California Congressmen want explanation of AMSEA contract
Sen. Barbara Boxer, D-Calif., and House minority leaders Rep. Nancy Pelosi, D-Calif., have in separate letters asked the U.S. Military Sealift Command to explain why it awarded a $23.5-million one-year contract to American Overseas Marine Corp. (AMSEA).
The contract with the subsidiary of General Dynamics is for the operation of nine medium-speed, roll-on/roll-off ships (LMSRs) moving war cargoes. They have been operated for the last four years by Patriot Contract Services, a California company, which works with the unions Marine Engineers Beneficial Association; International Organization of Masters, Mates & Pilots; Sailors Union of the Pacific; and Marine Firemen’s Union. American Overseas Marine and 3PSC do not work with these unions.
The contract with AMSEA contains four one-year renewal options, bringing the possible total value of the award to $122.6 million.
'I understand that Patriot's bid exceeded AMSEA's bid, but previous awards make it clear that cost is not the only factor in the Navy's decision-making process,' Boxer said in a letter to Gordon R. England, Navy Secretary. 'My constituents assert that Patriot's exemplary record was inadequately taken into account, and that this contract concentrates the operation of too many ships in the fleet under one company.'
'Further, I am told that turning over all of these jobs now would wipe out the U.S. merchant marine staffing base on the West Coast, as most of the Patriot crews are drawn from there,' Boxer said.
Pelosi, in a separate letter to England, said, 'I understand there is lack of clarity about the process and criteria under which the contract was awarded. As this ' could result in the loss of 1,500 jobs in the San Francisco Bay area, I am requesting an immediate explanation of the rationale for the contract award.'
Pelosi said AMSEA would be operating 61 percent of the U.S. Navy's surge sealift fleet. 'Sustained sealift capacity cannot be maintained on a narrow foundation,' she said. Virtually the same words appeared in Boxer's letter.
Last week, the presidents of the four U.S. maritime unions met with Vice Adm. David L. Brewer III, commander of the Military Sealift Command, to voice their concerns about the naval agency’s handling of the large cargo ship contract awards.