The contract with the subsidiary of General Dynamics is for the operation of nine medium-speed, roll-on/roll-off ships (LMSRs) moving war cargoes. They have been operated for the last four years by Patriot Contract Services, a California company, which works with the unions Marine Engineers Beneficial Association; International Organization of Masters, Mates & Pilots; Sailors Union of the Pacific; and Marine Firemen’s Union. American Overseas Marine and 3PSC do not work with these unions.
The contract with AMSEA contains four one-year renewal options, bringing the possible total value of the award to $122.6 million.
'I understand that Patriot's bid exceeded AMSEA's bid, but previous awards make it clear that cost is not the only factor in the Navy's decision-making process,' Boxer said in a letter to Gordon R. England, Navy Secretary. 'My constituents assert that Patriot's exemplary record was inadequately taken into account, and that this contract concentrates the operation of too many ships in the fleet under one company.'
'Further, I am told that turning over all of these jobs now would wipe out the U.S. merchant marine staffing base on the West Coast, as most of the Patriot crews are drawn from there,' Boxer said.
Pelosi, in a separate letter to England, said, 'I understand there is lack of clarity about the process and criteria under which the contract was awarded. As this ' could result in the loss of 1,500 jobs in the San Francisco Bay area, I am requesting an immediate explanation of the rationale for the contract award.'
Pelosi said AMSEA would be operating 61 percent of the U.S. Navy's surge sealift fleet. 'Sustained sealift capacity cannot be maintained on a narrow foundation,' she said. Virtually the same words appeared in Boxer's letter.
Last week, the presidents of the four U.S. maritime unions met with Vice Adm. David L. Brewer III, commander of the Military Sealift Command, to voice their concerns about the naval agency’s handling of the large cargo ship contract awards.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now