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DOCUMENT RESUME
02137 - fA15325241
[The Maritime Administration's Ship Sales Program]. CED-77-9)0;
B-169094. May 26, 1977. 7 pp.
Report to Secretary, Department of Commerce; by Henry Eschwege,
Director, Community and Economic Development Div.
Issue Area: Facilities and Material Management (700).
Contact: Community and Econotic Development Div.
Budget Function: Commerce and Transportation: Water
Transportation (406).
Organizaticn Concerned: Maritime Administration; General
Services Administration; Department of Defense.
Congressional Relevance: House Committee on Merchant Marine and
Fisheries; Senate Committee on Commerce.
Authority: Merchant Marine Act of 1936, sec. 508 (46 U.S.C.
1158). Federal Property and Administrative Services Act of
1949, sec. 203,i) (40 U.S.C. 464). 10 U.S.C. 7305.
There are inconsistencies among the legislation and
policies used to govern the vessel sales programs at the
Maritime Administration (MarAd), the -eneral Services
Alministration (GSA), and the Department of Defense (DOD).
Finlings/Conclusions: Discussions with officials at the three
Agencies indicated that it is not clear which policies are in
the best interest of the Government and the American maritime
industry. MarAd is authorized to sell surplus vessels from the
NatLonal Defense Reserve Fleet for scrap or other
nontransportation uses and to dispose of all surplus Government
vessels determined to Ie merchant type or convertible to
merchant type and weighing 1,500 gross tons or more. DOD is
authorized to dispose of surplus military vessels t'tat a:e not
merchant class vessels or convertible to merchant class End
merchant class vessels under 1,500 tons. GSA is authorized to
dispose of surplus Government property incliding naval vessels.
Only the laws covering the MarAd sales require that preference
be given to U.S. citizens. Recommendations: The Secretary of
Commerce, through the Assistant Secretary for Maritime Affairs,
should review MarAd's policy of providing preference to the
American shipbreaking industry, and should analyze MarAd's
policy for restricting the sales of vessels of less than 1,500
tons, such as tugs, for scrapping or other nontransportation
use. Included in this analysis should be an evaluation, together
with DOD, of the effect of DOD selling similar vessels without
the nontransportation requirement. The Secretary of Commerce
should then propose legislation to the Congress to resolve this
difference in MarAd's and DOD's legislation. (SC)](ViewImageLocal?handle=hein.gao/gaobaacev0001&div=1&collection=&method=preview&ext=.png&size=3)