Attach (03) - Guidelines for Off-Hire.pdf

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Time Charter for SSV MIDPAC
Solicitation number
N3220526R0014
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This document provides guidelines for determining off-hire charges against contractors for failure to comply with readiness standards in a Charter Party agreement. The guidelines establish percentage deductions applicable to various mission-degrading casualties and equipment failures, though they are explicitly non-binding and subject to the Contracting Officer's discretion based on specific facts and circumstances of each incident.

The guidelines cover twelve categories of readiness issues with corresponding deduction percentages. Complete off-hire (100% deduction) applies when the vessel is unable to sail due to main propulsion casualties or when the U.S. Coast Guard or other authorities restrict sailing operations. Partial off-hire percentages are calculated based on the percentage of cargo unable to work for casualties affecting cargo operations, including stern ramp out-of-commission, LASH cranes, container cranes, general cranes/booms, and air conditioning/dehumidification systems. For speed-restrictive propulsion casualties, deductions are based on the percentage decrease in warranted speed, and for certain equipment failures like cargo elevators, additional time required for cargo operations determines the deduction. AC/DH casualties include duration factors that reduce readiness percentages based on the time elapsed following the casualty: 25% for 1-15 days, 50% for 16-30 days, and 75% beyond 30 days. The document notes that the Contracting Officer may adjust suggested off-hire amounts to ensure equitable results and compliance with applicable Admiralty Law and industry customs, and that actual time lost applies to genuine lost-time issues rather than readiness issues.

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GUIDELINES FOR FULL/PARTIAL OFF-HIRE PERCENTAGES ON READINESS

ISSUES

The following are guidelines for the determination of off-hire charges against the Contractor for specific instances of failure to comply with readiness standards under IV(i), “Readiness,” and IV(j), “Off-Hire,” of this Charter Party. These standards are guidelines only and are not construed as binding and inflexible provisions of this Charter Party. When determining off-hire, the Government will recognize difficulties attributable to the Government, which are encountered by the Contractor in transporting repair and spare parts, personnel, and service representatives. The Contracting Officer at all times reserves the right to make off-hire determinations under the specific facts and circumstances of each incident at issue. If, in any particular instance, these standards operate to impose inequitable results on either the Government or the Contractor, the Contracting Officer may make appropriate adjustments to the off-hire amount suggested by the guidelines so as to comport with applicable Admiralty Law and Custom of the Trade practices.

Definitions: OOC = Out of Commission MT = Measurement Tons

Mission Degrading Casualty (as applicable) Percentage Deduction

1. Unable to Sail - Main Propulsion - 100% Casualty or Other Cause

2. Main Propulsion Casualty (Speed Restrictive)

- Point to Point - Slow Passage Evaluation

- Surveillance Operations - % Decrease in Warranted Speed

3. USCG/Other Authority Restricts Sailing - 100% (e.g. Form 835)

4. USCG/Other Authority Restricts Cargo - % Cargo Unable to Work (MT) Operations

5. Stern Ramp OOC - % Cargo Unable to Work (MT) (Only Means to Discharge)

6. Stern Ramp OOC (Able to Discharge All - Additional Time to Up/down Cargo Load Via Other Means)

7. LASH Crane OOC - % Cargo Unable to Work (MT)

8. Container Crane OOC - % Cargo Unable to Work (MT)

9. General Cranes/Booms OOC - % Cargo Unable to Work

10. Cargo Elevators OOC - Additional Time to Up/down Load

11. AC/DH OOC - %

Cargo Affected (MT) X

12. Failure to maintain stable platform - 100% for defined sea state installation/operation

* Duration Factors: The following duration factors are applicable for use in determining reduced readiness percentages for AC/DH casualties:

- 1 - 15 days following casualty = 25%

- 16-30 days following casualty = 50%

- Beyond 30 days following casualty = 75%

Note: For actual issues of lost time (VICE readiness issues), actual time lost to be used to determine off-hire.

File details come from the government source that posted it. Updated .