Complete_Redlined_Amendment_0005_15_Nov_2013_(Substantive_Changes_Only).pdf

(Amendment 0005) 15 Nov 2013

2013 SHIP DISPOSAL SOLICITATION

DTMA-91-Q-2013-0014

INTRODUCTION

A. PURPOSE OF THE SOLICITATION

The U.S. Maritime Administration (MARAD) intends to establish a pool of offerors with qualified ship disposal facilities, among which it will compete and award contracts for disposal of obsolete vessels in the National Defense Reserve Fleets (NDRF) and excess vessels of other Federal Agencies. This solicitation describes the process for the submittal of General Technical Proposals (GTP),1 the evaluation criteria of the GTPs, the establishment of a pool of qualified ship recycling facilities, the process for solicitation, among the offerors in the qualified pool, of sales offers and revised price quotations, and the criteria for award of sales contracts and/or ship disposal services contracts.

B. FORMAT OF THE SOLICITATION

The solicitation is posted to the Federal Business Opportunity (FedBizOps) website and to the MARAD Virtual Office of Acquisitions (VOA) ship disposal web page. The solicitation consists of the following Parts:

Part I Qualification of Facilities Part II Solicitation Preliminaries Part III Ship Disposal Sales Solicitation (SDPEXC-13001) Part IV Ship Disposal Services Solicitation (DTMA-91-Q-2013-0013) Part V Contract Clauses and Requirements Part VI Supporting Documents

C. COMMENTS/QUESTIONS ON THE SOLICITATION

The Government will make reasonable efforts to respond to comments/questions on the solicitation submitted to Contracting Officer, Marcus Moses <marcus.moses@dot.gov> by 5:30 p.m. Eastern Daylight Time on Friday, August 9, 2013. Questions submitted after August 9th will not be answered until after the sixty day due date for submission of General Technical Proposals in accordance with PART I, Qualification of Facilities, paragraphs C.2.a and C.2.b .

1 Until a new General Technical Proposal (GTP), inclusive of its Technical Compliance Plan (TCP), submitted under the 2013 Ship Disposal Solicitation is determined to be technically acceptable (See paragraphs C.2.a and F of PART I, Qualification of Facilities), previously qualified facilities shall perform the work in accordance with the contract provisions set forth in this solicitation and their previously approved GTP from the predecessor solicitation (“the old GTP”). If there is a conflict between the old GTP and the terms of the 2013 Ship Disposal Solicitation, the terms of the 2013 solicitation shall have precedence over the old GTP. Until the new GTP is approved, wherever any portion of this solicitation refers to the Contractor’s approved GTP or TCP, the Contractor’s approved, “old GTP,” including TCP, shall be substituted. Once a facility’s new GTP is found technically acceptable, any contract issued while the evaluation of the new GTP was pending will be modified to incorporate by reference the new, technically acceptable GTP.

2013 Ship Disposal Solicitation PART I – Qualification of Facilities (Amendment 0005) 15 Nov 2013 Page I-1

PART I

QUALIFICATION OF FACILITIES

A. INTRODUCTION

The U.S. Maritime Administration (MARAD) intends to establish a pool of offerors with qualified ship disposal facilities, among which it will compete and award contracts for disposal of obsolete vessels in the National Defense Reserve Fleets (NDRF) and excess vessels of other Federal Agencies. This solicitation describes the process for the submittal of General Technical Proposals (such proposal, inclusive of the technical compliance plan (TCP) and all supporting documents, is referred to herein as the GTP), the evaluation criteria of the GTPs, the establishment of a pool of qualified facilities, the process for solicitation, among the offerors in the qualified pool, of sales offers and revised price quotations and the criteria for award of ship disposal sales contracts and/or ship disposal services contracts.

A.1. QUALIFICATION OF SCRAPPING FACILITIES - Section 6(c)(1) of the National Maritime Heritage Act of 1994, as amended (16 U.S.C. §5405),1 and section 3502, Scrapping of National Defense Reserve Fleet Vessels, of the National Defense Authorization Act, Fiscal Year 2001, as amended,2 limits “scrapping” to qualified ship recycling facilities.

A.2. DOMESTIC FACILITIES – In Section 3502 of the Defense Authorization Act of 2009, Public Law No. 110-417, and except under certain circumstances, Congress has mandated utilization of domestic sources for the purposes of dismantling, recycling or scrapping of vessels owned by the United States. Therefore, GTPs from offerors proposing to dispose of ships at foreign facilities are not being accepted at this time. If circumstances change, this request for GTPs will be amended to allow the submittal of proposals from foreign facilities.

A.3. The pool will be comprised of offerors whose GTPs have been evaluated as technically acceptable. Offerors in the pool will be eligible to compete for (i) sales contracts under which the agency will sell the vessels for disposal; and (ii) service contracts under which the agency will consider acquiring ship disposal services if no sales offers are received. MARAD will

1 Section 6(c)(1) of the National Maritime Heritage Act of 1994 was originally enacted in Section 6(c)(1) of Pub. L. 103-451, November 2, 1994, 108 Stat. 4777. It has been amended by Section 1026(c) of the National Defense Authorization Act for FY 1998, Pub. L. 105-85, November 18, 1997, 111 Stat. 1878;

Section 3502(a) of the National Defense Authorization Act for FY 2001, Pub. L. 106-398, October 30, 2000, 114 Stat. 1654A-490; and Section 3514 of the National Defense Authorization Act for FY 2008, Pub. L. 110-181, January 28, 2008, 122 Stat. 594.

2 Section 3502 is set forth in 16 U.S.C.A. §5405, note. The original statute was section 3502(b) to (f) of Pub. L. 106-398, October. 30, 2000, 114 Stat. 1654. It has been amended by Section 3505(a) of the National Defense Authorization Act of FY 2006, Pub. L. 109-163, January 6, 2006, 119 Stat. 3551;

Section 3504 of the National Defense Authorization Act of FY 2012, Pub. L. 112-81, December 31, 2011, 125 Stat. 1717; and Section 3502 of the National Defense Authorization Act of FY 2013, Pub. L. 112- 239, January 2, 2013, 126 Stat. 2222.

(Amendment 0005) 15 Nov 2013 Page I-2 periodically solicit ship-specific pricing and schedules from offerors in the pool of qualified facilities and award disposal contracts in accordance with the evaluation criteria in the applicable solicitation.

A.3.a. Until a new General Technical Proposal (GTP), inclusive of its Technical Compliance Plan (TCP), submitted under the 2013 Ship Disposal Solicitation is determined to be technically acceptable (See paragraphs C.2.a and F of PART I, Qualification of Facilities), previously qualified facilities shall perform the work in accordance with the contract provisions set forth in this solicitation and their previously approved GTP from the predecessor solicitation (“the old GTP”). If there is a conflict between the old GTP and the terms of the 2013 Ship Disposal Solicitation, the terms of the 2013 solicitation shall have precedence over the old GTP. Until the new GTP is approved, wherever any portion of this solicitation refers to the Contractor’s approved GTP or TCP, the Contractor’s approved, “old GTP,” including TCP, shall be substituted. Once a facility’s new GTP is found technically acceptable, any contract issued while the evaluation of the new GTP was pending will be modified to incorporate by reference the new, technically acceptable GTP.

A.4. REQUIREMENTS FOR AQUATIC INVASIVE SPECIES – The National Invasive Species Act, as amended (16 U.S.C. § 4701, et seq.), requires entities to mitigate the transmission of non-indigenous aquatic species. MARAD requires the State in which the obsolete vessels will be disposed of to consent, in writing, under terms acceptable to MARAD, to allow vessels with their hulls cleaned in accordance with the USCG Interim Criteria for Cleaning Hulls of MARAD Vessels Prior to Relocation, dated 27 June 2006 or in the case of the SBRF vessels dry-docked to enter that State’s waters for disposal. The current State Consent Status is set forth in Part VI. Supporting Documents, Section H. Invasive Species State Consent Status, to this solicitation and is posted in FedBizOps and located in the VOA Ship Disposal technical library.

A.4.a. Consent for New Facilities Not Covered By Existing Consent Agreements. MARAD will initiate and manage discussions with the cognizable State authorities to obtain State consent for any new ship disposal facilities that are to be qualified by MARAD and are not covered under existing State consent agreements. Consent from the State where the ship disposal facility is located, on terms acceptable to MARAD, is required before a GTP will be found to be Technically Acceptable.

A.4.b. Revised Consent For Existing Facilities. If a State changes the terms of its consent, then a revised consent from cognizable State authorities on terms acceptable to MARAD must be submitted in writing to MARAD’s Office of Environment not later than the determination of the best value award for each request for sales offer or price quotation for a vessel disposal which is not covered by the current State Consent Status. Consent from the State where the ship disposal facility is located, on terms acceptable to MARAD, is required before an offer will be considered.

(Amendment 0005) 15 Nov 2013 Page I-3

B. REQUEST FOR GENERAL TECHNICAL PROPOSALS

B.1. Companies interested in having a facility become part of the pool of qualified facilities are requested to submit GTPs for each facility proposed. GTPs must include all facilities used to perform the work required by this Ship Disposal Solicitation. Preparation and dismantlement locations are parts of the single facility covered by the submitted GTP and will be evaluated per the stated evaluation criteria. The Request for General Technical Proposals remains open until closed by an amendment to this Ship Disposal Solicitation.

B.2. The General Technical Proposal shall include the following:

B.2.a. The GTP shall address all of the elements to performing the work required by PART V Contract Clauses and Requirements, of this solicitation, and Part VI, Supporting Documents, inclusive of the below elements:

1) Management, resources and facilities

2) Production throughput/capacity

3) Environmental considerations

4) Worker safety and health considerations

5) Hazardous material abatement considerations

6) Requisite and relevant experience

B.2.b. The GTP shall be prepared in accordance with Part VI. Supporting Documents, Section A. Technical Compliance Plan Requirements.

B.2.c. Additional GTP and Contract Requirements. Proposed facilities and/or dismantling methodologies that are determined by MARAD to present an increased risk to vessel stability, watertight integrity or hazardous material discharge risk may require additional assessments, plans and/or procedures to be developed and submitted as part of the GTP in order to be considered technically acceptable. Depending on the nature of the facility, methodology proposed and degree of risk, the assessments, plans and procedures may be required by MARAD to be produced by independent, third party naval architects and/or professional engineers. If a facility, whose GTP required additional assessments, plans and/or procedures in order to be found technically acceptable, is subsequently determined to be the best-value awardee of a disposal contract, a deliverable may also be required in the contract for an additional assessment, plan or procedure that is specific and directly applicable to the awarded ship(s). If such a ship specific deliverable is to be required, the potential for such a requirement will be made known to the facility at the time their GTP is determined to be technically acceptable and also identified as a deliverable in any subsequently awarded ship disposal contract.

B.3. ADDITIONAL REQUIREMENTS FOR CONTRACTS AWARDED UNDER PART IV,

RFQ DTMA-91-Q-2013-0013 (RFQ)

(Amendment 0005) 15 Nov 2013 Page I-4

B.3.a. In addition to a complete General Technical Proposal, companies seeking to compete for ship disposal services contracts under the RFQ, PART IV, SHIP DISPOSAL SERVICES SOLICITATION, are also required to:

1) Submit a standing quotation for a generic dollar per ton price quotation based on an average sized MARAD vessel of approximately 7500 tons for CLIN 1. The price quotation must be identified in a cover letter submitted with a GTP. The generic dollar per ton price quotation shall be a notional value during the evaluation of the technical proposals and establishment of the pool of standing quotations. The notional price per ton will not be used when awarding specific vessels under the RFQ. The standing quotation will be superseded when MARAD issues an Announcement requesting revised price quotations for specific vessels

2) Complete and maintain electronic annual representations and certifications in the

“System for Award Management (SAM)” via http://www.acquisition.gov before they will be eligible to compete for award of contract under the RFQ. (See Part IV, C.5.)

B.3.c. Service Contract Act. Offerors are notified that the Service Contract Act applies to ship disposal services contracts awarded under the RFQ. MARAD will request applicable wage determination after a vendor's generic offer has been determined to be technically acceptable.

Offerors shall be advised that updated Wage Determinations will be incorporated by reference at the time of the vessel specific price revision request.

C. PROPOSAL SUBMISSION

C.1. GTP SUBMISSION

GTPs described above shall be single sided, single spaced, Times New Roman, 12 point. The GTP shall be submitted in hard copy and on three CD-ROMs to the Acquisitions Contracting Officer. GTPs shall be submitted in MS Word 2010 format. Do not submit via the United States Postal Service as mail is being irradiated.

(Amendment 0005) 15 Nov 2013 Page I-5

C.2. DUE DATES FOR GTPs

C.2.a. Companies whose GTPs were found to be Technically Acceptable under the prior MARAD ship disposal solicitation (Request for Quotation (RFQ) DTMA1Q09001 and Vessel Sales Solicitation SDPEXC-08001) are required to submit a complete new GTP consolidating and updating the information previously submitted under the prior solicitation. The new GTP shall have a cover page identifying any significant changes related to the facility, capacity, productivity, resources, and key personnel, as compared to the previously accepted GTP, or stating that there are no such significant changes related to the facility, capacity, productivity, resources, and key personnel, as compared to the previously accepted GTP. Provided that a complete new GTP is submitted to the Contracting Officer within 60 days from the date of the issuance of this solicitation, a previously approved facility shall be allowed to temporarily retain its technically acceptable qualification and remain in the pool of qualified facilities able to compete under this solicitation until MARAD has completed the re-evaluation of such new GTP.

The new GTP shall be submitted in hard copy and on three CD-ROM’s to the Contracting Officer. However, if after evaluation of the new GTP the offeror’s GTP is no longer technically acceptable, the offeror will be removed from the pool of qualified facilities until its new GTP is found technically acceptable. If a previously approved facility fails to submit a new, complete GTP within such 60 day period, that offeror will be removed from the pool of qualified facilities until a new, complete GTP is submitted, evaluated and found technically acceptable.

C.2.b. An offeror who submitted a GTP under the prior ship disposal solicitation that is currently undergoing evaluation by MARAD shall submit a new GTP that incorporates the latest proposed changes, amendments and updates for each qualified facility. The new GTP shall have a cover page identifying any significant changes related to the facility, capacity, productivity, resources, and key personnel, as compared to the previously submitted GTP, or stating that there are no such significant changes related to the facility, capacity, productivity, resources, and key personnel, as compared to the previously submitted GTP. Offerors shall submit three copies of the consolidated GTPs via CD-ROM to the contracting officer. If such an offeror fails to submit a complete new GTP within 60 days from the date of the issuance of this solicitation, the offeror must begin the qualification process anew under this solicitation.

C.2.c. An offeror who submitted a GTP under the prior ship disposal solicitation that was found technically unacceptable but susceptible to being made acceptable must submit a new, complete GTP for evaluation. The new GTP shall have a cover page identifying any significant changes related to the facility, capacity, productivity, resources, and key personnel, as compared to the previously submitted GTP, or stating that there are no such significant changes related to the facility, capacity, productivity, resources, and key personnel, as compared to the previously submitted GTP.

C.2.d. All other offerors must submit new, complete GTPs, in accordance with this solicitation.

This solicitation remains open for submission of new GTPs at any time until the solicitation is closed.

(Amendment 0005) 15 Nov 2013 Page I-6

D. EVALUATION OF GTPS

D.1. Initially, MARAD will assess the GTP for the comprehensiveness of the material relative to the TCP guidelines and the six (6) elements listed in B.2.a. The iterative evaluation process will include notification by MARAD early on of any major threshold deficiencies in the proposal that inhibit the feasibility of the successful implementation of the GTP. MARAD may also request and review additional necessary information in order to fully evaluate the GTP to ensure the offeror has sufficient knowledge, resources and capabilities to successfully dispose of obsolete MARAD, Navy, or other Federal Agency vessels while protecting the environment and worker health and safety. Once the GTP is materially complete, reviewed and determined to be feasible MARAD may elect to conduct an on-site visit to evaluate facility infrastructure, meet key personnel and verify proposal information. The culmination of the iterative evaluation process will be the notification by MARAD that the GTP has been assigned one of the following ratings:

technically acceptable, technically unacceptable but susceptible to being made technically acceptable, or technically unacceptable.

• Technically Acceptable – A technically acceptable proposal demonstrates the offeror has adequately addressed the six (6) elements identified in paragraph B.2.a., above, successfully remediate and dismantle obsolete vessels in a timely manner that is environmentally sound and satisfactorily takes into account worker health and safety.

• Technically Unacceptable but Susceptible to Being Made Acceptable – A proposal that is deficient in some aspects of one or more of the six (6) elements necessary to be technically acceptable; however, the deficiencies are considered to be correctable within a reasonable timeframe.

• Technically Unacceptable – A proposal that fails to demonstrate the offeror has adequately addressed one of more of the six elements necessary to be technically acceptable and is able to successfully remediate and dismantle obsolete vessels and the deficiencies are significant and not considered to be correctable, within a short timeframe. A technically unacceptable proposal will not be afforded the opportunity for corrections and the offer will have to re-submit a new proposal to merit further consideration.

D.2. Offerors’ with GTPs rated Technically Acceptable will become qualified facilities and eligible to compete for specific vessels offered under PART III, Ship Disposal Sales Solicitation or PART IV, Ship Disposal Services Solicitation.

E. EVALUATION CRITERIA

MARAD will use the following criteria to evaluate the technically acceptability of the GTPs submitted based on the offerors response to the six (6) elements in paragraph B.2.a.:

1) Feasibility and likelihood of success of engineering/technical/management approach for the disposal of obsolete vessels and the risks associated with the proposed approach.

2) Productivity of the proposed approach(s) including schedule assessments.

(Amendment 0005) 15 Nov 2013 Page I-7

3) Type and sufficiency of proposed methods, processes and procedures for environmental abatement of hazardous materials, worker safety and health considerations proposed and compliance with applicable laws.

4) Depth, relevance and currency of requisite experience with the complete disposal of obsolete vessels.

F. TIME FOR EVALUATION

F.1. MARAD will continuously evaluate proposals as they are received. The time needed to complete the initial evaluation of newly submitted proposals will be dependent upon the completeness of the initial proposal submission and agency workload. When a new proposal is submitted, MARAD's goal is to complete the initial evaluation within eight weeks from the date a complete GTP is submitted.

F.2. GTPs submitted under this Ship Disposal Solicitation will be evaluated in the following order: new GTPs from companies whose prior GTP was technically acceptable under the previous solicitation provided the GTP was submitted by the due date required to obtain temporary technical acceptability status; new GTPs from companies whose prior GTP was technically acceptable under the previous solicitation but their complete GTP was not submitted by the due date required to obtain temporary technical acceptability status; new GTPs from companies whose GTPs were found to be technically unacceptable but susceptible to being made acceptable under the previous solicitation; and lastly, offerors submitting new GTPs.

G. CONTINUING OBLIGATION

G.1. Once an Offeror’s GTP is found Technically Acceptable, the offeror shall operate its qualified facility and perform ship disposal contracts in accordance with its approved GTP and the awarded contract.

G.2. Updates to the GTP shall be submitted to the Acquisitions Contracting Officer whenever there is a substantive change in the qualified facility, remediation/dismantling methodology, resources (including financial, equipment, direct labor and subcontractors), ownership, key personnel or other circumstances that affect the ship remediation/dismantling production, capacity, efficiency, worker safety, environmental protection or responsibility. One hard copy and three CD-ROMs shall be submitted for each update.

G.3. The Government reserves the right to suspend or revoke a Technically Acceptable rating for a GTP upon evidence that the qualified facility is not being operated in accordance with the approved GTP and any awarded contract. If the government asserts that circumstances warrant revocation of a technically acceptable rating, then the facility will be provided an opportunity to respond to specific deficiencies. If the facility’s response does not cure those deficiencies, the technically acceptable rating for the GTP will be suspended or revoked until such time as the deficiencies are satisfactorily addressed and the facility is again found technically acceptable.

2013 Ship Disposal Solicitation PART II – Announcement Preliminaries (Amendment 0005) 15 Nov 2013 Page II-1

PART II

ANNOUNCEMENT PRELIMINARIES

This Part II contains information generally applicable to Announcements under the Ship Disposal Sales Solicitation, (Part III) and the Ship Disposal Services Solicitation, (Part IV).

A. VESSEL VISITS

Periodically and prior to issuing an Announcement requesting ship-specific sales offers and/or revised price quotation, the Agency will make groupings of vessels at the MARAD, Navy NISMF and other Federal Agency sites available with allotted time for offerors to perform surveys and conduct hazardous material sampling analysis. Underwater biological sampling for aquatic invasive species is not permitted. Vessels are being made available for the purpose of inspection, cost estimating, hazardous material sampling and survey in preparation for submission of future sales offers and revised price quotations under Parts III and PART IV.

Once a vessel visitation period is approved, it is the offeror's responsibility to schedule the visit within the parameters of fleet/maintenance facility operations. Electronic copies of some vessel specific or class drawings, surveys and tank soundings may be available on VOA in the Ship Disposal vessel documentation section. Other ship files may be available at the fleet/maintenance facility and, when available, may be reviewed by offerors. All hardcopy ship file documents must remain at the fleet office. MARAD does not guarantee that any documentation provided is current, accurate or complete, or that it represents the "AS IS" condition of the vessel.

As a result of making these groupings of vessels available for inspections, requests for sales offers and price revisions in future ship specific announcements for the disposal of these vessels may be due within approximately ten days from the issuance of the announcement. If one or more vessels in the announcement does not receive sales offers then the revised price quotations will activated and shall be due approximately five days later. MARAD will issue notification to the offerors as to which vessels require the submittal of a revised price quotation.

Requests to attend all scheduled vessel visitation periods shall be made in writing to Mr. Shawn Ireland, Office of Ship Disposal, via e-mail at shawn.ireland@dot.gov. The Fleet/NISMF program manager is the final authority regarding the scheduling of vessel visits and shall do so at their discretion so as to not interfere with Fleet/NISMF operations. Requests for additional vessel visitations during the shortened sales announcement shall include the rationale and justification for the necessity to re-visit the specific vessel(s). There is no guarantee the visit can be accommodated by the fleet. The closing date for submittal of offers may not necessarily be extended to accommodate additional vessel visitations.

REMINDER: Vessel(s) are offered in "AS IS" condition and "WHERE IS" location at their current mooring. The Government makes no guarantees or warranties regarding the condition of any obsolete vessel.

mailto:shawn.ireland@dot.gov

2013 Ship Disposal Solicitation PART II – Announcement Preliminaries (Amendment 0005) 15 Nov 2013 Page II-2

NOTE: Qualified facilities may present to MARAD expressions of interest for the disposal of specific vessels with the understanding that MARAD is under no obligation to request sales offers or revised prices for those vessels.

B. BIOLOGICAL SAMPLING

Underwater biological sampling of MARAD, NAVY and other Federal Agency vessels is not permitted in connection with this solicitation. Requests to conduct such sampling will be considered independent of this solicitation under conditions acceptable to the Agency. Such requests shall be directed to MARAD’s Office of Environment.

C. HISTORIC ASSESSMENT

All of MARAD's obsolete vessels are subject to the requirements of the National Historic Preservation Act, as amended (16 U.S.C. § 470 et seq.). MARAD's obsolete vessels undergo a historic assessment process to determine if they possess historic value and are eligible for placement on the National Register prior to disposal. All of MARAD, Navy and other Federal Agency obsolete ships will have completed the historic assessment process prior to being offered in a ship-specific sales or service announcement under this Solicitation.

2013 Ship Disposal Solicitation PART III– Ship Disposal Sales Solicitation (Amendment 0005) 15 Nov 2013 SDPEXC-13001 Page III-1

PART III

SHIP DISPOSAL SALES SOLICITATION

For Disposal of Obsolete Vessels for Dismantlement

SDPEXC-13001

A. INTRODUCTION

A.1. POOL OF QUALIFIED FACILITIES

Offerors whose General Technical Proposals (GTPs) are found technically acceptable under PART I of this solicitation will form a pool of “qualified facilities” eligible to compete to purchase obsolete vessels for disposal under this Ship Disposal Sales Solicitation, PART III, and the Ship Disposal Services Solicitation, PART IV.

A.2. AUTHORITY

This Ship Disposal Solicitation, inclusive of this Vessel Sales Solicitation, contains the terms under which the U.S. Maritime Administration's (MARAD) offers vessels to purchase for dismantlement.1 Selections will be made on a best value basis consistent with the Federal Acquisition Regulation, pursuant to Section 6(c)(1) of the National Maritime Heritage Act of 1994, as amended (16 U.S.C. §5405),2 and Section 3502, Scrapping of National Defense Reserve Fleet Vessels, of the National Defense Authorization Act, Fiscal Year 2001, as amended.3 46 U.S.C. § 57102 also applies to sales, to the extent consistent with later enacted statutes.4

1 This solicitation is not a request for proposals for the reuse of obsolete MARAD vessels. Proposals submitted that advocate the reuse of MARAD vessels will be rejected. Interested parties which wish to pursue the reuse of MARAD obsolete vessel may contact the Ship Disposal Program directly for further guidance.

2 Section 6(c)(1) of the National Maritime Heritage Act of 1994 was originally enacted in Section 6(c)(1) of Pub. L. 103-451, November 2, 1994, 108 Stat. 4777. It has been amended by Section 1026(c) of the National Defense Authorization Act for FY 1998, Pub. L. 105-85, November 18, 1997, 111 Stat. 1878;

Section 3502(a) of the National Defense Authorization Act for FY 2001, Pub. L. 106-398, October 30, 2000, 114 Stat. 1654A-490; and Section 3514 of the National Defense Authorization Act for FY 2008, Pub. L. 110-181, January 28, 2008, 122 Stat. 594.

3 Section 3502 is set forth in 16 U.S.C.A. §5405, note. The original statute was section 3502(b) to (f) of Pub. L. 106-398, October 30, 2000, 114 Stat. 1654. It has been amended by Section 3505(a) of the National Defense Authorization Act of FY 2006, Pub. L. 109-163, January 6, 2006, 119 Stat. 3551;

Section 3504 of the National Defense Authorization Act of FY 2012, Pub.L. 112-81, December 31, 2011, 125 Stat. 1717; and Section 3502 of the National Defense Authorization Act of FY 2013, Pub. L. 112- 239, January 2, 2013, 126 Stat. 2222.

4 Section 508 of the Merchant Marine Act of 1936, as amended, was re-codified at 46 U.S.C. §57102 in 2006.

Page III-2

B. REQUESTS FOR SALES OFFERS (RFSO)

The Maritime Administration will periodically identify specific vessel(s) for disposal via an electronic Announcement containing both a Request for Sales Offers (“RFSO”) under this Ship Disposal Sales Solicitation and a Request for Price Quotations (RRPQ) under the Ship Disposal Services Solicitation (RFQ DTMA-91-Q-2013-0013). Announcements shall only be sent to the pool of qualified facilities, qualified under Part I, Qualification of Facilities, of the Ship Disposal Solicitation.

B.1. IDENTIFICATION OF VESSELS. The Announcement will identify the obsolete vessels from the non-retention vessels currently located in the Maritime Administration’s Reserve Fleet sites; Suisun Bay Reserve Fleet (SBRF), Beaumont Reserve Fleet (BRF), James River Reserve Fleet (JRRF), the Navy Inactive Ship Maintenance Facilities (NISMF) in Philadelphia PA (NISMF-PA) and Pearl Harbor, HI (NISMF-HI) and/or other locations as identified in the Announcement. Generally MARAD shall dispose of its high priority vessels first. The Announcement will identify the fleet at which the vessel is located and the price offered shall include all of the work required for preparation of the vessel in that fleet for transit to their facility. When applicable, MARAD will take into consideration and minimize the geographic distance that a vessel must be towed when towing a vessel poses a serious threat to the environment.

B.2. AS-IS, WHERE-IS.

The obsolete vessels are offered for sale on an “AS-IS, WHERE-IS” basis, with no warranty, express or implied, at their current fleet mooring site, or in the case of SBRF vessels, at the delivery location at the Shipyard after undocking. The Government makes no guarantees or warranties, express or implied, regarding the condition of any obsolete vessel and does not guarantee, by expression or implication, or the size, tonnage, or other descriptions of the Obsolete Vessel. The Offeror relies solely on its own inspection with respect to the particulars of the Obsolete Vessel. That if Government furnished information is provided to the Offeror in the course of offer preparation, proposal submittal or ship checks, the Government makes no guarantees or warranties that any documentation provided is current, accurate or complete or in any way represents the "AS-IS" condition of the vessel. If a Government estimate of hazardous material/waste is contained in any such documents, the Government does not guarantee the currency, accuracy or completeness of amounts of hazardous material/waste or any other information contained in such documents. The Government is not responsible for nor will the Government reimburse the awardee for any costs it may incur associated with the disposal the vessel or the remediation, including but not limited to, costs associated with the remediation, removal or disposal of hazardous materials/wastes found on the vessel or generated as a result of remediation, dismantling or recycling processes or procedures.

Page III-3

B.3. DUE DATE FOR SALES OFFERS. The Announcement will identify any special requirements not included in the solicitation related to the individual ships offered for sale and shall specify the due date for the submittal of sales offers.

B.4. MINIMUM SALES OFFERS. In accordance with 46 U.S.C. § 57102(b), each obsolete vessel will be appraised to determine its value prior to being offered for sale. When the appraised values of the obsolete vessels are positive, a minimum price will be set forth in the Announcement and sales offers below the minimum will not be considered.

B.5. SHIP DISPOSAL SALES CONTRACTS. The resulting Sales Contracts awarded under this solicitation will be comprised of the following:

Section I The content in SUBPART V.B, CLAUSES APPLICABLE TO SALES

CONTRACTS.

Section II The content in SUBPART V.A, CONTRACT CLAUSES AND

REQUIREMENTS (APPLICABLE TO SALES AND SERVICE

CONTRACTS).

Section III The documents from PART VI, SUPPORTING DOCUMENTS, of the solicitation referenced in the above Sections.

Section IV The qualified facility’s approved General Technical Proposal, inclusive of its Technical Compliance Plan, incorporated by reference and date. 5

Exhibit 1 Bill of Sale

C. INSTRUCTIONS FOR SUBMISSION OF SALES OFFERS

C.1. SUBMISSION VIA ELECTRONIC MAIL. Sales Offers must be submitted via email to the email address specified in the Announcement at the date and time specified in the Announcement, unless amended. All sales offers shall remain valid for a period of 90 days from

5 Until a new General Technical Proposal (GTP), inclusive of its Technical Compliance Plan (TCP), submitted under the 2013 Ship Disposal Solicitation is determined to be technically acceptable (See paragraphs C.2.a and F of PART I, Qualification of Facilities), previously qualified facilities shall perform the work in accordance with the contract provisions set forth in this solicitation and their previously approved GTP from the predecessor solicitation (“the old GTP”). If there is a conflict between the old GTP and the terms of the 2013 Ship Disposal Solicitation, the terms of the 2013 solicitation shall have precedence over the old GTP. Until the new GTP is approved, wherever any portion of this solicitation refers to the Contractor’s approved GTP or TCP, the Contractor’s approved, “old GTP,” including TCP, shall be substituted. Once a facility’s new GTP is found technically acceptable, any contract issued while the evaluation of the new GTP was pending will be modified to incorporate by reference the new, technically acceptable GTP.

Page III-4 the date of submittal. MARAD reserves the right to request a 30 day extension from an offeror or offerors.

C.2. SHIP-SPECIFIC SALES OFFER. Offerors shall submit single-ship fixed price Sales Offers for each vessel shall be based on the terms of the Announcement, as amended, this Vessel Sales Solicitation SDPEXC-13001, as amended, the Ship Disposal Solicitation, and the Vessel Sales Contract, as specified in paragraph B.5, above. Sales offers will be based on a single-ship price for each vessel and shall not include economies of scale, multiple ships or group combinations of various ships or contingency offers unless specifically requested by MARAD in the Announcement.

C.3. REQUIRED DOCUMENT SUBMITTALS. In addition to the Ship-Specific Sales Offer, the documents identified below are required for each and every vessel on which a Sales Offer is submitted. Offeror’s are cautioned that failure to submit any of the following documents may result in rejection of a Sales Offer:

C.3.a. General Technical Proposal Updates. Updates to original general technical proposals including any and all changes to the Technical Compliance Plan and changes affecting the requisite Environmental Compliance Plan, Operational Plan, Business Plan, and Health and Safety Plan.

C.3.b. Scaled Facility Diagram. A scaled facility diagram shall be provided that clearly indicates the location of existing work, the placement of the vessel(s) included in the sales offer upon their arrival at the Buyer’s facility and the proposed sequence of the vessel(s) into the dismantling slip. Vessels awarded must be moored at the contractor’s qualified facility, not at off-site locations where access to the vessel precludes active contract performance.

C.3.c. Underwater Hull Cleaning. If underwater hull cleaning is required for a specific vessel, and MARAD requires the offerors to contract with a MARAD qualified underwater hull cleaning contractor to perform the underwater hull cleaning as part of the sales contract, the offerors shall include in their sales offers a copy the quotation from the contractor for cleaning the underwater hull.

C.3.d. Initial Single-Ship Integrated Schedules. Single-ship integrated performance schedules are required for each vessel on which a sales offer is submitted. Each individual ship shall be integrated with all other MARAD, Navy and commercial work at or expected to be at the offerors recycling facility during the proposed vessel dismantling period to determine the offerors reasonable performance period duration for each vessel based on a single-ship award. See Part VI. Supporting Documents, Sections F(1) through F(3) Performance Schedule Milestones, for more detail on requirements for performance schedules.

a. Required Content for Integrated Performance Schedules. Performance schedules, whether single-ship integrated or multi-ship integrated, shall utilize the notional contract

Page III-5 start date included in the request for pricing announcement. Performance schedules shall indicate a logical sequence of events for vessel dismantlement and shall include all the major milestones as listed in Part VI. Supporting Documents, Sections F(1) through F(3) Performance Schedule Milestones, posted on FedBizOps and located in the VOA Ship Disposal technical library. Single-ship or multi-ship integrated performance schedules shall include all other awarded Maritime Administration, Navy and commercial work in process and expected to be in process during the schedule recycling period for the individual vessels. Offerors shall factor into the schedule the interface, impact and sequencing of existing dismantlement projects with the dismantlement of the individual vessels included in the sales offer or revised price quotation. Performance schedules submitted in support of sales offers for vessels departing from the JRRF, BRF, and NISMF shall have their calendar day period of performance calculated based on the difference between the following two notional milestones: 1) Contract Start Date and 2) the Final Close-Out Report Submittal Date. Performance schedules submitted in support of sales offers for vessels departing from the SBRF shall have the calendar day period of performance calculated based on the difference between the following two notional milestones: 1) Undocking Date and 2) the Final Close-Out Report Submittal Date.

MARAD will request in the price announcement the inclusion in all vessel performance schedules a specific activity with calendar day duration for the performance of the underwater hull cleaning or the dry-docking for hull cleaning activities. Performance schedules shall be submitted in support of the price offer and requested multi-ship combinations. The performance schedules shall be submitted in MS Project 2010.

b. Sequencing Narrative. A narrative description outlining single-ship integrated or multi-vessel sequencing and scheduling shall accompany the sales offer. The narrative shall clearly describe the offeror’s intended plan for the movement of the vessels through the offeror’s facility during the dismantlement process, clearly integrating newly awarded vessels into the dismantlement sequence with existing MARAD and Navy dismantlement projects. Offerors shall indicate the placement of the vessel(s) upon arrival at their facility and planned placement into the dismantlement slip.

C.4. MULTI-VESSEL INTEGRATED PERFORMANCE SCHEDULES. After the initial evaluation of the sales offers and establishment of the competitive range, MARAD may request performance schedules for specific multi-ship combinations that require offeror(s) to submit additional integrated performance schedules. The integrated performance schedules shall identify the offeror’s proposed vessel sequencing, integrated vessel performance periods and the performance period for each of the requested vessels in the multi-ship combination. MARAD will not request and will not accept changes to the initial single-ship sales offer for each vessel.

Page III-6

D. EVALUATION AND AWARD OF SHIP DISPOSAL SALES CONTRACTS

D.1. EVALUATION OF ALL VESSELS IN THE ANNOUNCEMENT(S) – For each Announcement the award decision will consider all of the vessels together.

D.1.a. Threshold Evaluation

D.1.a.1) Continued Technical Acceptability of GTP - Updates to the GTP will be evaluated to determine whether the proposal remains technically acceptable. The updated GTP must continue to demonstrate that the offeror has the approach, capacity, productivity, facilities, and experience to dispose of obsolete vessel(s) in a cost effective, timely manner that is environmentally sound and satisfactorily takes into account worker health and safety. The same criteria specified in PART I, Qualification of Recycling Facilities, will be utilized in evaluating any updates submitted. If the updated GTP is no longer technically acceptable, the sales offer will not be considered for award.

D.1.a.2) Exception(s) to Terms. Ship-Specific Sales offers, including all the required documentation and cover letter, that take exception to, unilaterally change, or are contrary to the terms and conditions in this Ship Disposal Sales Solicitation SDPEXC-13001, any Announcement, or the Ship Disposal Sales Contract, as identified in paragraph B.5, above, will not be considered for award.

D.1.b. Establishment of the Competitive Range. MARAD will evaluate the initial sales offers and may establish a competitive range of the most highly rated offers using the evaluation factors set forth in paragraph D.3 below.

D.1.c Request for Multi-Ship Integrated Schedules. Once the competitive range has been established, MARAD may request multi-ship integrated schedules (see C.4) from offerors in the competitive range that are being considered for award of more than one vessel. MARAD will specifiy the ship combinations.

D.2. BASIS FOR AWARD. Award will be made on a best value basis,6 to the Offeror with a technically acceptable proposal whose offer(s), in conformance with this solicitation, is (are) evaluated to be most advantageous to the Government, price and non-price factors considered.

Awards will be made on a “best value” basis consistent with the Federal Acquisition Regulation (FAR).7 “Best value” means the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement. Award on the

6 Selection is based on best value utilizing non-price and price factors consistent with 16 U.S.C.

5405(c)(1)(B) and section 3502(b) of the 2001 National Defense Authorization Act, as amended. See footnote 1.

7 The part of the FAR utilized here is Part 13 as it is applicable to the Ship Disposal Services Solicitation in Part IV which is being conducted under the simplified acquisition procedures.

Page III-7 basis of “best value” allows the trade-off of price and non-price factors to achieve the greatest overall benefit to government for each group of vessels. Here, a trade-off is appropriate when it may be in the best interest of the Government to consider award to other than the highest priced sales offer (or lowest price quotation for ship disposal services) because of differences in schedule, capacity and/or past performance. No dollars-for-days formula or fixed ratio is used when a tradeoff is appropriate. MARAD reserves the right not to award any contracts under this solicitation if it determines that no offer is advantageous to the government.

D.3. EVALUATION FACTORS. Three evaluation factors are considered when making the best value selection decision. The factors are not listed in any particular order of priority or importance, as permitted by the simplified acquisition procedures of the FAR. Historically, however, since the agency began awarding ship disposal contracts on the basis of best value using the three evaluation factors, a majority of the contracts have been awarded to the highest sales offer or, when no sales offer was received, were awarded to the lowest fee-for-service price quoted. The evaluation factors for award are as follows:

• Performance Schedule and the Vendor's available capacity (non-price factor).

• Price Factor - The price, when applicable, the cost to dry-dock an SBRF vessel or the cost to perform underwater hull cleaning. (See Price and Price-Related Factor below.)

• Past Performance (non-price factor).

D.3.a. Price and Price-Related Factor. The agency has determined that the total cost to the government of any given award must be considered. Consequently, when awarding an SBRF vessel the agency will consider, as a price-related factor, the cost to the Government of dry-docking a vessel that is being recycled outside the San Francisco Bay area. The agency will utilize actual award prices for dry-docking that specific vessel. Therefore, for sales offers, the actual cost of dry-docking the vessel will be subtracted from each vessel sales offer8 to arrive at the total evaluated price that will be used in the best value determination.

D.3.b. Past Performance. Under this factor, MARAD evaluates an offeror’s performance under prior MARAD contracts consistent with FAR 42.1501 Contractor Performance Information:

1) Adherence to contract schedules, including the resources and ability to actively and productively working vessels awarded

2) Record of conforming to contract requirements

3) Standards of good workmanship

4) History of reasonable and cooperative behavior

5) Commitment to customer satisfaction

6) Record of integrity and business ethics

7) Business-relations with the customer

8 The dry-dock cost adjustment factor will be subtracted from each SBRF vessel sales offer except for those submitted by Mare Island Shipyard (formerly Allied Defense Recycling).

Page III-8

A positive record in each of the past performance elements listed above is advantageous to the government.

D.4. DRY DOCKING SOLICITATION. Recycling announcements and dry-dock solicitations are advertised concurrently for the same SBRF vessels. The qualified recycling facility in California may respond to both recycling and dry-docking announcements. If the California facility submits offers/quotes for the same vessels in response to both the recycling announcement and the dry-docking solicitation, MARAD will make the apparent best value determinations separately amongst all competing offerors under the selection criteria for each announcement/solicitation. However, if the California facility's recycling offer/quote or dry-docking quote for the same vessel is the apparent best value under both of the recycling announcement and the dry-docking solicitation, MARAD will, at its sole discretion, choose which competing offer or quote from the California facility represents the overall best value to the Government. Overall best value is based on the price and non-price factors used in both the dry-docking and recycling solicitations. If MARAD selects the recycling offer/quote as the overall best value and the California facility subsequently withdraws that offer, MARAD may, at its sole discretion, refuse to consider the California facility's dry-docking quote for the same vessel even though that quote may still represent the best value under the award criteria for the dry-docking solicitation. If MARAD selects the dry-docking quote as the overall best value and that quote is subsequently withdrawn by the California facility, MARAD may, at its sole discretion, refuse to consider the California facility's recycling offer/quote for the same vessel even though that offer may still represent the best value under the award criteria for that announcement.

D.5. PAYMENT OF SALE PRICE.

Sales contracts shall be executed by the awardee and returned to the Contracting Officer within ten (10) calendar days from the awardee’s receipt of the specific vessel sales contract.