RFP_12-5428.docx

24 August 2012

This is the Military Sealift Command, Sealift Program Management Office, Washington, DC

Subj: RFP N00033-12-R-5428

MSC Sealift Program Management Office, Code PM51, requests proposals for vessel(s) capable of meeting the transportation requirements described below. The paragraph numbers below apply to the box layout of references (a) and (b), which are incorporated herein by reference (available on the MSC web site at http://www.msc.navy.mil, under “Contracts,” then “Proforma,” or upon request), and shall be the charter form of any contract resulting from this solicitation. By submission of a proposal, the offeror confirms agreement with all terms and conditions of this solicitation and the charter form, unless otherwise identified therein.

NOTE 1: FUNDS ARE NOT CURRENTLY AVAILABLE FOR THIS PROCUREMENT. IN THE EVENT FUNDS REMAIN UNAVAILABLE, THIS PROCUREMENT WILL BE CANCELLED WITHOUT AN AWARD BEING MADE. ANY AWARD WILL BE MADE SUBJECT TO FISCAL YEAR 2013 FUNDING AVAILABILITY.

NOTE 2: IN ACCORDANCE WITH THE CARGO PREFERENCE ACT OF 1904, PREFERENCE WILL BE GIVEN TO U.S. FLAG VESSELS.

NOTE 3: UNSIGNED OFFERS WILL NOT BE CONSIDERED FOR AWARD.

NOTE 4: OFFERORS ARE REMINDED OF THE CCR REGISTRATION REQUIREMENTS OF FAR 52.212-1-; OFFERORS WITHOUT A CAGE CODE WHEN THE GOVERNMENT IS READY TO MAKE AN AWARD WILL NOT BE ELIGIBLE FOR AWARD.

NOTE 5: MSC WIDE AREA WORK FLOW (WAWF) INSTRUCTIONS (APR 2012) HAVE BEEN ADDED TO THIS RFP. SEE UPDATE UNDER PART IV (z).

NOTE 6: OFFERORS ARE REMINDED THAT A SMALL BUSINESS SUBCONTRACTING PLAN IS REQUIRED FOR THIS ACQUISITION IN ACCORDDANCE WITH FAR CLAUSE 52.219-9; OFFERORS WITHOUT A SMALL BUSINESS SUBCONTRACTING PLAN WHEN THE GOVERNMENT IS READY TO MAKE AWARD WILL NOT BE ELIGIBLE FOR AWARD.

A. Standard Form 1449 Boxes

2. Contract No.: Will be provided upon award

5. Solicitation No.: N00033-12-R-5428

6. Solicitation Issue Date: 24 August 2012

7. For Solicitation Information Call: Britni Jones, 202-685-5380, Britni.jones@navy.mil or Krishana Wright, 202-685-5560, krishana.wright@navy.mil.

8. Offer Due Date: 0900 Local, Washington, DC, time, 31 August 2012

9. Issued By: Military Sealift Command, Sealift Program Management Office, PM51, Bldg. 210, Rm. 275, 914 Charles Morris Court SE, Washington Navy Yard, DC 20398-5540, (Code: N00033) FAX: (202) 685-5852 or (202) 685-5850

10. This Acquisition is: UNRESTRICTED

14. Method of Solicitation: RFP 18a. Payment will be made by: Military Sealift Command, MSC N-83, 914 Charles Morris Court, SE, Washington, DC 20398 18b. Submit invoices to: SEE PART IV (z), MSC WIDE AREA WORKFLOW (WAWF) INSTRUCTIONS (APR 2012) 27a. Solicitation incorporates by reference FAR 52.212-1 and 52.212-4; 52.212-3 and 52.212-5 are attached.

B. I. TANKTIME Boxes

1. Vessel(s) required: One clean double hull ATB/ITB with IGS and SBT that is capable of carrying a minimum of 145,000 BBLS (approximately 19,100 LT) and maximum 190,000 BBLS (approximately 25,100 LT) for at least three clean petroleum products (intentions F76, JP5, JP8 or JA1) in designated cargo tanks with double valve isolation.

VESSEL SHALL MEET THE FOLLOWING MINIMUM PARTICULARS:

· Vessel must be US Flag, Jones Act compliant (ie: coastwise endorsed)

· Vessel must be MARPOL/OPA-90 compliant.

· SOLAS approved for non-coastwise voyages.

· Vessel must comply with applicable USCG regulations.

· Vessel must have current vetting approval from at least two major oil companies (e.g. Shell / Chevron / ExxonMobil, etc). At least one vetting must be less than six (6) months old. Dates of vetting must be provided.

· Vessel must be a party to the SIRE System and provide a current Q-88 with offer (no more than 60 days old). Q-88 must detail current acceptances and dates of inspection.

· Vessel must possess current ISM Certification and International Ship Security Certificate.

· Vessel must be Double Hull with Segregated Ballast Tanks (SBT) and Inert Gas System (IGS).

· Vessel cannot exceed a maximum LOA of 613 feet.

· Vessel cannot exceed a maximum beam of 120 feet.

· Vessel cannot exceed a maximum DWT 43,000 MT

· Vessel must have the ability to load minimum 140,000 BBLS (assume JP5 with an average API of 43.1) not to exceed a laden draft of 30 feet.

· Maximum height of cargo manifold above water line (AWL) 50 feet.

· Vessel must have a minimum SOA of 12 knots.

· Vessel must identify the ability to machine wash cargo tanks, or the lack there of, while underway.

· Vessel must have the ability to clean, mop, dry and inert cargo tanks within three (3) days during performance of the charter when required.

· Vessel must identify the ability to carry one complete undecanted tank washings in dedicated slop tanks, or the lack there of.

· Vessel must indicate Supercargo carrying capacity as vessel may be required to carry armed U.S. military personnel for security reasons. (Owner must provide additional lifesaving equipment in accordance with applicable SOLAS/USCG requirements.)

· Vessel must have the ability / be equipped to perform cargo operations pierside.

· Vessel must have the ability / be equipped to perform cargo operations at anchorage (e.g. ability to procure adequate fendering).

· Vessel must hot wash all cargo spaces with water not to exceed 58 degrees centigrade prior to presenting for initial acceptance and inspection. All cargo tanks must be free of loose rust, previous cargo residues and films (including dyes), significant salt deposits and other impediments that could impact the quality of the cargo to be loaded.

· Vessel must arrive at load port in a clean, gas-free condition, and be ready for internal tank inspection by Quality Assurance Representative (QAR). Ensure any adjacent tanks are also clean and gas free. Contractor shall provide (Owner's account) a Certified Marine Chemist to certify tanks safe for entry for internal tank inspection by Government / Charterer representative. Contractor will provide time needed to re-inert after inspection. If a prior (last and next to last) cargo contained a percentage of benzene, Owner’s Certified Marine Chemist must also measure toxicity for Benzene content and certify safe for entry. All safe for entry / toxicity / flammability assessments will be performed in the presence if the inspecting QAR.

· The use of copper and copper alloys (brass, bronze, etc.) in vessel compartments, pipelines, heating coils, fittings, etc. is not permitted in vessels chartered by MSC to carry petroleum products, unless vessel possesses a current DESC waiver.

· If vessel cargo tanks have heating coils, provide the coil type or composition (such as stainless steel, copper, etc.), date that the heating coils were last pressure tested and the results of the test (passed or failed). Date of last pressure test cannot exceed 12 months for duration of this charter. Vessel tanks with copper or yellow metal compounds are normally not acceptable for Jet Fuel cargoes.

· If vessel cargo tanks are coated, provide the coating type (epoxy, inorganic zinc, etc.). Coal tar coating is not acceptable. If tanks are not coated then state “none”. Coatings that are incompatible with the fuel to be carried will be rejected.

· Vessel must provide Certificates of Quality for last three cargoes. These Certificates should contain all test data required by specification for the products that were previously loaded (last, 2nd to last and 3rd to last). They shall be submitted for each shore tank as well as the vessel tanks after loading (composite sample). Results of “typical” are not acceptable. Additionally the following are required for the specific products mentioned:

1. Naphtha / Condensates: Mercaptan Sulphur, reported in “parts per million” (ppm) or “mass percent”, or Doctor Test (ASTMD 4952).

2. Gasoline (Motor or Aviation): State whether the previous product was “leaded” or “unleaded”. This is needed to determine cargo tank “safe entry” testing requirements.

· Vessel must provide documentation that certifies whether or not the last three cargoes carried contained FAME (Fatty Acid Methyl Esters). In the event any of the cargoes did contain FAME, vessel owners/operators must provide certification and support documentation that vessel cargo tanks were cleaned / conditioned in accordance with the guidance in Energy Institute HM50.

· Where cargo is carried after contract award and prior to delivery, Owner agrees to provide cargo type/description prior to loading, and applicable Certificates of Quality (to include all test data required in the initial RFP) for review within 48 hours after loading said cargo. Test shall be on a sample taken from the ship versus a representative sample from a shore facility. Any rejection of the Certificates of Quality by the Government shall result in the Government cancelling this contract at no cost to the Government.

· Vessel must be able to take upper, middle, lower, bottom, and all-level samples of the cargo (to include OBQ & ROB) without contaminating them from the sampling location. If unable to do so or if the sampling location is contaminated or suspected to be contaminated, Charterer will require open sampling on a tank by tank basis, consistent with safety and local terminal regulations.

· Vessel is to be fully bunkered when presented (NOR tendered).

· Vessel must meet all MSC requirements for reporting. Vessel shall provide position/status reports in-port and at-sea every six (6) hours daily at 0000, 0600, 1200, and 1800 hours local Washington, DC time (GMT-5 EST/GMT-4 EDT) and 72/48/24/12 hr pre-arrival notifications for all ports to Area Command and COMSC PM51. Vessel shall indicate all cargo tanks are clean, gas free, and ready for QAR inspection upon arrival delivery/first load port. Reports shall be sent to the following email addresses:

1. RICHARD.CALDWELL1@NAVY.MIL

1. BRIAN.HILL1@NAVY.MIL

1. KEMMEH.ORJI@NAVY.MIL

1. SEALOGLANT.SDO@NAVY.MIL

1. RICHARD.A.APPLING@NAVY.MIL

1. THOMAS.M.BROWN@NAVY.MIL

1. MATTHEW.MUELLER@NAVY.MIL

1. WNYD_HQTANKERS@NAVY.MIL

1. MSCHQ.BWC.FCT@NAVY.MIL

1. DESC-BIT@DLA.MIL

· Master to submit the attached MONTHLY VOYAGE ABSTRACT form on a monthly basis and emailed to WNYD_HQTANKERS@NAVY.MIL no later that the 1st day of the month following the month of performance. For time charters that complete prior to the end of the month, the report must be received no later than two calendar days after completion of charter (off-hire). Entries must start with the date the ship presents NOR and is accepted on hire. All columns must be completed as noted. Pull down menus for columns C, X and Y are the only comments to be use. Built in macros/formulas are not to be altered.

CARGO: One clean double hull ATB/ITB with IGS and SBT that is capable of carrying a minimum of 145,000 BBLS (approximately 19,100 LT) and maximum 190,000 BBLS (approximately 25,100 LT) for at least three clean petroleum products (intentions F76, JP5, JP8 or JA1) in designated cargo tanks with double valve isolation.

2. Place/Range of Delivery:

US EAST/GULF/WEST COAST RANGE, PORT IN OWNER’S OPTION

3. Place/Range of Redelivery:

US WEST COAST RANGE, PORT IN CHARTERER’S OPTION

4. Charter Period: 1 year, charterer’s option to cancel anytime after 30 days without notice.

5. Lay days: Commencing: 01 October 2012 Canceling: 05 October 2012

6. Terms/Conditions/Attachments added, deleted or modified:

ADD: SPECIAL REQUIREMENTS. (Addendum to FAR 52.212-4)

Crew List. The Contractor shall submit the Full Name, Billet, SSN, Date of Birth, Birth Country, City of Birth, State of Birth, Passport Number and Nationality for all crew members to MSCHQ/PM5 using the Government provided MSC/EPIC Force Protection Personnel/Crew list Submission Template to allow screening by the El Paso Intelligence Center (EPIC). The template must be filled out in its entirety by Owners and resubmitted electronically in Microsoft Excel format to the Charterer, at the following PM5 mailbox MSCHQ.PM5-screening.fct@navy.mil with required information. Submit crewmembers as they are identified to go to the ship(s). When a crew member is replaced, only submit that crewmember instead of submitting the entire crew list again when the new crewmember is submitted. All new personnel must be screened at the beginning of the hiring process prior to being sent to the ship. All personnel shall be resubmitted and re-screened upon a change in contract or Contractor, upon transfer from one ship to another, and once in each 12-month period. A similar procedure shall be followed for all other Contractor personnel for whom unescorted access to the ships is required. MSC PM5 will notify the Contractor of any anomalous screening results requiring further action or investigation. Emails containing the Microsoft Excel attachment shall be written as follows:

(2) Any delay resulting from Owner’s failure to provide the information in paragraph (1), above, within the prescribed time frames shall result in a corresponding increase in the time afforded to Charterer to accept delivery of the Vessel.

(3) Statutory Employee. Pursuant to La.R.S. 23:1061(A)(3) the Department of the Navy, by and through Military Sealift Command, and Contractor expressly provide and agree that the United States of America and/or the Department of the Navy, by and through Military Sealift Command, is the statutory employer of any of Contractor’s employees and is entitled to the tort immunity provided in La.R.S. 23:1061 and La.R.S. 23:1032.

(4) 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."

(5) Notwithstanding any restrictions in this charter party to the contrary, Owner agrees to the embarkation of up to 12 armed force protection personnel as provided for under the Force Protection clause. In the event complying with this requirement exceeds the Vessel’s Certificate of Inspection (COI), Owner agrees to make reasonable efforts to obtain within two business days of award, all appropriate waivers so as to allow the Vessel to carry such additional personnel. If Owner is unable to obtain the necessary waivers, Charterer shall have the option to cancel this charter at no cost to the Government. The option to cancel shall be declared not later than 24 hours after the expiration of the aforementioned two-day period. The cost of any additional lifesaving equipment shall be for Owner’s account.

ADD: IMMUNIZATIONS. (U.S.-flag only)

PROPHYLACTIC AND MEDICAL COUNTERMEASURES, INCLUDING IMMUNIZATIONS: U.S. flag time chartered vessel(s) services are considered essential Contractor services to the Department of Defense in support of military and associated support missions. As a result, Masters, officers, crewmembers, and other individuals who are embarked on such vessels for Owner’s purposes, including but not limited to subcontractors, are considered Contractor personnel performing mission essential services under DODI 3020.37, November 6, 1990, (Change 1, January 26, 1996), and are subject to the following:

(a) Masters, officers, crewmembers and other individuals, as described above, who are embarked on any vessel(s) subject to this charter shall be medically pre-screened, and issued or given prophylactic and medical countermeasures, including immunizations, in accordance with Commander, Military Sealift Command (COMSC) policy. Owner shall ensure that all Masters, Officers, crewmembers, and other individuals embarked on any vessel(s) subject to this charter comply with all such prophylactic and medical countermeasures, including all immunization requirements in effect or made during the period of this charter, including any options or extensions. Notification of the requirements pursuant to this section shall be provided to Owner by the Contracting Officer.

(b) When prophylactic and medical countermeasures, including immunizations are required pursuant to this clause, Owner shall provide notification, as directed by the Contracting Officer, of the immunization status of all embarked personnel within 24 hours of fixture or award. Further, at any time during the contract period, the immunization status of any relief personnel scheduled to board the vessel(s) is required no later than 96 hours prior to the personnel change, unless authorized otherwise by the Contracting Officer.

(c) Any Master, officer, crewmember or other individual who refuses to comply with any prophylactic or medical countermeasure requirement, including any immunization requirement, or any policy concerning the use of said prophylactic or medical countermeasure, or who for medical, personal, religious or any other reason declines or is ineligible to take or use a particular required immunization or other prophylactic or medical countermeasure, shall be removed by Owner from the vessel as soon as possible, but not later than the next port call, and replaced, with an individual of equal or better qualifications who has, as applicable, the required immunization(s) or is eligible and willing to comply with the requirement. Any removal and replacement of personnel pursuant to this clause shall be solely at Owner’s expense, including, but not limited to, travel, per diem, wages and associated administrative expenses.

(d) Crew shortages resulting from the application of this section may subject the vessel(s) to being placed off-hire.

ADD: IN-TRANSIT VISIBILITY.

(1) The Military Sealift Command has implemented a fully automated satellite tracking system (ASTARS) for the purpose of providing In-Transit Visibility (ITV) of its vessels. To support this system MSC utilizes position data provided by a ship's INMARSAT-C terminal (the terminal must have a GPS input).

(2) In order to initiate reporting and start receiving the required data from a ship, MSC needs to know the make and model of the INMARSAT-C terminal, its registered identification number, and the specific satellite (POR, AORE, AORW, or IOR) it is currently logged on to. Once this information is received, MSC technicians will remotely communicate with the terminal to activate reporting. When no longer required, MSC technicians will stop the terminal from reporting. MSC technicians may require some assistance from ship's personnel should problems occur. The ship's terminal will accrue a nominal cost associated with the sending of small data packets.

ADD: MSC SHIPBOARD ANTITERRORISM/FORCE PROTECTION MEASURES (MSC 5252.247-9845 (NOV 2008)).

(1) The owner agrees that the time or voyage chartered vessel will be under the tactical control of an MSC Sealift Logistics (SEALOG) Command. The SEALOG will advise the Master of the vessel of the applicable Force Protection Conditions (FPCON) and security measures he is required to implement.

(2) The Owner agrees that while under charter, U.S. Armed Forces personnel may board the Vessel at any time at any location for U. S. national security purposes, gives consent for such boarding, and agrees to cooperate fully with such U.S. Armed Forces personnel in the boarding party. The Owner also agrees to permit U.S. Armed Forces personnel to search without limitation any and all vessel spaces for U.S. national security purposes.

(3) The Charterer reserves the right, at the Charterer’s sole option, to embark armed U.S. Armed Forces personnel at any time during the period of this Charter to protect U.S. Armed Forces personnel, cargo or equipment onboard the Vessel, or to protect the Vessel itself. These force protection personnel will provide security in accordance with rules of engagement established by competent U. S. military authorities and will operate under the command of such authorities. The Owner shall provide accommodations and victualling for these embarked personnel. The Charterer shall reimburse the Owner for all expenses relating to the embarkation force protection personnel as provided in this Charter for Supercargo.

(4) The Owner agrees to render all necessary assistance to U.S. Armed Forces personnel with respect to the identification and screening of crewmembers or such others as may be aboard the Vessel. The Owner consents to the immediate removal of crewmembers or such others as may be aboard the Vessel deemed unsuitable for any reason by the Contracting Officer or U.S. Armed Forces personnel. The Owner agrees to replace any such crewmembers promptly and that such replacements will fully comply with all crew screening requirements. The Charterer agrees to reimburse the Owner for the reasonable costs directly incurred by the Owner with respect to such replacements.

(5) The Owner agrees to comply with the current vessel physical security measures required by relevant MSC Force Protection instructions or other security-related directions from MSC or U.S. military authorities for the threat condition of the area. This may include turning off the Automatic Identification System and Long Range Identification and Tracking system onboard the Vessel, or adopting other security measures. Additionally, the Owner of chartered vessels will comply with and implement the requirements of MSC’s current SHIPBOARD ANTITERRORISM/FORCE PROTECTION (AT/FP) PROGRAM instruction, COMSCINST 5530.3 Series, as revised, incorporated herein by reference.

(6) The owner agrees to comply with responsibilities addressed in “shipboard military force protection detachment authority to use force” contained in ALMSC 009/03 message. This message includes respective responsibilities of the vessel Master and Mission Commander of the embarked security team. The Charterer, through the MSC Sealift Logistics Command, will provide a copy of this message and MSC N3 Force Protection compliance outline memorandum dated 29 October 2008 to the vessel during the delivery inspection, if applicable, or as requested.

(7) The owner agrees that the Master and Embarked Security Team Mission Commander/Tactical Supervisor on watch shall work together to implement force protection measures. The Master will ensure that the Tactical Supervisor is aware of ship maneuvers. The Master shall be available to receive reports by the Tactical Supervisor of the tactical force protection picture to allow the Master to maneuver his vessel so as to best protect his vessel and crew.

(8) The owner agrees that the Master will participate in any embarked security team mission brief that may be given upon embarkation of the Mission Commander.

(9) The owner agrees to immediately report all FP incidents, warning shots, firing of flares, and disabling fire to the MSC Sealift Logistics Command. Long term time charters will follow Navy OPREP reporting requirements. In addition, all force protection threats, actions, and incidents will be entered into the vessel’s deck log or Force Protection journal as applicable.

(10) The owner agrees that the vessel will have an operational internal announcing system and hand-held megaphone.

(11) For time charters, the Charterer, through the MSC Sealift Logistics Commands, will provide a copy of the Military Sealift Command SHIPBOARD ANTITERRORISM/FORCE PROTECTION (AT/FP) PROGRAM, COMSCINST 5530.3 series and Standard Operating Manual, COMSCINST 3121.9 series during the delivery inspection.

ADD: SECURITY THREAT. In the event of a security threat or incident involving the ship, crew or cargo during the voyage, the ship's master should report any incident immediately to the MSC Area Command in whose area the ship is currently located. The MSCHQ Command Center should be contacted if the Area Command cannot be reached. Contact numbers will be provided upon award.

MODIFY: Part I, boxes 14-16 - revised in their entirety to read as follows:

FOS

DELETE: Part I, box 17 - delete in its entirety

18. ADD:

CLIN (TBD at award): Reimbursable (Fuel) Not to Exceed $______TBD________ CLIN (TBD at award): Reimbursable (Port Charges) Not to Exceed $______TBD________

MODIFY: II – Incorporate revised clause 52.212-4 (Feb 2012). Tailored language still applies.

ADD: II (a) – add new subparagraph: “(4) Vessel must arrive at load port in a clean, gas-free condition, and be ready for internal tank inspection by quality assurance representative. Contractor shall provide (Owner’s account) a certified marine chemist to certify tanks safe for entry for internal tank inspection by government/charter representative. If a prior (last and next to last) cargo contained a percentage of benzene, Owner’s certified marine chemist must also measure toxicity for benzene content and certify safe for entry. If partial shipment is offered, adjacent tanks next to Government cargo are to be gas-free. Last and next to last cargoes carried in tanks must be an approved product. The use of copper and copper alloys (brass, bronze, etc.) in vessel compartments, pipelines, heating coils, fittings, etc., that may come into contact with cargo is not permitted in vessels chartered by MSC to carry petroleum products, unless vessel possesses a current DESC waiver. Vessel must be equipped for both pier side and at anchor cargo operations. Contractor shall arrange oil spill protection and cleanup. Vessel shall have spill prevention booms for use during lightering operations. Vessel shall have adequate fendering for alongside operations and be able to lighter (skin to skin) from another tanker.”

MODIFY: III(d) – add the following new sentence at the end of the paragraph: “Vessel must meet all MSC requirements for reporting. Vessel shall provide position/status reports in-port and at-sea every six (6) hours daily at 0000, 0600, 1200, and 1800 hours local Washington, DC time (GMT-5 EST/GMT-4 EDT) and 72/48/24/12 hr pre-arrival notifications for all ports to Area Command and COMSC PM51. Vessel shall indicate all cargo tanks are clean, gas free, and ready for QAR inspection upon arrival delivery/first load port. Reports shall be sent to the following email addresses:

RICHARD.CALDWELL1@NAVY.MIL

BRIAN.HILL1@NAVY.MIL

KEMMEH.ORJI@NAVY.MIL

SEALOGLANT.SDO@NAVY.MIL

WNYD_HQTANKERS@NAVY.MIL

MSCHQ.BWC.FCT@NAVY.MIL

DELETE: III(e)(3) – delete in its entirety

MODIFY: IV(c) – delete the second sentence.

MODIFY: IV(g)(1) – change the first sentence to read as follows:

During the full period of this Charter Party, Owner shall maintain marine insurance coverage on the Vessel, including Hull and Machinery, Protection and Indemnity (P&I), Pollution Liability, War Risk Hull and Machinery, War Risk P&I, and Second Seamen's War Risk. Except as otherwise provided in this Charter Party, the expense for such insurance coverages, including but not limited to deductibles, premia, additional premia, calls, commissions, advancements, assessments, and overspill claims, shall be for Owner's account and shall be deemed to be included in the hire payable under this Charter Party.

MODIFY: IV(g)(4) – Add the following to the end of the paragraph: “All policies shall contain an endorsement stating that any cancellation or material change in the coverage adversely affecting the Government's interest shall not be effective unless the Owner provides written notice of the same to the Contracting Officer.”

MODIFY: IV(g)(5) - Delete last sentence and replace with:

"All cost of such insurance, including but not limited to deductibles, premia, additional premia, calls, commissions, advancements, assessments, and overspill claims where applicable, shall be for Owner's account."

MODIFY: IV(h)(3) – Change the second and third sentences to read as follows:

Provided, however, that no proportion of additional premia allocable to insuring an amount in excess of the coverage in place as of the Charter Party date shall be reimbursable by Charterer in respect of any of the foregoing war risk policies. Provided further that Owner shall apply for and remit to Charterer as savings any rebates by reason of reductions in or rebates of premiums charged for entry into war risk exclusion zones.

MODIFY: IV(h) – add new subparagraph: “(5) Owner must immediately notify Charterer of any changes in the Vessel’s commercial war risk insurance, including but not limited to, extensions of war risk exclusion zones and increases in commercial war risk insurance premiums. Owners must secure Charterer’s permission prior to entry into any commercial war risk exclusion zones before incurring liability for additional premiums.”

DELETE: IV(k) – delete subparagraph (4) in its entirety.

MODIFY: IV(l) Time Lost - in subparagraph (1) delete “27 days” and substitute therefore “ten days.”

DELETE and REPLACE IV(p) with: (p) Fuel

(1) Delivery Bunkers. Upon delivery of the Vessel, the Owner shall present to the Contracting Officer a statement certified by the Owner or its authorized agent showing the amount and grade of fuel on board at the time of delivery with such additional verification as the Contracting Officer may require and the Charterer shall pay the Owner for such fuel at the current market price at the port of delivery upon certification and verification of such statement by the Contracting Officer, except that for charters where the vessel receives no bunkers during the course of the charter, the Charterer shall reimburse Owner for the amount of fuel used during the Charter at the current market rate at delivery port at time of delivery. The Charterer shall pay for the on-hire bunker survey if performed by an independent surveyor and required by the Contracting Officer. The Owner shall provide additional bunkers as may be required by the Charterer prior to the acceptance of the Vessel by the Charterer; and the Charterer shall reimburse the Owner all costs directly connected with the bunkering of the additional fuel, including but not limited to lighterage, dockage and similar charges, and taxes related therewith.

(2) Provision of Fuel. The Charterer shall ordinarily supply or cause to be supplied any or all of the fuel required by the Vessel during the period of this Charter. The grade of such fuel is to be specified by the Owner, and the grade supplied shall be at least that grade unless otherwise mutually agreed.

(3) Fuel Oil Sampling and Testing.

a. For charters exceeding six months, the Owner shall provide and install a "continuous drip-type" fuel oil testing flange to obtain fuel samples. The Charterer shall bear all costs for fuel testing. The Charterer will provide to the Owner all sample bottles, primary sample containers, seals, and prepaid mailers necessary for collecting and testing bunker fuel. During each bunkering, the Owner shall be responsible for collecting the primary sample by IMO MARPOL VI specified continuous drip sample method, and then generating four individual samples from the primary sample. All samples shall be clearly labeled, sealed and serialized. The four individual samples consist of the 1) MARPOL, 2) Offship Lab, 3) Vendor and 4) Offship Retest samples. The Owner shall retain the MARPOL sample in accordance with MARPOL VI regulations, mail the Offship Lab sample to the Charterer’s designated fuel lab using the prepaid mailer, offer the Vendor sample to the fuel supplier, retain the Offship Retest sample until the later of the time that the fuel is consumed or 90 days. The Owner shall record the serial numbers and disposition of all sample bottles in the Ship’s Log.

b. For charters of six months or less, the Owner shall perform and bear all costs associated with fuel testing. At a minimum the Owner shall collect, seal, and serialize a MARPOL VI retained sample and an Offship Test sample. The Owner shall have the Offship sample tested in accordance with ISO 8217:2005 for the fuel bunkered. All test results shall be forwarded by email to msc.mschq-fuel.fct@navy.mil .

Testing laboratory confirmation of compatibility and specifications of newly on-board delivered fuel shall constitute acceptance by Owner. The Vessel shall not be off-hire in the event of delay resulting from the supply of fuel found to be off specification, unless for want of due diligence by Owner. If the Owner loads such fuel on the Vessel at his own expense, the Charterer shall reimburse the Owner the reasonable expenses of such loading.

(4) Owner’s Purchase of Fuel. The Owner shall, if directed by the Charterer, purchase fuel for the Vessel, in which case the Charterer shall reimburse the Owner the cost of all fuel (excluding lube oils and slop removal) procured by the Owner and loaded in the Vessel during the period of this Charter. If the Owner is required to incur costs under this paragraph by the Charterer, the Charterer shall thereafter reimburse the Owner for the reasonable expenses of such fuel upon presentation of properly certified vouchers, supporting receipts, and other documentation which justify the charges as fair and reasonable in accordance with Part II(i) (Payment) above. The Owner shall not, however, be reimbursed any amount in excess of the current market price of such fuel at the place of loading plus all reasonable expenses incurred by the Owner in loading said fuel on board the Vessel. The title to all fuel for the cost of which the Owner is entitled to be reimbursed hereunder shall automatically pass to and vest in the Charterer upon delivery to the Owner or upon the happening of any other event by which title passes from the vendor or supplier thereof to the Owner, in the case of any such fuel which is purchased for the performance of this Charter. The Charterer shall be afforded all benefits of Owner's contracts for its fuel requirements, including but not limited to any savings addressed in paragraph (ab) (Savings) below.

(5) Off-Hire. If the Vessel should go off-hire during the period of this Charter, the Owner shall present to the Contracting Officer a statement certified by it or its authorized agent showing the amount of fuel on board at the time the off-hire period commenced and the amount of fuel on board when the off-hire period ended. The Charterer shall be credited for the cost of the fuel consumed during the off-hire period and also reasonable expenses incurred in loading such fuel, with such costs based upon costs at the previous refueling point.

(6) Redelivery. Upon redelivery of the Vessel, the Owner shall present to the Contracting Officer a statement certified by the Owner or its authorized agent showing the amount of fuel on board at the time of redelivery. A bunker survey conducted by an independent bunker surveyor approved by the Charterer shall be performed at the port of redelivery or such other place as the Charterer shall direct, at Owner's time and expense. The Charterer shall be credited with the value of fuel on board at the time of redelivery, computed at the current market price at the port of redelivery, except that for charters where the vessel receives no bunkers during the course of the charter, the Charterer shall reimburse Owner for the amount of fuel used during the Charter at the current market rate at delivery port at time of delivery.

(7) Reasonable Expenses. The term "reasonable expenses" as used in this paragraph, shall mean all reasonable costs excluding crew overtime which are necessarily incurred in loading said fuel on board the Vessel such as expenses incurred at tanker terminal; loading fuel from lighters, barges, or other craft used as lighters, including lighterage, lighter demurrage, or detention incurred; cost of shifting lighters for the convenience of the Vessel, handling lighter lines; and such similar expenses which the Charterer shall find were necessarily incurred in the loading of fuel on the Vessel during the period of this Charter.

DELETE: IV(u) – in its entirety.

MODIFY: REPLACE IV(w) SALVAGE in its entirety with the following:

(1) When engaged in the carriage of government cargo and if requested by Charterer, Owner agrees to accept Navy salvage services. Such services may be provided using Navy personnel and resources or Navy contracted resources.

(2) In providing such services, the Navy, through Charterer, agrees to waive all claims for “pure” or “bonus” salvage. Instead, Charterer shall be entitled to the following:

a. In those cases in which the salvage services are provided by Navy personnel and resources, the salvage claim shall be limited to a schedule of current per diem rates and allowable expenses as established by the Navy’s Supervisor of Salvage. In no event shall such amount exceed a maximum claim of $25,000 per day.

b. In those situations in which the Navy utilizes contracted resources to deliver assistance, Owner shall be liable for the actual daily rate charged to the Navy by the contractor(s).

(3) It is understood that this limited Supervisor of Salvage claim is asserted against the vessel only, is solely for the vessel's account, and does not include any amounts for the salvage of the Government's cargo. Notwithstanding any other provisions of this contract, this limited Supervisor of Salvage claim IS NOT directly or by way of setoff chargeable in whole or in part to the Government by way of general average or otherwise.

MODIFY: IV(z) – renumber existing subparagraphs (2) and (3) as (9) and (10), respectively. Delete existing subparagraph (1) in its entirety and substitute therefore the following:

REIMBURSABLE SUPPLIES AND SERVICES (CHARTERS) (MAR 2005)

(1) The Government will reimburse the Contractor only for the actual price paid for those supplies and services that are expressly identified as reimbursable items by this contract. “Actual price" paid by the Contractor for such supplies and services, includes tax paid, if any, and reduced by any and all credits and rebates, whether accrued or realized, associated with the supplies and services provided. “Actual price” does not include material handling charges, overhead, general and administrative costs, profit, or any other indirect cost that is in any way associated with the Contractor’s purchase or provision of such supplies and services. The parties expressly agree that the offered and accepted daily rate includes all costs incurred or paid by the Contractor, including but not limited to material handling charges, overhead, general and administrative costs, or profit, that are in any way associated with the Contractor’s purchase or provision of such supplies and services.

(2) To be eligible to receive reimbursement for services and supplies identified in this contract as reimbursable items and obtained in support of this contract, the Contractor must obtain at least three quotes for each transaction in excess of $2,500 to ensure that adequate price competition was sought or the Contractor must provide an acceptable justification as to why it was impracticable to do so. In the case of fuel purchases, unless directed otherwise by the Contracting Officer, the Contractor shall provide the documentation listed in subparagraphs (i) through (iii) below to the Contracting Officer for approval, prior to purchasing fuel. For purchases of services and supplies and other than fuel, the Contractor need provide the aforementioned documentation only when requested by the Contracting Officer. The Contractor shall maintain documentation of all reimbursable purchases until three years after the contract is completed and shall provide access to and copies of such documentation when requested by the Contracting Officer.

(i) A description of the supplies or services to be subcontracted.

(ii) Identification of the proposed subcontractor and price.

(iii) Suppliers contacted and price quotes. Include other pertinent data such as price lists used if suppliers were not contacted and information regarding the selection if other than price-related factors were considered.

(3) The Contracting Officer may reduce the reimbursement by any amount above that which the Contracting Officer finds, in his/her sole discretion, is greater than that which is fair and reasonable for the supplies or services provided, giving due consideration to the facts and circumstances prevailing at the time that the Contractor procured the supplies and services. Disputes as to the amount by which any reimbursement is reduced shall be resolved in accordance with the “Disputes” clause of the contract. It shall be the Contractor’s burden to demonstrate that the price it paid for reimbursable supplies and services were fair and reasonable.

(4) When the Contractor expects total funding expended for reimbursable items to reach 85 percent of the total funds available on each Reimbursable Supplies and Services CLIN, the Contractor shall notify the Contracting Officer and the COR and any other Government official identified by the Contracting Officer. The notice shall state the estimated amount of additional funds required to continue performance for the period specified in the Schedule. The Contractor shall not exceed or incur costs that exceed the amount of funding stated on each Reimbursable Supplies and Services CLIN at the time a reimbursable item is ordered.

(5) The Government is not obligated to reimburse the Contractor for otherwise reimbursable supplies and services in excess of the funded amount stated in the Schedule under each Reimbursable CLIN.

(6) The Contractor is not obligated to continue performance of any reimbursable work under this Contract or otherwise incur costs for reimbursable supplies or services in excess of the funded amount stated in the Schedule under each Reimbursable CLIN unless the Contracting Officer notifies the Contractor that the funded amount stated in the Schedule under the applicable Reimbursable CLIN has been increased. Notification shall be in writing. In the event notification is made orally, such notification shall be followed up in writing within two working days.

(7) No notice, communication, or representation from any person other than the Contracting Officer shall affect the Government’s obligation to reimburse the Contractor.

(8) Change orders shall not be considered an authorization to exceed the funded amount stated in the Schedule under the Reimbursable CLIN unless they contain a statement expressly increasing the funded amount of the Reimbursable CLIN by a sufficient amount to cover the change order.

MODIFY: IV (z) – ADD: (11) MSC WIDE AREA WORKFLOW (WAWF) INSTRUCTIONS (APR 2012) as follows:

To implement DFARS 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports (MAR 2008), Military Sealift Command (MSC) utilizes Wide Area WorkFlow (WAWF) to electronically process vendor requests for payment. This application allows DoD vendors to submit and track Invoices and Receipt/Acceptance documents, if applicable, electronically.

The Contractor is required to utilize this system when processing invoices and receiving reports, if applicable, under this contract/order, unless an exception at DFARS 252.232-7003(c) applies. The Contractor shall:

(i) ensure an Electronic Business Point of Contact is designated in Central Contractor Registration (CCR) at http://www.ccr.gov.

(ii) register to use WAWF at the https://wawf.eb.mil site, within ten (10) calendar days after award of this contract or modification. Step by step procedures to register are available at the https://wawf.eb.mil site.

(iii) ensure review of the MSC WAWF Vendor Guide, available at the MSC site http://www.procurement.msc.navy.mil under the references section.

In the event you have WAWF questions, contact the MSC WAWF point of contact (POC) at MSCHQ_WAWF@navy.mil.

NOTE: The POC identified above is for WAWF issues only. Any other contracting questions/problems should be addressed to the Contracting Officer or other person identified in the contract to who questions are to be addressed.

The Contractor is directed to use the Commercial Invoice format when processing invoices and receiving reports, if applicable.

|_| This contract/order DOES require submission of Material Inspection and Receiving Reports (MIRR) DFARS Clause 252.246-7000; therefore, the vendor IS required to process receiving reports in WAWF under this contract/order.

|X| This contract/order does NOT require submission of Material Inspection and Receiving Reports (MIRR) DFARS Clause 252.246-7000; therefore, the vendor is NOT required to process receiving reports in WAWF under this contract/order.

The information contained in the table below is for WAWF purposes only. If any information included in these instructions, e.g., Ship to DoDAAC, contradicts information elsewhere in this contract, those other terms shall take precedence for any matter other than invoicing and receiving reports, if applicable.

When entering the invoice into WAWF, the Contractor shall fill in the following DoDAAC fields or DoDAAC extensions exactly as shown in the table below. Fields that should not be filled in when entering the invoice into WAWF will be indicated below with the direction, “Leave Blank.”

WAWF Routing Table

Contract Number

Cage Code/Ext

Issue Date

In some situations the WAWF system will pre-populate the “Pay DoDAAC,” “Admin By DoDAAC” and “Issue By DoDAAC.” The Contractor shall verify that those DoDAACs automatically entered by the WAWF system match the information in the table above. If these DoDAACs do not match, then the Contractor shall correct the field(s).

If Receiving Reports are required, ensure that the “Inspection” and “Acceptance” defaults of “destination” for both fields are not changed in the WAWF online interface.

The CLINs on the WAWF invoice shall be entered exactly as set forth in the contract document including CLIN number (e.g. 0001), Quantity (may be adjusted for actual quantity or dollar value delivered and invoiced), and Unit Price (e.g. $1.00). The dollar amounts on each CLIN or SubCLIN on the WAWF invoice shall reflect final performance values, but in no instance can the dollar amount for each CLIN or SubCLIN exceed what is specified in the contract document. The Contractor shall bill to the lowest level, e.g., the SubCLIN level. The Quantity and Unit of Measure fields must be filled out exactly as indicated in the CLINs and SubCLINs to reduce the possibility of the invoice being delayed or rejected during processing.

Before closing out of an invoice session in WAWF, but after submitting the document or documents, the Contractor will be given the option to send additional email notifications by clicking on the “Send More Email Notifications” link that appears on the page. The Contractor shall click on this link and add the acceptor’s/receiver’s email address in the first email address block and add any other additional email addresses desired in the following blocks. This additional notification to the Government is important to ensure the acceptor/receiver is aware that the invoice documents have been submitted into the WAWF system.

(End of instructions)

ADD: The following Part V clause is called out:

(1) V(f) No Cost Cancellation; second sentence: modify “one business day” to read “96 hours”

MODIFY: The following Part V clause is modified, but not called out under this RFP:

(1) V(g)(1)(iv) – delete “$150,000” and substitute therefore “$200,000.”

(2) V(g)(1)(v) – delete in its entirety

MODIFY: VI – Update clause 52.212-5 (JULY 2012).

As prescribed in 12.301(b)(4), insert the following clause:

52.212-5 - Contract Terms and Conditions Required to Implement Statutes or Executive Orders -- Commercial Items (Jul 2012)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22 U.S.C. 7104(g)).

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