FINANCIAL MANAGEMENT POLICY MANUAL

074643 NATIONAL DEFENSE SEALIFT FUND
1. SCOPE.
The National Defense Sealift Fund (NDSF) is operated under the authority
of 10 U.S. Code 2218, which provides for the construction (including
design of vessels), purchase, alteration, and conversion of Department of
Defense (DOD) sealift vessels; operation, maintenance, and lease or
charter of DOD vessels for national defense purposes; 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; research and
development relating to national defense sealift; and expenses for
maintaining the National Defense Reserve Fleet (NDRF) including the
acquisition, alteration or conversion of vessels built in U.S. shipyards for
the NDRF.
2. STRUCTURE AND CONTENT.
The NDSF is classified as an intragovernmental revolving fund. The
following are deposited into the Fund:
a. all funds appropriated for the construction (including design of
vessels), purchase, alteration, and conversion of national defense
sealift vessels; operation, maintenance, and lease or charter of DOD
vessels for national defense purposes; 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 research and
development relating to national defense sealift.
b. receipts from the disposition of national defense sealift vessels,
excluding NDRF vessels.
c. receipts from the charter of vessels; and
d. receipts from the disposition of gifts.
NDSF funds are available for any of the purposes listed in subparagraph 1.
3. PROGRAM SEGMENTS.
a. Research and Development.
The research and development program explores new concepts and
technologies that can be applied to future DOD sealift vessels and
other sealift systems to enhance operational capability and efficiency.
Commander, Naval Sea Systems Command
(COMNAVSEASYSCOM) is responsible for executing the research
and development program using reimbursable orders to government
activities or contracts with commercial vendors.
Financial Management Policy
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