ATTACHMENTS Section J.pdf

SECTION J

LIST OF DOCUMENTS, EXHIBITS

AND OTHER ATTACHMENTS

J.1 WAGE DETERMINATION BASE SOLICITATION

REGISTER OF WAGE DETERMINATIONS UNDER

THE SERVICE CONTRACT ACT

By direction of the Secretary of Labor

U. S. DEPARTMENT OF LABOR

EMPLOYMENT STANDARDS ADMINISTRATION

WAGE AND HOUR DIVISION

WASHINGTON, D.C. 20210

Diane C. Koplewski

Director

Division of

Wage Determinations

Wage Determination No. : 1998‐0298

Revision No.: 14

Date of Last Revision: TBD

NATIONWIDE: United States East, West and Gulf Coasts.

Crowley Technical Management, Inc.,: Cape Washington, Cape Wrath, Cape Intrepid, Cape Island, Cape Isabel, Cape Inscription, Cape Taylor, Cape Texas, Cape Trinity, Wright, the Curtiss.

Interocean American Shipping Corporation Vessels: Gopher State, Flickertail State, Cornhusker State, Petersburg, Pacific Collector, Pacific Tracker, Altair, Bellatrix, Cape Horn, Cape Hudson

Keystone Shipping Services, Inc. Vessels: Cape Victory, Cape Vincent, Cape Kennedy, Cape Knox, Cape Race, Cape Ray, Cape Rise.

Marine Transport Lines Inc. Vessels: Cape Edmont, Cape Ducato, Cape Decision, Cape Douglas, Cape Diamond, Cape Domingo.

Ocean Duchess Inc,: Cape May, Cape Mohican, Algol, Capella

Pacific Gulf Marine, Inc: Cape Henry, Cape Hudson, Cape Horn, Diamond State, Keystone State, Gem State, Grand Canyon State.

American Ship Management doing business as Patriot Contract Services LLC Vessels: Adm Wm M Callahan, Cape Orlando, Cape Flattery, Cape Farewell, Cape Henry

Keystone Ocean Services, Inc. Vessels: Antares, Denebola, Pollux, Regulus.

Employed on Department of Transportation contracts for operations and maintenance services of 50 U.S. Maritime Administration Ready Reserve Force cargo vessels on the U.S. East, West and Gulf Coasts with operations worldwide.

Collective Bargaining Agreement between Interocean American Shipping Corporation and Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters District, AFL‐CIO – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Interocean American Shipping Corporation and Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters District, AFL‐CIO – Solicitation Number DTMA8R09011, signed June 1, 2010

Collective Bargaining Agreement between Interocean American Shipping Corporation and American Maritime Officers Marine Engineers Benevolent Association ‐ District No. 2 – MOU.

Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Interocean American Shipping Corporation and America Maritime Officers, District 2 ‐ Marine Engineers Benevolent Association – Solicitation Number DTMA8R09011, effective June 3, 2010

Collective Bargaining Agreement between Keystone Shipping Services, Inc., and Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters District/NMU, AFL‐CIO – MOU Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Keystone Shipping Services, Inc., and Marine Engineers Benevolent Association ‐ District No. 1 ‐ Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Keystone Ocean Services, Inc., and Marine Engineers Benevolent Association ‐ District No. 1 – MOU Solicitation Number DTMA8R09011, effective June 3, 2010

Collective Bargaining Agreement between Keystone Ocean Services, Inc., and Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters District/NMU, AFL‐CIO – MOU Solicitation Number DTMA8R09011, effective June 3, 2010

Collective Bargaining Agreement between Marine Transport Lines, Inc. and Marine Engineers Benevolent Association/National Maritime Union ‐ District No. 1‐PCD – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Marine Transport Lines, Inc. and Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters District/NMU, AFL‐CIO – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between American Ship Management and Seafarers International Union of North America Pacific District comprised of the Sailors National Union of the Pacific, Marine Firemen's Union, Seafarers International Union of North America, Atlantic, Gulf, Lakes, and Inland Waters District ‐ MOU signed July 10, 2009. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between American Ship Management and Seafarers International Union of North America, Atlantic, Gulf, Lakes, and Inland Waters District/NMU, AFL‐CIO ‐ MOU effective July 28, 2011 for contracts awarded from solicitation DTMA8R04004

Collective Bargaining Agreement between American Ship Management and American Radio Association, Marine Electronics Division, MEBA, AFL‐CIO signed September 16, 2004 and effective from contract years beginning July 28, 2005 through July 27, 2012. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between American Ship Management doing business as Patriot Contract Services, LLC, and Marine Engineers Benevolent Association/National Maritime Union ‐ District No. 1‐PCD – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between American Ship Management doing business as Patriot Contract Services, LLC, and the Seafarers’ International Union – Pacific District comprised of the Sailors’ Union of the Pacific, Marine Firemen’s Union and the Seafarers’

International Union of North America, Atlantic, Gulf, Lakes and Inland Waters’ District.

Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between American Ship Management doing business as Patriot Contract Services, LLC and International Organization of Masters, Mates & Pilots, ILA/AFL‐CIO – Letter of Understanding. Solicitation Number DTMA8R04004, effective July 28, Collective Bargaining Agreement between Crowley Technical Management, Inc. and Seafarers International Union of North America, Atlantic, Gulf, Lakes and Inland Waters District/NMU, AFL‐CIO – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Crowley Technical Management, Inc. and America Maritime Officers‐District 2‐ Marine Engineers Benevolent Association – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Ocean Duchess, Inc. and Seafarer's International Union of North America Atlantic, Gulf, Lakes and Inland Waters District, AFL‐CIO – MOU.

Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Ocean Duchess, Inc. and Seafarer's International Union of North America Atlantic, Gulf, Lakes and Inland Waters District, AFL‐CIO – Solicitation Number DTMA8R09011, effective June 3, 2010

Collective Bargaining Agreement between Ocean Duchess, Inc. and America Maritime Officers, District 2 ‐ Marine Engineers Benevolent Association – Confidential Contribution Letter.

Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Ocean Duchess, Inc. and America Maritime Officers, District 2 ‐ Marine Engineers Benevolent Association – CBA dated May 18, 2010. Solicitation Number DTMA8R09011, effective June 3, 2010

Collective Bargaining Agreement between Pacific Gulf Marine, Inc. and Seafarers International Union of North America, Atlantic, Gulf, Lakes, and Inland Waters District, AFL‐CIO and Pacific Gulf Marine, Inc. – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

Collective Bargaining Agreement between Pacific Gulf Marine, Inc. ‐ and America Maritime Officers District 2 ‐ Marine Engineers Benevolent Association – MOU. Solicitation Number DTMA8R04004, effective July 28, 2011

In accordance with Sections 2(a) and 4(c) of the Service Contract Act, as amended, employees employed by the contractor(s) in performing services covered by the Collective Bargaining Agreement(s) are to be paid wage rates and fringe benefits set forth in the current collective bargaining agreement and modified extension agreement(s).

** UNIFORM ALLOWANCE **

If employees are required to wear uniforms in the performance of this contract (either by the terms of the Government contract, by the employer, by the state or local law, etc.), the cost of furnishing such uniforms and maintaining (by laundering or dry cleaning) such uniforms is an expense that may not be borne by an employee where such cost reduces the hourly rate below

LIST OF DOCUMENTS,

EXHIBITS AND OTHER

ATTACHMENTS

J.2 SHIP MANAGER

SUBCONTRACT PURCHASING

POLICIES

BASE

SOLICITATION

J-2 SHIP MANAGER (SM) SUBCONTRACT PURCHASING POLICIES

The purpose of this instruction is to establish policies and procedures for

1.0 review and approval of the commercial purchasing system (CPS);

2.0 consent to subcontract and review/advance notification of subcontracts; and

3.0 MARAD specific subcontract requirements, in conjunction with Federal Acquisition Regulation (FAR) Part 44, Subcontracting Policies and Procedures.

1.0 COMMERCIAL PURCHASING SYSTEM (CPS)

1.1 SM DELIVERABLE

The SM is required to provide its CPS procedures to the Procuring Contracting Officer (PCO) within 90 days of NTP. However, the SM is encouraged to provide the deliverable early to enable the review process to be completed in a timely manner.

1.1.1 The CPS will be reviewed in accordance with FAR 44.303. In addition, special attention shall be given to:

1.1.1.1 "Best value" practices. In a "best value" practice, all aspects of vessel's requirements and subcontractor's capabilities must be considered. In so doing, such enhanced performance factors as increased readiness, shortened repair period or prompt response may outweigh low price alone. The SM procedures shall be well defined and consistently applied and shall follow purchasing practices appropriate for the requirement and the dollar value of the purchase.

1.1.1.2 Methodology for the acquisition of quality products and services at fair and reasonable prices.

1.1.1.3 Minimization of acquisition lead-time and administrative costs of purchasing.

1.1.1.4 Use of self-assessment to support continuous improvements in purchasing.

1.1.1.5 Ability to segregate and track costs (Section 3.2).

1.1.1.6 Maintenance of complete subcontract documentation (Section 3.4).

1.1.1.7 Use of electronic commerce to the maximum extent practicable, for transmission, processing, invoicing and storing data associated with the SM contract.

1.1.1.8 Procedures to identify capable and reliable contractors who have successful past performance records and who can demonstrate a current ability to perform.

1.1.1.9 Procedures for inclusion of appropriate, current flow-down clauses, terms and conditions (Section 3.7).

SMs with CPSs previously approved by other Government agencies shall submit a copy of the documentation of the approval to the PCO in addition to a copy of its procedures for review.

1.2 MARAD REVIEW OF CPS

Review of the CPS may take upwards of 90 days. To ensure consistency in the CPS review and approval process, MARAD has retained the services of the Defense Contract Audit Agency (DCAA) to perform a review of the CPS deliverable. DCAA's review will consist of a combined

EXHIBITS AND OTHER

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J.2 SHIP MANAGER

SUBCONTRACT PURCHASING

POLICIES

audit of procurement and accounting procedures and may include an on-site audit at the SM's facility.

If deficiencies are found, the PCO will advise the SM of the deficiencies and recommend the necessary steps the SM must take to gain approval. In accordance with FAR 44.305-2, the SM shall be expected to reply within 15 days with a position regarding the recommendations.

Upon receipt of a favorable review, the PCO will issue notification of approval. Until such time as SM's CPS has been approved by MARAD under the current SM contract, subcontracts are subject to the approvals outlined in Section 2.2.1.2. MARAD CPS approval issued under a prior contract does not apply to the current SM contract.

1.3 MAINTENANCE OF CPS

The SM shall advise the PCO and Administrative Contracting Officer (ACO) of any change to its commercial procedures 14 calendar days prior to implementation throughout the performance period of the SMC.

The ACO will monitor the SM purchasing program in accordance with FAR 44.304. ACO review(s) may require on-site attendance at the SM's facility. The SM shall assist the ACO by providing space, administrative support, and access to records/reference documents during these inspections.

In accordance with FAR 44.302, once initial approval has been given, at least every 3 years, the ACO will determine whether a purchasing system review is necessary. The ACO will provide CPS re-certifications. MARAD will conduct annual cost incurred financial audits on SM records utilizing the services of DCAA. If warranted, interim cost-incurred audits will be ordered.

1.4 WITHDRAWAL OF CPS APPROVAL

During the performance period of the SMC, the ACO may lower the advance notification/consent thresholds, if there has been deterioration of the SM CPS or to protect the Government's interests. The ACO will issue a deficiency report to the SM, with a copy to the COCO and PCO. The SM shall immediately conform to the ACO's lower thresholds, and respond to the deficiency report within 15 days. Upon review of the response, the ACO may determine that the lower thresholds should continue or make a decision to withdraw approval of the CPS if it is determined that the SMC is deviating substantially from the approved CPS.

2.0 SUBCONTRACT REVIEWS

The SM shall provide subcontracts and documentation for review as follows:

2.1 ADVANCE NOTIFICATION

2.1.1 Notification to ACO prior to award, with copy of intended subcontract

Dollar Level Type of Contract Any Other Than Fixed Price

2.1.2 The PCO waives the requirement for advance notification of fixed price contracts.

2.2 CONSENT

2.2.1 Request for consent to subcontract to ACO

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J.2 SHIP MANAGER

SUBCONTRACT PURCHASING

POLICIES

2.2.1.1 with approved CPS

>$125K Other Than Fixed Price >$1M Fixed Price (sole source) >$2.5M Fixed Price (competitive)

2.2.1.2 Without approved CPS

>$25K Other Than Fixed Price (except >$50K Time-and-Materials >$100K Fixed Price

2.3 CONSENT TO SUBCONTRACT GUIDELINES

The request for consent to subcontract and supporting documentation shall be submitted to the ACO electronically at least 10 working days prior to intended subcontract award date. The ACO review will include the considerations listed in FAR 44.202-2 as well as consent limitations in

44.203. The SM request shall include all applicable informational elements listed in FAR 52.244- 2, Subcontracts, subparagraph (f)(1). Additionally, the consent request shall include:

A clear analysis of the award decision, including all factors considered

Copy of proposals received and an abstract of proposals

Copy of proposed subcontract, including any changes to terms and conditions

Summary of negotiations, including explanation of variance between proposed and negotiated prices

Separately priced bonds and insurance, if coverage exceed 3.7.4 requirements

Specific funding required for the basic subcontract, supplemental growth, options, and projected SM administrative costs

Milestone schedule

2.4 ADDITIONAL REVIEW REQUIREMENTS

2.4.1 COR/COTR/ACOR/COTR specification reviews are always required regardless of the level of subcontract review.

2.4.2 For any subcontract requiring formal consent, the associated solicitation shall be submitted to the ACO for pre-issuance review electronically at least 10 working days prior to intended issuance date. The solicitation package submitted shall include:

Solicitation

Documentation of specification review and approval by the COR/COTR/ACOR/COTR

Source List

Detailed estimate

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J.2 SHIP MANAGER

SUBCONTRACT PURCHASING

POLICIES

Basis for determination of liquidated damages, diversion/inter-port differentials, bonding, and insurance, if coverage exceeds 3.7.4 requirements

Thereafter, a copy of all changes or amendments to the solicitation will be provided to the ACO and COR/COTR/ACOR/COTR concurrent with issuance.

2.4.3 Notwithstanding the established review thresholds, the ACO or PCO may request a pre-award review of any complete subcontract, or part thereof (e.g., sole source, non-commercial items).

2.5 SPECIAL PROCEDURES FOR MISSION ESSENTIAL AND EMERGENCY REPAIRS

The SM shall only purchase supplies or services authorized by a Task Order (TO) or TO modification except for mission essential and emergency repairs described below:

2.5.1 Mission Essential and Emergency Repairs: Foreign and domestic

Mission essential repairs are defined as repairs necessary to support a No-Notice Activation, or repairs necessary to prevent or correct unanticipated change in a vessel's readiness status to C-3 or C-4.

An emergency is any action that is needed to protect or prevent the loss of life, limb, or property.

2.5.2 Mission Essential Repair: General Policy

The SM shall notify the ACO and COR/COTR/ACOR/COTR as soon as possible, and at a minimum:

Define the intended work in as much detail as possible.

Develop an estimate of cost, and an initial not to exceed value.

Make all attempts possible to obtain competition, given the circumstances.

Obtain fixed price rates for subcontracted labor (to include straight time and overtime) fully burdened material, mutually acceptable terms and conditions.

Recommend project start and completion dates.

Obtain verbal authorization for no-notice activation from personnel designated in Section G.6.

Obtain verbal authorization for other mission essential and emergency repairs from the ACO as soon as practical. The ACO will issue a written TO confirming verbal authorizations as soon as possible.

2.5.3 Mission Essential Repairs Inside the United States

2.5.3.1 The SM shall comply with the policies of Section 2.5.2 and all appropriate aspects of its approved CPS.

2.5.3.2 All appropriate flow-down clauses shall be used, inclusive of Service Contract Act

FAR-52.222-41.

2.5.4 Mission Essential Repairs Outside the United States

MARAD has been granted authority to waive the flow-down clauses required by FAR Part 44 for all non-commercial subcontract repairs accomplished in foreign ports. There are no mandatory flow-down clauses for foreign commercial item repairs. The SM shall comply with the policies of

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Section 2.5.2 and all appropriate aspects of its approved CPS as closely as possible, given the circumstances.

2.5.5 Planned Repairs Outside the United States

Aside from the waived flow-down clauses of FAR Part 44 noted above, the SM shall conduct planned foreign repairs (e.g. prepositioned vessels) in accordance with all other aspects of Section 2.5.2 and its approved CPS.

2.5.6 Emergency

The SM is authorized to take whatever action is deemed necessary to protect or prevent the loss of life, limb, or property.

3.0 MARAD SPECIFIC SUBCONTRACT REQUIREMENTS

3.1 SUBCONTRACT FUNDING

MARAD may obligate funding for subcontracts on the initial TO, or may elect to obligate funding at a later date via TO modification. The SM is expected to timely execute the approved business plan by soliciting services or supplies "subject to the availability of funds;" however, the SM shall not sign a contract with a subcontractor and shall not incur a legal obligation without a funded

TO.

3.2 SEGREGATION AND MONITORING OF FUNDS

The SM is responsible for performing the ordered work, by the required delivery date, and within the authorized funding levels for each CLIN of the TO. The SM shall segregate and monitor costs accordingly.

The SM must notify the ACO in writing when 75% of the funds provided on the TO have been expended. SMs are cautioned that this notification requirement applies to individual TOs even when multiple TOs are used on a project. Further, the SM shall notify the COR/COTR/ACOR/COTR and ACO at any point that it is determined that the ordered work cannot be accomplished within the required delivery and/or within the authorized funding.

The SM shall provide a tracking report in Excel spreadsheet format attached to each monthly invoice submitted in the Electronic Invoice System (EIS). The spreadsheet shall include the following data elements, at a minimum:

SM Name

SM Contract Number

Task Order Number

Vessel Name

SM Invoice Number

CLIN number

Project Line Item Category Name

NS5 Work Order or Service Request Number

Short Description of Supplies or Services

SM Purchase Order Number

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SUBCONTRACT PURCHASING

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Dollar Amount of Invoice

Subcontractor Name

Subcontractor Invoice Number

Receipt Date of Subcontractor Invoice

Fixed Fee Period Start Date

Fixed Fee Period End Date

Fixed Fee Days

Fixed Fee Rate

Fixed Fee Calculated Amount

SPECIAL REQUIREMENT for either (1) FYXX M&R DRYDOCK or (2) OPER No-Notice Test Activation

The SM will utilize an Excel spreadsheet template provided by MARAD which provides an automated compilation of reimbursable costs segregated by Project Line Item Categories (M&R, ESL, Activation, Operating Costs, and/or Deactivation).

3.3 SUBCONTRACT SOCIOECONOMIC STATISTICAL REPORTING

All SM regardless of business size shall report to each ACO by the 5th of each month, the total number and total dollar value of subcontracts awarded by the SM for that MARAD region as follows:

Type of Firm (U.S.) Total # of Subcontracts Total Dollars SDB Awards ______________________ _____________________ Women Owned SB ______________________ _____________________ SBA 8(a) SB Awards ______________________ _____________________ HUBZone SB Awards ______________________ _____________________ Veteran Owned SB Awards ______________________ _____________________ Service Disabled Veteran ______________________ _____________________ Total Small Business ______________________ _____________________ Other U.S. Large Business ______________________ _____________________ Total U.S. Subcontract ______________________ _____________________ Total Foreign Subcontract ______________________ _____________________ Total Subcontract Awards ______________________ _____________________

NOTE: Awards to small businesses must be counted in all appropriate categories. For example, an award to a Woman-owned, HUBZone certified firm would be included in both Woman-owned and HUBZone firm figures, but included only one time in Total Small Business Awards. In other words, the Total Small Business Awards will not necessarily equal the sum of all small business awards for the several types of small business firms.

SM certified as a large business shall monitor small and minority business awards in relation to the SM's subcontracting plan goals, accumulate data on all subcontract awards, including those less than $50,000 and submit a SF-294 (Exhibit I), Subcontracting Report for Individual

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SUBCONTRACT PURCHASING

POLICIES

Contracts and SF-295 (Exhibit II), Summary Subcontract Report to the ACO as required by FAR

19.704. Submit the Individual Subcontract Report (ISR), and the Summary Subcontract Report (SSR) using the Electronic Subcontracting Reporting System (eSRS) (http://www.esrs.gov ), following the instructions in the eSRS.

3.4 SUBCONTRACT DOCUMENTATION

For purposes of Government auditing, the SM shall establish and maintain an individual file for each subcontract, which may be in electronic format. The file shall be identified with a sequential number for tracking. The file shall be adequately documented to establish the propriety of the transaction and the price paid, and that the SM complied with its commercial purchasing procedures. The subcontract file shall contain the following, as a minimum:

Copy of TO(s), with adequate funding authorized for this purpose

Subcontract, including clearly defined requirements (see Section 3.7)

Copy of all modifications to the subcontract

Documentation of competition obtained for purchases of supplies >$3,000 and services >$2,500 or, in the absence of competition, proper justification for not competing the requirement.

Documentation of purchase decision, evidencing that the price paid was fair and reasonable and the subcontractor selected represented the best value to the government

Documentation of negotiations (if conducted), including explanation of variance between proposed and negotiated subcontract prices

Proper approvals, including SM internal approvals in accordance with commercial procedures and MARAD specification, solicitation, and award approvals

Documentation of inspection and acceptance

Documentation of payment in accordance with subcontract terms

Copy of ACO direction to use Government source of supply (i.e., GSA) or approval of unique terms and conditions (i.e., insurance, bonds, demurrage, progress payment)

Documentation of rationale for not using directed sources (i.e., fuel)

Closeout documentation, including final invoice payment marked as such.

Documentation may be maintained in separate files/systems where logical (e.g., documentation of payment in electronic accounting system), provided that the individual subcontract file indicates where the documentation is located and it is available for Government review at the SMGR corporate facility.

3.5 SUBCONTRACTOR PAYMENTS

The SM shall encourage vendors to submit invoices promptly. Ideally, the SM should encourage the use of electronic invoicing from the subcontractor to achieve accurate, timely invoices for review and payment. Prompt submission of invoices can be a consideration for best value as it permits obligated funds to be liquidated and excess funds deobligated.

The SM is responsible to verify the validity and accuracy of all subcontractor invoices prior to forwarding them to MARAD for reimbursement. Repeated invoice inconsistencies and errors are a reflection of poor quality control processes and will impact the SM's performance assessment.

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MARAD will reclaim overpayments directly from SM. The SM shall submit monthly invoices after receipt of supplies/services in accordance with Section G.14.

In the rare situation where commercial practice is for buyer financing of goods or services in excess of the SM stipulated minimum working capital requirements (Section G.10), the SM may request advance payment on a case-by-case basis. For purchases of commercial items, financing of the contract is normally the contractor's responsibility. However, in some markets the provision of financing by the buyer is a commercial practice. The amount of advance payment requested shall not exceed the amount to be actually paid in advance based on the best terms the SM is able to negotiate with the agent or service provider. SM shall submit their request for advance payment (i.e., payment in advance of receipt of supplies/services) to the ACO via e-mail with a copy to the COR/COTR/ACOR/COTR and FCO, in the following format.

The e-mail should be marked as URGENT.

"Request advance payment in the amount of $______________ (insert amount) under Contract ________________ (insert SM Contract #) / Task Order ____________________ (insert TO #, if applicable), for ________________________ (insert description of services/supplies).

Documents to support the amount requested are attached (i.e., detailed estimate, pro forma invoice from the subcontractor). The scheduled pay date is _______________ (insert date)."

The SM is to include a clear statement or rationale stating why advance payment is necessary and that the value exceeds their contract stipulated minimum working capital.

The ACO will evaluate and approve/disapprove the request via e-mail. If approved, the TO will also indicate that advance payment is authorized. The SM shall submit an invoice, indicating the date when payment is required in the certification statement block on the EIS invoice form and indicating in the description field on the supporting spreadsheet that this is an advance payment. MARAD will endeavor to meet the specified payment date, however, be advised that commercial advance payments are not subject to the interest penalty provisions of the Prompt Payment Act in accordance with FAR 32.9.

3.6 SUBCONTRACTOR CLAIMS AND DISPUTES

Subcontracts are between the SM and the subcontractor, and the SM is responsible for resolving subcontract disputes. The SM shall advise the ACO and COR/COTR/ACOR/COTR of disputes, changes in status of disputes, and potential costs or delays in delivery or possible litigation. MARAD will not directly participate in disputes and/or settlement.

MARAD endorses and recommends the use of alternative disputes resolution (ADR) procedures. The SM is responsible for all administrative and legal costs associated with resolving such disputes, except when the government has authorized reimbursement by issuance of a TO. When private counsel has been authorized, the government will reimburse reasonable costs associated with such representation subject to the funding limitations of TO.

Payments of judgments or settlements resulting from this disputes resolution process are the responsibility of the SM, although the SM may request reimbursement provided that indemnification under Section G.7.4.1 does not apply. SM is cautioned to seek prior approval from the ACO of settlements, which the SM intends to submit for reimbursement, in order that a reserve of appropriated funds can be made for the claim. The liability of the United States under this clause is subject to the availability of appropriated funds.

If a dispute is not settled between the SM and the subcontractor and the matter advances to a formal claim in the Courts, Section G.7 Claims and Litigation will apply.

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3.7 GENERAL SUBCONTRACT POLICIES

3.7.1 Subcontract Basic Content - SM subcontracts shall contain the following information, at a minimum:

Identification number

Date of Subcontract Award

Description of supply/service

Delivery/performance date

Place of delivery/performance

Packing or Shipping instructions, if any

Address to submit invoices

Terms and Conditions

3.7.2 Flow Down Clauses - The SM shall incorporate appropriate flow-down clauses in subcontracts. Flow-down clauses vary with the type of item, price, and place of purchase. The SM is responsible to select and apply the correct clauses to avoid unnecessary cost to the Government.

3.7.2.1 Commercial Items - In accordance with FAR 44.402, all commercial item purchases shall include the flow-down clauses listed in FAR 52.244-6, Subcontracts for Commercial Items, and SCA, except for subcontracts obtained outside the United States. Supplies/services ordered by MARAD are considered commercial items unless otherwise stated on the TO.

3.7.2.2 Non Commercial Items - Purchases for supplies and services that do not qualify as commercial items (as determined by the MARAD ACO) shall include all appropriate clauses that flow-down from the SM Contract, including SCA.

3.7.3 Subcontract terms - The subcontract shall not include any language implying or stating that it is an agent of the Federal Government, and the SM shall not sign as "agent" or 'SM for MARAD." The subcontract shall not include terms that bind the Government to the results of arbitration, judicial determination, or voluntary settlement between the prime contractor and subcontractor.

3.7.4 Insurance - The SM shall require insurance from subcontractors to protect Government property based on the following TABLE OF COVERAGE TYPES and TABLE OF MINIMUM LIABLITY LIMITS REQUIRED based on risk considerations.

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TABLE OF COVERAGE TYPES

COVERAGE Description

Workmen's Compensation, including Longshoremen & Harbor Worker's Act coverage Always required - no minimum Employers Liability E bodily injury by accident, each accident - E bodily injury by disease each accident - E bodily injury by disease in the aggregate

Maritime Employers Liability (Jones Act)

M each person per occurrence - M in the aggregate

Comprehensive General Liability C combined single per occurrence limit for bodily injury and property damage - C in the aggregate

Vessel Repairers Legal Liability S per vessel, per occurrence Pollution Liability P per occurrence

Tower's Liability T applies to dead-vessel tow Note: See TABLE OF MINIMUM LIABILITY LIMITS REQUIRED for values of variables E M C S P or T

TABLE OF MINIMUM LIABILITY LIMITS

REQUIRED

RISK CONSIDERATIONS / COVERAGE

CODE E M C S P T

Shipyard Availabilities w/o Dead-vessel Tow $5 $5 $5 $5 $1 Shipyard Availabilities with Dead-vessel Tow $5 $5 $5 $5 $1 $5

Pier-side, Spaces Made Safe for Hot Work or Workers $2 $2 $2 $2 $1 Pier-side, No Spaces Made Safe for Hot Work or Workers $1 $1 $1 $1 $1 OEM Tech Rep Services $1 $1 $1 Note: minimum liability limits in million dollars

All the above insurances except Workman’s Compensation shall name the United States of America as an assured along with the Ship Manager. Such policies shall contain a statement that there is no recourse against the USA for payment of premium. The SM shall stipulate that upon request the subcontractor shall provide a copy of all original insurance policies within 5

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calendar days. The SM shall ensure that the coverage does not contain exclusions that would effectively negate coverage for all but third party liabilities. All such insurance will contain 30 calendar days advance notice of cancellation or of any non-renewal which is the option of the insurer be provided in writing to the U.S. Department of Transportation, Division of Marine Insurance, MAR-780, W23-453, 1200 New Jersey Ave., SE, Washington, DC 20590.

The SM shall obtain and review proof of insurance coverage (i.e., certificate of insurance, policy). The ACO may request that the SM send the subcontractor insurance to the MARAD Division of Marine Insurance for review.

3.7.5 Supplemental Material/Lower Tier Subcontract Markup - The SM shall not include a percentage markup (i.e., material handling charge, burden rate) in its subcontracts for supplemental material or lower tier subcontracts. This type of arrangement is considered a Cost-Plus-A-Percentage-Of-Cost type contract, which is prohibited by FAR.

3.7.6 Subcontractor Screening

3.7.6.1 The SM shall verify that no apparent conflict of interest/improper affiliations exist between the SM and subcontractors.

3.7.6.2 The SM shall verify that proposed subcontractors are not suspended and/or debarred by consulting the General Services Administration (GSA) List of Parties Excluded from Federal Procurement and Non-procurement Programs, website at https://www.epls.gov/. If the SM intends to subcontract with a party that is debarred, suspended, or proposed for debarment, notification to the ACO is required in accordance with FAR 9.405-2.

3.7.6.3 SM shall evaluate subcontractor performance to establish qualified sources, and to be used as part of the evaluation of best value. The SM is expected to factor subcontractor past performance into its decision on award. The SM must support decisions not to award based on past performance.

3.8 The Contracting Officer has determined it to be in the Government's best interest to authorize Ship Managers to use Government supply sources to purchase cost-reimbursable supply items for Government use. This authorization is provided for use on a voluntary basis and significant use of the authorization will be considered as Observable Quality Evidence (OQE) demonstrating superior business processes in the expenditures and obligations of funds authorized by Task Order to reduce costs under Performance Element 6-1 Effective Management and Control of Costs. To implement this provision, each Ship Manager will receive a letter of authorization from the PCO for each vessel management contract they have been awarded by the Maritime Administration for use in placing orders to acquire supply items from Government supply sources (see FAR 51.103 Ordering from Government supply sources).

Before placing orders with Government supply sources, the Ship Manager will need to coordinate with the ACO for assistance in obtaining any necessary activity address codes and for use of the proper ordering forms where specified (see 51.102, 51.103 and 51.104).

[END OF ATTACHMENT J-2]

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J.3a PROCESSING SEAFARER’S

PERSONAL INJURY/ILLNESS

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ATTACHMENT J.3a

PROCESSING SEAFARER’S PERSONAL INJURY/ILLNESS CLAIMS (Supplement A)

The Ship Manager shall collect the necessary information regarding all illnesses or injuries to officers and crew members (hereinafter “seafarer’s”) which occur when they are in the service of the Ready Reserve Force (RRF) vessels owned by the Maritime Administration (MARAD), United States Department of Transportation (DOT) (Section 1), process payment of traditional benefits to such seafarer’s (Section 2), assist MARAD in the processing of administrative claims filed by such seafarer’s (Section 3), and assist the United States in defending claims which proceed to litigation (Section 4).

1. DOCUMENTATION - INCIDENTS OF ILLNESS/INJURY TO CREW MEMBERS

If a member of the crew of any MARAD-owned vessel for which you are the Ship Manager becomes ill or is injured while in service to the vessel, the Ship Manager, shall ensure that a complete and accurate record is made of the cause and details of the illness/injury, however trivial, in the vessel's logs.

1.1 MEDICAL LOG

The Ship Manager shall maintain a Medical Log aboard each vessel, with illness or injury complaints recorded therein, along with the date of occurrence. Recorded entries should describe the symptoms of the reported illness and/or explain the events causing the injury. A description of any medical treatment rendered aboard vessel shall be recorded. If it is necessary to relieve the seafarer of his/her duties in order to have him/her seek medical attention ashore, this shall also be noted.

If a second Medical Log is required on any voyage, the cover of each shall be noted Part 1, Part 2, etc., as appropriate, and the pages shall be consecutively numbered from log to log. For example, if the last page of Part 1 is 78, the first page of Part 2 will be 79.

The Medical Log shall be signed daily by the Master and by the Medical Person-in-Charge (MPIC). The Master shall confirm with the ill or injured seafarer's departmental supervisor that the Departmental Log contains information to substantiate the reported illness or injury.

1.2 OFFICIAL LOG

The U.S. Coast Guard (USCG) supplies an Official Logbook for recording entries required by 46 U.S.C. § 11301. The Master shall make, or cause to be made in the Log, the entries required by 46 U.S.C. § 11301 including, among others:

(1) Each legal conviction of a seaman of the vessel and the punishment inflicted.

(2) Each offense committed by a seaman of the vessel for which it is intended to prosecute or to enforce under a forfeiture, together with statements about reading the entry and the reply made to the charge as required by 46 U.S.C. § 11502 of this title.

(3) Each offense for which punishment is inflicted on board and the punishment inflicted.

(4) A statement of the conduct, character, and qualifications of each seaman of the vessel or a statement that the master declines to give an opinion about that conduct, character, and qualifications.

(5) Each illness of or injury to a seaman of the vessel, the nature of the illness or injury, and the medical treatment.

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(6) Each death on board, with the cause of death, and if a seaman, the information required by section 10702 of this title.

(7) The name of each seaman who ceases to be a crewmember (except by death), with the place, time, manner, and the cause why the seaman ceased to be a crewmember.

(8) The wages due to a seaman who dies during the voyage and the gross amount of all deductions to be made from the wages.

(9) The sale of the property of a seaman who dies during the voyage, including a statement of each article sold and the amount received for the property.

(10) When a marine casualty occurs, a statement about the casualty and the circumstances under which it occurred made immediately after the casualty when practicable to do so.

1.3 PERSONAL INJURY REPORT PACKAGE

The Ship Manager’s shall require the Master (in Phase O) or the Chief Engineer (in Phase M) to provide the information required by Personal Injury Report Package either on the forms provided on Ship Manager developed forms approved by MAR-782. The information shall provide:

(a) Details of the circumstances surrounding the incident;

(b) In the case of injury, the conditions at the time of the accident and whether they contributed to the accident. The Ship Manager shall perform a detailed inspection of the site as soon as an accident is reported, photograph or otherwise document the site if possible, and preserve any evidence;

(c) In the case of injury, whether the injured seafarer in any way contributed to the accident or whether there was any obvious negligence on the part of a third party;

(d) Names and statements from all crewmembers aboard the vessel at the time of the accident (including non-witness statements), especially from any witness(es) to any accident;

(e) Particulars of any medical treatment received aboard and/or ashore.

A copy of each of the forms, along with other material incorporated in the Personal Injury Report Package is provided as Exhibit 1. Form MA-1001, titled SERIOUS ILLNESS/INJURY REPORT PACKAGE (Exhibit 2), provides a list of the forms to be included. A discussion of the documentation to be developed by the Ship Manager and/or its designated representative(s), with respect to any crew member, and, in particular, with respect to any ill/injured crew member, is provided below. Specific reference is made to forms included in the Personal Injury Report Package.

1.3.1 On date of seafarer's engagement:

1.3.1.1 DETERMINATION OF FITNESS FOR SEA DUTY

The Ship Manager shall ensure the seafarer has, within the last six (6) months, been examined by a licensed physician and found to be physically qualified and fit to perform the duties of his/her assignment. Upon reporting aboard vessel, the seafarer shall provide or otherwise make available for the Master's examination one (1) copy of each of the following:

(i) The union Shipping slip, if the seafarer is a member of a seafarers’ union;

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(ii) A Merchant Mariner Physical Examination, documented on Form CG-719K (http://www.uscg.mil/forms/cg/CG_719K.pdf) (Exhibit 18), indicating the seafarer is competent and fit for sea duty from a medical clinic sponsored by the Ship Manager or from the union of which the seafarer is a member or from the seafarer's personal physician; and USCG NVIC 04- 08 (http://www.uscg.mil/hq/cg5/nvic/pdf/2008/NVIC_4-08.pdf), Medical and Physical Evaluation Guidelines for Merchant Mariner Credentials. The examination must have been within six (6) months prior to the seafarer’s date of engagement, and

(iii) A certification from a medical clinic that the seafarer has received all required immunizations/ inoculations or is medically eligible to receive such immunizations. (See Section C.5.5.1 of the Contract for required immunizations/inoculations, which allows submission of this certification by FOS crew members after reporting aboard vessel.)

In the event the vessel is to be engaged upon a foreign voyage, the Master, or his/her designated representative, shall ascertain that the seafarer has in his/her possession and has reported aboard the vessel with (i) at least two (2) pairs of any required prescription eye glasses (in addition to contact lenses, if worn), (ii) records and prescriptions of any prescription medications as well as an adequate supply of same to cover the projected assignment period, and (iii) immunization and medical records.

If the Ship Manager has reason to believe that the seafarer has falsified any information regarding his/her current physical condition or medical history, or that the seafarer is otherwise unfit to assume the duties of his/her assignment, the Ship Manager may require the seafarer to undergo examination by a licensed physician to ascertain the seafarer's fitness to perform the duties associated with the shipboard rating to which assigned. Charges for services provided by any physician/clinic/hospital in connection with such examination are to be paid by the Ship Manager as an expense to be reimbursed by MARAD.

Any determination made by a physician with respect to the seafarer’s fitness for sea duty in no way abrogates any right of appeal the seafarer may have through collective bargaining agreements or to seek redress through other forums.

1.3.1.2 STATEMENT OF PHYSICAL CONDITION

The Ship Manager shall require the seafarer to complete the MARAD Form 1001B, titled SEAFARER'S STATEMENT OF PHYSICAL CONDITION (Exhibit 3) as soon as practicable after the seafarer joins the vessel to which assigned. This brief questionnaire requests the seafarer to identify any medical conditions and/or symptoms of illness with which he/she is or has been affected. By signing and dating this form the seafarer certifies that, to the best of his/her knowledge, he/she is physically and mentally fit for sea duty. This form shall be completed notwithstanding the existence of any available report of pre-employment physical examination. A copy of the form will be sent to the Ship Manager’s crew personnel office and retained with appropriate safeguards. The original form is to be retained aboard the vessel for the duration of the seafarer's shipboard employment. Upon the termination of the seafarer’s employment aboard the vessel, the completed form shall be forwarded to the Ship Manager’s home office.

1.3.1.3 RELEASE OF UNION MEDICAL RECORDS

The Master shall require the seafarer to complete the RELEASE OF MEDICAL RECORDS Form (Exhibit 4) and shall forward that form to the Ship Manager’s crew personnel office. The Ship Manager shall obtain the medical records authorized by the release if the seafarer is

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injured or becomes ill or if the Ship Manager has reason to believe the seafarer has falsified any information regarding his/her current physical condition or medical history, or that the seafarer is otherwise unfit to assume the duties of his/her assignment.

NOTE: HQ ADMIN MOD 0005: No change – Explanation MARAD received an inquiry on the J-3 Release of Medical Records Form as not being in compliance with current medical privacy regulations. MARAD's Office of Counsel and Office of Insurance have reviewed this form and cannot find any privacy violations. Until a more specific objection is filed, continue to use the form.

1.3.1.4 BACKGROUND INFORMATION REGARDING SEAFARER

On the date of hire, the seafarer shall provide information needed to complete the Form 1001A, titled SEAFARER DATA SHEET (Exhibit 5), from the top of the form to the section titled "Voyage Employment Information." This information includes the seafarer's name, Social Security Number, license number, physical description, date and place of birth, Citizenship, residence address, place and date of last physical examination and the name of the physician who administered the exam. The form also has space for the seafarer to provide information regarding the name and address of next of kin. The seafarer should, at this time, complete Form MA-269: Designation or Change of Beneficiary for Second Seafarer's War Risk Insurance (Exhibit 6). The seafarer shall also execute the form titled RELEASE OF UNION MEDICAL

RECORDS.

1.3.1.5 INFORMATION REGARDING SEAFARER'S ARTICLES OF ENGAGEMENT

The Ship Manager is requested to reference U.S. Coast Guard Navigation and Vessel Inspection Circular No. 1-86 addressing “Shipment and Discharge of Seamen” in preparing the USCG Form CG-705A titled PARTICULARS OF ENGAGEMENT AND DISCHARGE (Exhibit 7).

At the time of the seafarer’s engagement the Master shall complete the following sections of the form:

(a) Voyage Employment Information, (b) Seafarer's Identification and Acceptance of Employment, and (c) Seafarer's Rate and Wage Information. The form shall be signed by both Master and seafarer. Upon the seafarer's discharge from the vessel, the Master shall complete the section "Voyage Discharge and Release Information." Both Master and seafarer will sign and date the form. A copy of the form is to be retained aboard the vessel until such time as the voyage terminates or the articles expire, whichever occurs first. Upon the expiration of the voyage or articles of engagement the completed form shall be forwarded to the Ship Manager's home office.

1.3.1.6 PRIOR ILLNESS/INJURY REPORT

As soon as practicable following the seafarer’s date of hire, the Ship Manager shall obtain a commercially available report regarding the seafarer's employment history. This report will list and describe illnesses and/or injuries sustained by the seafarer, as well as any incidents of disciplinary action reported to the MIB by the seafarer's past marine employers. If, by examination of any available documentation regarding the seafarer's past and current medical condition, the Ship Manager determines that the seafarer was found by a qualified physician to have sustained illness/injury that results in a finding of permanent or partial disability, rendering the seafarer unfit for shipboard duty, the seafarer shall be questioned regarding such finding and requested to provide proof of rehabilitation sufficient to substantiate a finding of “fit for duty.” Absent such proof, the seafarer’s employment shall be immediately terminated.

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