Page:United States Statutes at Large Volume 120.djvu/1697

 120 STAT. 1666

PUBLIC LAW 109–304—OCT. 6, 2006

‘‘(d) DEPRECIATION.—Depreciation under subsections (b) and (c) shall be based on— ‘‘(1) a 25-year life for dry-cargo and passenger vessels; and ‘‘(2) a 20-year life for tankers and other bulk liquid carrier vessels. ‘‘SUBCHAPTER II—CHARTERS ‘‘§ 57511. Demise charters ‘‘A charter by the Secretary of Transportation under this chapter shall demise the vessel to the charterer subject to all usual conditions contained in a bareboat charter. The charter shall be for a term the Secretary considers to be in the best interest of the United States Government and the merchant marine. ‘‘§ 57512. Competitive bidding ‘‘(a) IN GENERAL.—The Secretary of Transportation may charter a vessel of the Department of Transportation to a private operator only on the basis of competitive sealed bidding. The bids must be submitted in strict compliance with the terms and conditions of a public advertisement soliciting the bids. ‘‘(b) ADVERTISEMENT FOR BIDS.—An advertisement for bids shall state— ‘‘(1) the number, type, and tonnage of the vessels being offered for bareboat charter for operation as a steamship line on a designated trade route; ‘‘(2) the minimum number of sailings required; ‘‘(3) the length of time of the charter; ‘‘(4) the right of the Secretary to reject all bids; and ‘‘(5) other information the Secretary considers necessary for the information of prospective bidders. ‘‘(c) OPENING OF BIDS.—Bids required under this section shall be opened at the time and place stated in the advertisement for bids. All interested persons, including representatives of the press, shall be permitted to attend. The results of the bidding shall be publicly announced. ‘‘§ 57513. Minimum bid ‘‘The Secretary of Transportation shall reject any bid for the charter under this subchapter of a vessel constructed under this subtitle or the Merchant Marine Act, 1936, if the charter hire offered is lower than the minimum charter hire would be if the vessel were chartered under section 57531 of this title. ‘‘§ 57514. Qualifications of bidders ‘‘(a) CONSIDERATIONS.—In deciding whether to award a charter to a bidder, the Secretary of Transportation shall consider— ‘‘(1) the bidder’s financial resources, credit standing, and practical experience in operating vessels; and ‘‘(2) other factors a prudent business person would consider in entering into a transaction involving a large capital investment. ‘‘(b) DISQUALIFICATIONS.—The Secretary may not charter a vessel to a person appearing to lack sufficient capital, credit, and experience to operate the vessel successfully over the period covered by the charter.

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