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Title 46 — ShippingRelease 119-73not60

§57512 Competitive Bidding

Title 46 › Subtitle Subtitle V— Merchant Marine › Part F— Government-Owned Merchant Vessels › Chapter 575— CONSTRUCTION, CHARTER, AND SALE OF VESSELS › Subchapter II— CHARTERS › § 57512

Last updated Apr 5, 2026|Official source

Summary

The Secretary of Transportation must lease a Department vessel to a private operator only through competitive sealed bidding. Bidders must follow the exact rules in a public notice that asks for bids. The public notice must list five things: the vessels (number, type, and tonnage) and the trade route, the minimum sailings, how long the charter lasts, that the Secretary can reject all bids, and any other needed details. Bids are opened where and when the notice says. Anyone, including the press, may watch, and the results are announced publicly.

Full Legal Text

Title 46, §57512

Shipping — Source: USLM XML via OLRC

(a)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)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)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.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 57512(a)46 App.:1196(a) (1st sentence).June 29, 1936, ch. 858, title VII, § 706(a), (b) (1st sentence related to announcement), 49 Stat. 2009; Pub. L. 97–31, § 12(108), Aug. 6, 1981, 95 Stat. 163. 57512(b)46 App.:1196(a) (last sentence), (b) (1st sentence related to announcement). 57512(c)46 App.:1193(c) (related to chartering).June 29, 1936, ch. 858, title VII, § 703(c) (related to chartering), 49 Stat. 2008; Pub. L. 97–31, § 12(105), Aug. 6, 1981, 95 Stat. 163. Subsection (b)(4) is substituted for “announce in his advertisements for bids that the Secretary of Transportation reserves the right to, reject any and all bids submitted” in 46 App. U.S.C. 1196(b) to improve the organization. In subsection (c), the words “Bids required under this section” are substituted for “All bids required by the Secretary of Transportation . . . and for the chartering of the Secretary’s vessels hereinafter provided for” to eliminate unnecessary words. The word “hour” is omitted as covered by “time”.

Reference

Citations & Metadata

Citation

46 U.S.C. § 57512

Title 46 — Shipping

Last Updated

Apr 5, 2026

Release point: 119-73not60