Memorandum of Understanding
between
The Department of Defense
Department of the Navy
and
The Department of Transportation
US Maritime Administration
and
The Department of Labor
Occupational Safety and Health Administration
and
The Environmental Protection Agency
Office of Enforcement and Compliance Assurance
on Coordination and Information Sharing of Domestic Ship Recycling Operations

I. PURPOSE AND SCOPE

A. The recycling of obsolete vessels presents many challenges. These include the structural complexity of the ships themselves, as well as environmental and safety issues. The Department of the Navy (Navy), the US Maritime Administration (MARAD), the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA) recognized the problems with early ship recycling practices. Since 1999, interagency coordination and information sharing have resulted in improvements to the recycling and oversight process, worker occupational safety and health, and reduced environmental hazards.

B. The purpose of this Memorandum of Agreement (MOA) is to (1) reaffirm the agency commitments contained in the November 16, 1999 memorandum of agreement entitled “Implementation of the Recommendations on Coordination and Information Sharing of the Report of the Interagency Panel on Ship Scrapping,” and (2) document responsibilities and procedures for continued cooperation and coordination among the Navy, MARAD, OSHA, and EPA in an effort to reduce work-related injuries and illnesses and environmental hazards associated with ship recycling operations in the United States.

C. This MOA contains provisions that:

1. Require the Navy and/or MARAD to notify OSHA and EPA that a solicitation has been issued, the initial step in soliciting bids or offers for recycling of government vessels;

2. Establish procedures for the Navy and MARAD to provide OSHA and EPA with the identity of entities that have contracted for the recycling of their vessels;

3. Establish procedures to be used by OSHA and EPA to provide the Navy and MARAD with the compliance history of bidders or offerors on government vessels to be recycled;

4. Establish procedures for the Navy and MARAD to notify OSHA and EPA of dates and locations of post-award/pre-performance conferences and for OSHA and EPA to coordinate with the appropriate headquarters and regional offices within their agencies as well as with any involved state agencies regarding the opportunity to participate in the post-award/pre-performance conferences;

5. Explain OSHA and EPA compliance activities, including comprehensive inspections of ship recycling operations, and provide that OSHA and EPA will make every effort to coordinate inspections of ship recycling operations in appropriate circumstances, to facilitate the occurrence of joint visits when possible;

6. Outline compliance response and inspections at on-going ship recycling sites; and

7. Coordinate efforts between the Navy, MARAD, OSHA, and EPA to utilize the resources of each Agency, alone and in combination, to more effectively identify and regulate environmental and hazardous working conditions associated with the ship recycling industry.

II. BACKGROUND

In the 1990s, the Department of Defense (DoD) and MARAD became concerned that some contractors participating in their ship recycling and disposal programs were violating or potentially violating environmental and worker safety and health laws. DoD officials created a process to evaluate the program by convening a Panel that included federal environmental, safety, and occupational health experts to review the situation. The Panel issued a report in April 1998 that contained, among other things, an assessment of the contracting and oversight process, which resulted in the November 1999 “Memorandum of Agreement on Implementation of the Recommendations on Coordination and Information Sharing of the Report of the Interagency Panel on Ship Scrapping” (1999 MOA). This MOA reaffirms the commitments and coordination mechanisms contained in the 1999 MOA.

III. GENERAL PROCEDURES

A. Notification of Contract Award

Once a contract is awarded to recycle a vessel, the Navy or MARAD will provide written or electronic notice to OSHA and EPA of the following information:

1. Date of Contract Award;

2. The name, corporate offices/mailing address/phone number of the contractor/ship recycler;

3. Notification of plans to move each vessel from its point of storage to the recycling location;

4. Location of the proposed recycling operation and any change in location for recycling;

5. The Navy or MARAD Contracting Officer with address, phone number, etc.;

6. Projected completion date of contract;

7. A copy of the contract provisions which address occupational safety and health, as well as environmental compliance requirements; and

8. Prior to a vessel moving from its point of storage to where it will be recycled, the Navy or MARAD will provide to OSHA and EPA, upon request, a set of available general arrangement drawings (which are blueprints of the floor plans of the vessel).

B. Notification of Non-Compliance/Violation

OSHA and EPA agree to provide non-compliance/violation notification regarding recyclers to the Navy and MARAD within 15 working days of an inspection which results in a non-compliance/violation finding or citation. This information will typically include:

1. The name of the contractor/subcontractor;

2. Contractor/subcontractor addresses at which inspections occurred;

3. Dates of inspections;

4. The number and nature of specific standards violated (OSHA) or indication that Notice of Violation was issued (EPA);

5. Corrective action to be taken to abate violations; and

6. Penalties associated with citations or violations issued by OSHA or EPA.

C. Compliance History

OSHA and EPA agree to provide compliance history information regarding a recycler to the Navy or MARAD within 15 working days of receiving a request. This information will typically include:

1. The name of the contractor/subcontractor;

2. Contractor/subcontractor addresses at which inspections occurred;

3. Dates of inspections;

4. The number and nature of completed inspections and specific standards violated (OSHA) or indication that Notice of Violation was issued (EPA);

5. Evidence of corrective action taken or failure to abate violations, if available. OSHA will further provide the employer's (contractor's) history of willful/repeated violations and identify whether OSHA's investigation was the result of an accident that caused a fatality; and

6. Penalties associated with OSHA citations and EPA violations issued.

D. Notification of Post-Award/Pre-Performance Conferences

The Navy and MARAD will advise OSHA and EPA, upon request, of dates and locations of post-award/pre-performance conferences. OSHA and EPA will independently determine whether, based on the compliance history of the contractor or other relevant factors, they will send representatives to the post-award/pre-performance conference. OSHA and EPA shall be responsible for coordination with appropriate headquarters and regional offices within their agencies as well as with any involved state agencies. The parties agree that all such representatives may choose to attend post-award/pre-performance conferences. OSHA and EPA will identify such representatives to the Navy or MARAD Contracting Officer.

E. Compliance Response and Inspections

1. OSHA Compliance

a. Inspection Scheduling : OSHA and its field offices will develop appropriate procedures under national or local emphasis programs for scheduling inspections of ship breaking/recycling operations, which will be based upon a referral by the Navy or MARAD. The referral will include solicitation and contract information and other available information. Each vessel is a unique and individual worksite for inspection purposes. Upon receipt of a referral, OSHA will initiate an inspection and provide a copy of the OSHA Referral Report to the originating Navy or MARAD Contracting Officer.

b. Inspection Procedures : If, upon arrival at the site, right of entry is denied, the Navy or MARAD Contracting Officer will be notified immediately. Such notification shall be accomplished by the most expeditious method available, including, but not limited to, telephone or email.

c. During the opening conference with the employer (contractor), the OSHA Compliance Officer will inform the employer that the inspection was initiated as a result of a referral. The employer will be provided with a copy of the referral. The Navy or MARAD Contracting Officer shall be invited to the closing conference with the employer at the completion of the inspection. The Navy or MARAD Contracting Officer may designate a representative to attend in the Contracting Officer’s stead.

d. The inspection procedures will be in accordance with OSHA's Field Operations Manual (FOM) (a document that prescribes inspection procedures for all types of OSHA inspections).

e. Post Inspection Procedures : Following completion of an inspection covered by this MOA, the respective OSHA Area Office will transmit to the Navy or MARAD Contracting Officer copies of citations issued.

2. EPA Inspection Procedures

a. EPA agrees to conduct, at a minimum, one compliance inspection annually at all Navy and MARAD qualified ship recycling facilities/operations. Such inspections will be made by staff in the appropriate EPA regional office in consultation with EPA's Federal Facilities Enforcement Office. EPA does not necessarily give advance notice of inspections. If advance notice is given to a ship recycling contractor or subcontractor, the same advance notice will also be given to the Government Administering Contracting Officer. Any information shared with a ship recycling contractor or subcontractor in the close-out interview following an inspection will also be shared with the Navy or MARAD, as appropriate.

b. Because of the number of statutes applicable to the ship recycling industry, EPA generally will conduct comprehensive multimedia environmental inspections of ship recycling operations. However, individual media inspections may be conducted as appropriate.

c. A typical investigation of a ship recycling facility would generally include: a pre-inspection review of EPA and state regulatory databases and files, an on-site inspection of the recycling facility, exit conferences between regulatory and contractor and/or subcontractor personnel after the on-site inspection to discuss preliminary inspection findings, report preparation and enforcement case development if appropriate. Inspections would be conducted consistent with EPA's Multimedia Compliance Monitoring Investigation Protocol for the Ship Recycling Industry , February 1999.

3. Joint Coordinated Inspections

EPA and OSHA agree to conduct, where appropriate, joint coordinated inspections of ship recycling operations to provide a more comprehensive and efficient approach to maintaining compliance with all applicable environmental and occupational safety and health requirements.

F. No Private Right of Action

Nothing in this agreement is intended to diminish or otherwise affect the authority of any agency to carry out its statutory, regulatory or other official functions, nor is it intended to create any right or benefit, substantive or procedural, enforceable at law by any party against the United States, its departments, agencies, officers, or employees, state agencies or officers carrying out programs authorized under federal, state or local law, or any other person. Navy and MARAD personnel are not agents of OSHA or EPA and their presence in no way relieves ship recycling employers/contractors or employees of their responsibilities under the OSH Act or federal, state, and local environmental laws.

G. Personnel

Each party is responsible for all costs of its personnel, including pay and benefits, support, and travel. Each party is responsible for supervising and managing its personnel.

IV. INTERAGENCY COMMUNICATIONS

To provide for consistent effective communications among the signatories to this MOA, the points of contact in the Navy, MARAD, OSHA and EPA shall be:

NAVY:
Director, Inactive Ships Office (SEA 21I)
Naval Sea Systems Command
1333 Isaac Hull Avenue, SE
Washington Navy Yard, DC 20376

MARAD:
Director, Office of Ship Disposal Programs (MAR-640) )
1200 New Jersey Avenue, SE
West Building, 2nd floor
Washington, DC 20590-0001

OSHA:
Director of Directorate of Enforcement Programs
U.S. Department of Labor
Occupational Safety and Health Administration
Room N-3119
200 Constitution Avenue, NW
Washington, DC 20210

EPA:
Director, Federal Facilities Enforcement Office (2261A)
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue NW
Washington, D.C. 20460

In addition, these points of contact shall be responsible for coordination with appropriate headquarters and regional offices within their respective agencies, as well as with state agencies.

V. EFFECTIVE DATE, AMENDMENT AND TERMINATION

A. This MOA is effective upon the date of the last signature by the parties and shall remain in effect for a period of 9 years, unless and until modified in writing by mutual consent of all parties or terminated in writing by any party upon 30 days advance notice to the other signatories. The parties agree to meet every three years after the date of last signature to assess the effectiveness of this MOA.

B. This MOA does not preclude any of the parties from entering into separate agreements setting forth procedures for other programs which may be addressed more effectively and expeditiously by special agreement.

VI. CANCELLATION OF PREVIOUS AGREEMENT

This MOA supersedes the previously signed agreement between the same parties with the subject “Implementation of the Recommendations on Coordination and Information Sharing of the Report of the Interagency Panel on Ship Scrapping,” dated 16 Nov 1999.