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Navy Contracting: Military Sealift Command's Control Over Time-Chartered Ships

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Report Type Reports and Testimonies
Report Date April 7, 1993
Report No. NSIAD-93-140
Subject
Summary:

The Military Sealift Command (MSC) regularly charters both commercial and government-owned vessels to ship military cargo. Under a time-chartered contract, MSC pays a daily fee for the use of a ship during a specific time period but the owner remains responsible for ship operations, such as supplying the crew. MSC believes that it has complied with the law in allowing three of its time-charted ships--the Atlantic Forest, the Green Wave, and the Green Ridge--to be worked on in foreign shipyards. GAO found that (1) MSC's decision to allow the Atlantic Forest to be reflagged overseas appears to have been within its discretion and (2) MSC's position that time-chartered ships remain within the jurisdiction of their owners, and are therefore allowed to be repaired overseas, appears reasonable.

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