FR 2020-29159

The Federal Register document presents an announcement from the Maritime Administration (MARAD), part of the Department of Transportation, concerning the Cable Security Fleet (CSF). This program is designed to maintain a fleet of U.S.-owned cable vessels for national security reasons and to ensure that the United States holds a significant presence in the international submarine cable services market. MARAD is calling for applications from eligible vessel owners or operators to participate in this program.

General Summary

The CSF aims to keep a fleet of two active and commercially viable vessels under the U.S. flag. These vessels should be privately owned and ready to be deployed for national security needs and commercial use. The enrolled vessels and their operators are required to meet specific statutory and technical criteria and will enter into Operating Agreements with MARAD. These agreements involve maintaining operational capabilities and aiding the government in emergencies. Interested applicants were instructed to submit their applications by February 4, 2021, highlighting the program's urgent timeline.

Significant Issues and Concerns

The document raises several issues that may bring uncertainties to the application and selection process:

• Criteria for Commercial Viability: The document lacks explicit criteria to define what makes a vessel commercially viable, which could create ambiguity and perceived unfairness in the selection process.

• Transparency of Operating Agreements: Details regarding the negotiation process for Operating Agreements are not given, which might lead to concerns about the fairness and transparency of the process.

• Handling of Late Submissions: There are no guidelines for handling applications submitted after the deadline, which could lead to confusion among applicants.

• Financial Context: While a $5 million payment for participation is mentioned, it is not placed within the overall financial scope of the program, potentially leading to misunderstandings about funding availability.

• Vessel Age Waiver Criteria: The criteria for waiving the age limit of vessels are not detailed, which may raise concerns about subjective decision-making.

• Incomplete Applications: The process for handling incomplete applications is not well-defined, leaving applicants unsure about the status of their submissions.

• Dispute Resolution: There is no guidance on how to resolve disputes or grievances related to application decisions, which may lead to dissatisfaction among applicants.

• Confidential Information Security: While there are mentions of protecting confidential information, specific data security measures beyond FOIA regulations are not detailed.

Impact on the Public

The CSF program has broad implications for U.S. national security and the economy. By ensuring the availability of U.S.-flagged cable ships, the program potentially strengthens the nation's capability to manage and repair critical undersea infrastructure, which is vital for global communications and defense operations.

Impact on Specific Stakeholders

For vessel owners and operators, the program presents a significant business opportunity. Participation in the CSF could offer financial incentives and stability, with the U.S. government as a key partner. However, the lack of detailed criteria and resolution processes may deter some potential applicants or result in an uneven playing field.

Ultimately, while the CSF program has strategic importance, the issues highlighted suggest there is room for improvement in transparency, governance, and stakeholder engagement to ensure equitable access and decision-making.

The document outlines the enrollment process for vessels in the Cable Security Fleet (CSF), a program intended to secure national defense by maintaining a fleet of commercially viable U.S.-flag cable vessels. A significant aspect of the document involves the financial elements related to the program, particularly the compensation and allocation of funds.

One key financial reference in the document is the annual rate of $5 million allocated for participation in the CSF program. This amount is mentioned as the payment made to successful applicants who enter into an Operating Agreement with the Maritime Administration (MARAD). This compensation is contingent upon the availability of appropriations, meaning that the funds must first be approved and made available through the governmental budgetary process before any payment is made.

The issue arises with the lack of context regarding this $5 million payment. The document does not elaborate on how this figure fits into the overall budget for the CSF program, nor does it provide a breakdown of what specific activities or services this payment is intended to cover. This absence of detail could obscure the financial impact and prioritization within the broader budget allocations.

Additionally, while the document references that agreements are "subject to the availability of appropriations," it does not discuss the financial contingency plans if appropriations are unavailable. This could potentially affect applicants who expect payment but face delays or reductions due to budget shortfalls. The absence of this information could contribute to uncertainties for vessel owners considering enrolling in the program.

Furthermore, the monetary allocation ties back to one of the identified issues regarding the negotiation process of Operating Agreements. Without clear criteria on how vessels are deemed most qualified, there might be an uneven playing field where certain applicants could be favored. The financial reference to the annual payment does not clarify the process or criteria for negotiation, leaving a transparent discussion on the financial terms of engagement noticeably absent.

Lastly, while the document does touch upon the protection of confidential commercial or financial information, it primarily focuses on the procedural aspect regarding FOIA requests. It lacks detail on specific measures taken by MARAD to ensure data security, which is a crucial concern when financial figures and sensitive commercial data are involved. Though the issue primarily concerns data security beyond the FOIA regulations, the financial implications of safeguarding such information are inherently linked to maintaining stakeholder trust and protecting the integrity of the application process.

Overall, the financial references, while clearly indicated, would benefit from further elaboration to provide more context and transparency in terms of budgeting, allocation, and negotiation processes associated with the Cable Security Fleet program.