The Strategic and Critical Materials Stock Piling Act (50 U.S.C. section 98 et seq.) mandates that a stockpile of strategic and critical materials (the Stockpile) be maintained to decrease and preclude, where possible, dependence upon foreign sources of supply in times of national emergency. Appendix A of this report provides a copy of the complete Stock Piling Act, as amended. Authority for management of the operational aspects of the National Defense Stockpile has been delegated to the Defense Logistics Agency, Defense National Stockpile Center. The report details the operations of NDS during Fiscal Year 1998 and provides information with regard to the acquisition, upgrade and disposition of NDS materials under the Act, as well as the financial status of the NDS Transaction Fund for Fiscal Year 1998. The Defense Logistics Agency performs operations and management functions for the NDS.