MSC directs AMSEA to prepare for management of 9 LMSRs

MSC directs AMSEA to prepare for management of 9 LMSRs

Current operator withdraws charter award protest, files lawsuit

      Military Sealift Command on Jan. 5 directed American Overseas Marine Corp. (AMSEA) to prepare to assume management of nine large medium-speed roll-on/roll-off vessels.
     The current operator of the nine LMSRs, Patriot Contract Services, at the end of December withdrew its protest of MSC's operating charter award for the ships to AMSEA, which employs American Maritime Officers members in licensed positions and Seafarers International Union members in unlicensed positions.
     Patriot has filed a lawsuit against MSC asking a U.S. District Court to set aside the charter award. Patriot has labor agreements with the Marine Engineers Beneficial Association and the International Organization of Masters, Mates & Pilots.
     Separately, protests of MSC's charter award for two more LMSRs to AMO-contracted company 3PSC LLC were withdrawn in November, clearing the way for 3PSC to assume management of the vessels in 2005. Patriot did not protest the charter award to 3PSC for the operation and maintenance of the two LMSRs, although Patriot has been managing the ships for MSC.
     "AMO has been standing ready to man these 11 ships since the awards were announced late last summer," said AMO National President Michael McKay. "Our members have worked aboard five of these ships already, and we have a long and successful track record of manning LMSRs in the sealift fleet. AMO looks forward to an expanded role in the LMSR fleet and military sealift mission."
     The notice of dismissal of the Patriot protest was posted on the Government Accountability Office (GAO) Web site and dated Dec. 27. The protest was withdrawn, triggering its automatic dismissal, according to the GAO.
     On Jan. 5, MSC Contracting Officer Kristine Boyles in a letter to AMSEA said the suspension order on the nine LMSRs had been cancelled with the withdrawal of the protest and directed the company to prepare for turnover of the vessels.
     In a lawsuit against MSC filed Dec. 22, Patriot, among other things, has asked the U.S. District Court in Northern California to set aside the Navy's charter award for the nine LMSRs.
     The nine LMSRs covered by the AMSEA charter are the USNS Mendonca, USNS Seay, USNS Bob Hope, USNS Benavidez, USNS Brittin, USNS Pililaau, USNS Fisher, USNS Shughart and USNS Yano.
     The LMSR charter award to AMSEA was announced Sept. 1, 2004. The transfer of the ships from Patriot to AMSEA was to have occurred gradually in U.S. ports between September and December 2004.
     On Sept. 17, Patriot protested the charter award in a filing with the GAO. Thirteen days later, MSC agreed to extend the Patriot Contract Services LMSR charter while the company's protest was pending in the GAO. MSC said extension of the charters was necessary because the ships had been tapped for service in Operation Iraqi Freedom III, a new rotation of troops and equipment to and from the Persian Gulf.
     The charter award to 3PSC, which was a small business set aside award, covers the USNS Gilliland and USNS Gordon. Two protests of that award were withdrawn. Turnover of the vessels to 3PSC is tentatively scheduled for January and March, respectively.
     Ocean Shipholdings Inc. had challenged 3PSC's standing as a small business. The Small Business Administration ruled against Ocean Shipholdings, confirming 3PSC's small business designation. Ocean Shipholdings appealed the decision but then withdrew the appeal.
     A second protest was filed with the Government Accountability Office (GAO) by Keystone Sealift Services, which employs engineers represented by MEBA and non-union deck officers. Keystone challenged 3PSC's small business standing and charged that 3PSC's wage and benefit rates for the LMSRs were in violation of the Service Contract Act. The law requires prevailing industry wages and benefits for private sector employees working under government contract and prohibits wage and benefit reductions from one contract year to the next and between successive contracts.
     Keystone withdrew its protest before the GAO issued a ruling on its merits.
     3PSC currently operates the instrumentation vessels USNS Hayes and USNS Waters for MSC under a small business set-aside charter.
     AMO currently represents the licensed engine, deck and radio-electronics officers on eight LMSRs operated for MSC by Maersk Line Limited--the USNS Dahl, USNS Pomeroy, USNS Red Cloud, USNS Soderman, USNS Watkins, USNS Sisler, USNS Watson and USNS Charlton.

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