Rule2025-12101
Deregulatory-Revision; Agency Agreements and Appointment of Agents
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 1, 2025
Effective
July 1, 2025
Issuing agencies
Transportation DepartmentMaritime Administration
Abstract
MARAD is revising its regulations pertaining to the award and administration of agency agreements in the form of service agreements and ship manager contracts. The rule is intended to correct numerous citations in accordance with the codification of Title 46 of the United States Code; improve accessibility by modernizing text and updating agency contact information; and remove obsolete references.
Full Text
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<title>Federal Register, Volume 90 Issue 124 (Tuesday, July 1, 2025)</title>
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[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28024-28027]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12101]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 315
[Docket Number MARAD-2025-0090]
RIN 2133-AC03
Deregulatory--Revision; Agency Agreements and Appointment of
Agents
AGENCY: Maritime Administration (MARAD), Department of Transportation
DOT)
ACTION: Final rule.
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SUMMARY: MARAD is revising its regulations pertaining to the award and
administration of agency agreements in the form of service agreements
and ship manager contracts. The rule is intended to correct numerous
citations in accordance with the codification of Title 46 of the United
States Code; improve accessibility by modernizing text and updating
agency contact information; and remove obsolete references.
DATES: This final rule is effective on July 1, 2025.
Privacy Act: Anyone can search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). For information on
DOT's compliance with the Privacy Act, please visit <a href="https://www.transportation.gov/privacy">https://www.transportation.gov/privacy</a>.
Information Collection: MARAD will publish a separate Federal
Register notice notifying the public of Office of Management and Budget
(OMB) approval of the information collections in this rulemaking.
FOR FURTHER INFORMATION CONTACT: Mitch Hudson, Office of the Chief
Counsel, Division of Legislation and Regulation, (202) 366-9373 or via
email at <a href="/cdn-cgi/l/email-protection#de93b7aabdb6f096abbaadb1b09ebab1aaf0b9b1a8"><span class="__cf_email__" data-cfemail="a1ecc8d5c2c98fe9d4c5d2cecfe1c5ced58fc6ced7">[email protected]</span></a>. Persons who use a telecommunications
device for the deaf (TDD) may call the Federal Information Relay
Service (FIRS) at 1-800-877-8339 to contact the above individual during
business hours. The FIRS is available twenty-four hours a day, seven
days a week, to leave a message or question. You will receive a reply
during normal business hours. You may send mail to Department of
Transportation, Maritime Administration, Office of the Chief Counsel,
Division of Legislation and Regulations, W24-220, 1200 New Jersey
Avenue SE, Washington, DC 20590-0001.
SUPPLEMENTARY INFORMATION:
[[Page 28025]]
Electronic Access and Filing
An electronic copy of this document may also be downloaded by
accessing the Office of the Federal Register's home page at:
<a href="http://www.federalregister.gov">www.federalregister.gov</a>.
Background
Improvement of regulations is a continuous focus for DOT and MARAD.
For that reason, DOT/MARAD regularly and deliberately review their
rules in accordance with DOT Order 2100.6B, Policies and Procedures for
Rulemakings, Executive Order (E.O.) 12866, Regulatory Planning and
Review (Oct. 4, 1993), and section 610 of the Regulatory Flexibility
Act. That process is summarized in Appendix D of DOT's semi-annual
regulatory agenda. In addition, E.O. 14192, Unleashing Prosperity
Through Deregulation (Feb. 6, 2025), and E.O. 14219, Ensuring Lawful
Governance and Implementing the President's ``Department of Government
Efficiency'' Deregulatory Initiative (Feb. 19, 2025) directed agencies
to further scrutinize their regulations to reduce unnecessary costs,
clear barriers to emerging technology, and alleviate unnecessary
regulatory burdens.
MARAD has identified changes that will improve its regulations
governing agency agreements and appointment of agents. This final rule
will revise the regulations to ensure that they are current, modern,
and the least burdensome to the public.
Section by Section Analysis
Authority Citations
MARAD proposes to revise the authority citations for accuracy.
Section 315.1 Purpose
MARAD proposes to make minor, non-substantive edits to this section
for clarity.
Section 315.3 Definitions
MARAD proposes adding definitions of general agency agreement and
ship manager contract for clarity.
Section 315.5 Appointment of Agents
MARAD proposes to update MARAD contact information and made minor,
non-substantive edits to this section for clarity.
Section 315.6 Transferred Vessel and Contracts
MARAD proposes to make minor, non-substantive edits to this section
for clarity.
Section 315.9 Administration of Agency Agreements
MARAD proposes to make minor, non-substantive edits to this section
for clarity.
Section 315.11 Duties of Agents
MARAD proposes to make minor, non-substantive edits to this section
for clarity.
Section 315.13 Vessel Deactivation Procedures
MARAD proposes to make minor, non-substantive edits to this section
for clarity.
Section 315.15 Marine Protection and Indemnity Insurance
MARAD proposes this section for the sake of clarity.
Rulemaking Analysis and Notices
Administrative Procedure Act
MARAD is issuing this final rule without prior notice and the
opportunity for public comment and the 30-day delayed effective date
ordinarily prescribed by the Administrative Procedure Act (APA).
Pursuant to section 553(b)(B) of the APA, general notice and the
opportunity for public comment are not required with respect to a
rulemaking when an ``agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.''
The intent of this action is to provide simple, clerical updates
needed to correct numerous citations in accordance with the
codification of Title 46 of the United States Code; improve
accessibility by modernizing text, update agency contact information,
and remove obsolete references. For these reasons, MARAD has determined
that there is good cause to waive prior notice and comment because
clerical non substantive updates will not benefit from public input.
Executive Order 12866 and DOT Rulemaking Procedures
This rule is not a significant regulatory action under Executive
Order (E.O.) 12866 and DOT Order 2100.6B and, therefore it was not
reviewed by the Office of Management and Budget. It is also not
considered a major rule for purposes of Congressional review under
Public Law 104-121. This rule is limited to updating the citations,
addresses, and modernizing text.
Executive Order 14192 (Deregulation)
E.O. 14192 requires that for ``each new [E.O. 14192 regulatory
action] issued, at least ten prior regulations be identified for
elimination.'' Implementation guidance for E.O. 14192, issued by OMB
(Memorandum M-25-20, March 26, 2025), defines an E.O. 14192
deregulatory action as ``an action that has been finalized and has
total costs less than zero.'' This rule will have total costs less than
zero, and therefore is an E.O. 14192 deregulatory action.
Executive Order 13132 (Federalism)
MARAD analyzed this rulemaking in accordance with the principles
and criteria contained in Executive Order 13132 (``Federalism'') and
has determined that it does not have sufficient Federalism implications
to warrant the preparation of a Federalism summary impact statement.
This rulemaking has no substantial effect on the States, or on the
current Federal-State relationship, or on the current distribution of
power and responsibilities among the various local officials. Nothing
in this document preempts any State law or regulation. Therefore, MARAD
did not consult with State and local officials because it was not
necessary.
Executive Order 13175 (Consultation and Coordination With Indian Tribal
Governments)
MARAD does not believe that this rulemaking will significantly or
uniquely affect the communities of Indian tribal governments when
analyzed under the principles and criteria contained in Executive Order
13175 (Consultation and Coordination with Indian Tribal Governments).
Therefore, the funding and consultation requirements of this Executive
Order do not apply.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 requires MARAD to assess
whether this rulemaking would have a significant economic impact on a
substantial number of small entities and to minimize any adverse
impact. This rule is limited to updating the citations, addresses, and
modernizing text. MARAD certifies that this rulemaking will not have a
significant economic impact on a substantial number of small entities.
Privacy Impact Assessment
Section 522(a)(5) of the Transportation, Treasury, Independent
Agencies, and General Government Appropriations Act, 2005 (Pub. L. 108-
[[Page 28026]]
447, div. H, 118 Stat. 2809 at 3268) requires the Department of
Transportation and certain other federal agencies to conduct a privacy
impact assessment of each proposed rule that will affect the privacy of
individuals.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 requires agencies to
evaluate whether an agency action would result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $206 million or more (as adjusted for inflation) in
any 1 year, and if so, to take steps to minimize these unfunded
mandates. This rulemaking will not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It will not result in costs of
$206 million or more to either State, local, or tribal governments, in
the aggregate, or to the private sector, and is the least burdensome
alternative that achieves the objectives of the rule.
Regulation Identifier Number (RIN)
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN number contained in the heading
of this document can be used to cross-reference this action with the
Unified Agenda.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA), a person is not
required to respond to a collection of information by a federal agency
unless the collection displays a valid OMB control number. MARAD will
seek approval from OMB for the paperwork collections included in this
rulemaking. MARAD will publish a separate Federal Register notice
notifying the public of OMB's approval and displaying the OMB control
number.
List of Subjects in 46 CFR Part 315
Government contracts, National defense, Vessels.
0
For the reasons stated in the preamble, MARAD is revising 46 CFR part
315 to read as follows:
PART 315--AGENCY AGREEMENTS AND APPOINTMENT OF AGENTS
Sec.
315.1 Purpose.
315.3 Definitions.
315.5 Appointment of agents.
315.7 Transferred vessels and contracts.
315.9 Administration of agency agreements.
315.11 Duties of agents.
315.13 Vessel deactivation procedures.
315.15 Marine protection and indemnity insurance.
Authority: 46 U.S.C. 57100 et seq., 49 U.S.C. 322(a), 49 U.S.C.
109, 40 U.S.C. 113(e)(15), 49 CFR 1.93, 49 CFR 1.81(a)(3) and
(a)(10).
Sec. 315.1 Purpose.
This part summarizes the procedures governing the award and
administration of agency agreements in the form of Service Agreements
and Ship Manager Contracts entered into between the United States of
America, acting by and through the Maritime Administration (MARAD),
Department of Transportation. Persons awarded agency agreements will
manage or otherwise conduct the business of one or more vessels owned,
controlled or time-chartered by the United States, which vessel(s) may
be assigned from time to time pursuant to the specific provisions of
their general agency agreement as a service provider pro hac vice, or
as a ship manager pursuant to the terms of a Ship Manager Contract.
Sec. 315.3 Definitions.
(a) Agent includes a General Agent, Berth Agent, or Ship Manager,
designated as such under a Service Agreement or Ship Manager Contract
to manage and conduct the business of vessels which the United States
is owner, pro hac vice, or time charterer.
(b) Citizen of the United States means a person (including
receivers, trustees and successors or assignees of such persons as
provided in 46 U.S.C. 50502), including any person (stockholder,
partner or other entity) who has a controlling interest in such person,
any person whose stock or equity is being relied upon to establish the
requisite U. S. citizen ownership, and any parent corporation,
partnership or other entity of such person at all tiers of ownership,
who, in both form and substance at each tier of ownership, satisfies
the following requirements:
(1) An individual who is a Citizen of the United States, by birth,
naturalization or as otherwise authorized by law;
(2) A corporation organized under the laws of the United States or
of a State, the controlling interest of which is owned by and vested in
citizens of the United States and whose chief executive officer, by
whatever title, chairman of the board of directors and all officers
authorized to act in the absence or disability of such persons are
citizens of the United States, and no more of its directors than a
minority of the number necessary to constitute a quorum are
noncitizens;
(3) A partnership organized under the laws of the United States or
of a State, if all general partners are citizens of the United States
and a controlling interest in the partnership is owned by citizens of
the United States;
(4) An association organized under the laws of the United States or
of a State, whose chief executive officer, by whatever title, chairman
of the board of directors (or equivalent committee or body) and all
officers authorized to act in their absence or disability are citizens
of the United States, no more than a minority of the number of its
directors, or equivalent, necessary to constitute a quorum are
noncitizens, and a controlling interest in which is vested in citizens
of the United States; and
(5) A joint venture, if it is not determined by the Maritime
Administrator to be in effect an association or partnership, which is
organized under the laws of the United States or of a State, if each
co-venturer is a citizen of the United States. If a joint venture is in
effect an association, it will be treated as is an association under
paragraph (a)(4) of this section, or, if it is in effect a partnership,
will be treated as is a partnership under paragraph (a)(3) of this
section.
(b) General agency agreement means the agreement developed to
ensure the availability of qualified and eligible general agents.
(c) NDRF means National Defense Reserve Fleet site.
(d) Ship manager contract means the agreement developed to
establish roles and responsibilities for managing vessels owned by
MARAD.
(e) United States means the States of the United States, Guam,
Puerto Rico, the Virgin Islands, American Samoa, the District of
Columbia, the Commonwealth of the Northern Mariana Islands, and any
other territory or possession of the United States.
Sec. 315.5 Appointment of agents.
(a) Eligibility. The appointment as Agent is restricted to
qualified applicants. Each applicant must establish eligibility
according to MARAD procedures and meet the following criteria:
(1) Be a Citizen of the United States, as defined in section
315.3(b) of this part;
(2) Demonstrate the necessary ability, experience, and resources as
an operator of vessels or ports, or shoreside husbander of vessels; and
(3) Continue to meet all such requirements throughout the term of
the appointment.
(b) Procedures. Information about general agency agreements for
[[Page 28027]]
appointment as General Agent, Berth Agent, or Ship Manager Contracts
may be obtained from, along with inquiries and other written
communications submitted to, the Maritime Administration, Attn: Sealift
Operations, Department of Transportation, 1200 New Jersey Avenue SE,
Washington, DC 20590, (202) 366-1943.
(c) Approval. After final approval of an Agent, the contracting
office will transmit the applicable General Agency Agreement or Ship
Manager Contract to the applicant for execution and return to MARAD.
Sec. 315.7 Transferred vessels and contracts.
The eligibility requirements of section 315.5(a) do not apply to a
contractor managing vessels owned by the United States under a contract
or contracts previously awarded by another federal agency if the
contract, and the vessels managed under such contract, are subsequently
transferred to MARAD, provided the period of performance of the
transferred contract does not exceed the period of performance of the
original contract, including options.
Sec. 315.9 Administration of agency agreements.
(a) Amendments. MARAD will make conforming amendments to all
service agreements and ship manager contracts that are required due to
changes in the Federal Acquisition Regulation or Transportation
Acquisition Regulation.
(b) Annual review of general agent representations and
certifications. General agents must certify annually that all
representations and certifications incorporated in a general agency
agreement are current, complete, and accurate, or provide new
representations and certifications.
Sec. 315.11 Duties of agents.
The agent must perform all duties prescribed in the service
agreement or ship manager contract, as such agreement is applicable,
and must follow directions, orders, or regulations issued by MARAD.
Sec. 315.13 Vessel deactivation procedures.
When an agent is responsible as vessel operator to decommission and
deliver a vessel to the NDRF, that agent must observe all the terms,
procedures, and requirements prescribed by MARAD.
Sec. 315.15 Marine protection and indemnity insurance.
(a) Insurer. MARAD will be responsible for providing or obtaining
P&I insurance for all vessels assigned to Agents under an agreement. At
its election, MARAD may be a self-insurer of any one or more vessels
covered by an agreement or MARAD may obtain P&I insurance coverage
under one or more policies written by underwriters of marine insurance.
MARAD will determine the amount of coverage to be provided or obtained.
(b) Insureds. The United States of America, acting by and through
MARAD, Department of Transportation, and its Agents (including Agents'
employees as sub-agents). Sub-agents may be insureds only as expressly
provided in the agreement. Independent contractors of the Agents are
not insureds.
(c) Reports of accidents and occurrences. The Agent must report
every accident or occurrence of a P&I nature promptly to both MARAD and
the contracting officer named in the agreement. If MARAD has obtained
P&I insurance through a marine insurance underwriter, the Agent also
must concurrently file a report of such accident or occurrence with the
underwriter. MARAD will disclose full details as the identity of such
underwriter to the Agent.
(d) Report of claims. The Agent must submit a quarterly report of
all claims of a P&I nature to MARAD. The report must contain all
relevant information, e.g., the names of the vessels and of the
claimant, the date of the injury or occurrence, the amount claimed, the
basis for any payments already disbursed on behalf of the United
States, estimated future costs, and an evaluation of the claim of the
merits.
(e) Settlement of claims. After ascertaining from MARAD the
availability of funds, the Agent is authorized to settle individual
claims of a P&I insurance nature that do not exceed $5,000.
(1) For a settlement more than $5,000, the Agent must obtain
MARAD's prior approval. If MARAD has placed the P&I insurance with an
insurance underwriter, the Agent must obtain the prior approval of the
underwriter to settle claims.
(2) The amount of individual claims that do not exceed the Agent's
limit for settlement will be chargeable by the Agent to the vessel
expense and must be accounted for in accordance with current MARAD
accounting instructions.
(3) When settling any such claim, the Agent must advise the
claimant that such settlement will be accounted for in accordance with
current accounting instructions and must also advise the claimant that
such settlement is not to be construed as an admission of liability by
or on behalf of the United States, the Agent, or any other person.
(4) The Agent must apply sound judgment and follow standard
practices of vessel operators in the settlement or other disposition of
such P&I insurance claims, and must settle such claims only when the
settlement is adequately supported by all the facts and circumstances
and is in the best interest of the United States.
(f) Litigation. (1) If a court suit of a P&I nature is filed which
arises out of the activities of the Agent under its Agreement, wherein
the Agent is named as the party defendant or one of the parties'
defendant irrespective of whether the risk is covered by P&I insurance,
the Agent must immediately forward copies of the pleading and all other
related legal documents, by first class mail, to the Chief Counsel,
Maritime Administration, Department of Transportation, 1200 New Jersey
Avenue SE, Washington, DC 20590, and to the Attorney General, Attn:
Civil Division, Torts Branch, Department of Justice, Washington, DC
20530. No agent or authorized subagent will incur any legal expenses in
connection with any claim of a P&I nature, unless approved in advance
by MARAD and by the underwriter, where applicable. However, the Agent
may incur legal expenses if the mission of the vessel will be
frustrated or impeded and/or time will not permit such prior approval.
(2) In the event of any attachment or seizure of a vessel, whether
or not the risk is of a P&I nature, the Agent must immediately notify
MARAD.
(Authority: 49 U.S.C. 109, 49 CFR 1.81)
By order of the Maritime Administration.
T. Mitchell Hudson, Jr.
Secretary, Maritime Administration.
[FR Doc. 2025-12101 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-81-P
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