The ship was returned to the
U.S. Maritime Commission, she was simultaneously transferred to the Navy, given the designation T–AK–241, and assigned to the newly formed
Military Sea Transportation Service (MSTS). Since that time,
Private Francis X. McGraw, manned by a civil service crew, carried supplies and equipment to "far flung" ports for MSTS, Atlantic. Although primarily rotated between Caribbean,
North Sea, and Mediterranean runs, she was, when necessary, and particularly from the mid-1960s into 1970, been diverted from such assignments to carry cargo to Pacific Ocean ports. Pacific assignments included delivery of chemical weapons to Okinawa in 1965 and removing those weapons to Johnston Atoll in 1971 under
Operation Red Hat. In 1964 the U.S.N.S. Private Francis X. McGraw was involved in the salvage efforts of the submarine U.S.S. Thresher. ==Decommissioning==