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Monday, January 22, 2018

Services Contract News

EU Changes Cabotage Contract Guidance

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The European Commission has given new guidance on the interpretation of EU cabotage regulation, which allows contracts of up to 12 years instead of the current six years, according to trade organisation Maritime London. The EC statement explains: “With the new guidance competent authorities will have more legal certainty when awarding public service contracts and imposing public service obligations. According to the statement, the main change in the Commission's interpretation relates to the duration of public service contracts.

U.S. Navy to Audit Port Services

Secretary of the Navy Ray Mabus spelled out in a memorandum last week his expectations for the review and audit of procedures, administration, and performance of all husbanding and port services contracts. The memorandum, dated Dec. 5, provides details and additional tasking to guidance Mabus originally directed in September, in light of investigations by the Naval Criminal Investigative Service (NCIS) and audits by the Naval Audit Service of husbanding and port service contracts. "Back in September, I directed a complete review of our husbanding and port services contracts following the investigation into contracting procedures in the Pacific Fleet. This tasking memo reiterates the urgency of that review and provides additional tasking," said Mabus.

Navy Put Port Ship-husbandry Services Under the Microscope

Image CCL

Secretary of the Navy Ray Mabus has spelled out in a memorandum his expectations for the review and audit of procedures, administration, and performance of all husbanding and port services contracts. "Back in September, I directed a complete review of our husbanding and port services contracts following the investigation into contracting procedures in the Pacific Fleet. This tasking memo reiterates the urgency of that review and provides additional tasking," said Mabus. Assistant Secretary of the Navy (Research…

Corrected Transmission of Service Contract Filing Proposed

The Federal Maritime Commission (FMC) issued a Notice of Proposed Rulemaking

FMC Reopens Comment Period for Service Contract Petitions

The Federal Maritime Commission (FMC) issued a series of orders reopening the comment period, through January 16, 2004, on the petitions by non-vessel-operating common carriers (NVOCCs) for exemption from the prohibition against use of confidential service contracts. Interested persons may also request one-on-one meetings with individual Commissioners to describe their views. The FMC also denied several motions by parties to be allowed to submit reply briefs. source: HK Law

Final OTI Rules Approved

Federal Maritime Commission logo

The Commission voted at its meeting 22nd October to issue a final rule on ocean transportation intermediary (OTI) licensing and financial responsibility requirements, and directed staff to prepare an advanced notice of proposed rulemaking concerning service contracts and NVOCC service arrangements. Under the new rules, OTIs will be required to renew licenses every three years through a convenient on-line portal beginning in late 2016, and an expedited hearing process will be provided for license denials, revocations, or suspensions.

Alphatron Inks Service Deal with Unix Line

Photo: Alphatron Marine

Alphatron Marine said it has signed a shore based maintenance contract with Singapore’s Unix Line Pte Ltd, supporting all navigation and communication onboard its fleet of 42 vessels. Unix Line is a ship management company specializing in the operation of chemical tankers. For many decades, it has been a customer of marine electronics producer JRC equipment and through the premium service contract, Alphatron will offer response to unexpected interventions and breakdowns. The chemical…

ABB Turbocharging Inks Service Deals Covering 400 Units

Photo courtesy of ABB

Press release - ABB Turbocharging has signed long-term service agreements with three marine and offshore transport firms covering a total of 400 turbochargers globally. The service contracts span a period of several years and include turbocharger monitoring, regular servicing and preventive maintenance. Each of the three companies: DOF Group, Teekay and Torghatten ASA has signed a Maintenance Management Agreement (MMA) with ABB Turbocharging in Norway. Through signing these service agreements…

FMC Collects $1,227,500 in Penalties from NVOCC's

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Federal Maritime Commission Chairman Mario Cordero announced that the Commission has completed compromise agreements recovering a total of $1,227,500 in civil penalties. The agreements were reached with seven non-vessel-operating common carriers (NVOCCs) and one vessel-operating common carrier (VOCC). The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in New York and Seattle, and headquarters staff in Washington D.C. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or the Commission’s regulations.

Transpacific Container Lines Address Economic Pressures Ahead in 2016

Pic: Transpacific Container Lines

In a container freight market challenged by volatility and facing the prospect of further consolidation, member shipping lines in the Transpacific Stabilization Agreement (TSA) have announced a phased increase in rates and a package of 2016-17 service contract guidelines intended to ensure greater pricing predictability and service reliability. First, TSA lines are recommending adjustments to minimum rates across the board, on December 1, 2015 and on January 1, 2016. For December 1…

Carnival Azipod Service Contract for ABB

Photo credit: ABB

ABB has won a long-term service contract from Carnival Corporation to maintain and upgrade ABB’s Azipod equipment over the next 15 years for 20 ships in their fleet, cutting costs by as much as $1 million a year per ship. Carnival is the world’s largest cruise ship operator and has 20 cruise vessels with Azipod propulsion systems. ABB’s energy efficient Azipod uses less fuel than traditional systems, and provides better manoeuvrability in all operating conditions. The upgrades are projected to improve the already high energy efficiency of Azipod units by 2.5 to 4 percent.

Litton Awarded $41.7M Navy Contract

The U.S. Navy awarded Litton Ingalls Shipbuilding a $41.7 million cost-plus-award-fee contract, under which Ingalls will continue to provide engineering and planning support services to the Navy's DDG 51 Class Aegis guided missile destroyer program. The $41.7 million award is the first increment of a five-year Follow-Yard Services contract, which has a potential total value of over $211 million. The remaining elements of the contract will be awarded annually over the next four years. Litton Ingalls has been providing support services for the DDG 51 program for the past 12 years.

North Star Announce £63million BP Contract

Grampian Talisker. Photo: North Star

North Star Shipping, a division of the family-owned global shipping and energy services firm The Craig Group, entered a £63million contract with BP. The multi-service contract is for five years with a possible extension of five years and includes tanker assist, platform supply and emergency and response rescue vessels, all supporting BP’s operations in the North Sea. Four vessels, with a possible fifth to be added are being contracted – the Grampian Talisker, Grampian Frontier, Grampian Conquest and Grampian Dee.

Halliburton Wins $40M Contract

Halliburton Worldwide Limited has been awarded a two-year, $40 million multi-service contract by Occidental Mukhaizna, LLC, a subsidiary of Occidental Petroleum Corporation for the Mukhaizna Field in the Sultanate of Oman. The contract calls for Halliburton to provide an integration of services from the Fluid Systems, Drilling and Formation Evaluation, and Production Optimization divisions. The range of services includes fluid services, cementing, casing attachments, directional drilling, mud logging, reservoir coring, and completion tools.

Bath Iron Works Awarded $76M DDG 51 Contract

Bath Iron Works Awarded $76M DDG 51 Contract The U.S. Navy has awarded Bath Iron Works, a subsidiary of General Dynamics, a $76 million modification to a previously awarded contract for Lead Yard Services associated with the DDG 51-Class AEGIS Destroyer Program. The award is for the first option year of a two-year engineering services contract initially awarded in November 2002.

Aker Kvaerner Awarded Contract with ConocoPhillips

ConocoPhillips has awarded Aker Kvaerner a service contract for provision of personnel and equipment for well intervention services on the Norwegian Continental Shelf. The firm contract period is three years with an estimated value of $147.2m. The contract includes an option to extend another 2 x 2 years.

EMSA Seeks Stand-by Spill Recover Vessels

The European Maritime Safety Agency (EMSA) issued a Prior Information Notice stating that it is seeking to contract with ship owners for service contracts making the ships available to stand-by for potential use as oil spill recovery vessels. The four priority areas where such service is sought are the Baltic Sea, the Western Approaches to the Channel, the Atlantic Coast, and the Mediterranean Sea. In the event of a large oil spill and following a request by a member state, the stand-by vessel would cease its commercial activities and commence oil spill response. (HK Law)

FMC, Transpacific Carriers Settle

Federal Maritime Commission Chairman Steven R. Blust announced yesterday that the Commission has entered into a settlement agreement with the major ocean carrier agreements and their members who serve the inbound waterborne U.S. trades with Asia, including the Transpacific Stabilization Agreement (TSA), and two TSA-related bridging agreements. addresses carrier practices investigated in the Commission's Fact Finding Investigation No. 25 - Practices of Transpacific Stabilization Agreement Members Covering the 2002-2003 Service Contract Season, initiated in response to a joint petition filed by the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) and the International Association of NVOCCs (IANVOCC).

GD Wins $8m for Virginia-class Sub Work

General Dynamics Electric Boat has been awarded an $8.3 million contract modification by the U.S. Navy to procure components for Virginia-class nuclear-powered attack submarines. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD). Under the contract modification, Electric Boat will procure material for the construction of Advanced Integrated Low Pressure Electrolyzers used on Virginia-class submarines. The lead-yard services contract being modified has a potential cumulative value of $881m through 2014 if all options are exercised and funded.

Delta Wave Names Global Warranty Group Exclusive Provider

Global Warranty Group (GWG), a third party administrator and premier provider of Extended Service Contract and OEM programs throughout the United States and Canada, announced it has entered into an agreement with Delta Wave Communications LLC to be the exclusive provider of extended service plans for their mobile satellite and VSAT equipment. As a North American administrators of OEM and Extended Service Plans, GWG will leverage its experience of developing and delivering innovative warranty solutions for Delta Wave Communications to strengthen their product service offerings and boost customer loyalty, the company said. www.deltawavecomm.com www.globalwarrantygroup.com  

DOE Awarded Nine New Service Contracts

The Department of Energy (DOE) awarded anew nine new service contracts for oil and gas development. The DOE has processed nine petroleum exploration areas which were bid out in the last Philippine Energy Contracting Round that closed last May. The DOE awarded the contracts for these exploration blocs last September, barring any hitches on the part of investors. Most of the awardees are local companies with foreign partners. The contract areas covered a total of 71,357.30 square kilometers located within the prospective basins of East Palawan and Mindoro-Cuyo; and in the promising basins of Cagayan, Central Luzon, Visayas and Agusan-Davao. The service contract areas will generate a conservative $180m in revenues for the country, as a single drilling for an offshore well costs about $20m.

General Dynamics Bags $19 Mln U.S.Navy Order

Electric Boat  Courtesy General Dynamics

General Dynamics Electric Boat has been awarded an $18.9 million contract modification for the continued development of the Virginia Payload Module (VPM). The funds will be used to procure two VPM pre-production setups to support the manufacturing start of the VPM payload tubes. The VPM will comprise four large-diameter payload tubes in a new hull section to be inserted in Virginia-class submarines. This modification brings the cumulative value of the overall Virginia-class Lead Yard Services contract, initially awarded in 2010, to $1.46 billion.

Viking Signs Contract with Stolt Tankers

Viking Life-Saving Equipment reports it is finding success with its Shipowner Agreement servicing contracts, with the latest being the signing of a liferaft exchange contract with Stolt Tankers BV worldwide. With a fleet of more than 70 deep draft tankers, and more than 80 coastal tankers and inland tankers, Stolt Tankers operates one of the most technically advanced tanker fleets in the world. Stolt Tankers vessels will receive Viking liferafts, which will simply be exchanged as their certificates expire. www.VIKING-life.com  

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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