A0003 Attachment 21_Guidelines for Off-Hire.pdf

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Attached to
N3220525R6003 - SURTASS-E RFP
Solicitation number
N3220525R6003
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This is an appendix to a Charter Party contract that establishes guidelines for determining off-hire charges when a contractor fails to meet readiness standards. The document provides a structured framework for calculating financial deductions based on specific mission-degrading casualty events, though these guidelines are explicitly non-binding and subject to the Contracting Officer's discretion based on individual circumstances.

The guidelines define twelve categories of readiness failures with corresponding percentage deductions or calculation methods. Full off-hire penalties (100%) apply to inability to sail due to main propulsion failure, USCG or other authority restrictions on sailing, and failure to maintain a stable platform for defined sea state operations. Partial off-hire charges are applied proportionally based on cargo unable to work in measurement tons for casualty events involving cargo handling equipment (stern ramps, LASH cranes, container cranes, general cranes/booms) and cargo operations restrictions. Speed-restrictive main propulsion casualties require passage evaluation to determine appropriate deductions. Air conditioning/dehumidification (AC/DH) casualties apply reduced readiness percentages with duration factors: 25% for 1-15 days post-casualty, 50% for 16-30 days, and 75% beyond 30 days. The document acknowledges that Government-caused difficulties in transporting repairs, spare parts, and personnel are recognized when determining off-hire, and specifies that actual time lost (rather than readiness issues) shall be used to calculate off-hire for instances of genuine lost time.

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ATTACHMENT 21

GUIDELINES FOR FULL/PARTIAL OFF-HIRE PERCENTAGES ON READINESS

ISSUES

The following are guidelines for the determination of off-hire charges against the Contractor for specific instances of failure to comply with readiness standards under IV(i), “Readiness,” and IV(j), “Off-Hire,” of this Charter Party. These standards are guidelines only and are not construed as binding and inflexible provisions of this Charter Party. When determining off-hire, the Government will recognize difficulties attributable to the Government, which are encountered by the Contractor in transporting repair and spare parts, personnel, and service representatives. The Contracting Officer at all times reserves the right to make off-hire determinations under the specific facts and circumstances of each incident at issue. If, in any particular instance, these standards operate to impose inequitable results on either the Government or the Contractor, the Contracting Officer may make appropriate adjustments to the off-hire amount suggested by the guidelines so as to comport with applicable Admiralty Law and Custom of the Trade practices.

Definitions: OOC = Out of Commission MT = Measurement Tons

Mission Degrading Casualty (as applicable) Percentage Deduction

1. Unable to Sail - Main Propulsion - 100% Casualty or Other Cause

2. Main Propulsion Casualty (Speed Restrictive)

- Point to Point - Slow Passage Evaluation

- Surveillance Operations - % Decrease in Warranted Speed

3. USCG/Other Authority Restricts Sailing - 100% (e.g. Form 835)

4. USCG/Other Authority Restricts Cargo - % Cargo Unable to Work (MT) Operations

5. Stern Ramp OOC - % Cargo Unable to Work (MT) (Only Means to Discharge)

6. Stern Ramp OOC (Able to Discharge All - Additional Time to Up/down Cargo Load Via Other Means)

7. LASH Crane OOC - % Cargo Unable to Work (MT)

8. Container Crane OOC - % Cargo Unable to Work (MT)

9. General Cranes/Booms OOC - % Cargo Unable to Work

10. Cargo Elevators OOC - Additional Time to Up/down Load

11. AC/DH OOC - %

Cargo Affected (MT) X

12. Failure to maintain stable platform - 100% for defined sea state installation/operation

* Duration Factors: The following duration factors are applicable for use in determining reduced readiness percentages for AC/DH casualties:

- 1 - 15 days following casualty = 25%

- 16-30 days following casualty = 50%

- Beyond 30 days following casualty = 75%

Note: For actual issues of lost time (VICE readiness issues), actual time lost to be used to determine off-hire.

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