Maritime Security Fleet Program or Ship Operations Cooperation Program

 

The MSP helps sustain a fleet of 60 active, commercially viable, militarily useful, privately-owned vessels operating under U.S. registry to meet national defense and other security requirements. Participating operators are required to make their ships and commercial transportation resources available upon request by the Secretary of Defense during times of war or national emergency.

General information about this opportunity
Last Known Status
Active
Program Number
20.813
Federal Agency/Office
Maritime Administration, Department of Transportation
Type(s) of Assistance Offered
C - Direct Payments For Specified Use
Program Accomplishments
Fiscal Year 2016 Maintained full authorized 60 ships in MSP, six of the 60 ships were replaced with newer, more modern ships
Fiscal Year 2022 $318,000,000 was in support of 60 militarily useful U.S.-flag vessels crewed by American citizens and engaged in international trade for the United States. The program provided each MSP-enrolled vessel with an annual stipend and required that enrolled vessel operators make their ships and their global commercial transportation resources available to the Department of Defense whenever or wherever needed during times of war or national emergency.
Fiscal Year 2023 $318,000,000 was in support of 60 militarily useful U.S.-flag vessels crewed by American citizens and engaged in international trade for the United States. The program provided each MSP-enrolled vessel with an annual stipend and required that enrolled vessel operators make their ships and their global commercial transportation resources available to the Department of Defense whenever or wherever needed during times of war or national emergency.
Authorization
Omnibus Appropriations Bill of 2015; NDAA for Fiscal Year 2017, P.L. -112-239; 1122, Section 212(f), Public Law 112-238, U.S.C.
The Maritime Security Act of 2003; the National Defense Authorization Act (NDAA) for Fiscal Year 2013, Public Law 108-136, 46 U.S.C. Section 53101 et. seq.
The MSP provides participating carriers with annual per-ship retainer payments to maintain a fleet of 60 U.S. flag commercial vessels, active in international trade, and available “on-call” to meet U.S. Department of Defense requirements during times of war or national emergency. Public purpose of support and promotion of new concepts for the carriage of cargo, improve communications, share technology, improve transportation security and research.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
U.S. citizens and operators of U.S. flag vessels.
Beneficiary Eligibility
Ownership and operation of vessels and facilities useful to the United States in time of war or national emergency.
Credentials/Documentation
Ownership of U.S. documented vessels.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Solicitation for applications in the Federal Register; None.
Award Procedure
MARAD Office of Sealift Support and the U.S. Transportation Command review applications against criteria established in the Maritime Security Act of 2003 (46 U.S.C. ?? 53101-11). Please see 46 C.F.R. ? 296.03 for additional details on application requirements and protocol.
Deadlines
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
90 Days from closing of application.
Appeals
Decisions concerning administration of the Maritime Security Program will be referred to the Maritime Administrator.
Renewals
Program is based on 1-year contracts renewable each year, subject to funding, and not to extend past fiscal year 2035.
How are proposals selected?
(1) Vessel is required to maintain U.S.-flag presence in foreign commerce and/or necessary for meeting military sealift requirements; (2) Vessel must meet MARAD and USTRANSCOM requirements for both commercial viability and military usefulness; (3) Applicant possesses operational expertise and intermodal assets useful to the United States in meeting its sealift requirements; (4) Maritime Security Program participants are required to commit sealift and intermodal capacity to an Emergency Preparedness Program (EPP), as overseen by MARAD and approved by the Secretary of Defense (SECDEF).
How may assistance be used?
Vessel's Operations restricted to U.S. foreign trade. Public purpose of support and promotion of new concepts for the carriage of cargo, improve communications, share technology, improve transportation security and research.
What are the requirements after being awarded this opportunity?
Reporting
Not applicable.
Auditing
Maritime Security Program subject to both internal and external audit. These audits will be made by the Office of the Inspector General (DOT) in accordance with the General Accounting Office guidelines, "Standards for Audit of Government Organizations, Programs, Activities and Functions," and additional OMB guidance. There is an annual reporting requirement for audited financial statements in 46 C.F.R. ? 296.32.
Records
Vouchers monthly.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
One year contracts, renewable yearly, payable in monthly installments. Not applicable
Who do I contact about this opportunity?
Regional or Local Office
None/Not specified.
Headquarters Office
David Hatcher
1200 New Jersey Ave SE
Washington, DC 20590 USA
david.hatcher1@dot.gov
Phone: (202)366-0688
Website Address
http://www.marad.dot.gov
Financial Information
Account Identification
69-1711-0-1-054
Obligations
(Direct Payments for Specified Use) FY 22$318,000,000.00; FY 23 est $318,000,000.00; FY 24 est $318,000,000.00; FY 21$314,000,000.00; FY 20$300,000,000.00; FY 19$300,000,000.00; FY 18$300,000,000.00; FY 17$299,997,000.00; FY 16$210,000,000.00; - (Direct payments) FY 21 $5.2 mil per ship; FY 22$ $5.3 million per ship; and estimated FY 23 $5.3 million per ship
Range and Average of Financial Assistance
Authorized $5.23 million (FY 2021); and $5.3 million (FY2022-2025); $5.8 million (FY2026 - FY2028); $6.3 million (FY2029 - FY2031); $6.8 million (FY2032 - FY2035)
Regulations, Guidelines and Literature
46 CFR Part 296.
Examples of Funded Projects
Fiscal Year 2016 The 60 ships in the MSP received payments up to $3.5 million per ship during 2016 for operation in U.S. international trade.
Fiscal Year 2022 60 active commercially viable, military useful, privately owned vessels operating under U.S. registry made their ships and commercial transportation resources available upon request by the Secretary of Defense.

 


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