17-R-3513_Amendment_3.docx

N32205-17-R-3513

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

SOLICITATION/CONTRACT FORM

The required response date/time has changed from 20-Mar-2017 10:00 AM to 21-Mar-2017 10:00 AM.

The following have been modified:

PART IV

PART IV. TIME CHARTER COMMON TERMS AND CONDITIONS (Addendum to FAR 52.212-4)

1. GENERAL DEFINITIONS

AEL – Allowance Equipment List

Alterations - Additions of equipment; changes to the configuration, location, type, or number of pieces of equipment or systems; changes in the arrangement and outfitting of Vessel’s structure.

Associated Equipment - Construed to include all Contractor-furnished or owned equipment necessary for performance under this Charter

ATO - Anti-Terrorism Officer (same as Vessel Security Officer and/or Force Protection Officer)

AT/FP - Anti-Terrorism/Force Protection

Bbl - Barrel (42 U.S. gallons volume measure)

CAGE - Commercial and Government Entity Code (reference DFARS 252.204-7001)

CBR-D- Chemical, Biological and Radiological Defense

CFE - Contractor-furnished equipment

Charter - This document when executed; interchangeable with “Contract” and “Charter Party”

Charterer - The United States of America

Charter Party Date - Identified in Box 28 of SF-33

CMWD - Countermeasure Washdown System. Fixed system (or temporary using fire hoses attached to steel clips welded to vertical bulkheads or other structure). Using Ship’s firemain system, when activated, provides 360 degree (ideally) sea water curtain protection, mitigating the effects of CBR attacks. Also used to wash contaminants from Ship’s structure after a CBR attack.

COMLANTFLT – Commander, U.S. Atlantic Fleet

COMPACFLT – Commander, U.S. Pacific Fleet

COMNAVEUR – Commander, U.S. Naval Forces, Europe

COMNAVFORJAPAN - Commander, U.S. Naval Forces, Japan.

COMNAVSURFLANT - Commander, Naval Surface Force, U.S. Atlantic Fleet.

COMNAVSURFPAC - Commander, Naval Surface Force, U.S. Pacific Fleet

COMPSRON – Commander, Maritime Prepositioning Squadron

COMSC - Commander, Military Sealift Command.

COMSCINST - Commander, Military Sealift Command Instruction

COMSCCENT – Commander, Military Sealift Command Central

COMSCEUR - Commander, Military Sealift Command Europe

COMSCFE – Commander, Military Sealift Command Far East

COMSCLANT - Commander, Military Sealift Command Atlantic

COMSCPAC - Commander, Military Sealift Command Pacific

COMSECONDFLT - Commander, U.S. Second Fleet

COMSEC - Communications Security

COMSEVENTHFLT - Commander, U.S. Seventh Fleet

COMSIXTHFLT - Commander, U.S. Sixth Fleet

COMTHIRDFLT - Commander, U.S. Third Fleet

CO – Contracting Officer, identified in Box 26 of SF-33

COR - Contracting Officer's Representative

Contractor - Interchangeable with “Owner”

Crew - Of the Vessel identified at Box 7

Decontamination Station- A compartment onboard the Ship with direct access to the weather deck outfitted with features for crew decontamination.

DC - Damage Control

Designated Maritime Physician - Hospital, clinic and/or physician jointly approved by Contractor/Union/COMSC providing primary care, second opinions, or hospitalization for emergency medical care.

DFARS - Department of Defense Federal Acquisition Regulation Supplement (issued by the Department of Defense)

DSS - Defense Security Service

DLA-E – Defense Logistics Agency – Energy, formerly DESC

DoD - Department of Defense

DRRS-N - Defense Readiness Reporting System for Navy (replaced Status Of Readiness and Training System (SORTS))

DTG – Date Time Group. A unique number consisting of date-hour-minute in Zulu time plus month (3 letter abbreviation) and year (2 digit) which facilitates making reference to that message.

DWT – Deadweight tonnage

ECDIS – Electronic Chart Display and Information System, a computer based navigation information system that complies with IMO Standards

EMCON - Emissions Control

Emergency Repairs - Unexpected and unscheduled repairs required to maintain the integrity of the Ship's hull, machinery and/or systems; to insure the safety of the crew; and/or to provide for the effective performance of the Ship's mission.

EOM - Engineering Operating Manual (COMSCINST 3540.7)

EPIRB - Emergency Position Indicating Radio Beacon

EST – Embarked Security Team, normally a 12-person force, U.S. Navy or contracted personnel

FAR - Federal Acquisition Regulation

FCC - Federal Communications Commission

FEU – Forty foot Equivalent Unit (Cargo container of 40 foot length, or size/volume/cargo capacity measurement equal to same)

FFD - Fit For Duty

FLC - Fleet Logistics Center, formerly Fleet Industrial Supply Center (FISC)

Fleet Commander – Commander, Pacific Fleet; Commander, Atlantic Fleet; or their designated subordinate Commander.

FOS - Full Operating Status (for Reduced Operating Status, see Section H-16)

FP or FP/AT – Force Protection or Force Protection/Anti-Terrorism

Ft – feet

FPCON – Force Protection Condition

FPCON NORMAL – This condition applies when a general global threat of possible terrorist activity exists and warrants a routine security posture. At a minimum, access control will be conducted at all DoD installations and facilities.

FPCON ALPHA - This condition is declared as a general warning of possible terrorist activity, the nature and extent of which is unpredictable, when the circumstances do not justify full implementation of the measures of FPCON BRAVO. However, it may be necessary to implement selected measures from FPCON BRAVO. The measures in this FPCON must be capable of being maintained indefinitely.

FPCON BRAVO - This condition is declared when there is an increased and more predictable threat of terrorist activity even though no particular target is identified. The measures of this FPCON must be capable of being maintained for weeks without causing undue hardship, without affecting operational capability and without aggravating relations with local authorities.

FPCON CHARLIE - This condition is declared when an incident occurs or when intelligence is received indicating that some form of terrorist action against installations or personnel is imminent. Implementation of this measure for more than short periods will probably create hardship and will affect peacetime activities of the installation and its personnel.

FPCON DELTA - This condition is declared when a terrorist attack has occurred or when intelligence has been received that terrorist action against a specific location is likely. Normally this FPCON is declared as a localized warning.

FPO – Force Protection Officer (same as Vessel Security Officer and/or Anti-Terrorism Officer).

GFP - Government-Furnished Property (see FAR 52.245-1)

Government - The United States of America; interchangeable with “Charterer”

Government Designated Representative - Including, but not limited to, force protection personnel, military, Government employees, and Government Contractors hp – horsepower [1 hp equals 0.745799 kW]

IACS - International Association of Classification Societies

IAW - In Accordance With

IDC - Independent Duty Corpsman

IMO - International Maritime Organization

Independent Agency – A Commercial entity under contract to the Government to provide all Government-owned or Chartered Ships of the Military Sealift Command, including the Vessel in this Contract, various shipboard supplies and services required for compliance with certain MSC operations and maintenance programs.

Industrial Assistance - Maintenance and repair work performed by an independent subcontractor to the Contractor.

INMARSAT - International Maritime Satellite

Installed Equipment – All items except furniture, recreation and gym equipment that are permanently or semi-permanently attached to the Ship by welds, bolts, or similar methods of attachment. This includes pumps, engines, winches, kingposts, booms, antennae, etc. This category of material is generally treated in the same manner as the Ship’s hull, so that the terms “Ship and installed equipment” and simply “Ship” are generally synonymous.

ISP – Inport Security Plan. A classified Naval Message which details AT/FP measures while in port.

ISM - International Safety Management System

ISPS - International Code for the Security of Ships and of Port Facilities (ISPS Code)

ISSC – International Ship Security Certificate km – kilometers kPa – kilo Pascal [1 kPa equals 20.886 psf] kW - kilowatts [1 kW equals 1.34 horsepower (hp)]

Laden – ship/vessel loaded with cargo or freight

LTON or LT - Long Ton (2,240 pounds weight) m – meter m3 – cubic meter

MARPOL – International Convention for the Prevention of Pollution from Ships

MB - Megabyte

MDR – Medical Department Representative. A person assigned solely to provide medical care and operate a clinic aboard Ship, as compared to a commercial M-PIC (see below).

MILSTRIP – Military Standard Requisitioning and Issue Procedures

F(E) – Maritime Prepositioning Force, Enhanced

M&R - Maintenance and Repair

MAREP - Message generated by maritime surface forces to report on surface, subsurface, air or special interests units operating in Maritime environment.

Master – The official title of the Captain of the Vessel identified in Box 7.

MR - Medical Representative

MEDEVAC - Medical Evacuation; usually to the nearest medical treatment facility.

MIB - Marine Index Bureau

MT – Measurement Ton (forty cubic feet, volume measurement)

MOA - Memorandum of Agreement

M-PIC – Medical Person in Charge aboard a commercially manned Ship. This is generally a collateral duty of the Master or Chief Mate for first aid purposes.

Moderate Weather - Sustained wind and sea conditions of "Beaufort Wind Scale" Beaufort Force 5 and World Meteorological Organization Sea State 4.

MSC - U.S. Department of the Navy, Military Sealift Command

MT – Metric Ton. A unit of weight, equal to 1,000 kilograms.

NAVSEA - Naval Sea Systems Command

NEURS - Navy Energy Usage Report System

NICN - Navy Item Control Number

NCIS - Naval Criminal Investigative Service

NGW – New Generation Wideband satellite communications system (prototype)

NM- Nautical Miles

NMCARS - Navy Marine Corps Acquisition Regulation Supplement

NOR – Notice of Readiness

Owner - That entity exercising commercial control of the Vessel identified in Box 7; interchangeable with “Contractor” and “Offeror” and to include disponent owners and all the Shipowner’s and disponent owner’s agents, employees, independent Contractors, Master, Officers, and crew.

OAA – Ordnance Accounting Ashore

OCI – Onboard Condition Inspection – Survey of Vessel conducted by N75, N4 and MSC medical personnel to assess material condition, appearance, mission equipment readiness and confirm compliance with contractual requirements.

ODS - Ozone Depleting Substances

OPCOM – Operational Commander (Normally the MSC Area Command)

Operation - Operation includes the daily, or other periodic starting, stopping, adjusting, inspecting, lubricating, etc. of the mechanical, electrical and auxiliary systems and equipment; watch standing and conducting rounds to maintain Ship's status.

OPNAVINST - Chief of Naval Operations Instruction

OPORD - Operations Order

OPSEC - Operations Security

OTSR - Optimum Track Ship Routing

P&I - Marine protection and indemnity insurance

Paying Office - Identified in Box 25 of SF-33

Place - Any berth, dock, anchorage, submarine line, alongside any Vessel or lighter or any other place whatsoever to which Charterer is entitled to direct the Vessel hereunder.

Psf – Pounds per square foot (load measurement)

Psi - Pounds per square inch (pressure measure)

PREREP – An alternate form of the LOGREP message, the PREREP specifies arrival time and date, purpose of visit, port services required and other requirements.

Readiness – Pertains to the Vessel’s ability to perform all required missions. See Section H-6

RFP - Request for Proposals. Interchangeable with Solicitation

ROS - Reduced Operating Status. See Section H-16

SDWT - Deadweight capacity, to assigned summer mean draft

SHIPFILL – The quantity of government equipage issued based on the number of equipment or personnel carried on board.

Speed – The rate of advance of a vessel. It is derived by dividing the total hours at sea on any given sea passage (as show in the Vessel’s log)—after excluding any hours of non-moderate weather and any sea passage covered by an off-hire calculation—into the total miles at sea on the given sea passage.

SWL - Safe Working Load

TEU – Twenty Foot Equivalent Unit (Cargo container of 20 foot length, 8 foot height, 8 foot width, or size/volume/cargo capacity measurement equal to same). For the purpose of this solicitation/contract, all government-furnished TEUs are 20’ long by 8’ wide by 8’6” high.

TIN - Taxpayer Identification Number

USCG - United States Coast Guard

USD – U.S. Dollars

Vessel - Identified at Box 7

VSP – Vessel Security Plan

VSO – Vessel Security Officer (same as Anti-Terrorism Officer and/or Force Protection Officer)

(b) DELIVERY

Vessel delivery within the laydays specified in Box 5 is of paramount importance to the Government. It is anticipated by the parties that the Vessel will be delivered within the laydays specified in Box 5 and any delay in delivery beyond the laydays’ ending date shall constitute a material breach of this contract. The Vessel and all Associated Equipment shall be delivered to the Charterer at a port or place in accordance with Box 2 not later than 1600 hours local time at place of delivery on the date stated in Box 5, the Contractor giving written notice of readiness during office hours to the appropriate Government representative at the port or place of delivery on a working day (Saturdays, Sundays, or other recognized weekly days of rest, U.S. Government holidays, and holidays observed at the delivery port, whether national or local, shall not be considered working days). Government inspection of the Vessel shall be completed within a reasonable amount of time thereafter, not exceeding twenty-four (24) hours after proper tender of the notice of readiness, (Saturdays, Sundays, or other recognized weekly days of rest, U.S. Government holidays, and holidays observed at the delivery port, whether national or local, excepted in the computation of said twenty-four hour period). Hire shall commence upon acceptance of the Vessel by the Charterer but not before the date commencing in Box 5.

(c) REDELIVERY

Unless lost, the Vessel shall be redelivered at a port or place in accordance with Box 3.

(d) PORTS/PLACES

1. Safety. The Charterer shall exercise due diligence to order the Vessel to safe berths or places (or alongside vessels or lighters reachable on her arrival and designated/procured by the Charterer) that the Vessel can approach, lie at, and depart from always accessible, always afloat. The Charterer shall not, however, be deemed to warrant the safety of any berth or place and shall not be liable or accountable for any loss, damage, injury, or delay resulting from any unsafe condition at any berth or place unless caused by the Charterer's failure to exercise due diligence as aforesaid. Any lightering will be at the expense of the Charterer; however, in the event the Charterer directs the Owner to arrange for lighterage services, the Owner shall make all necessary arrangements therefore.

1. Ice. The Vessel shall not be ordered or bound to enter any port or place inaccessible due to ice or at which lights, lightships, markers, or buoys on Vessel's arrival are (or are likely to be) withdrawn by reason of ice. The Vessel shall not be obliged to force ice. If a port or place to which the Vessel is ordered is inaccessible due to ice, the Master shall immediately notify the Charterer requesting revised orders and shall remain outside the ice-bound area. If there is danger of the Vessel being frozen in at any port or place, the Vessel shall, at Master's discretion, proceed to the nearest safe and ice-free position, at the same time requesting the Charterer's revised orders. Any delay or detention resulting from ice to be for the Charterer's account.

(e) CHARTER PERIOD

This Charter Party shall be for the period designated in Box 4, 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. Any option periods shall be in direct continuation; shall be without guaranty at the Charterer's sole option; and shall be declared as specified in VIII(c)(2) and (3). Optional periods may be declared at any time prior to redelivery of the Vessel.

(f) DRY DOCK

General. The Owner, at its expense, shall dry dock, clean and maintain the Vessel's bottom and propeller, and make all overhaul and other necessary repairs properly to maintain the Vessel in class, maintain the Vessel in compliance with IV(b) (Delivery) above and the warranties of II(o) (Warranty) above, and otherwise to keep the Vessel tight, staunch, and strong, and in thoroughly efficient order and condition

(g) INSURANCE

G‐3.1 Vessel Owner’s Insurance.

G‐3.1.1 During the full period of this Charter Party, Contractor shall maintain marine insurance coverage on the Vessel, including:

i. Hull and Machinery,

ii. Protection and Indemnity (P&I) (including pollution liability),

iii. War Risk Hull and Machinery,

iv. War Risk Protection and Indemnity (P&I), and

v. Second Seaman’s War Risk.

Except as otherwise expressly provided in Section G‐3.1.3 below or as expressly provided in Section G‐3.1.3 below or as expressly provided in the section entitled “War” (G‐4), all expenses for such insurance coverage (including but not limited to premiums, additional premiums, calls, commissions, overspill claims, advancements, assessments, deductibles, and all other insurance costs regardless of Charterer or Contractor fault, neglect, action or inaction, or cause of claim or cost whatsoever) shall be for Contractor’s account and shall be deemed to be included in the hire payable under this Charter Party. Within 10 calendar days following award of this contract, Contractor shall provide the Contracting Officer copies of policies or cover notes evidencing that required coverage has been obtained and demonstrating that the coverage is consistent with the requirements of this section. Contractor’s failure to provide the required policies or cover notes may be considered material breach of this contract. Contractor shall make insurance claims under applicable policies for all damages, injuries, or claims arising from or related to this charter when directed by Charterer regardless of Charterer’s fault, neglect, action, inaction, or breach of clauses, obligations or warranties (express, implied or otherwise) of this charter contract.

G‐3.1.2 Contractor shall obtain an endorsement on all of Contractor’s insurance policies listed in Section H-3.1.1 by which Contractor’s Insurer “waives all rights of subrogation against the United States of America up to an amount of $350,000,000.”

G‐3.1.3 If Vessel is sent beyond the limits of American Institute Trade Warranties under this Charter Party, the Charterer agrees to reimburse the Contractor for the actual extra cost of additional premiums and/or increased deductible levels to the extent such extra cost is occasioned by the Vessel’s trading beyond such limits. Contractor shall immediately notify Charterer whenever any sailing orders will send the Vessel beyond such limits, shall identify to Charterer any anticipated additional cost of insurance relating thereto, and shall obtain Charterer’s approval to proceed beyond such limits prior to doing so. If Contractor fails to provide the notifications required or to obtain Charterer’s informed prior approval, Charterer shall not be required to reimburse the Contractor for the costs described in this paragraph. The issuance of sailing orders, by itself, does not constitute approval in advance by Charterer.

G‐3.1.4 All policies shall contain an endorsement stating that “in the event Insurer receives from Vessel Owner any notice of cancellation or any notice of material change to the policy or its coverage, the cancellation or change shall not be effective until 30 days after written notice thereof is provided to Charterer’s Contracting Officer by the Insurer (unless such change is directed by the Charterer’s Contracting Officer).” Additionally, Contractor shall immediately notify Charterer of any change whatsoever in coverage.

G‐3.2 Charterer Named Additional Assured on Owner’s Hull Policy, War Risk Hull Policy, and Second Seaman’s War Risk Policy.

G‐3.2.1 The United States of America (as Charterer) shall be named as an additional assured with waiver of subrogation under the Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, and Second Seaman’s War Risk policy. Within 10 calendar days following award of this contract, Contractor shall provide the Contracting Officer copies of policies or cover notes evidencing that the required coverage has been obtained. Contractor’s failure to provide the required policies or cover notes may be considered material breach of this contract.

G‐3.2.2 “Other than owner” and “as owner” limitations. If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, or Second Seaman’s War Risk policy contain(s) any provision limiting coverage under the policy only to liabilities arising as owner of the vessel, Contractor shall arrange for such limiting provision to be stricken from the policy.

G‐3.2.2.1 If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, or Second Seaman’s War Risk policy contain(s) any provision designed to limit the effect of striking “other than owner” or “as owner” provisions as required in Section H‐3.2.2, such provisions shall also be amended to ensure Charterer is provided full benefit of the insurance for its acts as Charterer.

G‐3.2.3 Limitations of Coverage to U.S. Limitation of Shipowners’ Liability Act (or similar) limitation amounts. If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, and/or Second Seaman’s War Risk policy contain(s) any provision(s) limiting maximum payment to Owner in any instance to the amount to which Owner is able to limit Owner’s liability pursuant to the U.S. Limitation of Shipowners’ Liability Act of 1851, the 1976 Convention on Limitation of Liability for Maritime Claims, or any similar law, Contractor shall arrange for such limiting language to be stricken or amended to ensure the policy or policies are not similarly limited in payment or coverage amount with respect to coverage afforded the United States of America as additional assured Charterer.

G‐3.3 Time Charterer Protection and Indemnity (P&I) with P&I War Risk Coverage.

G‐3.3.1 Contractor shall obtain a Time Charterer Protection and Indemnity policy/entry with P&I War Risk coverage for the United States of America (as Charterer) with coverage amount of $350,000,000 and covering all risks typically covered by Time Charterer Protection and Indemnity entries with P&I War Risk coverages in Protection and Indemnity associations that are members of the International Group. Except as otherwise expressly provided in the section entitled “War,” all expense of such policy/entry described in this section (including but not limited to premiums, additional premiums, calls, commissions, overspill claims, advancements, assessments, deductibles, and all other insurance costs regardless of Charterer or Contractor fault, neglect, action or inaction, or cause of claim or cost whatsoever) shall be for Contractor’s account and shall be deemed to be included in the hire payable under this Charter Party. Within 10 calendar days following award of this contract, Contractor shall provide the Contracting Officer a copy of the policy. Contractor’s failure to provide the required copy of the policy may be considered material breach of this contract. Contractor shall make insurance claims under the Time Charterer Protection and Indemnity policy/entry described in this section when directed by Charterer.

G‐3.3.2 Charterer shall not be obliged to declare to the insurer all ships chartered by it. Contractor will advise the insurer that the Charterer will not declare all ships chartered by it to the insurer, and shall obtain an endorsement on the policy stating, “the United States of America, as charterer, is not required to declare to [insert insurer name] all ships chartered by it.”

G-3.4 Contractor to Indemnify. If Contractor fails to name the United States as additional assured with waiver of subrogation on Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, or Second Seaman’s War Risk policy as required by Section H-3.2; or fails to obtain for the United States the Time Charterer P&I policy/entry with War Risks coverage required by Section H-3.3; the Contractor shall indemnify and hold harmless the Charterer for all liability, costs, or expenses which would have been covered by the required insurance policies/coverage.

G-3.4.1 Contractor shall not, through action or inaction (including but not limited to failing to meet all conditions of a policy, causing through action or inaction cessation of a policy, or violating any warranty of a policy), vitiate or void the coverage afforded by the Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, Second Seaman’s War Risk policy, or the coverage afforded by the Time Charterer Protection and Indemnity policy/entry with P&I War Risk coverage. If any such policy is vitiated or voided by Contractor’s action or inaction as described in this Section H-3.4.1, Contractor shall indemnify and hold harmless the Charterer for all liability, costs, or expenses which would have been covered by the policy had such policy remained in full force and effect.

G-3.4.2 In the event Contractor fails to strike “other than owner” or “as owner” provisions per Section G‐3.2.2, fails to amend supplemental limiting provisions as described in Section G‐3.2.2.1, or fails to amend provisions limiting payment or coverage as described in Section G-3.2.3, Contractor shall indemnify and hold harmless the Charterer for all liability, costs, or expenses which would have been covered by Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, and Second Seaman’s War Risk policy had such provisions been stricken or amended as required.

(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, or zone 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 Owner 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 Owner indemnification against said risks pursuant to Public Law 85-804.

(2) The Vessel Owner 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 Owner 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. Owner 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.

1. Government War Risk Insurance / Indemnity

1. General. Upon receipt of notice and instruction from the Contracting Officer, as specified in the last sentence of Section H-4.2 above, with respect to any area excluded by the War Risk Trading Warranties or included by the Lloyd’s Joint War Committee on the Hull War, Strikes, Terrorism and Related Perils Listed Areas under the Contractor’s commercial War Risk coverage, the Contractor shall, as soon as practicable, contact its insurance brokers or underwriters and arrange for the suspension of its commercial War Risk insurance upon entry of the vessel into, or extension of stay of the vessel in such area(s), 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 , as the case may be, subject to resumption of its commercial War Risk insurance upon exiting such area(s). In such instances, the Contractor shall accept the Government’s indemnity or War Risk insurance, whichever is applicable, in lieu of such commercial War Risk insurance. The Contractor shall ensure that the suspension of its commercial War Risk coverage is coincident with the time that any Government indemnity or War Risk insurance becomes effective, and shall likewise ensure that its commercial War Risk insurance is resumed at the time when any Government indemnity or War Risk insurance becomes ineffective. The Contractor shall retain the same risks, such as deductibles (if any), that it has under its commercial insurance.

1. Government War Risk Insurance. Under the authority of 46 U.S.C. § 53905, the United States Maritime Administration (MARAD), at the request of Commander, Military Sealift Command, may furnish the following war risk insurance coverage, which will be effective during the vessel’s transit under this Contract in areas which are in war risk exclusion zones, or waters described in the current Lloyd’s Joint War Committee Hull War, Strikes, Terrorism and Related Perils Listed Areas , or otherwise excluded under the Contractor’s commercial marine War Risk trading warranties, and which are designated by notice from the Contracting Officer to the Contractor:

0. War Risk Hull Coverage, insured at the hull value stated in Vessel’s current commercial hull and increased-value policies effective on Charter Party date, a copy of which current hull policies shall be furnished to Charterer;War Risk Protection and Indemnity coverage, insured at a value of either (i) 150% of the hull value stated in Vessel's current commercial hull policy effective on Charter Party date or (ii) $50,000,000, whichever is greater but in no event exceeding that amount of commercial P&I cover which was in effect for the Vessel on Charter Party date;

0. War Risk Blocking and Trapping Coverage;

0. War Risk Second Seaman’s coverage, the principal sum of which shall be $200,000 per Master, Officer, or crew member (this is also the loss-of-life benefit);

d. War Risk Loss-of-Hire coverage, if a commercial loss-of-hire policy was in effect on the Vessel on Charter Party date. The sum insured by this policy, including the amount of lost time that is covered, will be equivalent to the levels insured by the Vessel's commercial policy. However, the amount insured by this policy will in no event exceed the hire rate (effective under this Charter Party when the loss of time began), over a maximum duration of 90 days lost. This maximum amount will be further subject to a deductible equivalent to that in place under the Vessel's commercial policy.

1. Government Indemnity. Under the authority of Public Law 85‐804 (72 Stat. 972, August 28, 1958) and Executive Order 10789, as amended by Executive Order 11610, the Secretary of Defense or the Secretary of the Navy may authorize the Contracting Officer to indemnify the Contractor against loss from risks that would be covered by MARAD war risk coverage as set forth in the paragraph entitled “Government War Risk Insurance” directly above.

(j) READINESS

Readiness is a required service of the Vessel. Readiness shall be defined as the ability of a Vessel and Associated Equipment to perform the function for which designed, built, or chartered, including the ability to deploy without delays, whether or not so ordered to perform. If there is a degradation of this readiness, such that actual performance or condition of the Vessel or Associated Equipment shows any failure to satisfy one or more of the Owner's warranties or renders the Vessel in less than a fully efficient state, the hire will be proportionately decreased so as to indemnify the Charterer to the extent of such failure, this Charter Party to remain otherwise unaffected. Failure of the parties to agree upon the extent of the proportional decrease in hire shall be a dispute under the clause entitled "Disputes" incorporated herein by reference in Part II(d) above. Nothing in this clause shall limit the rights of the Charterer to place the Vessel off-hire pursuant to IV(j) (Off-Hire) below.

(k) OFF-HIRE

1. General. In the event of the loss of time resulting from deficiency and/or default of men including but not limited to misconduct, illness, injury, strikes, labor disruptions, lockouts, deficiency of stores; fire; breakdown of or damages to hull, machinery, or equipment; collision; stranding; grounding; detention by authorities; average accidents to Vessel or cargo unless resulting from inherent vice, quality, or defect of the cargo; repairs; inspections; dry docking for the purpose of examination or painting bottom; or deviation for the purpose of landing any ill or injured person onboard other than any passenger, supercargo, or military personnel who may be carried at the Charterer's request; or by any other cause whatsoever preventing the full working of the Vessel; the payment of hire shall cease for all time lost until the Vessel is again ready and in a fully efficient state to resume her service from a position not less favorable to the Charterer than that at which such loss of time commenced. Should the Vessel deviate or put back during a voyage contrary to the orders or directions of the Charterer for any reason, the hire is to be suspended from the time of her deviating or putting back until she is again ready and in a fully efficient state to resume her service from a position not less favorable to the Charterer than that at which such loss of time commenced. When the period of time lost to the Charterer on any one occasion is less than four consecutive hours (or 12 consecutive hours while in prepositioning service), the hire shall not be reduced for such period.

1. Costs for Owner. The cost of fuel consumed while the Vessel is off-hire, as well as all port charges, pilotages, and other expenses incurred during such period and consequent upon the putting in to any port or place other than that to which the Vessel is bound, shall be borne by the Owner. All fuel used by the Vessel being driven into port or to shallow harbors or to rivers or ports with bars, the delay of the Vessel and/or expenses resulting there from shall be for the Charterer's account. See paragraph IV(p)(5) infra.

1. Delays/Excessive Fuel Consumption. If upon any passage the Vessel (i) fails to make the warranted speed in Boxes 66 and 67 or if her warranted fuel consumption exceeds that in Boxes 68-71 and Box 73, either or both of which are due to defect in or breakdown of any part of her hull, machinery, or equipment; casualty; or inefficiency of Master, Officers, or crew or their failure to proceed with utmost dispatch, and (ii) is delayed more than 12 hours, the hire for the time lost and any cost of extra fuel consumed, if any, shall be borne by the Owner. Any delay by ice shall be for the Charterer's account.

(l) SUPERCARGO AND GOVERNMENT DESIGNATED REPRESENTATIVES

1. Charterer’s Option. The Charterer shall have the right to assign supercargo (supercargo as used herein is both plural and singular) and other Government designated representatives aboard the Vessel for duty purposes to the extent that accommodations and United States Coast Guard certification (when applicable) allow and in accordance with COMSC Instruction 3121.9 Series. The Charterer shall pay an amount of $30.00 per day, per person, covering all expenses including accommodations and victualling. The Owner shall victual U.S. Government designated representatives, pilots, and Customs Officers when authorized by the Charterer at $7.00 per meal. The Government particularly reserves the right to put a representative onboard the Vessel, with the pilot, at the approach to a discharge port (or otherwise as mutually agreeable) to inspect the Vessel and to monitor the unloading; reimbursement for accommodations and/or victualling is to be as described above.

1. Military Personnel. In addition to the carriage of personnel noted in H-10.1 above, the Charterer shall have the right to assign other military personnel aboard the Vessel. The Contractor will be reimbursed for accommodations and victualing at the rate set forth in H-10.1 above. The Vessel shall be outfitted with USCG-required safety equipment for the use of such military personnel.

1. Charterer’s Liability. The Charterer shall be liable to the Owner for any loss of the Vessel's fittings or appurtenances or any damage to the Vessel, her fittings, or appurtenances caused by the act of supercargo or Government designated representatives in the embarkation, carriage, or debarkation of supercargo or Government designated representatives to the extent such loss or damage is not payable under the Vessel's insurance policies. However, the Charterer shall not be liable for such damage unless written notice specifying such damage and, if obtainable, the name of the party or parties causing such damage shall have been given to the Charterer or its authorized representative within a reasonable time.

(m) TIME LOST

1. Tacking to the End of Charter Period. Any time during which the Vessel is off hire under this Charter Party may be added to the charter period, at the Charterer’s option. If the Charterer exercises its option to extend the charter period pursuant to this sub-clause, the charter period shall be deemed to include such extension and hire shall be payable at the rate(s) which would otherwise have been payable during each period of off hire.

1. Excessive Time Lost. The Charterer may by written notice cancel this Charter at no cost to the Government whenever, in any given 365-day period, for any reason whatsoever, more than 30 days are lost except for time lost as a result of the causes set forth in IV(h)(1) (War) above. Failure to cancel this Charter after thirty days are lost shall be without prejudice to any other rights of the Charterer, or any later right of the Charterer to cancel this Charter Party.

1. Relationship to Other Remedies. No remedy conferred by this paragraph upon the Charterer is intended to be exclusive of any other remedy already conferred by this Charter Party now or hereafter existing at law or in equity or by statute.

(n) NEGLIGENCE OF PILOTS

The Government, as the Charterer, shall not be held responsible, liable, or accountable for losses sustained by the Owner or the Vessel through the negligence of pilots or tugboats although engaged by the Charterer. Pilots and tugboats shall be considered servants of the Owner.

(o) PORT CHARGES AND EXPENSES

1. Expenses for Charterer. Except as otherwise provided herein, the Charterer shall pay expenses of loading and unloading cargo and all wharfage, dockage, canal tolls, dues, taxes, and similar port charges imposed by public authority including consular charges (except those pertaining to the Master, Officers, and crew) incurred by the Vessel in ports visited pursuant to the Charterer's direction. Agency fees, provided not incurred for the convenience of the Vessel or the Owner, shall also be for the Charterer's account. The Charterer shall pay all pilotage charged to the Vessel; however, in no case shall the Charterer reimburse the Owner for pilotage paid to the Master or other members of the crew. Surveyors or consultants as mutually agreed may be retained under this Charter in order to facilitate fact-finding in respect of actual or potential claim actions or for inspections or surveys generally; the costs therefore shall be as mutually agreed and, if for the Charterer's account, said costs shall be incurred only after prior written approval from the Contracting Officer.

1. Reimbursement. All of the charges incurred for the Charterer's account as noted in subparagraph (1) above shall be paid by the Owner if so required by the Charterer. The Charterer shall thereafter reimburse the Owner for such charges in accordance with II(i) (Payment) above and IV(y) (Reimbursable Supplies and Services (Charters)) below.

(p) OWNER’S OBLIGATION

1. Provisions, Insurance, Wages, Fees, and Other Expenses. The Owner shall, unless otherwise provided herein, provide and pay for all provisions; deck, engine room, and galley stores; lube oil; slop and garbage removal/disposal; fresh water; insurance on the Vessel; wages of, transportation of, and services for Master, Officers, and crew and consular fees pertaining to them in accordance with IV(n)(1) (Port Charges and Expenses) above. The Owner will be responsible for all port charges associated with the foregoing.

1. Dispatch. The Owner, through its agents, employees, and servants, shall commence and prosecute the voyages made pursuant to this Charter with utmost dispatch and shall render all customary assistance with the Vessel's crew and equipment.

1. Logs. The Owner shall have maintained onboard the Vessel deck and engine room logs, true copies of which shall be retained by the Owner and made available to the Charterer at any time upon request and at no cost to the Government for a period of 10 years after the expiration of this Charter Party. Logs shall be legible and in English.

(q) 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. Any reimbursement pursuant to this Paragraph shall be subject to the requirements of paragraph (z) below entitled “REIMBURSABLE SUPPLIES AND SERVICES (CHARTERS).”

1. 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.

1. Fuel Oil Sampling and Testing.

1. 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. These actions shall be completed within 24 hours of completion of the bunkering effort. The Owner shall record the serial numbers and disposition of all sample bottles in the Ship’s Log.

1. For charters of six months or less, the Owner shall perform and bear all costs associated with fuel testing. At a minimum the Contractor shall collect, seal, and serialize a MARPOL VI retained sample and an Offship Test sample. The Contractor 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.

c. 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 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 IV(aa) (Savings) below. Any reimbursement pursuant to this Paragraph shall be subject to the requirements of paragraph (z) below entitled “REIMBURSABLE SUPPLIES AND SERVICES (CHARTERS).”

(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…