Amendment 0001.pdf

PDF 482 KB Posted

Attached to
Voluntary Tanker Agreement (VTA) Federal contract opportunity
Solicitation number
HTC71124RW001
Issued by
Department of Defense United States Transportation Command

About this file

This document outlines the terms and conditions of a contingency contract implementing the Voluntary Tanker Agreement to provide sealift services for the transportation of bulk fuel products worldwide. Key details include:

  • The contract will be administered by the United States Transportation Command to meet operational requirements during contingencies as defined by the agreement.

  • Carriers can enroll specific tanker capacity that will be activated as needed to support defense requirements, minimizing disruption to commercial operations. Committed capacity must be maintained for planning. Substitutions require approval.

  • Rates will be set at activation based on prevailing market rates, with an additional 30% premium applied for the activation period.

  • The agreement establishes business rules for using peacetime contracts and activating volunteer capacity to meet requirements before activation. Carriers with existing contracts receive priority.

  • A Tanker Requirements Committee and company command centers are required to support coordination and planning during activations.

  • The solicitation was posted on 20 December 2023, with responses due by the dates specified in the solicitation.

View the file

Other files for this federal contract opportunity

Other files attached to Voluntary Tanker Agreement (VTA), newest first.
File Type Posted
2024.04.26 VTA Terms & Conditions_Tracked Changes.pdf PDF
2024.04.26 VTA Terms & Conditions_Tracked Changes.docx DOCX document
VTA RFP Amendment 2.pdf PDF
2024.01.23 VTA Terms & Conditions_Tracked Changes.pdf PDF
Atch 5 VTA_FedReg_Final-7Nov2022.pdf PDF
Atch 2 Tanker Information Sheet.pdf PDF
Atch 4 NIST.SP.800-171_POAM_Template.pdf PDF
Atch 1 Capacity Commitment.pdf PDF
12.20.23 HTC71124RW001 VTA Solicitation.pdf PDF

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Text version

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

30-105-04EXCEPTION TO SF 30

APPROVED BY OIRM 11-84

STANDARD FORM 30 (Rev. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

The purpose of this amendment is to incorporate updated language in Section 9: Security.

1. CONTRACT ID CODE PAGE OF PAGES

J 1 37

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16C. DATE SIGNED

BY 25-Jan-2024

16B. UNITED STATES OF AMERICA15C. DATE SIGNED15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip Code) X HTC71124RW001

X 9B. DATED (SEE ITEM 11)

20-Dec-2023

10B. DATED (SEE ITEM 13)

9A. AMENDMENT OF SOLICITATION NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offer is extended, X is not extended.

Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:

(a) By completing Items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE

RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN

REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

10A. MOD. OF CONTRACT/ORDER NO.

2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO.(If applicable)

6. ISSUED BY

3. EFFECTIVE DATE

25-Jan-2024

CODE

USTRANSCOM-AQ - HTC711

508 SCOTT DR

SCOTT AFB IL 62225-5357

HTC711 7. ADMINISTERED BY (If other than item 6)

4. REQUISITION/PURCHASE REQ. NO.

CODE

See Item 6

FACILITY CODECODE

EMAIL:TEL:

X

HTC71124RW001

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

The following have been modified:

TERMS AND CONDITIONS

Voluntary Tanker Agreement (VTA) Common Charter Terms & Conditions

1. Preface

2. VTA Capacity Enrollment Terms

A. Background B. Capacity Commitment

3. Business Rules A. Peacetime Contracts B. Voluntary Phase C. VTA Activation

4. Tanker Requirements Committee (TRC)

5. Company Command Center

6. Terms and Conditions

A. Quality Control B. Quality Council Meetings C. Performance Reporting D. War Risk Insurance E. Charter Hire F. Mission G. Changes (Tailored)

H. WAR

I. Reporting Requirements J. Crew K. Cadet/Midshipmen L. Cargo Receipt M. Loading and Discharging N. Oil Pollution Spill O. Pollution Prevention and Safety Compliance P. Financial Responsibility Q. Excusable Delays R. Sovereign Immunity S. Description of Vessel T. Vessel Substitution U. Spain-Gibraltar Prohibition V. Salvage W. Alteration X. Crew Immunization Y. Investigation Z. Contract Notice Regarding Litigation file://///USTRANSCOM/TCAQ%20Directorate/TCAQ%20Shared/Government%20Only/Contracts/TCAQ-I/1.%20HTC711/Voluntary%20Tanker%20Agreement/B.%20Pre-Sol/10.%20RFP_RFQ%20&%20Amdmts/RFP%20Amendment%201/2024.01.23%20VTA%20Terms%20&%20Conditions_Clean.docx%23_Toc156889178 file://///USTRANSCOM/TCAQ%20Directorate/TCAQ%20Shared/Government%20Only/Contracts/TCAQ-I/1.%20HTC711/Voluntary%20Tanker%20Agreement/B.%20Pre-Sol/10.%20RFP_RFQ%20&%20Amdmts/RFP%20Amendment%201/2024.01.23%20VTA%20Terms%20&%20Conditions_Clean.docx%23_Toc156889179 file://///USTRANSCOM/TCAQ%20Directorate/TCAQ%20Shared/Government%20Only/Contracts/TCAQ-I/1.%20HTC711/Voluntary%20Tanker%20Agreement/B.%20Pre-Sol/10.%20RFP_RFQ%20&%20Amdmts/RFP%20Amendment%201/2024.01.23%20VTA%20Terms%20&%20Conditions_Clean.docx%23_Toc156889180 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7. U.S. Cargo Preference Act

8. Maritime Clauses

A. Regulatory Compliance/Applicable Documents B. Off-hire C. Liens

9. Security (Physical, Personnel, Information, Antiterrorism/Force Protection and Industrial) .. 23 A. General Security Information B. Citizenship and Clearance Requirements C. Additional Security Requirements (Transportation Security) D. Security Clearance Requirements E. Facilities Clearance Level (FCL) F. Visits by Non-Assigned Contractors to USTRANSCOM/MSC Buildings G. Supplemental Notes Regarding Visit Information in the DoD Personnel Security System of

Record H. Accessing NATO Information I. Classified Information at Contractor Headquarters J. Classified Meetings K. Derogatory Information L. Antiterrorism/Force Protection M. Defense Transportation Regulation N. Security Regulation Compliance

10. Cyber Security A. General Cyber Security Requirements

11. Agreement

12. Invoicing and Payment

13. Abbreviations and Definitions

14. List of Attachments

A. Attachment 1 – Capacity Commitment B. Attachment 2 – Tanker Information Sheet C. Attachment 3 – DD254 D. Attachment 4 – NIST.SP.800-171 POAM Template E. Attachment 5 – Applicable Federal Registers file://///USTRANSCOM/TCAQ%20Directorate/TCAQ%20Shared/Government%20Only/Contracts/TCAQ-I/1.%20HTC711/Voluntary%20Tanker%20Agreement/B.%20Pre-Sol/10.%20RFP_RFQ%20&%20Amdmts/RFP%20Amendment%201/2024.01.23%20VTA%20Terms%20&%20Conditions_Clean.docx%23_Toc156889215 file://///USTRANSCOM/TCAQ%20Directorate/TCAQ%20Shared/Government%20Only/Contracts/TCAQ-I/1.%20HTC711/Voluntary%20Tanker%20Agreement/B.%20Pre-Sol/10.%20RFP_RFQ%20&%20Amdmts/RFP%20Amendment%201/2024.01.23%20VTA%20Terms%20&%20Conditions_Clean.docx%23_Toc156889216 file://///USTRANSCOM/TCAQ%20Directorate/TCAQ%20Shared/Government%20Only/Contracts/TCAQ-I/1.%20HTC711/Voluntary%20Tanker%20Agreement/B.%20Pre-Sol/10.%20RFP_RFQ%20&%20Amdmts/RFP%20Amendment%201/2024.01.23%20VTA%20Terms%20&%20Conditions_Clean.docx%23_Toc156889217 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1. Preface

This contingency contract implements the Voluntary Tanker Agreement (VTA) as defined in the Federal Register dated 7 November 2022 and provides for sealift services that may arise in any part of the world. The general scope of services under this contract includes the provision of ocean transportation charter of clean bulk fuel product for worldwide ocean movements and as the Secretary of Defense may determine to be necessary, seeking to minimize disruption of the program participants service to commercial customers. For the purposes of this contract, as also defined in the VTA, Contingency includes, but is not limited to a “contingency operation” as defined at 10 U.S.C. section 101(a)(13), and a Joint Chiefs of

Staff-directed, National Command Authority-approved action undertaken with military forces in response to: (i) natural disasters; (ii) terrorists or subversive activities; or (iii) required military operations, whether or not there is a declaration of war or national emergency.” This contract also is to provide such services on a bilateral basis prior to a contingency for the purpose of testing and exercising VTA. The Contractor shall maintain the highest possible on-time performance rate.

2. VTA Capacity Enrollment Terms

A. Background

1) Contractors are offered an opportunity to enroll specific tanker capacity, for activation as the USTRANSCOM may determine to be necessary, into the VTA program.

Contractors receiving certain subsidies from the Government must enroll subsidized capacity into an Emergency Preparedness Program, VTA. For example, in accordance with section 2. A. 4) of VTA, this contract obligates a contractor receiving payments under the Tanker Security Program (TSP) to make vessels covered by a TSP operating agreement available during activation of VTA to DoD. According to the Maritime

Administrator, such obligation shall satisfy TSP requirements for contractor enrollment in an Emergency Preparedness Program. Enrollment in VTA involves two sequential steps: execution of the application with the Maritime Administration

(MARAD) and bilateral execution of this contingency contract with USTRANSCOM.

2) Upon bilateral execution of this contingency contract, a contractor becomes a VTA

“Participant” and receives a priority, as described in section III.A.3 of VTA, as a VTA

“Participant” for award of DoD peacetime cargo.

3) Activation of VTA shall be in accord with section V of VTA. The decision to activate or deactivate VTA will be made by the USTRANSCOM Commander. DoD's primary goal in activating or deactivating VTA is to meet operational requirements, while facilitating the use of existing, commercial capacity and minimizing disruption to commercial operations whenever possible.

4) In furtherance of the Government’s minimum requirements for a sealift emergency preparedness program and in consideration of the Contractor’s commitment of specific capacity and related resources (as detailed herein), the Contractor’s receipt of

Government subsidy (if applicable), and the Contractor's priority consideration for award of certain DoD contracts, the Government and the Contractor agree as follows:

B. Capacity Commitment

1) VTA defines a commitment for a participant as 100% of U.S. Flag controlled, clean product tonnage to include medium range (MR) tankers, ITBs and ATBs of over

20,000 DWT capacity, unless otherwise agreed to by MARAD and USTRANSCOM, which are useful in the transportation of refined cargoes pursuant to the requirements of associated war plans. Contractor’s capacity commitment as set forth in Attachment

1 of this contract was described in terms of “militarily planning capacity”, which was computed in the following manner:

a. Tank vessels: Capacity is measured in barrels and cubic meters (m3) @ 98% full

b. ITBs and ATBs: Capacity is measured in barrels and cubic meters (m3) @ 98% full

2) Attachment 1 of the VTA Contingency Contract lists the Contractor’s U.S. Flag vessel capacity in which the Contractor hereby commits to VTA. Committed capacity is expected to be maintained for USTRANSCOM contingency planning purposes.

However, if any change in the Contractor’s U.S. Flag fleet is necessary during the period of this contract, a minimum 30-day advance notice shall be provided to

USTRANSCOM identifying the change and a revised Attachment 1 indicating the new commitment will be issued via a contract modification.

In calculating a participant’s commitment, the Government and the Contractor used the following business rules:

a. 100% of a participant’s entire U.S. flag capacity, subsidized and unsubsidized, not engaged in domestic trade (Jones Act capacity) plus 50% of a participant’s capacity that is engaged in the domestic trade (Jones Act capacity).

b. The capacity of a vessel under charter to DoD for 180 calendar days or more will not be counted toward the contingency commitment during the period of the charter.

3. Business Rules

A. Peacetime Contracts

Existing DoD contracts executed by MSC 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.

During an activation of VTA this contract shall be used to move cargo in support of a contingencies.

B. Voluntary Phase

1) Voluntary Capacity

a. 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 MSC commitments cannot satisfy contingency capacity and delivery requirements.

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

c. DoD may use the volunteer stage to obtain additional services to meet contingency operational requirements. The volunteer stage will not be used by contracting personnel to renegotiate existing peacetime or USTRANSCOM

VTA contingency contract rates. VTA participants with existing MSC 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.

d. Where appropriate, DoD may approve requests by VTA Participants to convert voluntary commitments to the USTRANSCOM VTA contingency contract rates, terms, and conditions.

C. VTA Activation

1) VTA Activation.

a. VTA may be activated at the request of the USTRANSCOM Commander, with the approval of SecDef, as required to support contingency operations. All controlled U.S. flag capacity of a participant’s commitment will be activated on a proportionate basis. The DoD and/or Tanker Requirements Committee (TRC) will exercise best efforts to proportionately activate participants’ capacity to minimize commercial disruption and allow for reasonable efforts and timelines to offload commercial cargo prior to taking control of the participant’s vessel.

b. Activation shall be 100% of a participant’s entire U.S. flag capacity, subsidized and unsubsidized, not engaged in domestic trade (Jones Act capacity) plus 50% of a participant’s capacity that is engaged in the domestic trade (Jones Act capacity).

c. The rate of charter hire applicable to each charter under this contract will be the prevailing market rate effective at the time of proposed loading of the vessel. The

Contracting Officer will determine the prevailing market rate utilizing the price analysis techniques set forth in FAR Subpart 15.4 to determine that the rates are fair and reasonable, utilizing market or previous contract prices. To the maximum extent practicable, MSC will be consulted to determine the prevailing market rate.

d. In addition to the prevailing market rate, participants will be compensated 30% above the prevailing market rate for the duration of the activation. The VTA daily charter vessel daily rates shall be calculated by multiplying the prevailing market rate by 130%.

e. Upon activation of VTA, the voluntary commitments of Program Participants preceding such activation shall convert to the USTRANSCOM VTA contingency contract terms and conditions and pricing.

f. This Charter Party shall be for the period identified at activation, commencing upon the Charterer's acceptance of the Vessel and continuing until either the date of her redelivery or the completion of the voyage then current, at the Charterer's sole option. The charter will not exceed the 5-year limit on vessel charters imposed by 10 U.S.C. § 3671. Any option periods shall be in direct continuation;

shall be without guaranty at the Charterer's sole option. Optional periods may be declared at any time prior to redelivery of the Vessel. For option periods commencing after twelve months of activation, the Contracting Officer will determine if market prices have increased or decreased to the extent practicable to update the prevailing market rate.

g. The decision to deactivate VTA 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.

4. Tanker Requirements Committee (TRC)

USTRANSCOM or MARAD may request activation of the TRC to support contingency operations or training purposes. The purpose of the TRC meetings will be to conduct contingency operations planning. Participants will be invited to open TRC meetings and other joint planning forums. For selected committee meetings, attendance may be limited to designated program participants.

5. Company Command Center

A. Activation of VTA to which the participant has committed resources may require intensive specific planning and coordination between DoD and the participant. The participant shall submit points of contact who can respond to U.S. government activities on a 24/7 basis to provide expert assistance in answering questions, exchanging information, and resolving problems upon notification of activation. The participant is required to establish an unclassified company command center within 24 hours after activation of committed resources and provide planning documentation. The participants planning documentation shall include points of contact, 24-hour telephone numbers and describe with adequate specificity how the command-and-control operations will be carried out for government cargo during the activation performance period.

B. The participant shall maintain reliable communication capability between the participant and Military Sealift Command (MSC) Maritime Global Operations Center (MGOC)

Battle Watch Captain at MSCHQ.BWC.fct@navy.mil / 757-443-5845. At a minimum, the means of communication shall include those facilities normally used by the participant in conducting commercial business.

6. Terms and Conditions

A. Quality Control

1) The Contractor shall promptly notify the appropriate Contracting Officer

Representative (COR), as specified by the Contracting Officer at time of activation, of any problems or failures that may affect performance. As directed, the Contractor shall provide the COR with a written plan of corrective action, including a proposed timeline, no later than 10 business days after such request. This plan shall describe proposed Contractor actions to correct the problem or deficiency and bring performance back in compliance with identified performance standards.

2) The CORs shall monitor Contractor performance and compliance with the terms and the conditions of the contract using standard techniques such as inspections, US

Government-generated management reports, Contractor reports and customer feedback. The Contractor shall attend periodic meetings called by the COR or the

Contracting Officer to discuss operations and problem areas.

3) If contamination or degradation of Government cargo occurs due to the contractor's failure to properly maintain its equipment and/or Contractor’s negligence, the contractor shall be liable to the Government for replacement costs and/or associated costs with returning the cargo to specification to include any product already in the shore tank that may have been contaminated as a result of the contaminated cargo.

B. Quality Council Meetings

The Contractor shall participate in Quality Council Meetings as requested by the

Contracting Officer to review performance and discuss operational issues. Meetings shall be held as directed by the Contracting Officer but will not exceed two per year.

C. Performance Reporting

In accordance with FAR 52.212-4(c), the contract may be modified to provide additional reports that satisfactorily quantify Contractor performance under Performance

Objectives. The Contracting Officer may establish the format and frequency of such reports.

D. War Risk Insurance

The most up-to-date War Risk Insurance information is contained in the current MSC

Tanktime proforma for VTA application/reference.

E. Charter Hire

1) Hire Rates. Charter hire for services under this Charter Party shall be payable at the applicable rates as stipulated at the time of activation per Section 3.C. and shall be earned at the expiration of each fifteen (15) calendar days of the charter period.

Except as otherwise provided herein, said hire rates shall be considered payment in full for all services of the Vessel and Associated Equipment under this Charter including all overtime, penalty time, bonuses, payments, and emoluments payable to

Master, Officers, and crew for services under this Charter, irrespective of the geographic scope of said service and including the carriage of ammunition and hazardous cargoes. Said hire rates are exclusive of the costs of fuel and port charges, and additional war risk expenses, if any, and other stevedoring costs such as loading, securing and discharging cargo.

2) Loss of Vessel. Should the Vessel be either lost or missing and presumed lost, Charterer may, at its sole discretion, terminate this Charter, in which case hire shall cease to be payable at the time of the loss or, if said time is unknown, at the time of the Vessel’s last received communication. Similarly, should the Vessel become a constructive total loss, Charterer may, at its sole discretion, terminate this Charter, in which case hire shall cease to be payable at the time of the casualty resulting in the constructive loss. The Vessel shall be considered missing and presumed lost when, after a reasonable lapse of time, it fails to reach its next scheduled port and reasonable efforts to contact it fail.

F. Mission

The Vessel may be employed in worldwide trade for the transportation and/or prepositioning of petroleum cargo (including, but not limited to hazardous cargoes) and military readiness, in accordance with the terms of this Charter.

G. Changes (Tailored)

Changes within the general scope of any of the terms and conditions of this Contract may be ordered by the Contracting Officer. If any such change causes an increase or decrease in the cost of performance, such change will be the subject of a bilateral modification to the Contract. However, nothing in this clause shall excuse the Contractor from proceeding with the Contract as changed.

H. WAR

1) Voyage Instructions. Operating limits of the Vessel subject to this Contract shall be worldwide. If the Vessel is ordered under this Charter Party to any port, place, zone, or route involved in a state of war, warlike operations or hostilities, civil strife, or piracy (whether there be a declaration of war or not) where it might be reasonably expected to be subject to capture, seizure, arrest, or hostile act by a belligerent power

(whether de facto or de jure), pirate, or terrorist, it shall be unreasonable for the

Contractor not to prosecute said voyage if insurance against said risks is then available commercially or under a Government program, or if the Government offers the Contractor indemnification against said risks pursuant to Public Law 85‐804 (72

Stat. 972, August 28, 1958).

2) The Contractor shall immediately notify the Charterer: (i) whenever any sailing orders will result in the Vessel subject to this Contract being sent beyond the limits of the War Risk Trading Warranties of insurance policies required under this contract (to include entry into a war risk exclusion zone or when the Vessel will enter, sail for, or deviate towards the territorial waters of any of the Countries or places or any other waters described in the Lloyd’s Joint War Committee’s current Hull War, Strikes, Terrorism and Related Perils Listed Areas); (ii) if there are any changes to the War

Risk Trading Warranties of insurance policies required under this contract (including changes to the exclusion zones or the Hull War, Strikes, Terrorism and Related Perils

Listed Areas) or changes to War Risk premiums, charges, or deductibles; or (iii) whenever additional premium charges or costs will be incurred as a direct result of compliance with any sailing orders issued by the Charterer under this Contract. The

Contractor shall ensure that the insurers provide it relevant information in a timely manner. If the Contractor has given this required notice to the Charterer, the Charterer will reimburse the Contractor for the increase in costs (if any) of insurance premiums, charges, or deductibles which arise from the Vessel sailing beyond the applicable

War Risk Trading Warranties (including changes to the war risk exclusion zones) when entry into any exclusion zone or Hull War, Strikes, Terrorism and Related

Perils Listed Areas under such insurance has been approved in advance by the

Charterer. The issuance of sailing orders, by itself, does not constitute approval in advance by the Charterer. The Charterer may give the Contractor notice and instructions concerning suspension of commercial War Risk insurance coverage and substitution of Government indemnity or Government War Risk insurance as detailed in the section entitled “Government War Risk Insurance/Indemnity” below.

3) Additional Wage Costs. The Charterer shall reimburse Contractor for the cost of provable additional master and crew wages (including all additional bonuses and payments required) to the extent that such additional costs arise directly from exposure of the Vessel, and/or Vessel’s master and crew, to the risks described in the paragraph entitled “Voyage Instructions” above. However, any of said wages or payments shall not exceed in amount that which would be payable, under applicable laws and regulations, to U.S. civil service mariners in the employ of the Military

Sealift Command in a similar port, place, zone, or route. Contractor shall notify

Charterer of all anticipated additional wage costs prior to entering any location which would trigger such additional costs; and no such costs shall be reimbursable unless

Charterer, after notification of such costs, provides approval to enter such location.

4) Insurance Nonavailability. If no commercial or Governmental insurance is available for service under this Charter Party covering the risks identified in subparagraph (1) above, Vessel shall not be required to enter or remain at any port, place, zone, or route subject to said risks; Charterer in such case shall have the right to order the

Vessel to other port(s) or areas consistent with Boxes 2 and 3 herein.

I. Reporting Requirements

Charterer’s Instructions. The Charterer shall furnish the Master with all requisite instructions and sailing directions in writing, including COMSC “Standard Operating

Manual” (SOM) COMSCINST 3121.9 Series. The Master shall exercise due diligence to observe all such orders and instructions of the Charterer with respect to the Charterer's employment of the Vessel's services. Vessel must meet all MSC requirements for reporting. Reports required of the Vessel include, without limitation, the following:

(i) Movement reports (see SOM, section 2-4-1);

(ii) Pre-arrival reports (see SOM, section 2-7-3);

(iii) Casualty reports (see SOM, section 4-3);

(iv) Tanker reports (see SOM, section 3-6); and

(v) Position Reports (see SOM, section 2-4-2)

Vessel shall provide position/status reports in-port and at-sea every six (6) hours daily at

0000, 0600, 1200, and 1800 hours local Eastern time (GMT-5 EST/GMT-4 EDT) and

72/48/24/12-hour pre-arrival notifications for all ports to Area Command and COMSC

N351B, MSC Tankers. Vessel shall indicate all cargo tanks are clean, gas free, and ready for QAR inspection upon arrival delivery/first load port. Position reports shall be issued by electronic mail to the addresses designated in the cargo orders as issued by the appropriate Program Office or Area Command.

MSC Area Commands and MSCHQ may require additions or deletions to the addressees on the Position Reports and may also require additional reporting requirements.

These reports must include the Vessel’s Speed of Advance, current weather, and the ETA to the next port.

J. Crew

1) Conduct of Master, Officers, and Crew. The Master, Officers, and crew shall be appointed or hired by the Contractor and shall be deemed to be the servants and agents of the Contractor at all times except as otherwise specified in this Charter. The

Master of the Vessel shall be under the Charterer’s direction with regard to the employment of the Vessel but shall not be under the Charterer's orders with regard to the navigation, care, and custody of the Vessel. If the Charterer shall have reason to be dissatisfied with the conduct of the Master, Officers, or crew, the Contractor shall, upon receiving the particulars of the complaint, investigate the matter and resolve the issue to the satisfaction of the charterer. Any and all additional costs including but not limited to attorney’s fees incurred as a result of removal of such personnel shall be for the Contractor’s account.

2) Qualifications. The Master, Officers and crew shall meet all international and flag state requirements for training and experience aboard tank vessels. For US Flag, this includes meeting citizenship requirements as prescribed by law.

3) Identification Cards. In the event Government identification cards are issued to

Master, Officers and crew, the Contractor shall be responsible for tracking and, upon redelivery of the Vessel, returning all cards.

4) OCONUS Contractor Conduct. Upon award of this Contract, the Contractor shall immediately notify all contractor personnel, who are or who will be employed by, or who are or who will be accompanying, United States Naval Forces outside the continental United States (OCONUS), and who are not a host country national ordinarily resident in the host country, that such personnel, and any dependents residing with such personnel, who engage in conduct OCONUS that would constitute an offense punishable by imprisonment for more than one year if the conduct had been engaged in within the special maritime and territorial jurisdiction of the United

States, may potentially be subject to the criminal jurisdiction of the United States as required by the Military Extraterritorial Jurisdiction Act of 2000, Pub. L. 106-523, 114 Stat. 2488, codified at 18 U.S.C. 3261 – 3267, as implemented by DoD

Instruction 5525.11, “Criminal Jurisdiction over Civilians Employed by or accompanying the Armed Forces outside the United States.” Reference is made to

Secretary of Defense memo dated 10 March 2008; "UCMJ jurisdiction Over DoD

Civilian Employees, DoD Contractor Personnel, and Other Persons Serving With or

Accompanying the Armed Forces Overseas During Declared War and in Contingency

Operations."

K. Cadet/Midshipmen

As required by 46 U.S.C. § 51307, the Contractor/Operator shall participate in programs for Merchant Marine cadet training under the sponsorship of, and in accordance with the policies and procedures of, the United States Merchant Marine Academy (USMMA) and shall carry on this vessel at least 2 USMMA cadets, if available, on each voyage. The

USMMA will determine whether it has cadets available for cadet training. Cadet wages, berthing, training, subsistence, and transportation shall be solely the responsibility of the

Contractor/Operator. If USMMA cadets are not available, the Contractor shall participate in programs for Merchant Marine cadet training under the sponsorship of, and in accordance with the policies and procedures of, accredited state academies. The state academies will determine whether they have cadets available for cadet training. Available positions shall be distributed as equally as possible among the requesting schools. Cadet wages, berthing, training, subsistence, and transportation shall be solely the responsibility of the Contractor.

L. Cargo Receipt

1) Manifest/Bill of Lading. The Charterer or consignor of the cargo shall prepare a manifest and/or bill of lading, which shall list the cargo loaded on the Vessel. The

Master shall sign said cargo receipt(s) in acknowledgment of the receipt of cargo said to have been loaded by the Charterer or the consignor of the cargo, without responsibility as to quantities, mixture, mark, number of packages, weights, etc., or the apparent condition of the cargo, it being understood that it is the Charterer's or the consignor's responsibility to tally the cargo and to check the condition thereof upon loading and discharging. The Contractor shall provide a copy of the signed manifest(s) upon request by the Government.

2) Charter Paramount. Any receipt signed by or on behalf of the Master or Agent shall be without prejudice to the terms, conditions, and exceptions of this Charter and subject to all of them. The terms of this Charter Party shall apply to any shipment made by the Government whether or not bills of lading are issued.

M. Loading and…

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