(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; Pub. L. 109–364, div. C, title XXXV, § 3503,Oct. 17, 2006, 120 Stat. 2516; Pub. L. 110–181, div. C, title XXXV, §§ 3513,
3516,Jan. 28, 2008, 122 Stat. 594, 595.)
In subsec. (b)(1), “chapter
” substituted for “section 902 of the Merchant Marine Act, 1936 (46 App.
)” on authority of Pub. L. 109–304
, § 18(c),Oct. 6, 2006, 120 Stat. 1709
, which Act enacted chapter
2008—Subsec. (b)(5). Pub. L. 110–181
, § 3513, added par. (5).
Subsec. (c)(1)(B). Pub. L. 110–181
, § 3516, amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “activate and conduct sea trials on each vessel at least once every twenty-four months;”.
2006—Subsec. (d). Pub. L. 109–364
added subsec. (d).
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), redesignatedsubsec. (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 (b) to read as if it had not been repealed by Pub.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
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) ofPub. L. 102–587
provided in part that: “The effective date of this subsection [amending this section] is December 12, 1989.”
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections
, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
Vessel Repair and Maintenance Pilot Program
Section 16 ofPub. L. 104–239
“(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 App.
“(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.”