Navy Contracting: Ship Chartering Practices of the Military Sealift Command

Abstract

In September 1988 Military Sealift Command (MSC) awarded two charters for tankers to replace two Falcon ships on which charters were about to expire. Falcon filed a protest with GAO on the bases that 1) MSC improperly altered the terms of the solicitation and 2) MSC's evaluation of the offers received was flawed. GAO sustained the protest. However, as a result of Department of Defense (DOD) funding constraints, MSC's overall requirement for tankers was reduced by two ships for fiscal year 1990 and MSC informed us that it intended to cancel, on September 30, 1989, the charters on which Falcon filed its protest. Although both Falcon ships have been at least partially utilized since the completion of their charters with MSC, the Falcon Leader is currently not in use. Moreover, Falcon missed a loan payment on the Falcon Leader, which was due on August 18, 1989, and the loan may go into default. Appendix II discusses the Falcon ships and related issues. (sdw)

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Document Details

Document Type
Technical Report
Publication Date
Oct 25, 1989
Accession Number
ADA213762

Entities

Organizations

  • United States Government Accountability Office

Tags

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  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Bow Thrusters
  • Commerce
  • Competition
  • Contracts
  • Department Of Defense
  • Employment
  • Governments
  • Guarantees
  • House Of Representatives
  • Law
  • Maritime Industry
  • National Security
  • Navy
  • New York
  • Otters
  • Ships
  • United States

Readers

  • Environmental Impact Assessment (EIA) of Proposed Air Force Base Actions.
  • Government and Public Administration Law.
  • Naval Architecture and Marine Engineering.