limitations contained in said act.

[OPR–1, 16 FR 4137, May 5, 1951, as amendedat 33 FR 5952, Apr. 18, 1968. Redesignated at45 FR 44587, July 1, 1980]

Sec. 2. General Agent’s requirements.The General Agent shall:(a) Obtain from the Master, a requisi-

tion for slop chest items required forthe intended voyage. Purchase for theaccount of the NSA, from recognizedbona fide slop chest suppliers, at pricesnot in excess of the fair and reasonablelevel prevailing at the respective do-mestic ports, only such items andquantities reflecting past experience ofactual requirements.

(b) Arrange for delivery on board tothe custody of the Master all slop chestitems purchased, together with a copyof the vendor’s invoice showing items,units, unit cost and totals.

(c) Furnish the Master with a SlopChest Statement showing on hand atthe beginning of each voyage theitems, units, unit cost, totals and sell-ing price per unit of each item. Theselling price shall approximate but notexceed 110 percent of the reasonablewholesale value of the same at the portat which the voyage commenced. TheSlop Chest Statement shall also pro-vide spaces for:

(1) Quantities and total value sold.(2) Quantities and total cost value on

hand, end of voyage.(3) Quantities of each item required

for next voyage.(d) Submit to the Coast Director in

the district in which the General Agentis located, upon termination of eachvoyage a copy of the Slop Chest State-ment obtained from the Master as pro-vided for in section 3(b) of this orderand a copy of all invoices for slop chestpurchases showing items by brand ortrade name, unit cost and total.

(e) Account to the cognizant CoastDirector for the purchase, delivery tothe Master, receipts from sales, con-

demnations, transfers and all othertransactions in connection with slopchests.

[OPR–1, 16 FR 4137, May 5, 1951, as amendedby Amdt. 1, 33 FR 6475, Apr. 27, 1968. Redesig-nated at 45 FR 44587, July 1, 1980]

Sec. 3. Master’s requirements.

The Master shall:(a) Receive and receipt for the quan-

tities of slop chest items delivered onboard.

(b) Upon the termination of each voy-age complete the Slop Chest Statementreferred to in section 2(c) of this order,as to quantities and total value sold,quantities and total cost value on handat end of voyage and quantities of eachitem required for the next voyage.

(c) Sell, from time to time as speci-fied by him, any of the contents of theslop chest to any or every seaman ap-plying therefor, at the unit price, spec-ified by the Slop Chest Statement fur-nished the Master by the GeneralAgent as provided in section 2(c) of thisorder.

(d) Account to the General Agent forall slop chest items received on board,for all receipts and for all other slopchest transactions engaged in duringthe voyage.

(e) Cause entry to be made in theship’s log authenticated by the persondesignated by the Master to be incharge of the slop chest, together withsignatures of two other witnesses, forall losses sustained due to fire, wateror other damage which renders articlesunsaleable. Such log entries shallitemize the quantities damaged and thecost thereof.

(f) Submit a detailed written reportto the General Agent covering lossesincurred due to damage, theft or pilfer-age of slop chest items. The reportshall be submitted at the terminationof the voyage during which the dam-age, theft or pilferage occurred.

(g) Retain on board, all damaged slopchest items, for survey, removal anddisposition by the General Agent at adomestic port.

[OPR–1, 16 FR 4137, May 5, 1951. Redesignatedat 45 FR 44587, July 1, 1980]


277


Sec. 4. General provisions.

(a) All slop chest items, damaged orotherwise, shall be removed or trans-ferred only in compliance with applica-ble regulations dealing with PropertyRemovals.

(b) In the transfer of a vessel fromone General Agent to another GeneralAgent the physical transfer of the com-plete slop chest shall also be accom-plished between the respective GeneralAgents. The General Agents participat-ing in such transfer shall complete andhave their respective representativessign, a joint inventory containing theunit cost price and extensions of allslop chest items, a copy of which shallbe submitted to the Division of Oper-ations, NSA, Washington, DC 20590, to-gether with a copy of the Slop ChestStatement for the voyage terminatedprior to transfer of the vessel. An addi-tional copy of the Slop Chest State-ment shall be submitted to the Comp-troller’s Office, Division of Accounts,Maritime Administration, Washington,DC 20590.

(c) In pricing the contents of the slopchest, the General Agent shall complywith all applicable regulations of theOffice of Price Stabilization, EconomicStabilization Agency.

(d) It shall be the responsibility ofeach General Agent and Master to ex-ercise reasonable care and diligence inthe compliance with the Owner’s obli-gations hereunder and in the protec-tion and disposition of slop chestitems.

(e) Neither the General Agent nor theMaster shall place insurance on thecontents of the slop chest purchasedfor the account of the NSA.

All slop chests purchased on or afterthe effective date of this regulationshall conform to the instructions con-tained in this order.

NOTE: Records and logs referred to in theabove order, shall be retained until the com-pletion of the audit by the General Account-ing Office, at which time the Maritime Ad-ministration will take custody of therecords.

[OPR–1, 16 FR 4137, May 5, 1951, as amendedat 21 FR 8105, Oct. 23, 1956; 33 FR 5952, Apr.18, 1968. Redesignated at 45 FR 44587, July 1,1980]

PART 329—VOYAGE DATA

Sec.1. What this order does.2. Voyage numbers.3. Voyage commencements.4. Voyage terminations.5. Idle status period.6. General provisions.7. Operation under current GAA/MSTS

Southeast Asia Program.


SOURCE: OPR–2, 16 FR 5950, June 22, 1951.Redesignated at 45 FR 44587, July 1, 1980, un-less otherwise noted.

Section 1. What this order does.The General Agents, as appointed by

the National Shipping Authority, pro-mulgated under GAA, 3/19/51, shall beinstructed in the manner of recordingvoyage activities of dry cargo vesselsoperated for the account of the Na-tional Shipping Authority.

Sec. 2. Voyage numbers.(a) The voyages of National Shipping

Authority vessels shall be numberedconsecutively commencing with voy-age No. 1 having the prefixed designa-tion NSA and followed by the GeneralAgents’ abbreviated designation andvoyage number, as NSA–1/ABC–1.

(b) The continuity of NSA voyagenumbers shall not change with berthagency operations or in the transfer ofvessels to other General Agents.

(c) The General Agents’ designatedabbreviation and voyage numbers shallterminate upon transfer of the vesseland the succeeding General Agent shallaffix his abbreviated designation andinitial voyage numbers, as NSA–13/XYZ–1.

Sec. 3. Voyage commencements.(a) All voyages shall commence at

0001 hours of the date on which any ofthe following activities occur first:

(1) Vessel goes on loading berth, or(2) Vessel sails outward on a new voy-

age, or(3) Following termination of the pre-

vious voyage as prescribed in section4(a) of this order.

(4) Following termination of an idlestatus period as prescribed in section 5(a) and (b) of this order.


278


Sec. 4. Voyage terminations.(a) All voyages shall terminate at a

continental United States port at 2400hours of the date on which any of thefollowing activities were completed,whichever occurs last:

(1) Final discharge of cargo or bal-last.

(2) Paying off of crew from sea arti-cles.

(3) Completion of voyage repairs.(b) [Reserved]

Sec. 5. Idle status period.(a) The General Agent shall place a

vessel in idle status during the periodof reactivation or deactivation or uponredelivery from Military Sea Transpor-tation Service notwithstanding the fif-teen (15) days minimum period as pro-vided for in paragraph (b) of this sec-tion.

(b) The General Agent shall place avessel in idle status, although the voy-age may have commenced, wheneverand as soon as it is anticipated thatthe minimum period of inactivity willexceed fifteen (15) days, due, but notlimited to: (1) Repairs, (2) labor, (3)awaiting allocation, (4) awaiting cargo.

(c) Should the anticipated period ofinactivity terminate prior to the expi-ration of the 15 day minimum idle sta-tus period, except as provided in para-graph (a) of this section, the GeneralAgent shall cancel the idle status andantedate the succeeding voyage com-mencement to the termination of theprevious voyage as prescribed in sec-tion 4(a) of this order.

(d) Should an idle status period be es-tablished after a voyage has com-menced, the voyage shall be suspendedfor the duration of the idle status pe-riod and resumed when the idle statusperiod is terminated.

(e) Idle status periods as defined inthis order, shall be established only incontinental United States ports.

(f) Idle status periods shall be treatedas separate accounting periods.

[OPR–2, 16 FR 5950, June 22, 1951, as amendedby Amdt. 1, 17 FR 3830, Apr. 30, 1952; Amdt.2, 22 FR 165, Jan. 8, 1957. Redesignated at 45FR 44587, July 1, 1980]

Sec. 6. General provisions.(a) In cases of overlapping activities

and all other questions arising in re-

spect to voyage commencements, ter-minations and idle status periods as de-fined in sections 4 and 5 of this order,the General Agent shall immediatelyinform the nearest Coast Director, orhis local representative of the cir-cumstances and submit recommenda-tions for terminating a voyage. The re-sulting recommendations, decisionsand instructions shall be confirmed inwriting to the General Agent, with acopy of such correspondence being sentto the Division of Operations, N.S.A.,Washington 25, DC.

(b) In the event a vessel is employedin intermediate voyage or voyages, orin cross trading outside the continen-tal United States, the voyage shallcontinue until terminated at a con-tinental United States port.

(c) There shall be no voyage termi-nations outside continental UnitedStates ports except in cases of,

(1) Total loss or constructive totalloss of the vessel.

(2) Transfer of operations.

Sec. 7. Operation under current GAA/MSTS Southeast Asia Program.

In order to adapt the provisions ofNSA Order 35 (OPR–2) to the particularcircumstances of the present GAA/MSTS Southeast Asia Program, thefollowing material partially modifyingcertain sections of that order is pub-lished.For General Agency operations not re-lated to the current GAA/MSTS South-east Asia Program, NSA Order 35(OPR–2) remains unchanged and whollyapplicable. Except where specificallyaltered by the material which follows,it also remains applicable to thepresent situation.For voyages made under the currentGAA/MSTS program only, the follow-ing provisions concerning voyage com-mencements and terminations shallapply in lieu of those appearing in sec-tions 3 and 4 of NSA Order 35 (OPR–2).Continental United States ports do notinclude ports in the states of Alaska orHawaii.

(a) The commencement of the initialvoyage shall occur in a continentalU.S. port at 0001 hours of the day thevessel is tendered and accepted for useby MSTS. Subsequent voyages shallcommence in a continental U.S. port at


279


0001 hours of the day after either of thefollowing activities occurs:

(1) The previous voyage terminates.(2) Reduced operational status period

terminates and vessel returns to fulloperational status.

(b) Voyages shall terminate in a con-tinental U.S. port at 2400 hours of theday that the following action is com-pleted:

(1) Paying off of the crew from sea ar-ticles.

(c) Since, in all instances, the voyagetermination procedure takes prece-dence over the voyage commencementprocedure and since it is mandatorythat voyages terminate in a continen-tal U.S. port, the following exceptionto the requirement of paragraph (b) ofthis section shall be effective whenwarranted:

(1) If the vessel completes payoff asin paragraph (b) of this section andtakes departure within the same cal-endar day, the General Agent shall im-mediately inform the nearest Coast Di-rector of Area Representative of thecircumstances and submit rec-ommendations regarding voyage termi-nation. The resulting recommenda-tions, decisions, and instructions shallbe confirmed in writing to the GeneralAgent, copy to Division of Operations,Washington, DC 20590.

(d) Where a vessel is employed in in-termediate voyages or in cross tradingoutside the continental United States,the original voyage shall continueuntil terminated under conditions inparagraph (b) of this section.

[OPR–2, Amdt. 3, 33 FR 6710, May 2, 1968. Re-designated at 45 FR 44587, July 1, 1980]

PART 330—LAUNCH SERVICES

Sec.1. What this order does.2. Authority for launch hire.


SOURCE: OPR–3, 16 FR 12791, Dec. 20, 1951.Redesignated at 45 FR 44587, July 1, 1980, un-less otherwise noted.

Section 1. What this order does.This order prescribes the cir-

cumstances under which launch hirewill be accepted by National ShippingAuthority as vessel operating expense.

Sec. 2. Authority for launch hire.Launch hire in foreign and domestic

ports will be accepted by NationalShipping Authority as vessel operatingexpense, subject to the provisions ofArticle 5 of GAA 3–19–51 and BAA 9–19–51, only under the following cir-cumstances:

(a) When incurred by the Master ofan NSA vessel, or by an agent of NSAor by his sub-agent, for the purpose ofproperly conducting the owners’ activi-ties and business of NSA vessels;

(b) When incurred in transporting lib-erty parties to or from an NSA vesselwith the approval of the Master or theGeneral Agent as properly for accountof the vessel owner; and

(c) When incurred for the transpor-tation of workmen required aboard thevessel, if the contract for the work pro-vides that such service shall be for ac-count of NSA, and the launch service isauthorized by the representative ofNSA or the agent who ordered the workto be performed for account of NSA.

PART 332—REPATRIATION OFSEAMEN

Sec.1. What this order does.2. Definitions.3. Classification of repatriates.4. Manner of repatriation.5. Repatriation charges.6. General provisions.


SOURCE: OPR–5, 18 FR 1446, Mar. 13, 1953.Redesignated at 45 FR 44587, July 1, 1980, un-less otherwise noted.

Section 1. What this order does.This order prescribes the manner in

which seamen separated from vesselsoperated for the account of the Na-tional Shipping Authority shall be re-patriated and explains how charges inconnection with such repatriation shallbe handled.

Sec. 2. Definitions.(a) For the purpose of this order, the

term seaman shall include every per-son, irrespective of capacity or rating,whose last service has been on a vesseloperated for the account of the Na-tional Shipping Authority, upon which


280


vessel he had signed shipping articlesand whether or not he had signed offsuch articles before a consular or otherauthorized official, but shall not in-clude the master of such a vessel.

(b) The term General Agent shall in-clude any designated representative ofsuch General Agent.

Sec. 3. Classification of repatriates.Seamen in need of repatriation,

whether being repatriated to or fromthe United States, shall be classified asfollows:

(a) Seamen separated from their ves-sels because of the destruction of,abandonment of, or damage to theirvessels, or because of termination ofshipping articles at a port outside thecontinental limits of the UnitedStates.

(b) Seamen separated from their ves-sels as the result of illness or injury re-ceived in the service of their vessels orotherwise through no fault of theirown.

(c) Seamen separated from their ves-sels for any cause whatsoever not de-scribed in paragraph (a) or (b) of thissection.

Sec. 4. Manner of repatriation.(a) A seaman described in paragraph

(a) of section 3 of this order shall be re-patriated in accordance with the provi-sions of the shipping articles, or theapplicable collective bargaining agree-ment, employment contract, or stat-ute. If a seaman in this class is repatri-ated as a passenger, the General Agentof the vessel of which he was last acrew member shall arrange for his pas-sage and pay the amount of expense in-volved.

(b) A seaman described in paragraph(b) of section 3 of this order may be re-patriated as a passenger where space isavailable and circumstances permit. Ifapplicable collective bargaining agree-ments, employment contracts, or stat-utes do not conflict, he may return asa workaway or, at the discretion of themaster of the repatriating vessel, hemay sign on articles either as a re-placement of to complete a vessel’scomplement or, when deemed advisableby the official authorizing the repatri-ation and with the approval of the mas-ter of the repatriating vessel, he may

be signed on the articles as a repatri-ated seaman (non-working). If a seamanin this class is repatriated as a pas-senger, or repatriate seaman (non-working), the General Agent of the ves-sel of which he was last a crew membershall arrange for his passage and paythe amount of expense involved.

(c) A seaman described in paragraph(c) of section 3 of this order shall be re-turned as a workaway or, at the discre-tion of the master of the repatriatingvessel, he may sign on as a replace-ment or to complete a vessel’s com-plement. Only in unusual cases, andonly with the prior approval of theChief, Division of Operations, shall aseaman in this class be repatriated as apassenger or as a repatriate seaman(non-working). If a seaman in this classis repatriated as a passenger, or as arepatriate seaman (non-working), theGeneral Agent of the vessel of which hewas last a crew member shall arrangefor his passage and pay the amount ofexpense involved.

(d) A master shall be repatriated inaccordance with applicable collectivebargaining agreement, employmentcontract, statute, or established com-mercial practice.

Sec. 5. Repatriation charges.(a) If it is deemed necessary to repa-

triate a seaman as a passenger aboarda privately operated vessel, plane,train, or other conveyance, the fullamount of the reasonably incurred ex-pense in connection therewith shall bebilled against the General Agent of thevessel of which he was last a crewmember.

(b) If a seaman is repatriated as apassenger, or as a repatriate seaman(non-working), aboard a vessel oper-ated for the account of the NationalShipping Authority under a GeneralAgency Agreement, a flat transpor-tation charge of $5.00 per day shall bemade for every day spent aboard therepatriating vessel, including day ofembarkation and day of debarkation,which charge shall be in addition tonecessary train or other conveyanceexpense, United States and foreign gov-ernment taxes, port dues, landing feesor other charges of every nature leviedin connection with such repatriation.In such a case, the General Agent of


281


the vessel of which the repatriate waslast a crew member shall be billed forthe amount of expense involved, andappropriate entries covering the re-ceipts and disbursements resultingfrom the repatriation shall be made inthe proper books of account by theGeneral Agent concerned. In the eventthe General Agent repatriating a sea-man is also the General Agent of thevessel on which the seaman last served,it will not be necessary to issue a for-mal billing, but it is required that ap-propriate entries be made on the agen-cy books of account to reflect a reve-nue of $5.00 per day in the account ofthe vessel rendering the transportationservice and that a charge covering thecost of repatriation be recorded againstthe vessel on which the seaman lastserved. In all cases, the General Agentcharged with the repatriation expenseshall take necessary steps to secure re-imbursement of such expense from theP & I underwriters insuring the vesselagainst which the expense is charged.No charge is to be made in the case ofa seaman repatriate who signs on ves-sel articles as a workaway or in anyother capacity except as a repatriateseaman (non-working). When repatri-ation is required, it shall be effected bythe first available means consideredappropriate by the official authorizingsuch repatriation.

Sec. 6. General provisions.(a) In case of repatriation of any sea-

man as a passenger aboard a vessel op-erated for account of the NationalShipping Authority, the requirementsof the applicable collective bargainingagreement or employment contractshall be met. In any event, a seamanrepatriate shall receive at least as goodaccommodations as would be his duewhile sailing in his capacity.

(b) Unless otherwise directed, a sea-man when repatriated as a passengeraboard a vessel operated for the ac-count of the National Shipping Author-ity, shall be issued a ticket in the formprescribed by the General Agent of thevessel for its own vessels. Such ticketshall be surrendered to the master ofthe repatriating vessel. When repatri-ated as a repatriate seaman (non-work-ing), the master of the repatriatingvessel shall be furnished with a certifi-

cate from the official authorizing therepatriation setting forth that the cir-cumstances require that the seaman besigned on as a repatriate seaman (non-working). The master shall ascertainthe seaman’s full name and rating,cause of repatriation, and the names ofthe vessels and the General Agent to becharged with the cost of the repatri-ation.

(c) It is recognized that the procedureset forth in this order will not cover allsituations arising out of obligations torepatriate seamen nor fix ultimate re-sponsibility for repatriation expenseswhich may sometimes depend upon de-terminations of fact which cannot bemade prior to repatriation. In cases ofemergency or in situations not coveredin this order, the General Agent shallproceed in accordance with establishedcommercial practice.

(d) Nothing in this order shall be con-strued to interfere with the proper ex-ercise of authority by United Statesconsular officials relative to repatri-ation of seamen in accordance with ap-plicable statutes.

PART 335—AUTHORITY AND RE-SPONSIBILITY OF GENERALAGENTS TO UNDERTAKE EMER-GENCY REPAIRS IN FOREIGNPORTS

Sec.1. What this order does.2. General Agents’ authority.3. General Agents’ responsibilities.4. General provisions.


SOURCE: SRM–2, 16 FR 5321, June 6, 1951.Redesignated at 45 FR 44587, July 1, 1980, un-less otherwise noted.

Section 1. What this order does.

This order outlines General Agents’responsibilities and limited authorityin connection with repairs in foreignports to vessels operated for the ac-count of the National Shipping Author-ity under General Agency Agreement.

Sec. 2. General Agents’ authority.

The General Agents are hereby dele-gated authority to undertake for the


282


account of the National Shipping Au-thority only such emergency repairsoutside the Continental United Statesas may be necessary to enable vesselsto complete their voyages, provided therepair costs are not in excess of $5,000per vessel.

Sec. 3. General Agents’ responsibil-ities.

In the event the cost of emergencyrepairs to a vessel in a foreign port isestimated to exceed $5,000, requests forapproval shall be transmitted by Gen-eral Agents by cable or wire addressedto Chief, Division of Ship Repair andMaintenance, National Shipping Au-thority, Washington, DC 20590, andshall include the following informa-tion:

(a) The cost and time to effect per-manent repairs on a straight time andovertime basis;

(b) The cost and time to effect suchtemporary repairs on a straight timeand overtime basis as will enable thevessel to return to the United Statesunder its own power or under tow;

(c) Whether required repairs can beeffected by the use of facilities underthe direct control of the Army, Navy,or other agencies of the United StatesGovernment, and if so, at what costand time; and

(d) Where major repairs are involved,a recommendation regarding the advis-ability of repairing the vessel or aban-doning it.

[SRM–2, 16 FR 5321, June 6, 1951, as amendedat 33 FR 5952, Apr. 18, 1968. Redesignated at45 FR 44587, July 1, 1980]

Sec. 4. General provisions.The General Agents shall keep the

Division of Ship Repair and Mainte-nance in Washington fully posted in de-tail as to the nature, extent, cost, andestimated time for completion of allforeign repairs where such repairs arefor the account of the National Ship-ping Authority.As soon as practicable after completionof either temporary or permanent re-pairs, the General Agent shall forwardto the Division of Ship Repair andMaintenance, Washington, DC the fol-lowing:

(a) A copy of the repair specifica-tions;

(b) An itemized statement of thecosts of the repairs supported by copiesof invoices;

(c) A copy of the completion certifi-cate showing the repair period, signa-ture of a National Shipping Authorityrepresentative (if available), theAgent’s technical representative, theChief Engineer, and the Master of thevessel;

(d) A report indicating the causes andcircumstances leading to the repairs.

General Agents shall forthwith in-struct their subagents and other rep-resentatives in foreign areas and theirMasters and Chief Engineers with re-spect to their operations, pursuant tothis directive.

This directive is intended strictly tolimit repairs in foreign waters on ves-sels under National Shipping Authoritycontrol to those absolutely necessaryto enable the vessels to complete theirrespective voyages at a port in theUnited States.

This directive shall not be construed toaffect outstanding directives of the Of-fice of the Comptroller.

NOTE: Records and supporting documentsreferred to in the above order, shall be re-tained until the completion of the audit bythe General Accounting Office, at whichtime the Maritime Administration will takecustody of the records.

[16 FR 5321, June 6, 1951, as amended at 21 FR8105, Oct. 23, 1956. Redesignated at 45 FR44587, July 1, 1980]

PART 336—AUTHORITY AND RE-SPONSIBILITY OF GENERALAGENTS TO UNDERTAKE IN CON-TINENTAL UNITED STATES PORTSVOYAGE REPAIRS AND SERVICEEQUIPMENT OF VESSELS OPER-ATED FOR THE ACCOUNT OF THENATIONAL SHIPPING AUTHORITYUNDER GENERAL AGENCYAGREEMENT

Sec.1. What this order does.2. General Agents’ authority.3. General provisions.



283


Section 1. What this order does.This order outlines General Agents’

limited authority to arrange for andaward contracts for voyage repairs andservicing equipment of vessels operatedfor the account of the National Ship-ping Authority under General AgencyAgreement.

[SRM–3, Rev., 18 FR 5035, Aug. 22, 1953. Re-designated at 45 FR 44587, July 1, 1980]

Sec. 2. General Agents’ authority.The General Agents are:(a) Hereby delegated authority to ar-

range for and award contracts for voy-age repairs on vessels operated underthe General Agency Agreement for theaccount of the National Shipping Au-thority when the aggregate cost of allsuch repairs in any one ContinentalUnited States port is not in excess of$25,000.

(b) Also delegated authority to ar-range for and order the performance ofminor repairs to or servicing of pantryand galley equipment, radios, gyrocompasses, fathometers, radio direc-tion finders, fire extinguisher systems,ships clocks, binoculars, barometers,typewriters, adding machines, and anyother vessel equipment of a similar na-ture where the aggregate amount doesnot exceed $2,500 in any one continen-tal United States port.

[SRM–3, Rev., 18 FR 5035, Aug. 22, 1953, asamended by Amdt. 2, 31 FR 16713, Dec. 30,1966. Redesignated at 45 FR 44587, July 1,1980]

Sec. 3. General provisions.

(a) The voyage repairs, as covered bysection 2(a), may be awarded by theGeneral Agents within the limitationspecified under the Master Repair Con-tract if the contractor is a holderthereof or if the contractor does nothold a Master Repair Contract underNSA-WORKSMALREP if the contractprice does not exceed $2,000 and saidcontract is made in accordance withNSA Order 46 (SRM–5, Revised) andNSA Order 51 (SRM–6, Revised).

(b) The repairs to or servicing ofships equipment, as covered by section2(b), may be awarded by the GeneralAgents, within the limitation specified,by letter or purchase order.

(c) It is to be understood by all Gen-eral Agents that the authority dele-gated by this order is not to be con-strued to cover alterations, additions,changes or betterments.

(d) The prime General Agents shallsubmit, in duplicate, to the Atlantic,Gulf or Pacific Coast Director, Mari-time Administration, within whoseDistrict the Agents home offices aresituated a monthly listing of allawards made by the General Agentsand their Sub-Agents. This listing shallreflect individually the contractor,complete contract number, vessel, typeof award, e.g., negotiated or bid, costand repair period. This listing is to besubmitted substantially in the follow-ing form:

Contractor Contract No. Vessel Award Amount Start Completed

Steamboat Repairs, Inc ....... MA–600–USL–1 John Doe ..... Bid ..................... $8,000 Jan. 1, 1953 ........ Jan. 9,1953

Steamboat Repairs, Inc ....... MA–600–USL–1A.

John Doe ..... Negotiated ......... 1,000 ............................. Jan. 10,1953

A copy of the monthly listing shall beforwarded by each prime General Agentto each Coast Director of the Districtin which any of the work involved wasawarded. If no work was awarded by aGeneral Agent under his delegated au-thority, a report to that effect shall besubmitted to the pertinent Coast Di-rector as prescribed in this section.The required reports shall be submittedto the Coast Directors within five (5)days after the last day of the month

being reported upon. This reporting re-quirement has been approved by theBureau of the Budget in accordancewith the Federal Reports Act of 1942.

NOTE: Records and supporting documentsreferred to in the above order, shall be re-tained until the completion of the audit bythe General Accounting Office, at which


284


time the Maritime Administration will takecustody of the records.

[SRM–3, Rev., 18 FR 5035, Aug. 22, 1953, asamended at 21 FR 8106, Oct. 23, 1956. Redesig-nated at 45 FR 44587, July 1, 1980]

PART 337—GENERAL AGENT’S RE-SPONSIBILITY IN CONNECTIONWITH FOREIGN REPAIR CUSTOM’SENTRIES

Sec.1. What this order does.2. Submission of repair entries.3. Application for remission of duties.4. Evidence required.5. General Agent’s authority to effect pay-

ment of duties.


SOURCE: 16 FR 9658, Sept. 21, 1951. Redesig-nated at 45 FR 44587, July 1, 1980, unless oth-erwise noted.

Section 1. What this order does.

This order outlines the procedure tobe followed by General Agents in filingforeign repair entries and obtaining re-lief from Custom’s duties on equipmentpurchased for or repairs made to shipsowned by or Bareboat Chartered to theU.S. Maritime Administration and op-erated under General Agency Agree-ment.

Sec. 2. Submission of repair entries.

At the first United States port of ar-rival upon termination of a foreignvoyage, the ship’s Master must filewith the District Director of Customsas defined in 19 CFR 1.1(d) an affidaviton Custom’s Form 3417 certifying thatno equipment was purchased for or re-pairs made to the ship at a foreign portor if this is not the case, an affidaviton Custom’s Form 3415 describing theequipment purchased and/or repairsmade. If equipment was purchased and/or repairs were made in a foreign port,the Master simultaneously with orshortly after filing of Custom’s Form3415, must file a repair entry on Cus-tom’s Form 7535 together with invoicesand required supporting documents.

[16 FR 9658, Sept. 21, 1951, as amended at 33FR 5952, Apr. 18, 1968. Redesignated at 45 FR44587, July 1, 1980]

Sec. 3. Application for remission of du-ties.

An application for relief from thepayment of duties imposed is to befiled with the District Director of Cus-toms as defined in 19 CFR 1.1(d) if thefollowing circumstances prevail:

(a) When an item covered by theentry is not within the class of itemsliable to duty (i.e., that the item doesnot constitute equipment, repair partsor materials within the meaning of sec-tion 466 of the Tariff Act of 1930);

(b) When the purchase of the equip-ment, repair parts or materials or themaking of the repairs was necessitatedby stress of weather and/or other cas-ualty encountered during the regularcourse of the particular voyage andwas necessary to secure the safety andseaworthiness of the vessel; or

(c) When the equipment, repair partsor materials were manufactured or pro-duced in the United States and thelabor involved was performed by resi-dents of the United States or by mem-bers of the regular crew of the vessel.To insure consideration in the liquida-tion (i.e., the assessment of duty) ofthe entry, the application for reliefmust be filed within 90 days from thedate of the entry, except in meritoriouscases, the District Director may grantan extension of 90 more days upon writ-ten request therefor.

[16 FR 9658, Sept. 21, 1961, as amended at 33FR 5952, Apr. 18, 1968. Redesignated at 45 FR44587, July 1, 1980]

Sec. 4. Evidence required.When relief is claimed on the grounds

of stress of weather or other casualty,there must be submitted to the Collec-tor the following:

(a) An affidavit of the Master whichshall set out fully the nature of thecasualty and/or stress of weather en-countered; when and where the cas-ualty and/or stress of weather oc-curred; nature of the damage sus-tained; the port where the repairs weremade or the equipment purchased anda statement of the Master as to wheth-er the repairs or equipment purchasedwere required to secure the safety orseaworthiness of the vessel to enableher to reach a port of destination inthe United States;


285


(b) Itemized invoices covering thecost of repairs made or equipment pur-chased;

(c) Abstracts of the vessel’s log;(d) Classification surveyor’s report

confirming vessel’s classification whenthe repairs were made in order to in-sure seaworthiness.

The Master shall certify as true copiesor originals, as the case may be, onecopy of each repair bill, abstract ofvessel’s log, survey report and otherdocuments used in support of the appli-cation for relief. If a document is writ-ten in a foreign language, it should beaccompanied by a translation certifiedto be accurate.

Sec. 5. General Agent’s authority to ef-fect payment of duties.

(a) In those cases where the condi-tions outlined in section 3 of SRM–4 donot prevail, the General Agent shall ef-fect payment of duties imposed by Cus-toms and shall include the expenditurein the voyage accounts of the vessel. Inthose cases where the conditions asoutlined in section 3 of SRM–4 do pre-vail, the General Agent shall exhaustevery means toward obtaining remis-sion of duty imposed.

(b) Should the General Agent fail toobtain remission of duties in suchcases, he shall refer the matter to theappropriate Coast Director for his (TheDirector) determination as to whetherfurther appeal to the Bureau of Cus-toms is warranted or that payment ofduty should be made by the GeneralAgent.


[SRM–4, 16 FR 9658, Sept. 21, 1951, as amend-ed by Amdt. 1, 18 FR 5035, Aug. 22, 1953; 21 FR8106, Oct. 23, 1956. Redesignated at 45 FR44587, July 1, 1980]

PART 338—PROCEDURE FOR AC-COMPLISHMENT OF VESSEL RE-PAIRS UNDER NATIONAL SHIP-PING AUTHORITY MASTER LUMPSUM REPAIR CONTRACT—NSA–LUMPSUMREP

Sec.1. What this order does.2. Use of contract for competitive bid and

negotiated price awards.3. Specifications.4. Procedure for securing competitive bids.5. Procedure for negotiated price awards.6. Awarding of work.7. Job order numbering.8. Extra work and changes.9. Payment.10. Bonds.11. Guarantee obligations.12. Disposition of removed equipment and

scrap.13. Insurance.14. Anti-Kickback and Davis-Bacon Acts.15. Subcontracts.16. Liquidated damages.17. Performance of work resulting from

damage sustained while undergoing re-pairs.

18. Group classification.19. Ship Repair Summaries.20. Reports of awards.21. Delegations of authority.

AUTHORITY: Sec. 204, 49 Stat. 1987, asamended; 46 U.S.C. 1114. Interpret or applyR.S. 3709, as amended; 41 U.S.C. 5.

SOURCE: SRM–5, Revised, 18 FR 5035, Aug.22, 1953. Redesignated at 45 FR 44587, July 1,1980, unless otherwise noted.

Section 1. What this order does.This order cancels NSA Order No. 32

(SRM–1); and outlines the procedure tobe followed by the several Coast Direc-tors, their field Ship Repair and Main-tenance Staffs, the General Agents ofthe Authority, and the ship repair con-tractors in the award and performanceof vessel repairs under the NationalShipping Authority Master Repair Con-tract, NSA–LUMPSUMREP. The CoastDirectors, field Ship Repair and Main-tenance Staffs and the General Agentsshall be referred to hereafter in this


286


order as representatives of the Author-ity.

Sec. 2. Use of contract for competitivebid and negotiated price awards.

(a) The NSA–LUMPSUMREP Con-tract is a Master form of fixed pricecontract and is applicable to ship re-pair work awarded as a result of com-petitive bidding or negotiation. As ageneral rule all work awarded underthe NSA–LUMPSUMREP Contractmust be awarded upon the basis ofcompetitive bids. Revised Statute sec-tion 3709 (41 U.S.C. 5), which requiresthe award of contracts on the basis ofcompetitive bids, however, permitsaward upon a negotiated basis in cer-tain situations, that is, ‘‘where imme-diate delivery or performance is re-quired by the public exigency.’’

(b) There are set forth in paragraphs(b)(1) to (3) of this section three (3) ex-amples of situations where the negotia-tion of fixed price awards for the ac-complishment of work under the NSA–LUMPSUMREP Contract will be per-mitted in lieu of competitive bidding:

(1) Where the desired results from com-petitive bidding cannot be obtained. Forexample, where there is doubt as to thereality of competition or the fairnessor reasonableness of a low bid, all bidsshall be rejected. If the ship’s availabil-ity permits a new Invitation for Bidsfor the work in question shall beissued. If the bids received as a resultof the second invitation are not consid-ered satisfactory the bids are to beagain rejected and prices of all speci-fication items are to be negotiatedwith and the job awarded to the lowestbidder. If the low bidder refuses to ac-cept the award upon the condition re-ferred to the offer of award subject toprice negotiation may be made to thenext lowest bidder, etc. Negotiatedawards in such cases shall be made inaccordance with the conditions setforth on the invitation form, e.g., timespecified, liquidated damages, etc. If asatisfactory price cannot be secured bynegotiation with the bidders as hereinproved an award may be made upon anegotiated basis approved in section 5of this order.

(2) Where the element of time is para-mount. There will be instances whereexpeditious ship turnarounds will ne-

cessitate the award of work withoutthe delay involved in awarding on thebasis of competitive bids. In such casesimmediate negotiation for a fixed pricewith one contractor will be permis-sible. However, full consideration mustbe given to the factors involved inorder to determine whether, under thecircumstances, the time requirementsmake necessary the negotiation ofprice rather than using the competitivebid procedure. Such relevant factorsare the individual ship’s commitmentswith respect to loading berths, sailingdates, and the charter hire, etc., thatmight accrue in the event additionalship lay-time is required because ofcompetitive bidding. Definite dollarand time values cannot be establishedas specific guides for determining whento negotiate. The individual ship andcircumstances involved are the govern-ing elements. The practice of consist-ently favoring one contractor wherethis type of repair is required will notbe permitted but instead, to the maxi-mum extent possible, all qualified con-tractors in the particular port shall begiven the opportunity to perform workfor the National Shipping Authority.

(3) Extra items of work found subse-quent to the awarding of the work coveredby the original specifications. Whereextra items of work are required afterthe commencement of the awardedwork, it is permissible to negotiatewith the contractor who is performingthe awarded work, for the accomplish-ment of such extra work under the pro-visions of Article 6 of the NSA–LUMPSUMREP Contract. A discussionof this procedure is set out in section 8of this order. However, where items ofextra work are found after examina-tions have been made as called for bythe original specifications, negotiationwith the contractor to perform suchitems of extra work shall be permittedonly if the aggregate estimated cost ofsuch items of extra work would notamount to a substantial part of the en-tire job. If the items of extra workamount to a substantial part of the en-tire job, they shall be awarded in thesame manner and after considerationof the same factors as are set forthabove for awarding original work.


287


Sec. 3. Specifications.(a) It shall be incumbent upon the

representatives of the Authority oneach and every vessel requiring repairsfor the account of the National Ship-ping Authority to prepare complete,detailed and fully descriptive specifica-tions of the particulars of each repairitem, identified in each particular caseby the appropriate voyage number. De-cisions of the Coast Directors’ Ship Re-pair and Maintenance Staffs with re-spect to the need for any particularitem in repair specifications shall befinal. The specifications for voyage re-pairs shall itemize the work involvedand shall be numbered consecutivelyand shall be arranged in accordancewith the group classification set forthin section 18 of this order with the seg-regation by the three departments,namely, deck, engine and steward.

(b) The specifications shall in theirfinal written form be explicit in everyrespect and shall include drydocking, ifrequired, as well as all other items ofwork known to be required or discern-ible through visual inspection and ex-amination regardless of the fact thatlater decision may be made to elimi-nate or defer some of the items ofwork. In no case shall an item of work,the accomplishment of which is prob-lematical, be so identified or seg-regated in the specifications. Resortingto such general phraseology as ‘‘over-haul as necessary,’’ ‘‘open up for exam-ination and repair or renew as nec-essary,’’ ‘‘repair or renew,’’ etc., shallnot be permitted in preparing and writ-ing the specifications.

(c) Where an exact and final deter-mination of the extent of the work can-not be ascertained until an examina-tion has been made, the particularitems involved shall so specify and thespecifications with respect to saiditems shall be limited to such examina-tions as are necessary.

(d) If it is desired by the representa-tives of the Authority to change anyitem in the specifications after thespecifications have been issued to bidsuch changes shall be reduced to writ-ing and shall be distributed to the in-vited bidders at least by such timeprior to the time originally specifiedfor the opening of bids as shall reason-ably permit the bidders to revise their

estimates. If determined to be nec-essary or desirable under the cir-cumstances, the representative of theAuthority may extend the time foropening of bids.

(e) Any exceptions taken to the spec-ifications by a prospective bidder shallbe made known to the representativeof the Authority prior to the time spec-ified for opening the bids. If it is fi-nally determined by the representativeof the Authority that the exceptionsare justified, then the procedure setforth in the preceding sub-paragraphshall be followed. Exceptions accom-panying bids not processed as hereinprescribed, but made known at thetime the bids are opened will not be ac-ceptable, and will be a cause for reject-ing such bids.

(f) When it is anticipated that thecost of a job will be in excess of a CoastDirector’s delegated authority, one (1)copy of specifications, and in case ofbids a copy of Invitation for Bids, In-structions to Bidders and listing ofcontractors invited to bid shall be for-warded to the Chief, Division of ShipRepair and Maintenance, Washington,DC, simultaneously with the specifica-tions being issued to the contractors.

(g) In all cases where materials, partsor equipment are required in connec-tion with the performance of any par-ticular repair item the representativesof the Authority shall utilize to thefullest possible extent spares and re-placement parts stocked in MaritimeAdministration warehouses. Prior toarranging for the purchase or furnish-ing of repair parts by repair contrac-tors, it shall be the responsibility ofthe representatives of the Authorityawarding work to determine that therequired parts are not available in theMaritime Administration warehouse inthe area involved, contingent upon theurgency of the particular situation,ship’s sailing schedule, etc.

Sec. 4. Procedure for securing com-petitive bids.

(a) The geographical area withinwhich bids will be invited involves theexercise of sound administrative judg-ment. All the relevant factors shouldbe considered in deciding over whatareas competitive bids should be in-vited. Such factors will include the


288


scope and nature of the work, the loca-tion of the vessel, and the time and ex-pense involved in shifting and return-ing the vessel to its loading berth con-sistent with the operating require-ments.

(b) Invitations for Bids shall be sentto all contractors, within the area asdetermined in paragraph (a) of this sec-tion, who are considered to be finan-cially qualified and to be capable ofperforming all of the work set forth inthe specifications either by the utiliza-tion of their own or subcontractors’ fa-cilities. In this regard attention is in-vited to section 15 of this order.

(c) When inviting Bids the NSA formentitled ‘‘Invitation for Bids, Instruc-tion for Bidders, and Specifications forRepairs, Renewals, Alterations and Ad-ditions to the Vessel lllll’’ shallbe used.

(d) Attention is called to the factthat the Invitation for Bids form in-cludes a statement of the completiondate for the work. In the event bids areinvited the individual vessel’s period ofavailability and the extent of the pro-posed work shall be considered in fix-ing a completion date that is consist-ent with the scope of the work in-volved. Consideration must be given tothe fact that it will not be possible inevery case to get lower bids by extend-ing a completion date beyond the nor-mal time required to do the work mere-ly because the vessel’s availability isexceptionally long. At the same time,care is to be exercised to insure thatthe repair period is not shortened,when there is no urgent need for theuse of the vessel, to such an extentthat it is impossible for the contractorto accomplish the work under normalworking conditions. A completion datecan only be fixed so as to be financiallyand otherwise to the best interests ofthe Government after due consider-ation has been given to all of the fac-tors involved.

(e) The Invitations for Bids shall pro-vide that the contractors shall submit,simultaneously with their responses toInvitations for Bids, unit prices foreach item of specification work in aseparate sealed envelope. Only the en-velope containing the separate itemprices of the contractor determined tobe the low bidder shall be retained by

the representative of the Authorityand shall not be opened until after theaward is made. All other envelopes con-taining separate item prices shall bereturned unopened to each contractorby the representative of the Authority.In the event the low bid is rejected, theitemized prices of the low bidder shallbe returned to him in the unopened en-velope. Item prices submitted by con-tractors will not be subject to publicperusal.

(f) Vessel repair work contracted forby representatives of the NationalShipping Authority is subject to theprovisions of the Davis-Bacon Act, ex-cept in those cases where at the time ofthe issuance of the Invitations for Bidsthe site of the work is not known.Where bids are being invited from bid-ders in more than one port area, theport area in which the award will bemade will not be known, and the Invi-tations for Bids, accordingly, muststate that the work in question is notsubject to the Davis-Bacon Act.

(g) The Invitations for Bids shall alsoinclude a statement of the per day liq-uidated damages, for the particulartype vessel on which the work is to beperformed.

(h) The Invitation for Bids shall statewhere the bids are to be opened.

(i) When Invitations for Bids areissued by a General Agent, the GeneralAgent, at the time the invitations areissued shall make available to the localShip Repair and Maintenance office,three (3) copies of the specifications,three (3) copies of a list of contractorsto whom invitations have been sent,and three (3) copies of the Invitationfor Bids.

(j) Where the scope and probable costof the work and the time required foreffecting such work are secondary ascompared to the ship’s time, and wherethe preparation of formal specifica-tions and the issuance of formal Invita-tions for Bids are not practicable, therepresentative of the Authority mayorally contact as many qualified con-tractors as is feasible, in order to ob-tain written ‘‘Spot Bids.’’ Each con-tractor who indicates its intention tobid shall be fully advised as to the spe-cific work involved and given an oppor-tunity to inspect the vessel to enable itto prepare a bid. The contractor shall


289


be verbally advised of a time and placefor the submission of the ‘‘Spot Bids.’’If such bids are invited by the GeneralAgent, the General Agent shall also ad-vise the Coast Director or his duly ap-pointed representative of the time andplace of opening the ‘‘Spot Bids,’’ andif practicable, the NSA representativeshall attend such opening. If submis-sion of such spot bids is not in writingthe contractors shall immediately con-firm their respective Spot Bids by writ-ten tenders. The representative of theAuthority shall, if requested by respon-sive contractors, furnish invitationsfor bids and supporting specificationsto the contractors.

Sec. 5. Procedure for negotiated priceawards.

(a) In the award of vessel repair workupon the basis of negotiation or re-quest for quotation, other than workcovered by a supplemental job order,the contractor shall be furnished withthe information provided for in Article1(a) of the NSA–LUMPSUMREP Con-tract.

(b) The contractor, within the timespecified in a request for a quotation,may quote a price and shall submititemized prices and the price break-down provided for in Article 1(c) of theNSA–LUMPSUMREP Contract. In theevent a mutually satisfactory pricecannot be agreed to, a price shall be de-termined by the representative of theAuthority making the award whichshall be set out in the job order or thesupplemental job order issued to thecontractor. Within thirty (30) daysfrom the receipt of such job order orsupplemental job order the contractormay appeal such price to the Directorof the Authority as a dispute under Ar-ticle 27 of the NSA–LUMPSUMREPContract.

Sec. 6. Awarding of work.(a) Those portions of all bids reflect-

ing the total aggregate cost of thework involved shall be opened publicly.The work shall be awarded to the con-tractor submitting the lowest qualifiedbid. The term lowest shall mean the bidmost advantageous to the Governmentafter evaluation of all bids by the ap-plication of differentials and any otherrelevant factors set forth in the Invita-

tion for Bids. All pertinent costs ofmoving the vessel from the port wheresaid vessel is located at the time bidsare invited to the port of the respon-sive bidders’ work sites and/or plantsare to be stated on the Invitation forBids. If the vessel is scheduled to re-turn to the same port where located atthe time bids were invited, all costs ofreturning the vessel to that port shallalso be included on the Invitation forBids and considered in the bid evalua-tion.

(b) Immediately after an award of ajob order or a supplemental job orderon a negotiated basis a written reportshall be submitted by the representa-tive of the Authority, making theaward, to the appropriate Coast Direc-tor’s office stating the pertinent rea-sons for awarding the job on a nego-tiated rather than bid basis. A copy ofthis report must be attached to theShip Repair Summary.

(c) When an award is made, a joborder in the form attached to the NSA–LUMPSUMREP Contract shall beissued to the contractor and whenawards are made in excess of the CoastDirectors’ Authority one copy each ofall job orders and supplemental job or-ders and supporting specifications areto be forwarded to the Chief, Divisionof Ship Repair and Maintenance, Wash-ington, DC, simultaneously with theissuance of said orders to the contrac-tors.

Sec. 7. Job order numbering.(a) The NSA-LUMPSUMREP Con-

tract number shall be inserted in everyjob order and supplemental job orderthereto awarded to a Contractor. TheChiefs of local Ship Repair and Mainte-nance offices shall give consecutivenumbers starting with No. 1 to job or-ders awarded by them to each contrac-tor. The General Agents shall give con-secutive numbers starting with No. 1 tojob orders awarded by each GeneralAgent. Job orders and supplemental joborders covering work awarded by aGeneral Agent shall bear the initials ofthe prime General Agent, as a prefix tothe numeral for example, ‘‘Job OrderNo. USL–1.’’ Thus, the first awardmade by a local Ship Repair and Main-tenance office to each respective mas-ter repair contractor shall bear ‘‘Job


290


Order No. 1’’. The first award made byeach General Agent to each respectivemaster repair contractor shall alsobear ‘‘Job Order No. 1’’ and in additionthe Prime General Agents initials.Sub-agents shall use the initials of thePrime General Agent in identifying thejob order number. Any additionalmeans of numbering other than the nu-meral and Prime Agent’s initials arenot to be used. Supplemental job ordersshall contain the original job ordernumber suffixed by the letter ‘‘A’’ onthe first supplemental job order, theletter ‘‘B’’ on the second supplementaljob order, and so forth.

Sec. 8. Extra work and changes.(a) At any time after the award of an

original job order and during the timethe work thereunder is being per-formed, additional or extra work orchanges in the work covered by the joborder may be directed by the represent-ative of the Authority.

(b) Such additional or changed workshall be directed by a written ChangeOrder as provided in Article 6 of theNSA–LUMPSUMREP Contract.

(c) A supplemental job order shall beissued to the Contractor covering suchChange Order(s), which supplementalorder shall include the agreed amountof contract price increase or decreaseand any revision in the completiondate of the job order work, as modifiedby the Change Order(s).

(d) In the event a change in the con-tract price or revision in the comple-tion date cannot be agreed upon therepresentative of the Authority shalldetermine the contract price or revisedcompletion date and issue a supple-mental job order to the contractor whoshall proceed with the work covered bythe Change Order(s) and the Contractormay appeal such contract price or re-vised completion date as provided inArticle 27 of the NSA–LUMPSUMREPContract.

Sec. 9. Payment.(a) Repair contractors invoices cover-

ing work awarded by the field staff ofthe National Shipping Authority:

(1) Repair Contractors will submit in-voices for repair costs covered by joborders under Master Repair Contract orwork orders under WORKSMALREP

Contracts, directly to the local officeof the National Shipping Authorityawarding the work.

(2) The local office of the NationalShipping Authority will:

(i) Review repair contractors’ in-voices to determine that the chargeshave been billed in accordance with theprices provided in the job order and re-pair contract.

(ii) Attach to each repair contrac-tor’s invoice, a copy of theWORKSMALREP work order or joborder and supplemental job order(s), ifany; a signed completion certificate;and, in the case of competitive bids, ab-stract of bids listing the contractorswho submitted bids, the bid prices andcompletion time specified by each con-tractor, the name of the contractor towhom the work was awarded, and anexplanation of the basis for the awardwhen the contract is not awarded tothe lowest bidder.

(iii) Review each repair contractor’sinvoice and attachments to ascertaincompleteness of supports and whetherrepair items included therein havebeen placed under the appropriate re-pair group numbers as set out in sec-tion 18 and make corrections as nec-essary.

(iv) Forward the invoices and sup-ports to the District Ship Repair andMaintenance office for final review.

(3) The District office shall make afinal review and if in order forward thecontractor’s invoices and other sup-ports relating to (i) voyage and idlestatus repairs to the principal office ofthe General Agent, and (ii) reactiva-tion repairs and all others which do notinvolve General Agency operated shipsto the appropriate District Finance Of-ficer.

(4) The General Agent, upon receiv-ing repair contractors’ invoices and at-tachments thereto from the DistrictShip Repair and Maintenance officewill:

(i) Review each invoice and attach-ments to assure that the payment au-thorized by the District office appearsto be proper on the basis of the attach-ments.

(ii) Upon determination that all nec-essary supporting documents are at-tached, make payment directly to thecontractor.


291


(5) The District Finance Officer, uponreceiving repair contractors’ invoicespursuant to paragraph (a)(3)(ii) of thissection will process them in accord-ance with prescribed procedures.

(b) Repair contractors invoices cover-ing work awarded by General Agents:

(1) Repair contractors will submit in-voices for repair costs covered by joborders under Master Repair Contractsor work orders and WORKSMALREPcontracts directly to the principal of-fice of the General Agent or author-ized Sub-Agent contracting for the shiprepair work.

(2) The General Agent or authorizedSub-Agent, upon receipt of an invoicefrom a contractor, will follow the pro-cedure outlined in paragraph (a) (2)(ithru iii) and (4)(ii) of this section.

[SRM–5, Rev., 18 FR 5035, Aug. 22, 1953, asamended at 33 FR 5952, Apr. 18, 1968. Redesig-nated at 45 FR 44587, July 1, 1980]

Sec. 10. Bonds.(a) All bids in response to an Invita-

tion for Bids and all quotations in re-sponse to a request for a quotation inexcess of $2,000, shall be accompaniedby a guaranty or a bid bond in a sumequal to twenty-five (25) percent ofsuch bid or quotation to insure the ac-ceptance of the job order covering theawarded work and the furnishing of theperformance and payment bonds re-quired by Article 14 of the NSA–LUMPSUMREP Contract. The stand-ard Government form of bid bond(Standard Form 24 Revised November1950) shall be used.

(b) In compliance with the perform-ance bond and payment bond require-ments of Article 14 of the NSA–LUMPSUMREP Contract, the standardform of individual performance bond(Standard Form 25 Revised November1950) and the standard form of individ-ual payment bond (Standard Form 25ARevised November 1950) respectively,shall be used. Such bonds (in the re-spective penal sums of 50 percent of therespective job order contract prices butif the job order contract price is in ex-cess of $1,000,000 in the penal sum of 40percent of such job order contractprice) shall guarantee the Contractor’sperformance and payment obligationsin connection with the work covered byan original job order awarded on either

competitive bid or negotiated basis, asthat work may be modified by supple-mental job orders to such original joborders.

(c) The individual bid, performanceand payment bonds shall be submittedby the contractors to the awarding of-fices (General Agents or local offices ofNSA) to verify the correctness of thepenalty amount, contract and job ordernumbers, etc. The individual bondsshall then be forwarded by the award-ing office to the office of the appro-priate Coast Director for final actionand approval pursuant to existing regu-lations.

(d) For the convenience of contrac-tors, in lieu of submitting individualbid, performance and payment bondsthey may file with the Authority ap-proved annual or blanket bid, perform-ance and payment bonds covering theContractor’s bond obligations underjob orders (as such job orders may bemodified by supplemental job orders)awarded under said contracts in suchannual period. Annual bonds shall besubmitted by the Contractors or theirsurety representative to the appro-priate Coast Director’s office for clear-ance pursuant to existing regulations.In this regard all annual bonds must beof the open penalty type.

(e) No repair voucher (progress orfinal) where bond coverage is requiredshall be passed for payment until suchtime as the required bid, performanceand payment bonds have been givenfinal clearance.

Sec. 11. Guarantee obligations.(a) Under the provisions of Article 10

of the NSA–LUMPSUMREP Contractthe Contractor’s guarantee liability ex-tends to defects and deficiencies in theContractor’s work developing withinsixty (60) days from the date of the ac-ceptance of all the work and the ac-cepted redelivery of the vessel to theAuthority.

(b) Notice of such defects and defi-ciencies must be given to the Contrac-tor not later than ninety (90) days afterthe acceptance of the work.

(c) As soon as practicable, after theacceptance of work performed under ajob order, and the supplemental job or-ders thereto, the office awarding thejob order shall furnish to the General


292


Agent two copies of the specifications,job order and supplemental job orders,together with a statement of the dateof the expiration of the Contractor’sguarantee responsibility with respectto some work.

(d) The General Agent shall duringthe period of the Contractor’s guaran-tee responsibility screen all defi-ciencies and defects and repair itemsand list separately against the respec-tive specifications, all items which rep-resent defects or deficiencies in theContractor’s work.

(e) In order that the Contractor maybe notified of such defects and defi-ciencies prior to the expiration of the90-day notice period, the GeneralAgent, particularly with respect to ves-sels in foreign ports or vessels whichmay be at sea, shall instruct the Mas-ter of the respective vessel to forwardthe information with respect to defectsand deficiencies in the Contractor’swork to the General Agent’s home of-fice by the most expeditious manner ofcommunication.

(f) In connection with all deficienciesand defects, referred to in paragraph(d) of this section, the General Agentshall immediately notify the Contrac-tor and the local Ship Repair andMaintenance Office Head in the vessel’sport of call with copies of such notifi-cation to the Chief, Division of ShipRepair and Maintenance in Washing-ton, DC, in all cases and to the Chair-man, Trial and Guarantee SurveyBoards, if the total contract price isequal to or in excess of $100,000. If prac-ticable, the local Ship Repair andMaintenance Office Head shall arrangeto view the defective or deficient workin question and, if possible, shall se-cure the correction of such defects ordeficiencies by the Contractor in ques-tion.

(g) The General Agent, and the rep-resentative of the local Ship Repairand Maintenance staff, who actedunder the provisions of paragraph (e) ofthis section promptly shall file withthe Chief, Division of Ship Repair andMaintenance in Washington, DC, andalso with the Chairman, Trial andGuarantee Survey Boards, if the totalcontract price equals or exceeds$100,000, separate or concurring reportssetting out the defects and defi-

ciencies, describing the actual condi-tions found, causes of failure, and thedisposition of each defect or deficiencyitem.

Sec. 12. Disposition of removed equip-ment and scrap.

(a) Article 8 of the NSA–LUMPSUMREP Contract provides that any shipequipment, fuel, lube oil, supplies,stores, furniture, fixtures, salvage andother movable property removed fromthe vessel is the property of the UnitedStates and shall be disposed of in suchmanner as the Authority may directwithin sixty (60) days from the date ofthe completion of the work. The rep-resentative of the Authority, by appro-priate item in the specifications, shallcause the Contractor to segregate allequipment, salvageable material andscrap, removed from a vessel in theperformance of repairs, in such a man-ner as to be readily identifiable, andshall submit a list thereof to the localProperty and Supply office which is re-sponsible for arranging for retention,disposal, etc., of said equipment, mate-rial, and scrap. A copy of the listing isto be attached as a support to the ShipRepair Summary (MA–159).

(b) After the 60-day period, if no di-rection for disposal is given the Con-tractor, the Contractor shall store andprotect, in the shipyard or outside ofthe shipyard at its election, such prop-erty of the United States, for the addi-tional period directed by said localProperty and Supply office who shallfurnish a copy of such written direc-tion to the representative of the Au-thority. The increased contract pricefor the cost of the storage for such ad-ditional period shall be covered by pur-chase order prepared by the local Prop-erty and Supply office.

(c) All scrap removed from the vesselshall be the property of the UnitedStates and shall be handled as providedin paragraph (b) of this section: Pro-vided, however, That any scrap or sal-vage may, upon the written approval ofthe local Property and Supply office,be purchased or disposed of by the Con-tractor at the prevailing market price,or at not less than the fair value there-of in the absence of an established mar-ket therefor. The net sales price of the


293


scrap or salvage disposed of by the Con-tractor shall be promptly paid to theoffice of the District Finance Officer,or at the option of the office of the Dis-trict Finance Officer, shall be creditedagainst the moneys due or to becomedue the Contractors.

[SRM–5, Rev., 18 FR 5035, Aug. 22, 1953, asamended at 33 FR 5952, Apr. 18, 1968. Redesig-nated at 45 FR 44587, July 1, 1980]

Sec. 13. Insurance.Article 9 of the NSA–LUMPSUM REP

Contract sets forth the Contractor’s li-abilities and obligations with respectto awarded work. Said Article 9 re-quires that the Contractor shall main-tain insurance to cover such liabilitiesand obligations. Evidence of such in-surance shall be submitted to theChief, Division of Insurance, Washing-ton, DC, by the contractors for ap-proval.

Sec. 14. Anti-Kickback and Davis-Bacon Acts.

(a) All work awarded under the NSA–LUMPSUMREP Contract is subject tothe provisions of the Anti-KickbackAct, and is also subject to the provi-sions of the Davis-Bacon Act (except inthose cases where the Invitations forBids or job order state that the workcovered thereby is not subject to theDavis-Bacon Act). Article 24 of theNSA–LUMPSUMREP Contract requiresthe compliance of Contractor and itssubcontractors with the applicable pro-visions of said acts. In this respect theContractor agrees in the NSA–LUMPSUMREP Contract to complywith the regulations of the Secretaryof Labor made pursuant to the Anti-Kickback Act.

(b) The Contractor shall, as providedin Article 24(a) of the NSA–LUMPSUMREP Contract, post at the site of thework the wage determination decisionof the Secretary of Labor as providedin said Article 24(a).

(c) It shall be the responsibility ofthe representative of the Authorityawarding the work to determine thatthe Contractor has made the postingsrequired by Article 24(a) of the NSA–LUMPSUMREP Contract.

(d) In lieu of submitting weekly cer-tified copies of all payrolls to the Au-thority, as provided in Article 24(d) of

the Master LUMPSUMREP Contractthe Contractor shall maintain hisweekly payrolls for a period of threeyears and submit weekly an affidavitthat the payrolls of the Contractor forthe preceding week are correct andcomplete, that the wage rates con-tained therein are not less than thosedetermined by the Secretary of Laborand that the classifications set forthfor each labor mechanic conforms withthe work he performed. The Contractorshall also submit, and shall be respon-sible for the submission by its sub-contractors of the Anti-Kickback Actaffidavits as provided in Article 24(f) ofthe Master LUMPSUMREP Contract.The Contractor shall submit one copyof each of the weekly payroll and Anti-Kickback Act affidavits to the RecordsAdministration Section, Maritime Ad-ministration, Washington 25, DC.

(e) The representative of the Author-ity shall require Contractors, pursuantto the provisions of Article 24(d) of theNSA–LUMPSUMREP Contract, to clas-sify or reclassify any class of laborersor mechanics employed on NationalShipping Authority contract work andnot listed in the Secretary of Labor’sdecision (schedule of wages). A reportof such cases shall be forwarded to theDistrict Ship Repair and Maintenanceoffice for transmittal to the Office ofMaritime Labor Policy.

(f) The representatives of the Author-ity shall be responsible for establishingprocedures insuring that Contractorsare complying with the Davis-BaconAct and in cases of non-compliancewithhold payment of contractors’ in-voices.

(g) The following certification shallbe inserted by all contractors on all in-voices rendered covering work awardedunder the Master Repair Contract sub-ject to the Anti-Kickback and Davis-Bacon Acts.

I hereby certify that in performing the workfor which the invoice was rendered that allapplicable terms and conditions of the Anti-Kickback and Davis-Bacon Acts as providedin the Master Repair Contract and regula-tions of the Department of Labor have beencomplied with.


294


Sec. 15. Subcontracts.Under Article 29 of the NSA–

LUMPSUMREP Contract, the Contrac-tor is authorized to subcontract por-tions of the work. However, the Con-tractor must obtain prior approvalfrom the representative of the Author-ity, awarding the work, for each sub-contract in an amount exceeding 10percent of the contract price for thework covered by a job order or supple-mental job order.

Sec. 16. Liquidated damages.(a) The liquidated damages payable

for each calendar day of delay shall beplaced on each job order and supple-mental job order whether awarded on acompetitive bid or negotiated basis.

(b) The completion certificates are tocontain the date on which work is ac-tually completed, whereas the joborder and supplemental job orders areto contain a completion date based ona fair and reasonable estimate of timeto be allowed the contractor to performthe work. Thus, the difference betweenthe completion date specified on thejob order or supplemental job ordersand on the completion certificates willbe the period for which liquidated dam-ages are assessed. If an extension of anoriginal completion date is consideredjustifiable, the completion certificatesare to bear in detail in the space pro-vided for ‘‘exceptions’’ the reasons whythe completion dates were extended be-yond that specified in the original joborders. The face of the Ship RepairSummaries (MA–159) shall reflect theamounts of liquidated damages. Thepenalty amount shall be deducted fromthe invoice prior to payment for thework involved.

[18 FR 5035, Aug. 22, 1953; 18 FR 5294, Sept. 2,1953. Redesignated at 45 FR 44587, July 1,1980]

Sec. 17. Performance of work resultingfrom damage sustained while un-dergoing repairs.

(a) When damage is sustained by avessel during performance of repairsunder the NSA Master Contract, nego-tiations for accomplishment of worknecessary to correct such damage areto be made with the repair contractorinvolved, if practicable, and a job order

issued to the contractor for the repairof damage. Such job orders are to beassigned a new number and are not tobe supplemental to the original award.The following ‘‘without prejudice’’clause is to be made a part of and placeon each job order issued for the per-formance of work discussed in this sec-tion.

It is understood and agreed that the workcovered by this job order is awarded and ac-cepted without prejudice to, or waiver of,any rights of the United States or the Con-tractor.

(b) If it is determined that the con-tractor is at fault and the contractorrefuses to accept the responsibility, theprocedure outlined in Article 27 of themaster repair contract shall be fol-lowed. It is to be understood that thepayment of this type of account is tobe withheld pending establishmentthat the contractor involved is relievedof all responsibility for the damage.

(c) In the event other than the origi-nal contractor effects the damage re-pairs immediate arrangements are tobe made by and through the GeneralAgent to collect from the contractorconsidered responsible for the damages.

(d) A damage survey is to be con-ducted in all such cases and a reportthereon submitted to the Chief, Divi-sion of Ship Repair and Maintenance,Washington, DC.

Sec. 18. Group classification.

In the preparation of specifications,Job Orders, Supplemental Job Ordersand WORKSMALREP Contracts costsby Group Numbers as set forth and de-scribed below are to be inserted there-on:

Number Classification

41 Maintenance Repairs (deck, engine and stewardsdepartment repairs resulting from wear and tear).

42 Original installation of, repairs to, and removal ofnational defense features.

44 Conversions (conversion of vessels to troop car-riers, hospital ships, and for other special pur-poses).

51 Alterations, Additions and Betterments (additionalequipment, such as, spar decks, heavy lift equip-ment, change of cargo or passenger space, in-creasing speed of vessel, and structuralchanges).

52 Strengthening of Newly Constructed Vessels(strengthening of vessels according to program).


295


Number Classification

54 Damage Repairs (claimed as a result of enemy ac-tion, heavy weather, stranding, collision, fire, ste-vedore damage, ice damage, and other dam-ages).

NOTE: All items chargeable to each separatecasualty to be properly identified and segregatedboth with respect to casualty and cost.

63 Builders’ and Vendors’ Guaranty Work (repairs andreplacements chargeable to builders and vendorsof equipment—separate cost to be furnished foreach item).

64 Repair Contractors’ Guarantee Items (repairs tocorrect deficiencies due to faulty workmanshipand/or materials incident to prior repairs per-formed under provisions of Master Repair Con-tract where responsible contractor did not effectthe necessary corrections).

65 Other Costs (temporary lights, garbage disposal,tugs to shift vessel while in contractors’ yard, andother miscellaneous work requiring distribution ofcosts over more than one group).

66 Miscellaneous Expenses Applicable to Voyage Op-erating Expense (removal of cargo debris, freshwater when not required for testing purposes,cleaning cargo and other tanks where no repairsor alterations are involved, and other similar ex-penses).

67 Preparation of Vessels for Lay-up (stripping, drain-ing and preservation. No repairs to be included inthis grouping).

Sec. 19. Ship Repair Summaries.(a) Ship Repair Summaries shall be

prepared on Form MA–159 by the Gen-eral Agents and local offices of the Au-thority covering all work performedunder their respective jurisdiction andsubmitted to the District Ship Repairand Maintenance office involved. Thesummaries must be properly identifiedand contain the correct cost break-down as set forth in this order. If thesummary covers work other than re-pairs related to a voyage, the summarymust so state, e.g., reactivation, lay-up, idle status, etc. The District ShipRepair and Maintenance office shall re-view the summaries and supports to as-certain that they have been properlyprepared in all respects. The originalsof all summaries unsupported shall beforwarded by the District offices to theChief, Operating Cost Control Branch,Office of Ship Operations, NationalShipping Authority, Washington, DC,and two copies each of all summariesone of which is to be supported by onecopy each of job orders, supplementaljob orders, invitation for bids, speci-

fications, invoices, itemized prices,completion certificates, ABS invoicesand reports, purchase orders, pricewarehouse delivery tickets, propertyremoval notices, WORKSMAL REPContracts, a statement that bid, per-formance and payment bonds were re-ceived and approved, abstract of bidscontaining the list of contractors in-vited to bid and response of each, anexplanation of the basis for an awardwhen the contract is not awarded tolowest bidder, listing of scrap, salvage-able material and equipment removedfrom a vessel, etc., shall be forwardedto the Chief, Division of Ship Repairand Maintenance, Washington, DC.

(1) Within 60 days after terminationof the respective voyages for workawarded by General Agents.

(2) Within 30 days after completion ofall work awarded by the Local Officeswithin a port area.

(b) In the event invoices for particu-lar services are not available such as,American Bureau of Venders Inspectorsfees, the summary is nevertheless to beprepared as outlined in this order andestimated costs for the missing billingsset forth on the summary. Upon receiptof said invoices a supplementary sum-mary shall promptly be prepared anddistributed as outlined in this section.

(c) If no work is performed under aGeneral Agent’s jurisdiction for a par-ticular voyage, the General Agentmust submit for distribution as statedherein a repair summary stating acrossthe face that no repairs, either foreignor domestic, were performed for theparticular voyage involved.

Sec. 20. Reports of awards.(a) The Coast Directors shall submit

to the Chief, Division of Ship Repairand Maintenance, Washington, D.C., amonthly listing of all awards madeunder their jurisdiction. This listingshall reflect individually the completecontract number, contractor, vessel,type of award, e.g., negotiated or bid,costs and repair period. This listingshall be submitted substantially in thefollowing form:


Steamboat Repairs, Inc. ... MA–600 J.O.1 John Doe .... Bid .................... $15,000 Jan. 1, 1953 ...... Jan. 10, 1953


296



Steamboat Repairs, Inc .... MA–600J.O.1A.

John Doe .... Negotiated ........ 1,000 ............................ Jan. 11, 1953

(b) If no work was awarded during areporting period, a report to that effectis to be made.

(c) The Coast Directors are to attachto their monthly reports, the originalsof the monthly reports submitted bythe General Agents pursuant to section3(d) of NSA Order 34 (SRM–3, Revised).

Sec. 21. Delegations of authority.

(a) The term authorized representativeof the Authority appears in several ofthe contract provisions of the NSA–LUMPSUMREP Contract. The respec-tive representatives of the authorityare the ‘‘authorized representative ofthe Authority’’ for the respective con-tract provisions as set out in this sec-tion:

(b) Articles 1 and 2—Chief, Divisionof Ship Repair and Maintenance, CoastDirectors, Chiefs of District Ship Re-pair and Maintenance offices, Chiefs ofLocal Ship Repair and Maintenance of-fices, and General Agents (within theGeneral Agents’ contract limitations);Article 3—Maritime AdministrationMarine Surveyors, Chief, Division ofShip Repair and Maintenance, CoastDirectors, Chiefs of District Ship Re-pair and Maintenance offices, Chiefs ofLocal Ship Repair and Maintenance of-fices; and General Agents (within theGeneral Agents’ contract limitations);Article 4—Coast Directors, Chief, Divi-sion of Ship Repair and Maintenance,Chiefs of District Ship Repair andMaintenance offices, Chiefs of LocalShip Repair and Maintenance offices,and General Agents; Article 5—Mari-time Administration Marine Surveyorsand General Agents; Article 6—CoastDirectors, Chief, Division of Ship Re-pair and Maintenance, Chiefs of Dis-trict Ship Repair and Maintenance of-fices, Chiefs of Local Ship Repair andMaintenance offices, and GeneralAgents (within the General Agent’scontract limitations); Article 7—Chiefsof District Ship Repair and Mainte-nance Offices, Chiefs of Local Ship Re-pair and Maintenance Offices, and Mar-itime Administration Marine Survey-

ors; Article 18 (d)—Coast Directors;Chief, Division of Ship Repair andMaintenance, Chiefs of District ShipRepair and Maintenance offices, Chiefsof Local Ship Repair and Maintenanceoffices, and General Agents in connec-tion with work awarded by GeneralAgents; Article 27—Coast Directors,Chiefs of District Ship Repair andMaintenance offices and Chiefs ofLocal Ship Repair and Maintenance of-fices.


[SRM–5, Rev., 18 FR 5035, Aug. 22, 1953, asamended at 21 FR 8106, Oct. 23, 1956. Redesig-nated at 45 FR 44587, July 1, 1980]

PART 339—PROCEDURE FOR AC-COMPLISHMENT OF SHIP REPAIRSUNDER NATIONAL SHIPPING AU-THORITY INDIVIDUAL CONTRACTFOR MINOR REPAIRS—NSA–WORKSMALREP

Sec.1. What this order does.2. Description of NSA–WORKSMALREP

Contract.3. When the NSA–WORKSMALREP Con-

tract may be used.4. Persons authorized to make awards under

NSA–WORKSMALREP Contract.5. Responsibility for duplicating copies of

NSA–WORKSMALREP Contract.

AUTHORITY: Sec. 204, 49 Stat. 1987, asamended; 46 U.S.C. 1114. Interpret or applyR.S. 3709, as amended; 41 U.S.C. 5.

SOURCE: SRM–6, Revised, 18 FR 5040, Aug.22, 1953. Redesignated at 45 FR 44587, July 1,1980, unless otherwise noted.

Section 1. What this order does.This order authorizes the use of

NSA–WORKSMALREP individual con-tract for minor repairs to Maritime Ad-ministration owned or controlled ves-sels. The procedure to be followed bythe field personnel of the Authority,


297


the General Agents of the Authority,and the ship repair contractors is setforth in the ‘‘General Provisions forSmall Repairs’’ and, therefore, no fur-ther reference is made to said proce-dure herein.

Sec. 2. Description of NSA–WORKSMAL REP Contract.

This is an individual fixed price con-tract which may be awarded to anyfirm not holding an NSA–LUMPSUMREP Contract, as a result of formalcompetitive bids, spot bids, or by nego-tiation for the performance of ship re-pair work. NSA Order No. 46 (SRM–5,Revised) sets forth the conditions whenwork may be awarded on the basis offormal competitive bids, spot bids ornegotiation, therefore, further ref-erence thereto will not be made herein.

Sec. 3. When the NSA–WORKSMALREP Contract may beused.

This contract may be used for awardsto firms performing specialized worksuch as repairs to and adjustment ofcompasses, direction finders, radios, re-frigerators, etc., as well as minor voy-age repairs of a general nature and feesof the American Bureau of Shipping.The use of this contract is limited toawards not to exceed a total aggregatecost of $2,000.

Sec. 4. Persons authorized to makeawards under the NSA–WORKSMALREP Contract.

Authority is hereby delegated to theAtlantic, Gulf and Pacific Coast Direc-tors, Chiefs of Local and District ShipRepair and Maintenance Offices andthe General Agents to make awardsunder this form of contract, providedthe aggregate cost of the work does notexceed $2,000, and is within their ex-penditure limitations.

Sec. 5. Responsibility for duplicatingcopies of NSA–WORKSMALREPContract.

It will be the responsibility of theseveral Coast Directors, Local and Dis-trict Ship Repair and Maintenance Of-fices and the General Agents to dupli-cate copies of the work order form andgeneral provisions to suit their respec-tive needs.

PART 340—PRIORITY USE AND AL-LOCATION OF SHIPPING SERV-ICES, CONTAINERS AND CHAS-SIS, AND PORT FACILITIES ANDSERVICES FOR NATIONAL SECU-RITY AND NATIONAL DEFENSERELATED OPERATIONS

Sec.340.1 Scope.340.2 Definitions.340.3 General provisions.340.4 Shipping services.340.5 Containers and chassis.340.6 Port facilities and services.340.7 Application to contractors and sub-

contractors.340.8 Priorities for materials and produc-

tion.340.9 Compliance.

AUTHORITY: Defense Production Act of 1950,as amended (50 U.S.C. App. 2061 et seq.;) Exec-utive Order 10480, as amended (18 FR 4939);Executive Order 12656 (53 FR 47491); 44 CFRPart 322; 49 CFR 1.45; Department of Trans-portation Orders 1100.60, as amended: 1900.8and 1900.7D.

SOURCE: 58 FR 29352, May 20, 1993, unlessotherwise noted.

§ 340.1 Scope.This part establishes procedures for

assigning priority for use by defenseagencies, on commercial terms, of com-mercial shipping services, containersand chassis, and port facilities andservices and for allocating vessels em-ployed in commercial shipping serv-ices, containers and chassis, and portfacilities and services for exclusive useby defense agencies (as defined in340.2), at any time where appropriateunder provision of title I of the DefenseProduction Act of 1950 (50 U.S.C. App.2061 et seq.) as determined by the Sec-retary of Transportation. The proce-dures will provide the means to requirevessel and port operators to provide de-fense agencies with existing commer-cial services and facilities not obtain-able through established transpor-tation procurement procedures. Thusthe procedures will minimize inter-ference with commercial operationsand ensure rapid response to defenseneeds in times of crisis or war.

§ 340.2 Definitions.As used in this regulation:


298

46 CFR Ch. II (10–1–98 Edition)§ 340.2

(a) Administrator means the MaritimeAdministrator, Department of Trans-portation, who is, ex officio, the Direc-tor, National Shipping Authority,within the Maritime Administration(MARAD). Pursuant to 49 CFR1.45(a)(5), the Maritime Administratoris authorized to carry out emergencypreparedness functions assigned to theSecretary by Executive Order 12656 (53FR 47490, November 18, 1988).

(b) Container means any type of con-tainer for intermodal surface move-ment that is 20 feet in length or longer,8 feet wide, and of any height, includ-ing specialized containers, with Inter-national Standards Organization stand-ard fittings.

(c) Container service means the inter-modal movement, which includes anocean movement leg, of goods in con-tainers.

(d) Container service operator means avessel operator (defined in § 340.2(v))that provides containerized ocean ship-ping service.

(e) Container supplier means a U.S.-citizen controlled (pursuant to 46 App.U.S.C. 802) company which manufac-tures containers, is a container serviceoperator, or is in the business of leas-ing containers.

(f) Chassis means a vehicle built spe-cifically for the purpose of transport-ing a container so that when the chas-sis and container are assembled theunit produced serves the same functionas a road trailer.

(g) Chassis supplier means a U.S.-citi-zen controlled (pursuant to 46 App.U.S.C. 802) company which is a con-tainer service operator or is in thebusiness of leasing chassis.

(h) Defense agency means the Depart-ment of Defense, or any other depart-ment or agency of the Federal Govern-ment as determined by the Secretaryof Transportation, for the purposes ofthis regulation.

(i) FEMA means the Federal Emer-gency Management Agency.

(j) NAO means the NSA AllocationOrder, which is an order allocating theexclusive use of a vessel employed incommercial shipping service, a con-tainer, a chassis, or a port facility forthe purposes of providing its servicesto a defense agency for a specified pe-riod.

(k) NSA means the National ShippingAuthority, which is the emergencyshipping operations activity of the De-partment of Transportation (MARAD).

(l) NSPO means an NSA Service Pri-ority Order, which is an order directingthat priority of service be given to themovement of cargoes of a defense agen-cy.

(m) Planning order means a notifica-tion of tentative arrangements to meetanticipated defense agency require-ments, issued by NAO or NSPO format,for planning purposes only.

(n) Port authority means any state,municipal, or private agency, or firmthat (1) owns port facilities (2) managessuch facilities for common-user com-mercial shipping services under leasefrom an owner; (3) owns or operates aproprietary port facility or terminal;and (4) otherwise leases or licenses andmanages a port facility.

(o) Port facilities and services means (1)all port facilities, for coastwise, inter-coastal, inland waterways, and GreatLakes shipping and overseas shipping,including, but not limited to wharves,piers, sheds, warehouses, terminals,yards, docks, control towers, containerequipment, maintenance buildings,container freight stations and portequipment, including harbor craft,cranes and straddle carriers; and (2)port services normally used in accom-plishing the transfer or interchange ofcargo and passengers between vesselsand other modes of transportation, orin connection therewith.

(p) Secretary means the Secretary ofTransportation or his or her designeesto whom emergency authorities underthe Defense Production Act of 1950have been delegated, i.e., the Directorof Office of Emergency Transportationor the Departmental Crisis Coordina-tor.

(q) Secretarial Review means the proc-ess by which the Secretary or his orher designee(s) exercises review, co-ordination, and control over depart-mental emergency preparedness pro-grams and/or matters.

(r) Shipper means a civilian or Gov-ernment agency that owns (or is re-sponsible to the owner for) goods trans-ported in waterborne service.

(s) Shipping service means a commer-cial service which provides for the


299


movement of passengers or cargo byone or more modes of transportationand includes a waterborne movementleg in the overseas, coastwise, inter-coastal, inland waterways, or GreatLakes shipping trades.

(t) Vessel means a vessel employed incommercial service for waterbornemovement of passengers or cargo in theoverseas, coastwise, intercoastal, in-land waterways or Great Lakes ship-ping trades, or any portion of thecargo-carrying capacity of such vessel.

(u) Vessel operator means a companyowning and/or operating, to and fromany U.S. port, an ocean-going overseas,coastwise, intercoastal, inland water-ways or Great Lakes vessel that isU.S.-flag, or foreign-flag and U.S.-citi-zen controlled (pursuant to 46 App.U.S.C. 802), or foreign-flag and non-citi-zen controlled that is made availableto the United States (as described in§ 340.3(j)).

§ 340.3 General provisions.(a) The provisions of this rule apply

pursuant to authority granted to thePresident by title I, Defense Produc-tion Act of 1950, as amended (50 U.S.C.App. 2061 et seq.) that authority havingbeen delegated to the Secretary ofTransportation, with respect to civiltransportation services, by § 322.3(b) oftitle 44, Code of Federal Regulations.In order to give priority to perform-ance under contracts deemed necessaryor appropriate to promote the nationaldefense and to allocate materials andfacilities in such manner, upon suchconditions and to such extent as nec-essary or appropriate to promote thenational defense, the following proce-dures shall be applicable:

(1) In connection with deployment ofthe Armed Forces of the United States,or other requirements of the nation’sdefense, a defense agency (as defined in§ 340.2(h) of this part) may request pri-ority use or allocation of vessels em-ployed in commercial shipping serv-ices, containers, chassis, or port facili-ties and services.

(2) The Secretary may authorize ini-tiation of priority and allocation au-thority in accordance with administra-tive and statutory authorities.

(3) The Administrator, on approvalby the Secretary to initiate the use of

priority and allocation authority underthis regulation and in conformancewith national program priorities, maydirect owners and/or operators of ves-sels, containers, chassis, or port facili-ties to give priority usage to the de-fense agency or may allocate vessels,containers, chassis, or facilities for thedefense agency’s use during specifiedperiods.

(b) A defense agency may transmitrequests for assignment of priority foruse or for allocation of vessels, con-tainers, chassis, and port facilities andservices to the Secretary by letter,memorandum, or electrical message.

(c) Justification for requested prior-ities or allocations may include ref-erences to military operations plans.When classified, justifications may beprovided separately by correspondenceor staff coordination. NSPOs and NAOswill not include classified information.

(d) The Administrator shall deter-mine, before issuing an NSPO or NAO,that the action is necessary to meetthe requirements of the national de-fense (as determined by the defenseagency) and conforms to Secretarialguidance for coordinating the Depart-ment’s crisis response, and that theproposed approach is the most effectiveway to do so. The Administrator, inconjunction with the defense agency,shall coordinate with vessel operators,container suppliers, chassis suppliers,port authorities and the Coast Guardto identify vessels, equipment and fa-cilities to meet requirements coveredby NSPOs and NAOs. The Adminis-trator shall ensure that arrangementsto provide defense support underNSPOs and NAOs satisfy the defenseagency’s requirements with minimumdisruption to commercial activities.

(e) When resources are required formovement of hazardous or other spe-cial cargo, the Administrator shall en-sure that the Commandant of the CoastGuard and the Captain of the Port andother concerned hazardous materialsofficials of the U.S. Department ofTransportation, as required, are noti-fied and that the views of all concernedagencies and interests are obtained andreflected in actions taken pursuant tothis regulation. Any action taken pur-suant to this regulation shall conformwith existing regulations for the safe


300

46 CFR Ch. II (10–1–98 Edition)§ 340.4

transportation of hazardous materialsand or cargoes, subject to Departmentof Transportation exemptions.

(f) The Secretary shall notify FEMAof the intention to issue any directivegranting priority for use or allocationof vessels, containers, chassis, or portfacilities and services, and shall pro-vide information copies of NSPOs andNAOs as required to the defense agencyconcerned, FEMA, the Interstate Com-merce Commission and the CoastGuard.

(g) Defense agencies which foreseedifficulty in meeting their needs forvessels employed in commercial ship-ping services, containers, chassis, orport facilities and services shall coordi-nate with MARAD, the Coast Guard,vessel operators, container suppliers,chassis suppliers, and port authoritiesconcerned before the need arises. TheAdministrator, after Secretarial re-view, may issue planning orders for in-formation and guidance of affectedagencies confirming tentative arrange-ments to meet the defense agencies’needs. No action will be taken to giveeffect to those arrangements untilNSPOs and NAOs are issued at thetime the services, equipment, or facili-ties are required.

(h) Defense agencies shall pay forservices covered by NSPOs and NAOson the basis of commercial tariffs, oron the basis of contracts concluded be-tween the operator interests and thedefense agencies concerned, or on thebasis of existing contracts where bothparties so agree.

(i) Defense agencies shall be respon-sible for payment of costs arising from:

(1) Shifting ships to unoccupiedberths for defense use;

(2) Discharging commercial cargo tofree ships for defense use; and

(3) Such other costs as may be agreedbetween the defense agency and theprovider of service.

(j) The provisions of this regulationshall apply to foreign vessels, contain-ers, and chassis only when and to theextent that such vessels, containers,and chassis are available to the UnitedStates because of control by U.S. citi-zens (46 App. U.S.C. 802) or by provisionof international agreements for use ofshipping services and related resourcesfor the common defense.

(k) Recipients of NSPOs and NAOsshall notify the Administrator, with-out undue delay, when they cannotcomply or are experiencing difficultyin complying with the provisions of theOrders.

§ 340.4 Shipping services.

(a) When a defense agency requiresshipping services not obtainablethrough established transportationprocurement practices, the followingprocedures shall apply:

(1) Except during periods of Presi-dentially-declared national defenseemergencies, when requests shall betransmitted to the Administrator, theagency shall transmit a request to theSecretary specifying:

(i) The type of service required;(ii) The route over which priority of

service is required;(iii) The period during which priority

of service is required; and(iv) Justification for priority use of

the requested service.(2) The Administrator, pursuant to

the circumstances specified in§ 340.4(a)(l), shall identify vessel opera-tors that can provide the necessaryservice and issue NSPOs in coordina-tion with the Secretary to those opera-tors directing that priority be given tothe movement and delivery of the de-fense agency’s cargo and/or passengersby the type of service specified in theNSPO during the specified period.

(3) Each vessel operator in receipt ofan NSPO shall:

(i) Give precedence to the cargoes ofthe defense agency in provision ofequipment, loading, ocean transportand delivery; and

(ii) Coordinate with other operatorsin receipt of NSPOs applicable to thesame priority movement program toensure movement of the defense agen-cy’s cargoes on first available sailings.

(b) When a defense agency has needfor vessels employed in commercialservice on a continuing basis for na-tional defense operations for a speci-fied period or for the duration of a de-fense emergency which they cannot ob-tain through established transpor-tation procurement practices, the fol-lowing procedures shall apply:


301


(1) The agency shall transmit to theSecretary, with a copy to the Adminis-trator, a request specifying the kindsof services required, the arrangementsunder which the agency proposes thatthe services be acquired, managed andcompensated, and justification for allo-cation of the required vessels.

(2) The Administrator, upon receiv-ing guidance from the Secretary, shallidentify vessel operators that can sup-ply the requested services and issueNAOs to operators directing that speci-fied vessels be made available for use ofthe defense agency for specified peri-ods. As far as practicable, the economicimpact will be balanced among opera-tors.

(3) Each vessel operator in receipt ofan NAO shall provide vessels in coordi-nation with the defense agency as spec-ified in the NAO.

§ 340.5 Containers and chassis.

(a) When a defense agency requirespriority use of containers and/or chas-sis not obtainable through establishedtransportation procurement practices,the following procedures shall apply:


(i) The route over which or the areain which priority use of containers and/or chassis is required;

(ii) The period during which priorityuse is required;

(iii) the approximate time-phasedmovement requirement in containersand/or chassis of specified sizes andtypes or in 20-foot equivalent units(TEU); and

(iv) Justification for priority use ofcontainers and/or chassis.

(2) The Administrator pursuant tothe circumstances in § 340.5(a)(l) shall):

(i) Identify container service opera-tors capable of meeting the require-ment; and

(ii) Issue NSPOs or NAOs in coordina-tion with the Secretary to those con-tainer service operators, directing thatpriority be given to supply of contain-ers and/or chassis against the defenserequirement.

(3) Each container service operator inreceipt of an NSPO shall:

(i) Coordinate with the defense agen-cy on schedules for spotting emptycontainers and/or chassis and for move-ment of containerized cargoes; and

(ii) Supply containers and/or chassisto the defense agency in accordancewith the defense agency’s schedulingneeds or supply the first available con-tainers and/or chassis if those needscannot be met.

(b) When a defense agency requiresthe allocation of containers and/orchassis on a continuing basis for na-tional defense operations, the followingprocedures shall apply:

(1) They agency shall transmit to theSecretary, with a copy to the Adminis-trator, request specifying:

(i) The number of containers and/orchassis required by type;

(ii) The general terms and conditionsunder which the agency proposes to ac-quire the needed containers and/orchassis and compensate the owners oroperators;

(iii) The expected duration of thelease, if the containers and/or chassisare to be leased;

(iv) The locations at which the agen-cy will take possession of the contain-ers and/or chassis and the required de-livery schedule; and

(v) Justification for allocation ofcontainers and/or chassis.

(2) The Administrator in coordina-tion with the Secretary shall identifycontainer and chassis suppliers thatcan supply the required containers and/or chassis, and shall provide, so far aspracticable, for balancing the defenseagency’s requirement against other re-quirements for containers and/or chas-sis so as to minimize disruption of in-ventory distribution, and shall issueNAOs to suppliers, directing the alloca-tion of specified numbers of containersand/or chassis by type for exclusive useof the defense agency for a specified pe-riod.

(3) Each container and chassis sup-plier in receipt of an NAO shall deliverthe containers and/or chassis specifiedin the NAO to the defense agency atthe places and times specified in theNAO or separately agreed upon withthe defense agency, under terms and


302

46 CFR Ch. II (10–1–98 Edition)§ 340.6

conditions agreed upon with the de-fense agency.

§ 340.6 Port facilities and services.(a) When a defense agency requires

priority use of port facilities and serv-ices not obtainable through establishedtransportation procurement practices,the following procedures shall apply:


(i) The ports at which priority use ofport facilities and services are requiredand the kinds of facilities and servicesrequired at each port;

(ii) The approximate scale and dura-tion of the operation for which prioritysupport is required; and

(iii) Justification for priority use ofport facilities and services.

(2) The Administrator in coordina-tion with the Secretary shall issueNSPOs to the port authorities con-cerned, directing that priority be givento the receipt, in transit handling, andoutloading of the defense agency’scargo during a specified period andspecifying the facilities and servicesrequired.

(3) Each port authority in receipt ofan NSPO shall:

(i) Make such dispositions of com-mercial cargoes and ships loading ordischarging commercial cargoes asmay be necessary to accommodate pri-ority movement of the defense agency’scargoes; and

(ii) Ensure receipt, in transit han-dling and outloading of the defenseagency’s cargoes as rapidly as possible.

(b) When a defense agency requiresthe allocation of port facilities for ex-clusive use of the agency on a continu-ing basis, the following proceduresshall apply:

(1) The agency shall transmit a re-quest to the Secretary, with a copy tothe Administrator specifying:

(i) The ports at which the allocationof facilities is required and the kinds offacilities needed at each port;

(ii) The general terms and conditionsunder which the agency proposes to ac-quire the needed facilities and com-pensate the owners or leaseholders;

(iii) The periods during which the fa-cilities will be required; and

(iv) Justification for allocation of fa-cilities.

(2) The Administrator in coordina-tion with the Secretary shall identifyfacilities that meet the defense agen-cy’s needs, and shall issue to each con-cerned port authority and NAO direct-ing the allocation of specified facilitiesfor exclusive use of the defense agencyduring a specified period.

(3) Each port authority in receipt ofan NAO shall make the specified facili-ties available to the defense agency forthe specified period under terms andconditions agreed upon with the de-fense agency.

§ 340.7 Application to contractors andsubcontractors.

(a) Vessel operators, port authoritiesand container and chassis suppliers re-quiring priorities for production serv-ices in order to comply with NSPOsand NAOs must submit their priorityrequirements for such services to theMaritime Administrator for action inaccordance with Departmental policiesgoverning supporting resource support.

(b) Vessel operators, port authoritiesand container and chassis suppliers re-quiring priorities for fuel in order tocomply with NSPOs and NAOs mustsubmit their priority requirements forfuel in accordance with Departmentalpolicies governing supporting re-sources.

§ 340.8 Priorities for materials andproduction.

(a) Vessel operators, port authoritiesand container and chassis suppliersmay request priority ratings to obtainproduction materials and services nec-essary to comply with orders issuedunder this regulation. Requests for pri-ority rating authority must be madethrough and sponsored by the MaritimeAdministrator, in accordance with theDefense Priorities and Allocation Sys-tem (15 CFR part 330 et seq. (49 FR30412, July 30, 1984)) and Departmentalpolicies governing supporting resourcessupport.

(b) Vessel operators, port authoritiesand container and chassis suppliersmay request priority ratings to obtainfuels necessary to comply with orders


303


issued under this regulation. Requestsfor priority ratings will be made in ac-cordance with regulations issued bythe Department.

§ 340.9 Compliance.Pursuant to section 103 of the De-

fense Production Act, 1950 (50 U.S.C.

App. 2073), any person who willfullyperforms any act prohibited, or will-fully fails to perform any act required,by the provisions of this regulationshall, upon conviction, be fined notmore than $10,000 or imprisoned for notmore than one year, or both.


pt. 325 46 cfr ch. ii (10–1–98 edition) · form his audit and review functions ... ity, marad,...

Documents