§1744. National Defense Reserve Fleet

(a) Fleet components

The Secretary of Transportation shall maintain a National Defense Reserve Fleet, including any vessel assigned by the Secretary to the Ready Reserve Force component of the fleet, consisting of those vessels owned or acquired by the United States Government that the Secretary of Transportation, after consultation with the Secretary of the Navy, determines are of value for national defense purposes and that the Secretary of Transportation decides to place and maintain in the fleet.

(b) Permitted uses

Except as otherwise provided by law, a vessel in the fleet may be used-

(1) for an account of an agency of the United States Government in a period during which vessels may be requisitioned under section 902 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1242); or

(2) on the request of the Secretary of Defense, and in accordance with memoranda of agreement between the Secretary of Transportation and the Secretary of Defense, for-

(A) testing for readiness and suitability for mission performance;

(B) defense sealift functions for which other sealift assets are not reasonably available; and

(C) support of the deployment of the United States armed forces in a military contingency, for military contingency operations, or for civil contingency operations upon orders from the National Command Authority;

(3) for otherwise lawfully permitted storage or transportation of non-defense-related cargo as directed by the Secretary of Transportation with the concurrence of the Secretary of Defense; or

(4) for training purposes to the extent authorized by the Secretary of Transportation with the concurrence of the Secretary of Defense.

(c) Ready Reserve Force management

(1) Minimum requirements

To ensure the readiness of vessels in the Ready Reserve Force component of the National Defense Reserve Fleet, the Secretary of Transportation shall, at a minimum-

(A) maintain all of the vessels in a manner that will enable each vessel to be activated within a period specified in plans for mobilization of the vessels;

(B) activate and conduct sea trials on each vessel at least once every twenty-four months;

(C) maintain in an enhanced activation status those vessels that are scheduled to be activated within 5 days;

(D) locate those vessels that are scheduled to be activated within 5 days near embarkation ports specified for those vessels; and

(E) notwithstanding section 2109 of title 46, United States Code, have each vessel inspected by the Secretary of the department in which the Coast Guard is operating to determine if the vessel meets the safety standards that would apply under part B of subtitle II of that title if the vessel were not a public vessel.

(2) Vessel managers

(A) Eligibility for contract

A person, including a shipyard, is eligible for a contract for the management of a vessel in the Ready Reserve Force if the Secretary determines, at a minimum, that the person has-

(i) experience in the operation of commercial-type vessels or public vessels owned by the United States Government; and

(ii) the management capability necessary to operate, maintain, and activate the vessel at a reasonable price.

(B) Contract requirement

The Secretary of Transportation shall include in each contract for the management of a vessel in the Ready Reserve Force a requirement that each seaman who performs services on any vessel covered by the contract hold the license or merchant mariner's document that would be required under chapter 71 or chapter 73 of title 46, United States Code, for a seaman performing that service while operating the vessel if the vessel were not a public vessel.

(e) ¹ Exemption from tank vessel construction standards

Vessels in the National Defense Reserve Fleet are exempt from the provisions of section 3703a of title 46, United States Code.

(Mar. 8, 1946, ch. 82, §11, 60 Stat. 49 ; June 28, 1947, ch. 161, §1, 61 Stat. 190 ; Feb. 27, 1948, ch. 78, §1(a), 62 Stat. 38 ; Feb. 28, 1949, ch. 12, 63 Stat. 9 ; June 29, 1949, ch. 281, §1, 63 Stat. 349 ; June 30, 1950, ch. 427, §2, 64 Stat. 308 ; Pub. L. 97–31, §12(157), Aug. 6, 1981, 95 Stat. 167 ; Pub. L. 101–115, §6, Oct. 13, 1989, 103 Stat. 693 ; Pub. L. 101–225, title III, §307(12), Dec. 12, 1989, 103 Stat. 1925 ; Pub. L. 102–241, §57, Dec. 19, 1991, 105 Stat. 2234 ; Pub. L. 102–587, title VI, §6205(a), Nov. 4, 1992, 106 Stat. 5094 ; Pub. L. 104–106, div. A, title X, §1014(b), Feb. 10, 1996, 110 Stat. 424 ; Pub. L. 104–239, §9, Oct. 8, 1996, 110 Stat. 3133 .)

Amendments

1996-Subsec. (b)(2). Pub. L. 104–239, §9(1), substituted "of the Secretary of Defense" for "of the Secretary of the Navy".

Subsecs. (c), (d). Pub. L. 104–239, §9(2), redesignated subsec. (d) as (c) and struck out former subsec. (c) which read as follows: "The Secretary of Transportation shall not require bid, payment, performance, payment and performance, or completion bonds from contractors for repair, alteration, or maintenance of vessels of the National Defense Reserve Fleet unless-

"(1) required by law; or

"(2) the Secretary determines, after investigation, that the imposition of such bonding requirements would not preclude any responsible potential bidder or offeror from competing for award of the contract."

Subsec. (e). Pub. L. 104–106 added subsec. (e).

1992-Subsec. (b). Pub. L. 102–587 amended subsec. (b) to read as if it had not been repealed by Pub. L. 101–225. See 1989 Amendment note below.

1991-Subsec. (d). Pub. L. 102–241 added subsec. (d).

1989-Pub. L. 101–225 struck out subsec. (b) as it appeared after a general amendment by Pub. L. 101–115, see below. See also 1992 Amendment note above.

Pub. L. 101–115 amended section generally. Prior to amendment, section read as follows:

"(a) The Secretary of Transportation shall place in a national defense reserve (1) such vessels owned by the Department of Transportation as, after consultation with the Secretary of the Army and the Secretary of the Navy, he deems should be retained for the national defense, and (2) all vessels owned by the Department of Transportation on June 30, 1950, for the sale of which a contract has not been made by that time, except those determined by the Secretary of Transportation to be of insufficient value for commercial and national defense purposes to warrant their maintenance and preservation, and except those vessels, the contracts for the construction of which are made after September 2, 1945, under the provisions of the Merchant Marine Act, 1936, as amended. A vessel under charter on March 1, 1948, shall not be placed in the reserve until the termination of such charter. Unless otherwise provided for by law, all vessels placed in such reserve shall be preserved and maintained by the Secretary of Transportation for the purpose of national defense. A vessel placed in such reserve shall in no case be used for any purpose whatsoever except that any such vessel may be used for account of any agency or department of the United States during any period in which vessels may be requisitioned under section 902 of the Merchant Marine Act, 1936, as amended, and that any such vessel may be used under a bare-boat charter entered into pursuant to authority vested in the Secretary of Transportation on July 1, 1950, or granted to the Secretary of Transportation after such date.

"(b) Any war-built vessel may be made available by the Secretary of Transportation to any State maintaining a marine school or nautical branch in accordance with the Act of July 29, 1941 (Public Law 191, Seventy-seventh Congress; 55 Stat. 607)."

1981-Subsec. (a). Pub. L. 97–31 substituted "Secretary of Transportation" first three times it appears for "Commission" and last two times it appears for "Secretary of Commerce"; "Department of Transportation" for "it"; and "he" for "it".

Subsec. (b). Pub. L. 97–31 substituted "Secretary of Transportation" for "Commission".

1950-Subsec. (a). Act June 30, 1950, amended subsec. (a) to provide that a vessel placed in reserve may not be used for any purpose whatsoever except (1) for the account of any Federal agency or department during the period in which vessels may be requisitioned under section 1242 of Title 46 and (2) and any such vessel may be used under a bare-boat charter entered into pursuant to the authority vested in the Secretary of Commerce.

1949-Subsec. (a). Joint Res. June 29, 1949, extended provisions of section from June 30, 1949, to June 30, 1950. Joint Res. Feb. 28, 1949, extended provisions of section from Mar. 1, 1949, to June 30, 1949.

1948-Subsec. (a). Act Feb. 27, 1948, extended provisions of section from Mar. 1, 1948, to Mar. 1, 1949.

1947-Subsec. (a). Act June 28, 1947, extended provisions of section from Dec. 31, 1947, to Mar. 1, 1948.

Effective Date of 1992 Amendment

Section 6205(a) of Pub. L. 102–587 provided in part that: "The effective date of this subsection [amending this section] is December 12, 1989."

Vessel Repair and Maintenance Pilot Program

Section 16 of Pub. L. 104–239 provided that:

"(a) In General.-The Secretary of Transportation shall conduct a pilot program to evaluate the feasibility of using renewable contracts for the maintenance and repair of outported vessels in the Ready Reserve Force to enhance the readiness of those vessels. Under the pilot program, the Secretary, subject to the availability of appropriations and within 6 months after the date of the enactment of this Act [Oct. 8, 1996], shall award 9 contracts for this purpose.

"(b) Use of Various Contracting Arrangements.-In conducting a pilot program under this section, the Secretary of Transportation shall use contracting arrangements similar to those used by the Department of Defense for procuring maintenance and repair of its vessels.

"(c) Contract Requirements.-Each contract with a shipyard under this section shall-

"(1) subject to subsection (d), provide for the procurement from the shipyard of all repair and maintenance (including activation, deactivation, and drydocking) for 1 vessel in the Ready Reserve Force that is outported in the geographical vicinity of the shipyard;

"(2) be effective for 1 fiscal year; and

"(3) be renewable, subject to the availability of appropriations, for each subsequent fiscal year through fiscal year 1998.

"(d) Limitation of Work Under Contracts.-A contract under this section may not provide for the procurement of operation or manning for a vessel that may be procured under another contract for the vessel to which section 11(d)(2) of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1774(d)(2)) applies.

"(e) Geographic Distribution.-The Secretary shall seek to distribute contract awards under this section to shipyards located throughout the United States.

"(f) Reports.-The Secretary shall submit to the Congress-

"(1) an interim report on the effectiveness of each contract under this section in providing for economic and efficient repair and maintenance of the vessel included in the contract, no later than 20 months after the date of the enactment of this Act [Oct. 8, 1996]; and

"(2) a final report on that effectiveness no later than 6 months after the termination of all contracts awarded pursuant to this section."

Section Referred to in Other Sections

This section is referred to in section 1738 of this Appendix; title 10 section 2218; title 46 section 3703a; title 46 App. sections 1132, 1152, 1160.

¹ So in original. Probably should be "(d)".