PART 315—AGENCY AGREEMENTS AND APPOINTMENT OF AGENTS Authority: 46 U.S.C. 57100 et seq., Source: 90 FR 28026, July 1, 2025, unless otherwise noted. § 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. § 315.3 Definitions. (a) Agent (b) Citizen of the United States (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 (c) NDRF (d) Ship manager contract (e) United States § 315.5 Appointment of agents. (a) Eligibility. (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. , (c) Approval. § 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. § 315.9 Administration of agency agreements. (a) Amendments. Federal Acquisition Regulation Transportation Acquisition Regulation. (b) Annual review of general agent representations and certifications. § 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. § 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. § 315.15 Marine protection and indemnity insurance. (a) Insurer. (b) Insureds. (c) Reports of accidents and occurrences. (d) Report of claims. e.g., (e) Settlement of claims. (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. (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)