§ 296.24 - Subsequent awards of MSP Operating Agreements.

§ 296.24 Subsequent awards of MSP Operating Agreements.

Cross Reference

Link to an amendment published at 82 FR 56897, Dec. 1, 2017.

(a) Until October 1, 2005, if, for any reason, after the award of an MSP Operating Agreement, the Applicant is unwilling or unable to commence operations pursuant to the terms of the MSP Operating Agreement, MARAD may, pursuant to the priority criteria, award that MSP Operating Agreement to an Applicant having an eligible vessel that applied but was not awarded an MSP Operating Agreement.

(b) After October 1, 2005, MARAD

intends to ensure that all available MSP Operating Agreements are fully utilized at all times

,

in order to maximize the benefit of the MSP. Accordingly, when an MSP Operating Agreement becomes available through termination by the Secretary

, expiration of a temporary MSP Operating Agreement

or early termination by the MSP contractor, and no transfer under 46 U.S.C. 53105(e) is involved, MARAD will reissue the MSP Operating Agreement pursuant to the following criteria

.

:

(1) The proposed vessel

must

shall meet the requirements for vessel eligibility in 46 U.S.C. 53102(b);

(2) The applicant

must

shall meet the vessel ownership and operating requirements for priority in 46 U.S.C.

53103

53102(c); and

(3) Priority will be assigned

in accordance with operational

on the basis of vessel type established by military requirements specified by the

SecDef. (c) MARAD will use the following procedures in reissuing an

Secretary of Defense. After consideration of military requirements, priority shall be given to an applicant that is a United States citizen under section 50501 of this title.

(b) MARAD shall allow an applicant at least 30 days to submit an application for a new MSP Operating Agreement.

(c) MARAD and USTRANSCOM will determine if the applications received on October 15, 2004 form an adequate pool for award of a reissued MSP Operating Agreement. If so, MARAD will award a reissued MSP Operating Agreement from that pool of qualified applicants in its discretion according to the procedures of paragraph (a) of this section, subject to approval of the SecDefSecretary of Defense. MARAD and USTRANSCOM may decide to open a new round of applications. Applicants for reissued MSP Operating Agreements must meet the citizenship requirements of Priority III. Inasmuch as MARAD shall provide written reasons for denying applications. In as much as MSP furthers a public purpose and MARAD does not acquire goods or services through MSP, the selection process for award of MSP Operating Agreements does not constitute an acquisition process subject to any procurement law or the Federal Acquisition Regulations.

[82 FR 56897, Dec. 1, 2017]