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Ship Dismantling/Recycling

MARAD periodically needs to dismantle its ships and recycle those parts and materials. MARAD has been allocated limited federal funds to pay commcercial companies to perform dismantling, recycling, and related follow-up work.

How it Works

When a MARAD-managed resource is due for dismantling and/or recycling, we solicit competitive offers from a pool of qualified companies and award the work to the most financially viable and environmentally-responsible offerer. Contracts are typically in the form of a fee-for-service or a vessel purchase agreement. To be eligible for participation in sales offers and fee-for-service price requests, companies must submit first a general technical proposal and be deemed a technically-acceptable vendor.

The Solicitation Process

  1. MARAD posts a specific vessel Ship Disposal Solicitation on the Federal Business Opportunity (FEDBIZOPS) website, which includes the process for:
    • the submittal and criteria of General Technical Proposals (GTP)
    • the establishment of a pool of qualified facilities
    • sales offers and revised price quotations, and
    • the criteria for award of sales contracts and /or ship disposal service contracts.
  2. To access the solicitation on FEDBIZOPPS, 1) change the posted date from 90 days to 365 days and 2) paste the solicitation number DTMA-91-Q-2013-0014 into the keyword/solicitation number fields, then 3) click Enter.
  3. MARAD reviews technical proposals per submission deadlines
  4. Offerors whose technical proposal has been demeed acceptable will be added to the pool of approved offerers
  5. Approved offerers then submit competitive sales offers and/or price revisions in response to the specific vessel solicitations
  6. MARAD awards the recycling contract

Environmental Compliance

MARAD is dedicated to staying compliant with federal environmental laws at all levels of operation. Solications and contracts related to ship dismantling and recycling require adherance to EPA standards and take those laws into consideration when reviewing a vendor's offer in relation to their recycling facilities.

The Environmental Protection Agency (EPA) has published ”A Guide for Ship Scrappers: Tips for Regulatory Compliance” to provide ship-recycling facilities an overview of the most pertinent environmental and worker health-and-safety requirements. This document 1) promotes environmentally-responsible activities at recycling facilities and 2) provides a baseline for vendors wishing to improve their position as an a technically-approved vendor. Specifically, it:

  • addresses processes specific to ship-recycling operations (e.g., asbestos removal, metal cutting, fuel-and-oil removal),
  • reviews key environmental, safety, and health requirements for each process, and
  • provides references to the relative Code of Federal Regulations requirements mentioned throughout.


Please contact MARAD's Office of Ship Disposal