§ 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.
(E)
Expenses for maintaining the National Defense Reserve Fleet under section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1744), 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.
(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;
(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.
(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)
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 section 1424(b) of Public Law 101–510 (104 Stat. 1683).
(g)
Expiration of Funds After 5 Years.—
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;
(i)
Title or Management of Vessels.—
Nothing in this section (other than subsection (c)(1)(E)) 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 section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1744).
(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:
(3)
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 section
31322 of title
46 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—
(k)
Definitions.—
In this section:
(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)
A fast sealift ship, including any vessel in the Fast Sealift Program established under section 1424 of Public Law 101–510 (104 Stat. 1683).