MLL to manage 10 Military Sealift Command ships
The U.S. Military Sealift Command on Thursday awarded four operations and maintenance contracts covering 10 ships of the Maritime Prepositioning Force to Maersk Line Ltd.
An 11th ship will be awarded through a small business 'set-aside' contract that will be awarded at a later date, the command said.
The combined total value of the five contracts, including option years and reimbursables, is more than $1 billion, one of the largest acquisitions in the command's history. Each contract has a base period of less than one year, and up to five one-year options that if exercised would extend the contracts to Sept. 30, 2015.
The contract award comes on the heels of a U.S. Maritime Administration decision that Maersk Line Ltd. (MLL) cannot bid to operate eight “fast sealift ships” (FSS). MLL has been operating those ships for four years for the Military Sealift Command but on Oct. 1, 2008, the eight FSSs were transferred to MarAd's Ready Reserve Force.
MLL spokesman Kevin Speers said MarAd is insisting that a “section two citizen” operate the ships, despite efforts by MLL and groups like the Organization for International Investment.
A “section two citizen” is a company with its ultimate headquarters in the United States, whereas MLL is a so-called “documented citizen” and is a U.S. subsidiary of Denmark’s A.P. Moller – Maersk.
“MLL is not qualified to bid. When our contract concludes, the ships will transfer to a different operator,” Speers said.
Maersk has been operating the ships under a “grandfather clause” since MarAd took control of the ships.
Maritime Prepositioning Ships covered in the MLL contracts are the USNS GySgt. Fred W. Stockham, USNS Lance Cpl. Roy M. Wheat, USNS 2nd Lt. John P. Bobo, USNS 1st Lt. Jack Lummus, USNS Pfc. Dewayne T. Williams, USNS Sgt. William R. Button, USNS 1st Lt. Baldomero Lopez, USNS Sgt. Matej Kocak, USNS Maj. Stephen W. Pless and USNS Pfc. Eugene A. Obregon. The contract to be awarded to a small business at a later date is for USNS 1st Lt. Harry L. Martin.
The 11 ships are deployed to strategic locations worldwide carrying U.S. Marine Corps cargo including tanks, ammunition, food and medical supplies ready for rapid delivery ashore when needed, the command said.
The Military Sealift Command operates about 110 noncombatant, civilian-crewed ships that strategically preposition combat cargo at sea worldwide, move military cargo and supplies used by deployed U.S. forces, conduct specialized missions, and replenish U.S. Navy ships at sea.
MLL to manage 10 Military Sealift Command ships
