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ESCO Marine Inc.

ESCO Marine Inc has dismantled over 500 vessels, of which approximately 200 were US Navy ships.

As the largest artificial reef project anywhere in the world, the aircraft carrier ORISKANY will stand as a crowning achievement for Resolve's and ESCO's skilled teams of maritime professionals and will no doubt become a must-see destination for recreational divers.

Ex-ORISKANY is planned to be sunk after issuance of a risk based PCB disposal approval by EPA Region IV. The Navy's contract with Resolve Marine Group/ESCO Marine Joint Venture, awarded in September 2003, was based on the draft EPA BMP document. The scope of work to prepare ex-ORISKANY for sinking as an artificial reef includes removal/disposal of liquid hydrocarbons (fuels and oils) throughout the ship so that the ship is essentially petroleum free; removal/disposal of any loose or detached friable asbestos containing material; removal/ disposal of all capacitors, transformers or other liquid PCB containing components; removal and disposal of all loose paint accumulated on deck surfaces, bulkheads and overhead areas; removal/disposal of trash, loose debris, cleaning materials, and any floatable materials not permanently attached to the ship or that could be transported in the water column during sinking; removal/disposal of batteries, HALON, mercury, antifreeze, coolants, fire extinguishing agents, black and gray water, and chromated ballast water. The work was completed in December 2004.

A Navy contractor towed the ex-Oriskany from the Port of Pensacola, Fla. to Beaumont, Texas in June 2005 using commercial tugs provided by Seabulk Towing, Inc. The Navy's decision to temporarily move the ex-Oriskany to the Maritime Administration Beaumont Texas Reserve Fleet was made to safeguard both the Port and the ship during the hurricane season.

The Naval Sea Systems Command, the custodian of the vessel, was working in conjunction the Navy's Supervisor of Shipbuilding and Repair section in Bath Maine (SUPSHIP Bath) to oversee a contract with Resolve Marine Group (Port Everglades, FL) and ESCO Marine (Brownsville, TX, not to be confused with ESCO Technologies Inc.) to environmentally remediate the Oriskany in accordance with interagency cleanup guidance standards for preparing vessels intended to create artificial reefs. The cleanup, dock rental, and towing is expensive, expected to cost the Navy at least $2.5 million dollars, Escambia County $950,000, and nearby Okaloosa County $50,000.

Marine Metal, Inc. protested the award of a contract to Bay Bridge Enterprises, LLC under invitation for bids (IFB) No. DTMA1B03015, issued by Maritime Administration, Department of Transportation, for dismantling and disposing of four ships located in the James River Reserve Fleet, Virginia. GAO denied the protest.

The IFB, issued February 21, 2003, used the two-step sealed bidding process under Federal Acquisition Regulation (FAR) Subpart 14.5. Step one solicited technical proposals to dismantle one or more of the following four ships: the Santa Isabel, the Mormacdawn, the Santa Elena and the Catawba Victory. The offerors who submitted technically acceptable step one proposals would be eligible for the step two sealed bid price competition. Marine Metal, Bay Bridge, ESCO Marine, and two other offerors submitted technically acceptable step one proposals.

ESCO submitted the low bids for both the Catawba Victory and the Santa Isabel. Bay Bridge submitted the second-low bid for the Catawba Victory, and another bidder submitted the second-low bid for the Santa Isabel. Marine Metal's individual bids for the Catawba Victory and the Santa Isabel represented the third-low bids for each of those vessels. However, Marine Metal's package bid for both vessels represented the second-low bid if contracts for both vessels were awarded under the solicitation, and the individual prices for each of these vessels under the package bid was also lower than the second-low individual bids for each of these vessels.

On July 7, the agency awarded a contract to ESCO for dismantling the Catawba Victory and all of the other ships, except for the Santa Isabel. On July 25, the agency awarded a contract for dismantling the Santa Isabel under another solicitation.

On August 7, after ESCO failed to post required bonds, the agency terminated ESCO's contract for the Catawba Victory. The agency subsequently notified Marine Metal that its package bid for both vessels was contingent on the bidder receiving a contract for dismantling both vessels, and that, since the Santa Isabel was removed from the IFB, the package bid could no longer be considered. On August 27, the agency awarded a contract for the Catawba Victory to Bay Bridge, the second lowest bidder for that ship.

During 2003 ESCO Marine of Brownsville, Texas, was awarded a contract by the Maritime Administration (MARAD) for one ship, $778,837.

On 29 July 2005 ESCO Marine Inc., Brownsville, Texas, was awarded one of three estimated ceiling cost $25,000,000 indefinite-delivery/indefinite-quantity, fixed price award-fee contracts for the dismantling and recycling of inactive ships stricken from the Naval Vessel Register. The initial award is for environmental remediation, dismantling and metals recycling of ex-Dahlgren (DDG 43). Each vessel will be bid individually and awarded under a delivery order to the successful bidder. Performance incentives are also included for superior environmental and safety performance. Work will be performed in Brownsville, Texas, and is expected to be completed by August 2009. The contract was competitively procured and advertised via the Internet, with nine offers received. Contract funds in the amount of $2,653,018 will expire by the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-05-D-4210).



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