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A Reassessment of the Marine Salvage Posture of the United States
Crowley Maritime Salvage, Seattle, is the Pacific Ocean contractor.
Smit Tak, a Netherlands corporation, is the Navy's Western Pacific, Indian Ocean, and Arabian Sea/Arabian Gulf salvor.
The contracts each run for a period of one year with four annual options to renew. The contracts require immediate response with designated facilities and carry a guaranteed minimum value. The contractors receive their costs plus an award fee for operations actually tasked.
SUPSALV also competitively awards contracts with a number of salvage-related companies pursuant to 10 U.S.C. § 7362 to provide services using salvage equipment owned and furnished by the Navy. Military departments are authorized to lease government-owned equipment to private companies under 10 U.S.C. § 2667. Pursuant to this statute the Navy, through SUPSALV, may lease pollution response equipment to private organizations. The terms of these equipment rentals are similar to (but differ in several important respects from) those for salvage equipment leased pursuant to the Salvage Facilities Act.
In each case the contractor is free to enter other contracts with private customers, but may not use the Navy's equipment, and the other contracts must not interfere with the Navy's requirements. These contracts provide for ocean floor search and recovery, in-water ship repair, oil spill response, and salvage equipment depot maintenance; the specific terms vary.
The ocean floor search and recovery contracts are held by Oceaneering Technologies, Inc. This contractor maintains and operates SUPSALV's remotely operated vehicles and underwater search systems. The contracts provide for immediate response and mobilization and pay costs plus award fee for tasked operations.
Oceaneering International, the parent of Oceaneering Technologies, holds the Navy contract to provide worldwide diving services. They include in-water ship inspection and repairs, such as underwater cutting and welding, rudder repair, and propeller and shaft bearing replacement. The contract requires the Navy to furnish certain equipment and requires Oceaneering to provide divers for Navy jobs worldwide. While the contractor is permitted to perform non-Navy work, such work must not interfere with Navy requirements and taskings. The contractor is paid on a daily fee schedule according to the type of diving services provided and recovers its costs plus an award fee.
The salvage equipment depot contractor is Global Phillips Cartner (GPC). GPC maintains the Navy's Emergency Ship Salvage Material (ESSM) warehouses in Williamsburg, Virginia; Stockton, California; Bahrain; Pearl Harbor; Sasebo, Japan; Aberdeen, Scotland; Livorno, Italy; and Singapore. ESSM warehouses hold a large variety and quantity of salvage, diving, and pollution response equipment. The Williamsburg and Stockton facilities also develop and maintain specialized salvage and pollution response equipment. They employ skilled individuals capable of manufacturing, packing, and shipping equipment needed for a salvage and/or pollution response operation anywhere in the world. GPC earns costs plus award fee under this contract. It employs about 130 individuals full time to satisfy contract requirements.
GPC also holds the Navy's pollution response contract and maintains and operates the Navy's extensive inventory of pollution response equipment. On occasion, GPC is tasked by the Navy to support U.S. Coast Guard pollution response operations involving private concerns, shipowners, cargo owners, or pollution liability underwriters. This support almost invariably includes providing Navy-owned pollution response equipment, maintained and operated by GPC, according to a published cost schedule. These costs are billed to the ''responsible party,'' either directly or through the Coast Guard. GPC receives its costs plus an award fee, which