National Security Multi-Mission Vessel NSMV - Program
Philly Shipyard, Inc., the sole operating subsidiary of Philly Shipyard ASA (Oslo: PHLY) on 08 April 2020 was awarded a contract for the construction of up to five (5) National Security Multi-Mission Vessels (NSMV) from TOTE Services, LLC (TOTE), an industry leader in ship management, marine operations and vessel services. TOTE was selected by the U.S. Department of Transportation’s Maritime Administration (MARAD) as the vessel construction manager for the NSMV program in May 2019. TOTE placed an initial order with Philly Shipyard for the first two vessels (NSMVs 1 and 2), with deliveries in Spring and Winter 2023, and retains options for the next three vessels (NSMVs 3, 4 and 5).
The President’s FY2016 budget included a request for funding for the common design of a new National Security Multi-Mission Vessel. This year’s budget included a request for $6 million under the National Security Multi-Mission Vessel/School Ship Replacement Program to fund an independent requirements and alternatives analysis for cadet training needs. The FY 2017 President’s Budget request is to fund an independent verification and validation of the requirements and alternatives analysis for Cadet training vessel needs. The analysis will also include the assessment and validation of future mariner requirements and demand, the impact to the current training programs and measures to keep pace with anticipated demands for mariners.
The U.S. Department of Transportation, Maritime Administration (MARAD) needed to award a single firm labor-hour contract for legal services pertaining to the construction of the new National Security Multi-Mission Vessel (NSMV) and/or the acquisition and conversion of an existing vessel into a training vessel in a shipyard within the United States. The construction of the NSMV was funded in the Consolidated Appropriations Act, 2018, P.L. 115-141, which required that the construction be performed in accordance with section 3505 of P.L. 114-328. Section 3505(d) provides that the NSMV “will be constructed using commercial design standards and commercial construction practices that are consistent with the best interests of the Federal Government.” Section 3505(c) provides that the NSMV is to be constructed so it “shall meet the requirements for and be issued a certificate of documentation and coastwise endorsement under chapter 121 of title 46, United States Code.”
In contracting for the NSMV, in compliance with Section 3505(f), MARAD planned to enter into a contract with a private United States commercial vessel operating entity (CVOE) that has constructed a vessel within the United States within the last five years. The plan is for that CVOE to enter into the construction contact with the United States shipyard for the construction of the NSMV. MARAD may also utilize a CVOE in a ship conversion project if funds are appropriated.
On May 21, 2019 Maritime Administrator RADM Mark H. Buzby, USN (Ret.), announced TOTE Services, Inc. of Jacksonville Florida as the Vessel Construction Manager (VCM) for the newest class of training ship, the National Security Multi-Mission Vessel (NSMV). TOTE Services was selected by MARAD as the construction manager for selecting a shipyard and ensuring that commercial best practices are utilized to deliver the NSMV on time and on budget.
“The U.S. shipbuilding industry is vital to America’s economic strength and security,” said Administrator Buzby. “The selection of TOTE Services to work with a U.S. shipyard to deliver this class of vessels is an investment in our nation’s vital maritime infrastructure and underscores our mission to foster and promote the U.S. Merchant Marine.”
The 2017 National Defense Authorization Act directed MARAD to “provide for an entity other than the Maritime Administration to contract for the construction of the NSMV.” This procurement process has allowed MARAD to leverage existing marketplace expertise and target companies experienced in the production of innovative U.S.-built ships. “The construction of this new NSMV will continue to showcase our nation’s shipbuilding standard of excellence,” continued Administrator Buzby. “Ultimately, it will provide an excellent training platform for future generations of mariners.”
TOTE Services is a full-service company that will oversee and manage the detailed design, construction, testing, and delivery of the final NSMV. The NSMV is a new class of purpose-built ships to provide for the replacement of the current training ships at the State Maritime Academies (SMA). SMA training ships are primarily used to meet regulatory requirements for training standards and to offer at-sea training experiences.
Upon award of the contract, TOTE Services will issue a request for proposal to shipyards. Pursuant to the contract, the company is expected to select a shipyard within six months of the VCM contract award and will begin the management oversight of the final vessel design and construction, with an expected delivery date of fall 2022.
