CHALLENGE SUSPENDS NEW READY RESERVE CONTRACTS
The Maritime Administration's awarding of $1.1 billion in contracts for managing 74 Ready Reserve Fleet ships has been challenged.
The new contracts have been suspended and existing ship management contracts have been extended for 30 days, MarAd said.
The basic value of the contracts is $316.3 million, but the total estimated combined value for the 33 contracts is $1.1 billion, when expected costs of shipyard work and other maintenance and operational expenses for which the ship managers will be reimbursed are considered, MarAd said.
MarAd awarded the bids earlier this month to nine U.S. companies: American Overseas Marine Corp., Quincy, Mass. ($41.3 million to manage nine ships); Crowley Liner Services, Jacksonville, Fla. ($34.9 million to manage eight ships); Interocean Ugland Management Corp., Voorhees, N.J. ($35.3 million to manage 11 ships); Keystone Shipping Co., Bala Cynwyd, Pa. ($57.1 million to manage 12 ships); Marine Transport Lines, Weehawken, N.J. ($49.2 million to manage nine ships); Mormac Marine Enterprises, Stamford, Conn.(, $34 million to manage nine ships); Ocean Duchess, Inc., Houston ($2.6 million to manage three ships); Pacific Gulf Marine, Gretna, La. ($31 million, to manage eight ships); and Patriot Contract Services, Walnut Creek, Ca., ($30.8 million to manage six ships).