10 U.S.C. § 2218 | National Defense Sealift Fund

(a)

Establishment .—

There is established in the Treasury of the United States a fund to be known as the “National Defense Sealift Fund”.

(b)

Administration of Fund .—

The Secretary of Defense shall administer the Fund consistent with the provisions of this section.

(c)

Fund Purposes .—

(1)

Funds in the National Defense Sealift Fund shall be available for obligation and expenditure only for the following purposes:

(A)

Construction (including design of vessels), purchase, alteration, and conversion of Department of Defense sealift vessels.

(B)

Operation, maintenance, and lease or charter of Department of Defense vessels for national defense purposes.

(C)

Installation and maintenance of defense features for national defense purposes on privately owned and operated vessels that are constructed in the United States and documented under the laws of the United States.

(D)

section 57100 of title 46 Expenses for maintaining the National Defense Reserve Fleet under and for the costs of acquisition of vessels for, and alteration and conversion of vessels in (or to be placed in), the fleet, but only for vessels built in United States shipyards.

(2)

Funds in the National Defense Sealift Fund may be obligated or expended only in amounts authorized by law.

(3)

Funds obligated and expended for a purpose set forth in subparagraph (B) of paragraph (1) may be derived only from funds deposited in the National Defense Sealift Fund pursuant to subsection (d)(1).

(d)

Deposits .—

There shall be deposited in the Fund the following:

(1)

All funds appropriated to the Department of Defense for—

(A)

construction (including design of vessels), purchase, alteration, and conversion of national defense sealift vessels;

(B)

operations, maintenance, and lease or charter of national defense sealift vessels; and

(C)

installation and maintenance of defense features for national defense purposes on privately owned and operated vessels.

(2)

All receipts from the disposition of national defense sealift vessels, excluding receipts from the sale, exchange, or scrapping of National Defense Reserve Fleet vessels under sections 57101–57104 and chapter 573 of title 46.

(3)

10 U.S.C. 8661 All receipts from the charter of vessels under section 1424(c) of the National Defense Authorization Act for Fiscal Year 1991 ( note).

(4)

Any other funds made available to the Department of Defense to carry out any of the purposes described in subsection (c).

(e)

Acceptance of Support .—

(1)

The Secretary of Defense may accept from any person, foreign government, or international organization any contribution of money, personal property (excluding vessels), or assistance in kind for support of the sealift functions of the Department of Defense.

(2)

Any contribution of property accepted under paragraph (1) may be retained and used by the Department of Defense or disposed of in accordance with procedures prescribed by the Secretary of Defense.

(3)

The Secretary of Defense shall deposit in the Fund money and receipts from the disposition of any property accepted under paragraph (1).

(f)

Limitations .—

(1)

A vessel built in a foreign ship yard may not be purchased with funds in the National Defense Sealift Fund pursuant to subsection (c)(1), unless specifically authorized by law.

(2)

section 1424(b) of Public Law 101–510 104 Stat. 1683 Construction, alteration, or conversion of vessels with funds in the National Defense Sealift Fund pursuant to subsection (c)(1) shall be conducted in United States ship yards and shall be subject to ().

(3)

(A)

Notwithstanding the limitations under subsection (c)(1)(D) and paragraph (1), the Secretary of Defense may, as part of a program to recapitalize the Ready Reserve Force component of the national defense reserve fleet and the Military Sealift Command surge fleet, purchase any used vessel, regardless of where such vessel was constructed if such vessel—

(i)

participated in the Maritime Security Fleet; and

(ii)

is available for purchase at a reasonable cost, as determined by the Secretary.

(B)

If the Secretary determines that no used vessel meeting the requirements under clauses (i) and (ii) of subparagraph (A) is available, the Secretary may purchase a used vessel comparable to a vessel described in clause (i) of subparagraph (A), regardless of the source of the vessel or where the vessel was constructed, if such vessel is available for purchase at a reasonable cost, as determined by the Secretary.

(C)

The Secretary may not use the authority under this paragraph to purchase more than 12 foreign constructed vessels.

(D)

The Secretary shall ensure that the initial conversion, or modernization of any vessel purchased under the authority of subparagraph (A) occurs in a shipyard located in the United States.

(E)

The Secretary may not use the authority under this paragraph to procure more than four foreign constructed vessels unless the Secretary submits to Congress, by not later than the second week of February of the fiscal year during which the Secretary plans to use such authority, a certification that—

(i)

the Secretary has initiated an acquisition strategy for the construction in United States shipyards of not less than ten new vessels that are sealift vessels, auxiliary vessels, or a combination of such vessels; and

(ii)

of such new vessels, the lead ship is anticipated to be delivered by not later than 2028.

(F)

Not later than 30 days before the purchase of any vessel using the authority under this paragraph, the Secretary, in consultation with the Maritime Administrator, shall submit to the congressional defense committees a report that contains each of the following with respect to such purchase:

(i)

The proposed date of the purchase.

(ii)

The price at which the vessel would be purchased.

(iii)

The anticipated cost of modernization of the vessel.

(iv)

The proposed military utility of the vessel.

(v)

The proposed date on which the vessel will be available for use by the Ready Reserve.

(vi)

The contracting office responsible for the completion of the purchase.

(vii)

Certification that—

(I)

there was no vessel available for purchase at a reasonable price that was constructed in the United States; and

(II)

the used vessel purchased supports the recapitalization of the Ready Reserve Force component of the National Defense Reserve Fleet or the Military Sealift Command surge fleet.

(viii)

A detailed account of the criteria used to make the determination under subparagraph (B).

(G)

The Secretary may not finalize or execute the final purchase of any vessel using the authority under this paragraph until 30 days after the date on which a report under subparagraph (F) is submitted with respect to such purchase.

(g)

Expiration of Funds AfterYears 5 .—

No part of an appropriation that is deposited in the National Defense Sealift Fund pursuant to subsection (d)(1) shall remain available for obligation more than five years after the end of fiscal year for which appropriated except to the extent specifically provided by law.

(h)

Budget Requests .—

Budget requests submitted to Congress for the National Defense Sealift Fund shall separately identify—

(1)

the amount requested for programs, projects, and activities for construction (including design of vessels), purchase, alteration, and conversion of national defense sealift vessels;

(2)

the amount requested for programs, projects, and activities for operation, maintenance, and lease or charter of national defense sealift vessels;

(3)

the amount requested for programs, projects, and activities for installation and maintenance of defense features for national defense purposes on privately owned and operated vessels that are constructed in the United States and documented under the laws of the United States; and

(4)

the amount requested for programs, projects, and activities for research and development relating to national defense sealift.

(i)

Title or Management of Vessels .—

section 57100 of title 46Nothing in this section (other than subsection (c)(1)(D)) shall be construed to affect or modify title to, management of, or funding responsibilities for, any vessel of the National Defense Reserve Fleet, or assigned to the Ready Reserve Force component of the National Defense Reserve Fleet, as established by .

(j)

Contracts for Incorporation of Defense Features in Commercial Vessels .—

(1)

The head of an agency may enter into a contract with a company submitting an offer for that company to install and maintain defense features for national defense purposes in one or more commercial vessels owned or controlled by that company in accordance with the purpose for which funds in the National Defense Sealift Fund are available under subsection (c)(1)(C). The head of the agency may enter into such a contract only after the head of the agency makes a determination of the economic soundness of the offer. As consideration for a contract with the head of an agency under this subsection, the company entering into the contract shall agree with the Secretary of Defense to make any vessel covered by the contract available to the Secretary, fully crewed and ready for sea, at any time at any port determined by the Secretary, and for whatever duration the Secretary determines necessary.

(2)

The head of an agency may make advance payments to the contractor under a contract under paragraph (1) in a lump sum, in annual payments, or in a combination thereof for costs associated with the installation and maintenance of the defense features on a vessel covered by the contract, as follows:

(A)

The costs to build, procure, and install a defense feature in the vessel.

(B)

The costs to periodically maintain and test any defense feature on the vessel.

(C)

Any increased costs of operation or any loss of revenue attributable to the installation or maintenance of any defense feature on the vessel.

(D)

Any additional costs associated with the terms and conditions of the contract.

(E)

Payments of such sums as the Government would otherwise expend, if the vessel were placed in the Ready Reserve Fleet, for maintaining the vessel in the status designated as “ROS–4 status” in the Ready Reserve Fleet for 25 years.

(3)

section 31322 of title 46 For any contract under paragraph (1) under which the United States makes advance payments under paragraph (2) for the costs associated with installation or maintenance of any defense feature on a commercial vessel, the contractor shall provide to the United States such security interests in the vessel, by way of a preferred mortgage under or otherwise, as the head of the agency may prescribe in order to adequately protect the United States against loss for the total amount of those costs.

(4)

Each contract entered into under this subsection shall—

(A)

set forth terms and conditions under which, so long as a vessel covered by the contract is owned or controlled by the contractor, the contractor is to operate the vessel for the Department of Defense notwithstanding any other contract or commitment of that contractor; and

(B)

provide that the contractor operating the vessel for the Department of Defense shall be paid for that operation at fair and reasonable rates.

(5)

The head of an agency may not delegate authority under this subsection to any officer or employee in a position below the level of head of a procuring activity.

(6)

The head of an agency may not enter into a contract under paragraph (1) that would provide for payments to the contractor as authorized in paragraph (2)(E) until notice of the proposed contract is submitted to the congressional defense committees and a period of 90 days has elapsed.

(k)

Definitions .—

In this section:

(1)

The term “Fund” means the National Defense Sealift Fund established by subsection (a).

(2)

The term “Department of Defense sealift vessel” means any ship owned, operated, controlled, or chartered by the Department of Defense that is any of the following:

(A)

section 1424 of Public Law 101–510 104 Stat. 1683 A fast sealift ship, including any vessel in the Fast Sealift Program established under ().

(B)

Any other auxiliary vessel that was procured or chartered with specific authorization in law for the vessel, or class of vessels, to be funded in the National Defense Sealift Fund.

(3)

The term “national defense sealift vessel” means—

(A)

a Department of Defense sealift vessel; and

(B)

section 57100 of title 46 a national defense reserve fleet vessel, including a vessel in the Ready Reserve Force maintained under .

(4)

section 3004 of this title The term “head of an agency” has the meaning given that term in .

(5)

section 53102(a) of title 46 The term “Maritime Security Fleet” means the fleet established under .

Editorial Notes

References in Text

Section 1424 of Public Law 101–510 section 7291 of this title, referred to in subsecs. (d)(3), (f)(2), and (k)(2)(A), is section 1424 of the National Defense Authorization Act for Fiscal Year 1991, which is set out as a note under .

Codification

Pub. L. 102–396, title VOct. 6, 1992106 Stat. 1896 Pub. L. 102–484Oct. 3, 1992Pub. L. 102–396 Pub. L. 102–484Oct. 3, 1992Oct. 3, 1992Oct. 5, 1992, , , provided that section 1024 of the National Defense Authorization Act for Fiscal Year 1993 [H.R. 5006, ], as it passed the Senate on , shall be amended in subsection 2218(c)(2) proposed for inclusion in this chapter by deleting all after “expended only” down to and including “appropriations Act” and inserting in lieu thereof “in amounts authorized by law”. It further provided that for purposes of that amendment, shall be treated as having been enacted after , regardless of the actual dates of enactment. The date of , referred to as the date the Senate passed the National Defense Authorization Act for Fiscal Year 1993, apparently is based on an order adopted by the Senate on [Cong. Rec., vol. 138, pt. 21, p. 30919] providing that when the conference report on the National Defense Authorization Act for Fiscal Year 1993 was received by the Senate from the House of Representatives it would be deemed to have been agreed to. On , the Senate received the conference report from the House, and it was considered adopted pursuant to that order [Cong. Rec., vol. 138, pt. 22, p. 31565].

Amendments

Pub. L. 119–60, § 1701(a)(17)section 57100 of title 46 50 U.S.C. 44052025—Subsec. (c)(1)(D). , substituted “” for “section 11 of the Merchant Ship Sales Act of 1946 ()”.

Pub. L. 119–60, § 1022Subsec. (f)(3)(C). , substituted “12” for “10”.

Pub. L. 119–60, § 1701(a)(17)section 57100 of title 46 50 U.S.C. 4405Subsec. (k)(3)(B). , substituted “” for “section 11 of the Merchant Ship Sales Act of 1946 ()”.

Pub. L. 118–159, § 1022(1)(A)2024—Subsec. (f)(3)(A). , substituted “subsection (c)(1)(D)” for “subsection (c)(1)(E)”.

Pub. L. 118–159, § 1022(1)(B)Subsec. (f)(3)(C). , substituted “10” for “nine”.

Pub. L. 118–159, § 1022(2)Subsec. (i). , substituted “subsection (c)(1)(D)” for “subsection (c)(1)(E)”.

Pub. L. 116–283, § 1022(1)2021—Subsec. (f)(3)(C). , substituted “nine” for “seven”.

Pub. L. 116–283, § 1022(2)(A)Subsec. (f)(3)(E). , substituted “four” for “two” in introductory provisions.

Pub. L. 116–283, § 1022(2)(B)Subsec. (f)(3)(E)(ii). , substituted “2028” for “2026”.

Pub. L. 116–283, § 1022(3)Subsec. (f)(3)(G). , substituted “subparagraph (F)” for “subparagraph (E)”.

Pub. L. 116–283, § 1806(e)(1)(A)Subsec. (k)(4). , substituted “section 3004” for “section 2302(1)”.

Pub. L. 116–92, § 1031(a)(1)2019—Subsec. (f)(3)(E)(i). , substituted “ten new vessels that are sealift vessels, auxiliary vessels, or a combination of such vessels” for “ten new sealift vessels”.

Pub. L. 116–92, § 1031(a)(2)Subsec. (f)(3)(E)(ii). , struck out “sealift” before “vessels”.

Pub. L. 115–232, § 809(a)10 U.S.C. 8661 10 U.S.C. 72912018—Subsec. (d)(3). , substituted “section 1424(c) of the National Defense Authorization Act for Fiscal Year 1991 ( note)” for “section 1424(c) of the National Defense Authorization Act for Fiscal Year 1991 ( note)”.

Pub. L. 115–232, § 1012(1)Subsec. (f)(3)(C). , substituted “seven” for “two” and “vessels” for “ships”.

Pub. L. 115–232, § 1012(3)Subsec. (f)(3)(E). , added subpar. (E). Former subpar. (E) redesignated (F).

Pub. L. 115–232Subsec. (f)(3)(F). , §§ 1012(2), 1013(1)(A), redesignated subpar. (E) as (F) and substituted “30 days before” for “30 days after” in introductory provisions.

Pub. L. 115–232, § 1013(1)(B)Subsec. (f)(3)(F)(i). , inserted “proposed” before “date”.

Pub. L. 115–232, § 1013(1)(C)Subsec. (f)(3)(F)(ii). , substituted “would be purchased.” for “was purchased.”

Pub. L. 115–232, § 1013(1)(D)Subsec. (f)(3)(F)(viii). , added cl. (viii).

Pub. L. 115–232, § 1013(2)Subsec. (f)(3)(G). , added subpar. (G).

Pub. L. 115–91, § 1021(a)(1)(A)2017—Subsec. (c)(1)(D), (E). , redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “Research and development relating to national defense sealift.”

Pub. L. 115–91, § 1021(a)(1)(B)Subsec. (c)(3). , struck out “or (D)” after “subparagraph (B)”.

Pub. L. 115–91, § 1021(a)(2)(A)Subsec. (d)(1)(D). , struck out subpar. (D) which read as follows: “research and development relating to national defense sealift.”

Pub. L. 115–91, § 1021(a)(2)(B)Subsec. (d)(4). , added par. (4).

Pub. L. 115–91, § 1021(b)Subsec. (f)(3). , added par. (3).

Pub. L. 115–91, § 3502(b)(1)section 57100 of title 46Subsec. (i). , substituted “” for “section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744)”.

Pub. L. 115–91, § 1021(c)Subsec. (k)(5). , added par. (5).

Pub. L. 114–328 50 U.S.C. 44052016—Subsecs. (c)(1)(E), (k)(3)(B). substituted “()” for “(50 U.S.C. App. 1744)”.

Pub. L. 110–417, § 1407(1)l2008—Subsecs. (j), (k). , redesignated subsecs. (k) and () as (j) and (k), respectively, and struck out heading and text of former subsec. (j). Text read as follows: “Upon a determination by the Secretary of Defense that such action serves the national defense interest and after consultation with the congressional defense committees, the Secretary may use funds available for obligation or expenditure for a purpose specified under subsection (c)(1)(A), (B), (C), and (D) for any purpose under subsection (c)(1).”

Pub. L. 110–417, § 1407(2)Subsec. (k)(2)(B) to (I). , added subpar. (B) and struck out former subpars. (B) to (I) which read as follows:

“(B) A maritime prepositioning ship.

“(C) An afloat prepositioning ship.

“(D) An aviation maintenance support ship.

“(E) A hospital ship.

“(F) A strategic sealift ship.

“(G) A combat logistics force ship.

“(H) A maritime prepositioned ship.

“(I) Any other auxiliary support vessel.”

lPub. L. 110–417, § 1407(1)lSubsec. (). , redesignated subsec. () as (k).

Pub. L. 109–3042006—Subsec. (d)(2). substituted “sections 57101–57104 and chapter 573 of title 46” for “sections 508 and 510 of the Merchant Marine Act of 1936 (46 U.S.C. App. 1158, 1160), shall be deposited in the Fund”.

Pub. L. 109–163Subsec. (f)(1). substituted “A vessel built in a foreign ship yard may not be” for “Not more than a total of five vessels built in foreign ship yards may be” and inserted “, unless specifically authorized by law” before period at end.

lPub. L. 108–1362003—Subsec. ()(4), (5). redesignated par. (5) as (4) and struck out former par. (4) which read as follows: “The term ‘congressional defense committees’ means—

“(A) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

“(B) the Committee on Armed Services and the Committee on Appropriations of the House of Representatives.”

Pub. L. 107–1072001—Subsec. (d)(1). struck out “for fiscal years after fiscal year 1993” after “Department of Defense” in introductory provisions.

Pub. L. 106–398, § 1 [[div. A]2000—Subsec. (k)(1). , title X, § 1011(1)], inserted at end “As consideration for a contract with the head of an agency under this subsection, the company entering into the contract shall agree with the Secretary of Defense to make any vessel covered by the contract available to the Secretary, fully crewed and ready for sea, at any time at any port determined by the Secretary, and for whatever duration the Secretary determines necessary.”

Pub. L. 106–398, § 1 [[div. A]Subsec. (k)(2)(E). , title X, § 1011(2)], added subpar. (E).

Pub. L. 106–398, § 1 [[div. A]Subsec. (k)(6). , title X, § 1011(3)], added par. (6).

Pub. L. 106–65, § 1015(a)(2)l1999—Subsec. (k). , added subsec. (k). Former subsec. (k) redesignated ().

Pub. L. 106–65, § 1014(b)Subsec. (k)(2). , substituted “that is any of the following:” for “that is—” in introductory provisions, substituted “A” for “a” and a period for the semicolon in subpars. (A) and (B), “An” for “an” and a period for the semicolon in subpar. (C), “An” for “an” and a period for “; or” in subpar. (D), and “A” for “a” in subpar. (E), and added subpars. (F) to (I).

lPub. L. 106–65, § 1015(a)(1)lSubsec. (). , redesignated subsec. (k) as ().

lPub. L. 106–65, § 1067(1)Subsec. ()(4)(B). , substituted “Committee on Armed Services” for “Committee on National Security”.

lPub. L. 106–65, § 1015(b)Subsec. ()(5). , added par. (5).

Pub. L. 104–106, § 1014(a)(1)(A)1996—Subsec. (c)(1). , substituted “only for the following purposes:” for “only for—”.

Pub. L. 104–106, § 1014(a)(1)(B)Subsec. (c)(1)(A). , (C), substituted “Construction” for “construction” and “vessels.” for “vessels;”.

Pub. L. 104–106, § 1014(a)(1)(B)Subsec. (c)(1)(B). , (C), substituted “Operation” for “operation” and “purposes.” for “purposes;”.

Pub. L. 104–106, § 1014(a)(1)(B)Subsec. (c)(1)(C). , (D), substituted “Installation” for “installation” and “States.” for “States; and”.

Pub. L. 104–106, § 1014(a)(1)(B)Subsec. (c)(1)(D). , substituted “Research” for “research”.

Pub. L. 104–106, § 1014(a)(1)(E)Subsec. (c)(1)(E). , added subpar. (E).

Pub. L. 104–106, § 1014(a)(2)Subsec. (i). , inserted “(other than subsection (c)(1)(E))” after “Nothing in this section”.

Pub. L. 104–106, § 1502(a)(15)(A)Subsec. (j). , substituted “the congressional defense committees” for “the Committees on Armed Services and on Appropriations of the Senate and the House of Representatives”.

Pub. L. 104–106, § 1502(a)(15)(B)Subsec. (k)(4). , added par. (4).

Pub. L. 102–3961992—Subsec. (c)(2). substituted “in amounts authorized by law” for “for programs, projects, and activities and only in amounts authorized in, or otherwise permitted under, an Act other than an appropriations Act”. See Codification note above.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

section 1806(e)(1)(A) of Pub. L. 116–283Jan. 1, 2022section 1801(d) of Pub. L. 116–283 section 3001 of this titleAmendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as a note preceding .

Effective Date of 2019 Amendment

Pub. L. 116–92, div. A, title X, § 1031(b)Dec. 20, 2019133 Stat. 1579

October 1, 2019“The amendments made by subsection (a) [amending this section] shall take effect on , and shall apply with respect to fiscal years beginning on or after that date.”

, , , provided that:

Effective Date of 2018 Amendment

section 809(a) of Pub. L. 115–232Feb. 1, 2019section 800 of Pub. L. 115–232 section 3001 of this titleAmendment by effective , with provision for the coordination of amendments and special rule for certain redesignations, see , set out as a note preceding .

Termination of Reporting Requirements

Dec. 31, 2021section 1061 of Pub. L. 114–328 section 111 of this titleFor termination, effective , of provisions in subsec. (h) of this section relating to submitting budget requests to Congress, see , set out as a note under .

Compliance by Ready Reserve Fleet Vessels With SOLAS Lifeboats and Fire Suppression Requirements

Pub. L. 115–232, div. C, title XXXV, § 3502Aug. 13, 2018132 Stat. 2308

section 2244a of title 10October 1, 2021“The Secretary of Defense shall, consistent with , United States Code, use authority under section 2218 of such title to make such modifications to Ready Reserve Fleet vessels as are necessary for such vessels to comply [with] requirements for lifeboats and fire suppression under the International Convention for the Safety of Life at Sea by not later than .”

, , , provided that: