Draft_VISA_Business_Rules.pdf

BUSINESS RULES

1. Transition from Peacetime through the Three Stages of VISA

1.1. Peacetime Contracts.

1.1.1. Peacetime contracts will remain in effect during the stated contract period. These contracts will be used to move DOD cargo into a contingency theater during the volunteer stage and other delivery points outside the contingency theater during activation as defined in peacetime contracts.

1.1.2. During an activation of VISA, this USTRANSCOM VISA Contingency Contract shall be used to move only contingency cargo. Delivery orders/task orders shall contain a designation indicating that cargo is moving under

VISA.

1.1.3. Before activation, DOD may will use the rates, terms and conditions of peacetime contracts to support contingency operations. When the peacetime contract is used to support a contingency the contractor has the right to (i) refuse to perform in the defined theater of operations if it is not safe or practical to operate; (ii) exercise contractual provisions to modify its established service into the theater of operations, as reflected in the peacetime contract,.

1.2. Volunteer Stage Capacity

1.2.1. The DOD will use peacetime contracts to move contingency cargoes when they meet the capacity and delivery requirements. DOD may issue a request for volunteers to provide additional service when peacetime commitments cannot satisfy contingency capacity and delivery requirements.

1.2.2. Requests for volunteers may be issued to all potential offerors including non-participants and foreign flag operators. DOD selection of volunteers shall be based on operational requirements and the Secretary of Defense approved priorities for the award of sealift contracts, which are incorporated in VISA.

1.2.3. DOD may use the volunteer stagecapacity to obtain additional services to meet contingency operation requirements. The volunteer stagecapacity shall not be used by contracting personnel to renegotiate existing peacetime or USTRANSCOM VISA contingency contract rates. VISA participants with existing peacetime contracts that can satisfy DOD’s requirements shall receive priority over contractors without such contracts. New offers of service will be treated as late rates that receive last priority for use provided participant services meet DOD’s contingency requirements.

1.2.4. Where appropriate, DOD shall approve requests by VISA Participants to convert voluntary commitments to contract rates, terms and conditions.

1.3. VISA Activation

1.3.1. VISA Stages may be activated by USTRANSCOM Commander, with the approval of SecDef, as required to support contingency operations.

1.3.2. DOD may activate all or part of VISA Program Participants, and all or part of each VISA Participant’s commitment to each stage. DOD will exercise best efforts to proportionately activate participants’ capacity to minimize commercial disruption.

1.3.3. Upon activation of any Stage, the voluntary commitments of Program Participants preceding such activation shall be completed then convert to the relevant Stage of commitment subject to the USTRANSCOM VISA contingency contract terms and conditions and pricing.

1.3.4. Compensation for liner commitments under VISA Stages I, II and III is cumulative. VISA Participants shall be compensated at the applicable USTRANSCOM VISA contingency contract rate during the duration of the activation.

For example, using the VISA commitment requirement of 15%, 40% and 50%, the Stage I rate would apply to the first 15% of activated capacity (1 to 15), the Stage II rate would apply to the next 25% of capacity (16-40), and the Stage III rate would apply to the remaining 10% of capacity (41 to 50).

1.3.4.1. The Government agrees to include in the Business Rules specific booking and billing procedures for activated capacity prior to an activation. The Government will examine the contractor’s Last In, First Out proposal.

Comment [U1]: Deleted. Section is already in peacetime contract T&C’ and doesn’t apply to charter contracts.

Comment [U2]: Included at Part V, Paragraph C, Part 2 in the VISA agreement; ref Fed Register

1.3.5. DOD shall activate Stage III only after activating Stages I and II.

1.3.6. The decision to deactivate VISA stages and release Participants from activation commitments will be made by USTRANSCOM Commander based on the operational requirement. Deactivation considerations may also include costs to DOD, and minimizing the contractor’s commercial disruption by returning commercial assets for use in peacetime business.

1.3.7. DOD may request VISA Participants voluntarily increase their commitments during Stage Activation and before proceeding to the next Stage of Activation. Also, DOD may request volunteer capacity from non-participants before proceeding to the next stage of Activation.

1.4. Commitment Levels

1.4.1. The USTRANSCOM Commander shall may re-establish the minimum and maximum commitment levels for each VISA Stage annually.

1.4.2. Such minimums and the contractor’s commitment thereto shall be reflected in the contractor’s VISA Enrollment Contract (VEC) VISA Capacity Commitment (Attachment I) that is incorporated by reference herein.

2.0. Response Time Requirements Under VISA Call-Up.

2.1. Established Liner Service On-Berth Requirement. Upon receipt of a call-up modification for any stage the contractor is required to provide established liner service vessel capacity on berth no later than day 7 after issuance of the delivery order or the next available US flag vessel call, whichever is sooner.

2.2. Dedicated Liner Service On-Berth Requirement. Upon receipt of a call-up modification for any stage the contractor is required to provide dedicated liner service vessel capacity on berth no later than day 7 after issuance of the modification. If mutually agreed, the contractor may be allowed the time it takes to deliver commercial cargo to its original destination and travel to the DOD on-load port (sailing time based on transits at a 14 knot speed of advance, and a 2 day discharge of cargo) or the next available US flag vessel call, whichever is sooner.

2.3. Intermodal Load Requirement. The contractor’s intermodal assets shall be available for loading at shipper location not later than day 5 after issuance of a call-up delivery order.

3.0. Small Arms (IMO Class 1.4 Ammunition). If a shipment(s) of IMO Class 1.4 ammunition on established liner service requires changing port calls or service, the government and carrier shall bilaterally negotiate terms, conditions and rates pursuant to the modified liner service clause in DOAN, paragraph 6.4.

Comment [U3]: Section will be relocated to the Liner T&C’s