Navy Contracting: Ship Chartering Practices of the Military Sealift Command
Navy Contracting: Ship Chartering Practices of the Military Sealift Command
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)
Document information
Navy Contracting: Ship Chartering Practices of the Military Sealift Command
1989
19 pages
Report
No indication
English