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Ready Reserve Force (RRF) Ship Manager

Ships in categories ROS-4, ROS-5, RRF-10, RRF-20 and RRF-30 require the services of a Ship Manager. MARAD contracts with U.S. commercial ship operators for the maintenance and operation of RRF vessels. The overall responsibility of Ship Managers is to maintain their assigned RRF ships in Fully Mission Capable Readiness Status and to efficiently activate and operate these vessels in support of national defense objectives. Fully Mission Capable Readiness Status is defined as capable of ship activation within the required readiness period and remaining fully available and operational for a period of 180 days without interruption to mission, and being in full compliance with all applicable Regulatory Body requirements.

On 12 June 1998 U.S. Transportation Secretary Rodney E. Slater announced the award of 39 performance-based contracts to 10 American ship-owning and -operating companies to manage 89 ships of the Ready Reserve Force. The total estimated combined value for all 39 contracts over five years is $1.1 billion. This figure includes the expected costs of shipyard work and other maintenance and operational expenses for which the ship managers will be reimbursed. The ship manager contracts are performance-based service contracts, allowing the government to capitalize on the ship managers’ expertise and commercial business practices.

In August 1999, the Department of Justice announced indictments of 23 individuals as a result of a four-year law enforcement investigation [code-named OCTANOVA]. The Federal Bureau of Investigation (FBI) Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Office of Inspector General of the Department of Transportation focused on bribery, fraud, and kickbacks relating to the maintenance of both military sealift command ships and Ready Reserve fleet vessels. As part of "Operation Knotdock" the FBI set up an undercover company in New Orleans, Coastal Marine Engineering Group (CMEG), with agents posing as marine contractors to investigate bribery operations. The government's first conviction in the lengthy investigation came in 1998. Two MARAD employees eventually pleaded guilty to accepting unlawful gratuities from contractors, and MARAD took action to debar or suspend 16 companies and individuals. MARAD subsequently performed an audit to evaluate the adequacy of MARAD's internal control system for awarding and managing its contracts. While MARAD had effective policies and procedures related to the award of the new ship's contracts, the administration of those contracts with ship managers and general agents needed improvement. MARAD agreed to strengthen its controls for administering the contract and now must follow through on the necessary corrective action.

Following the announcement of contracts to manage RRF ships in 1998, MARAD rescinded the contracts. It extended existing contracts to make sure the ships remained mission ready. On 04 May 2000 Maritime Administrator Clyde J. Hart Jr. announced the award of 33 contracts, awarded on a competitive basis, to nine American ship owning and operating companies to manage 74 of the Ready Reserve Force ships. The total estimated combined value for all 33 contracts awarded over five years was $1.1 billion. This figure includes the $316.3 million value of the basic contracts, plus expected costs of shipyard work and other maintenance and operational expenses for which the ship managers will be reimbursed.

The Ready Reserve Force is composed of militarily useful ships maintained in a high state of readiness to be activated within four, five, ten, twenty or thirty days of notice from the Defense Department. MARAD is responsible for acquiring, upgrading, activating, deactivating and maintaining the RRF. Ship manager contracts are awarded on a competitive basis, utilizing full and open competition. U.S. companies that own or operate ships in commercial service or other government ships are eligible. Each contract covers a group of two or three ships, and the maximum award for any one contractor is 12 ships.

American Overseas Marine Corporation Quincy, MA$10,701,806Cape JubyWilmington, NC
Cape Johnson
$6,892,320Cape JohnViolet, LA
Cape JacobPrepositioned
$11,543,456Green Mt StateBremerton, WA
Beaver State
$12,214,503WrightBaltimore, MD
CurtissPort Hueneme, CA
Cape NomeJRRF*
Crowley Liner ServicesJacksonville, FL$2,438,780Cape LambertJRRF*
Cape Lobos
$10,429,488Cape WashingtonBaltimore, MD
Cape Wrath
$11,389,276Cape IntrepidTacoma, WA
Cape Island
$10,635,988Cape IsabelLong Beach, CA
Cape Inscription
Interocean Ugland Management Corp.Voorhees, NJ$12,088,040Gopher StatePrepositioned
Flickertail StateCheatham Annex, VA
Cornhusker State
$6,809,145Cape MendocinoJRRF*
Cape MayBaltimore, MD
$2,723,650PetersburgPrepositioned
PotomacPrepositioned
$6,809,145Cape FearSBRF
Cape MohicanSan Francisco, CA
$6,921,545ChesapeakeSan Francisco, CA
Mount WashingtonHouston, TX
Keystone Shipping Co.Bala Cynwyd, PA$17,591,983Cape RacePortsmouth, Va
Cape Ray
Cape Rise
$12,211,482Cape KennedyNew Orleans, LA
Cape Knox
$12,211,522Cape VictoryBeaumont, TX
Cape Vincent
$2,939,420Mission BuenaventuraBRF*
Mission Capistrano
$12,212,080Cape OrlandoSan Francisco
Adm Wm Callaghan
Marine Transport Lines, Inc.Weehawken, NJ$11,098,030Cape EdmontCharleston, SC
Cape Ducato
$11,098,030Cape DecisionCharleston, SC
Cape Douglas
$11,097,430Cape DiamondCharleston, SC
Cape Domingo
$15,932,462Cape HenrySan Francisco, CA
Cape Horn
Cape Hudson
Mormac Marine Enterprises, Inc.Stamford, CT$2,768,190Cape AnnJRRF*
Cape Archway
$11,163,758Cape AlexanderBaltimore, MD
Cape Avinof
$17,204,673Cape TaylorHouston, TX
Cape Texas
Cape Trinity
$2,768,190CometSBRF*
Meteor
Ocean Duchess, Inc.Houston, TX$2,594,085AlatnaTsuneishi, Japan
Chattahoochee
Nodaway
Pacific Gulf Marine, Inc.Gretna, LA$11,546,604Diamond SateHouston TX
Equality State
$3,268,500Cape FarewellBRF*
Cape Florida
Cape Flattery
$16,196,284Keystone StateAlameda, CA
Gem State
Grand Canyon State
Patriot Contract Services, LLCWalnut Creek, CA$7,582,047Cape BretonSBRF*
Cape BoverAlameda, CA
$11,614,614Cape BlancoAlameda, CA
Cape Borda
$11,620,734Cape GibsonAlameda, CA
Cape Girardeau
JRRF - James River, Va., Reserve Fleet
SBRF - Suison Bay, Calif., Reserve Fleet
BRF - Beaumont, Texas, Reserve Fleet

Ready Reserve Force Ship Manager Contracts
Annoucned June 1998

Ship Manager

Contract Amount
Term

RRF Ships Assigned

Where Located

Apex Marine Ship Management
Lake Success, N.Y.

$7,870,195
5 years

$13,792,725
5 years


$5,074,365
5 years


$9,052,940
5 years


$1,384,143
3.25 years

Cape Juby
Cape Johnson

Cape Taylor
Cape Texas
Cape Trinity

Cape John
Cape Jacob


Diamond State
Equality State


Gulf Banker
Gulf Trader

JRRF
Baltimore

Houston
Houston
Houston

BRF
BRF


Houston
Houston


BRF
BRF

Interocean Ugland Management Corp.
Voorhees, N.J.
$10,923,265
5 years


$6,257,735
5 years

$4,620,530
5 years

$6,257,735
5 years

$10,844,615
5 years

Gopher State
Flickertail State
Cornhusker State

Cape Mendocino
Cape May

Comet
Meteor

Cape Fear
Cape Mohican

Wright
Curtiss
Cape Nome

Prepositioning Ship
Cheatham Annex, Va.
Cheatham Annex

JRRF
Norfolk, Va.

NAS Alameda, Calif.
NAS Alameda

SBRF
Oakland, Calif.

Baltimore
Port Hueneme, Calif.
JRRF

Keystone Shipping Services, Inc.
Bala Cynwyd, Pa.
$9,575,500
5 years

$9,575,500
5 years

$9,575,500
5 years

$13,822,690
5 years


$9,452,330
5 years

Cape Kennedy
Cape Knox

Cape Victory
Cape Vincent

Admiral Callaghan
Cape Orlando

Cape Henry
Cape Horn
Cape Hudson

Green Mountain State
Beaver State

New Orleans
New Orleans

Beaumont, Texas
Beaumont

San Francisco
San Francisco

San Francisco
San Francisco
San Francisco

Bremerton, Wash.
Bremerton

Mormac Marine Enterprises, Inc.
Stamford, Conn.
$2,028,988
5 years


$3,983,130
3.25 years

$4,097,519
5 years


$8,882,610
5 years

$2,104.350
5 years

Lake
Scan
Cape Catawba

Cape Lambert
Cape Lobos

Cape Archway
Cape Alexander
Cape Alava

Cape Ann
Cape Avinof

Mission Buenaventura
Mission Capistrano

JRRF
JRRF
Cheatham Annex

Wilmington, N.C.
Wilmington

Baltimore
Baltimore
JRRF

Baltimore
Baltimore

BRF
BRF

Marine Transport Lines, Inc.
Weehawken, N.J.
$1,821,710
3.25 years

$10,155,570
5 years

$10,155,570
5 years

$10,155,570
5 years

$1,821,710
3.25 years

Cape Cod
Cape Chalmers

Cape Edmont
Cape Ducato

Cape Decision
Cape Douglas

Cape Diamond
Cape Domingo

Cape Bon
Northern Light

JRRF
JRRF

Charleston, S.C.
Charleston

Charleston
Charleston

Charleston
Charleston

SBRF
SBRF

Ocean Duchess, Inc.
Houston
$3,036,000
5 years
Alatna
Chattahoohchee
Nodaway
Tsuneishi, Japan
Tsuneishi, Japan
Tsuneishi, Japan
Patriot Contract Services, LLC
Walnut Creek, Calif.
$6,895,110
5 years

$9,247,810
5 years

$8,384,140
5 years

Cape Breton
Cape Bover

Cape Blanco
Cape Borda

Cape Gibson
Cape Girardeau

Alameda, Calif.
Alameda

Alameda
Alameda

Alameda
Alameda

Pacific-Gulf Marine, Inc Gretna, La. $1,242,027
3.25 years

$1,242,027
3.25 years

Pioneer Commander
Pioneer Contractor

Banner
Courier

BRF
BRF

BRF
BRF

Sea-Land Service,Inc.
Charlotte, N.C.
$13,729,875
5 years


$8,860,450
5 years

$9,299,650
5 years

$8,860,450
5 years

Cape Race
Cape Ray
Cape Rise

Cape Washington
Cape Wrath

Cape Intrepid
Cape Island

Cape Isabel
Cape Inscription

Portsmouth, Va.
Portsmouth
Portsmouth

Baltimore
Baltimore

Tacoma,Wash.
Tacoma

Long Beach, Calif.
Long Beach

V Ships Marine, Limited
Mineola, N.Y.
$3,722,850.00
5 years


$3,305,660
5 years

$8,458,890
3.25 years

$14,631,130
5 years

Cape Florida
Cape Flattery
Cape Farewell

American Osprey
Potomac

Chesapeake
Mount Washington

Keystone State
Gem State
Grand Canyon State
Petersburg

BRF
BRF
BRF

Prepo
Prepo

San Francisco
Houston

Alameda
Alameda
Alameda
Port Arthur, Tex.

Key: JRRF=the James River Reserve Fleet site in Virginia.; BRF=the Beaumont, Texas, Reserve Fleet; SBRF=Suisun Bay Reserve Fleet in California; Prepo=serves as a maritime prepositioning ship for the armed forces.



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