--- kind: "section" citation: "46 U.S.C. § 53103" title: "46" title_heading: "Shipping" number: "53103" heading: "Award of operating agreements" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/46/53103" units: - "Subtitle V — Merchant Marine" - "Part C — Financial Assistance Programs" - "Chapter 531 — Maritime Security Fleet" --- # §53103. Award of operating agreements - (a) **In General.—** The [Secretary](/usc/46/53101.md?p=8) shall require, as a condition of including any [vessel](/usc/46/53501.md?p=9) in the [Fleet](/usc/46/53101.md?p=3), that the [person](/usc/46/53101.md?p=6) that is the owner or operator of the [vessel](/usc/46/53501.md?p=9) for purposes of [section 53102(c)](/usc/46/53102.md?p=c) enter into an [operating agreement](/usc/46/53201.md?p=8) with the [Secretary](/usc/46/53101.md?p=8) under this section. - (b) **Extension of Existing Operating Agreements.—** - (1) **Offer to extend.—** Not later than 60 days after the date of enactment of this paragraph, the [Secretary](/usc/46/53101.md?p=8) shall offer, to an existing [contractor](/usc/46/53101.md?p=2), to extend, through September 30, 2040, an [operating agreement](/usc/46/53201.md?p=8) that is in existence on the date of enactment of this paragraph. The terms and conditions of the extended [operating agreement](/usc/46/53201.md?p=8) shall include terms and conditions authorized under this chapter, as amended from time to time. - (2) **Time limit.—** An existing [contractor](/usc/46/53101.md?p=2) shall have not later than 120 days after the date the [Secretary](/usc/46/53101.md?p=8) offers to extend an [operating agreement](/usc/46/53201.md?p=8) to agree to the extended [operating agreement](/usc/46/53201.md?p=8). - (3) **Subsequent award.—** The [Secretary](/usc/46/53101.md?p=8) may award an [operating agreement](/usc/46/53201.md?p=8) to an applicant that is eligible to enter into an [operating agreement](/usc/46/53201.md?p=8) for [fiscal years](/usc/46/53201.md?p=6) 2016 through 2040 if the existing [contractor](/usc/46/53101.md?p=2) does not agree to the extended [operating agreement](/usc/46/53201.md?p=8) under [paragraph (2)](#b-2). - (c) **Procedure for Awarding New Operating Agreements.—** The [Secretary](/usc/46/53101.md?p=8) may enter into a new [operating agreement](/usc/46/53201.md?p=8) with an applicant that meets the requirements of [section 53102(c)](/usc/46/53102.md?p=c) (for [vessels](/usc/46/53501.md?p=9) that meet the qualifications of [section 53102(b)](/usc/46/53102.md?p=b)) on the basis of priority for [vessel](/usc/46/53501.md?p=9) type established by military requirements of the [Secretary](/usc/46/53101.md?p=8) of Defense. The [Secretary](/usc/46/53101.md?p=8) shall allow an applicant at least 30 days to submit an application for a new [operating agreement](/usc/46/53201.md?p=8). After [consideration](/usc/46/2101.md?p=5) of military requirements, priority shall be given to an applicant that is a [United States](/usc/46/53101.md?p=10) citizen under [section 50501 of this title](/usc/46/50501.md). The [Secretary](/usc/46/53101.md?p=8) may not approve an application without the consent of the [Secretary](/usc/46/53101.md?p=8) of Defense. The [Secretary](/usc/46/53101.md?p=8) shall enter into an [operating agreement](/usc/46/53201.md?p=8) with the applicant or provide a written reason for denying the application. - (d) **Limitation.—** The [Secretary](/usc/46/53101.md?p=8) may not award [operating agreements](/usc/46/53201.md?p=8) under this chapter that require payments under [section 53106](/usc/46/53106.md) for a [fiscal year](/usc/46/53201.md?p=6) for more than 60 [vessels](/usc/46/53501.md?p=9). ## Source credit (Added Pub. L. 108–136, div. C, title XXXV, § 3531(a), Nov. 24, 2003, 117 Stat. 1808; amended Pub. L. 109–304, § 13(a)(2), Oct. 6, 2006, 120 Stat. 1700; Pub. L. 109–364, div. C, title XXXV, § 3502(b)(1), Oct. 17, 2006, 120 Stat. 2515; Pub. L. 112–239, div. C, title XXXV, § 3508(c), Jan. 2, 2013, 126 Stat. 2224; Pub. L. 116–92, div. C, title XXXV, § 3502(a), Dec. 20, 2019, 133 Stat. 1969; Pub. L. 118–159, div. C, title XXXV, § 3502(a), Dec. 23, 2024, 138 Stat. 2304.) ## Notes ### Editorial Notes ### References in Text The date of enactment of this paragraph, referred to in subsec. (b)(1), probably means the date of enactment of Pub. L. 112–239, which amended subsec. (b) generally and was approved Jan. 2, 2013. ### Amendments 2024—Subsec. (b)(1), (3). Pub. L. 118–159 substituted “2040” for “2035”. 2019—Subsec. (b)(1), (3). Pub. L. 116–92 substituted “2035” for “2025”. 2013—Subsec. (b). Pub. L. 112–239, § 3508(c)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) related to procedure for applications. Subsec. (c). Pub. L. 112–239, § 3508(c)(2), amended subsec. (c) generally. Prior to amendment, subsec. (c) related to priority for awarding agreements. 2006—Subsec. (c)(1). Pub. L. 109–304, § 13(a)(2)(A)–(C), substituted “section 50501 of this title” for “section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802)” in subpars. (A)(iii) and (C)(i) and (ii), “applying subparagraph” for “applying subparagraphs” in subpar. (B), and “section 50501” for “section 2” in subpar. (C) heading. Subsec. (c)(3)(B). Pub. L. 109–304, § 13(a)(2)(D), substituted “agreements” for “agreement”. Subsec. (c)(4)(A). Pub. L. 109–364, § 3502(b)(1)(A)–(D), redesignated cls. (i) and (ii) as cl. (i), subcls. (I) and (II), respectively, in subcl. (II) substituted “; or” for period at end, and added cl. (ii). Subsec. (c)(4)(B). Pub. L. 109–364, § 3502(b)(1)(E), inserted “with respect to which a binding contract is entered into under subparagraph (A)(i)” after “existing tank vessel”. Subsec. (c)(4)(C), (D). Pub. L. 109–364, § 3502(b)(1)(F), added subpars. (C) and (D).