FEDERAL AGENCY:

MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION

AUTHORIZATION:

Merchant Marine Act of 1936, Title VI, Subtitle B as amended; Public Law 104-239.

To maintain a U.S.-flag merchant fleet crewed by U.S. mariners to serve both the commercial and national security needs of the United States.

TYPES OF ASSISTANCE:

Direct Payments for Specified Use. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

Vessel's Operations restricted to U.S. foreign trade.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   U.S. citizens and certain specified foreign corporations.

Beneficiary Eligibility:   Ownership and operation of vessels and facilities useful to the United States in time of war or national emergency.

Credentials/Documentation:   Ownership of U.S. documented vessels.

Pre-application Coordination:   None. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Solicitation for applications in the Federal Register.

Award Procedure:   Office of Sealift Support and the Department of Defense review applications against criteria established in Title VI B of the Merchant Marine Act of 1936, as amended.

Deadlines:   As published in application solicitation.

Range of Approval/Disapproval Time:   90 Days from closing of application.

Appeals:   Decisions concerning administration of the Maritime Security Program will be referred to the Maritime Administrator.

Renewals:   Program is based on 1-year contracts renewable each year subject to funding not to extend past fiscal year 2005.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Program provides for payment of up to $2.1 million per vessel per year subject to statutory reductions.

Length and Time Phasing of Assistance:   One year contracts, renewable yearly, payable in monthly installments.

POST ASSISTANCE REQUIREMENTS:

Reports:   Vouchers on a monthly basis.

Audits:   Maritime Security Program subject to both internal and external audit. These audits will be made by the Office of the Inspector General (DOT) in accordance with the General Accounting Office guidelines, "Standards for Audit of Government Organizations, Programs, Activities and Functions," and additional OMB guidance.

Records:   Vouchers on a monthly basis.

FINANCIAL INFORMATION:

Account Identification:   69-1711-0-1-054.

Obligations:   (Direct payments) FY 01 $98,405,520; FY 02 est $99,201,000; and FY 03 est $98,700,000.

Range and Average of Financial Assistance:  
$2.1 million per vessel per year.

As of January 1, 2002, 47 ships were enrolled in the program.

REGULATIONS, GUIDELINES, AND LITERATURE:

46 CFR Part 295.

INFORMATION CONTACTS:

Regional or Local Office:   None.

Headquarters Office:   William F. Trost, Acting Director, Office of Sealift Support, Maritime Administration, Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590. Telephone: (202) 366-2323. FAX Number: (202) 493-2180.

Web Site Address:   http://www.marad.dot.gov

EXAMPLES OF FUNDED PROJECTS:

Maritime Security Program payments are paid to vessels operating in U.S. foreign commerce. Vessels include containerships, lighter-aboard ships (LASH) and Roll-on/Roll-off vessels (RO/RO).

CRITERIA FOR SELECTING PROPOSALS:

(1) Vessel is required to maintain U.S.-flag presence in foreign commerce and/or necessary for meeting military sealift requirements; (2) Applicant possesses operational expertise and intermodal assets useful to the United States in meeting its sealift requirements; (3) Maritime Security Program participants are required to commit sealift and intermodal capacity to the Emergency Preparedness Program (EPP), approved by the Secretary of Defense (SECDEF).