July 6, 2007
MSC time charter for two USS Product Carriers NASSCO newbuilds
The U.S. Military Sealift Command is to time-charter two of the series of products tankers being built at NASSCO, San Diego, for a subsidiary of U.S. Shipping Partners, L.P.
USS Product Carriers LLC, Edison, N.J., is being awarded a $51,309,850 Military Sealift Command fixed-price contract with reimbursable items for the time charter of two newbuild, U.S.-flagged tankers.
The tankers will operate globally to transport petroleum products in support of U.S. military forces and will replace the current government-owned T-5 tankers that are expected to reach the end of their service life in 2010.
The new tankers will be delivered in 2010 and 2011.
This contract includes three one-year option periods and one 11-month option, which if exercised, would bring the cumulative value of this contract to $219,842,124 plus reimbursables costs, which include fuel and port charges.Work will be performed world-wide, Work is expected to be completed October 2011 (August 2015 if all option periods are exercised).Contract funds will not expire at the end of the current fiscal year.This contract was competitively procured with over 85 proposals solicited and six offers received.The U.S. Navy's Military Sealift Command, Washington, D.C., is the contracting authority (N00033-07-C-5416).
The tankers are being built under a $1 billion dollar contract with NASSCO, covering nine product carrier tankers with options for five more. Construction of the first tanker is scheduled to begin in the third quarter of 2007, with delivery planned for the second quarter of 2009 and with subsequent tankers delivered every six to eight months.
The 49,000 dwt double-hulled ships will be 183 meters (600.4 feet) in length and 32.2 meters (105.6 feet) in beam, with a design draft of 11.8 meters (38.7 feet) and will have a cargo capacity of 331,000 barrels.
The tankers are based on an existing design from DSEC, a wholly owned subsidiary of Daewoo Shipbuilding and Marine Engineering of Seoul, Korea. NASSCO has an agreement with DSEC to produce ships for the U.S. market under the Jones Act, in which DSEC will provide detail designs and services related to construction of the ships.