47.403
Guidelines for implementation of the Fly America Act
Contractors must prioritize U.S.-flag air carriers for government-funded international air travel and thoroughly document any exceptions to avoid disallowed costs.
Overview
FAR 47.403 provides the foundational guidelines for implementing the Fly America Act, referencing the Comptroller General's guidance from 1981. This section establishes the regulatory framework for ensuring that U.S. government-financed international air transportation uses U.S.-flag air carriers whenever available, as required by law. It introduces the key compliance areas: determining the availability of U.S.-flag carriers, recognizing exceptions based on international agreements, and outlining the consequences of non-compliance, including the disallowance of expenditures.
Key Rules
- Availability of U.S.-Flag Air Carrier Service
- Contractors must use U.S.-flag air carriers for government-funded international air travel unless such service is unavailable or exceptions apply.
- Air Transport Agreements
- Exceptions may be permitted if there are air transport agreements between the U.S. and foreign governments that allow the use of foreign carriers under specific circumstances.
- Disallowance of Expenditures
- Costs for travel not in compliance with the Fly America Act may be disallowed, meaning contractors may not be reimbursed for such expenses.
Responsibilities
- Contracting Officers: Ensure contract clauses require compliance with the Fly America Act and review travel claims for adherence.
- Contractors: Must document and justify the use of non-U.S.-flag carriers and comply with all reporting and record-keeping requirements.
- Agencies: Oversee implementation, provide guidance, and enforce compliance, including disallowing improper expenditures.
Practical Implications
- The regulation exists to support U.S. airlines and ensure federal funds are spent in accordance with U.S. law.
- Contractors must be diligent in planning travel, documenting exceptions, and understanding applicable international agreements.
- Common pitfalls include failing to justify the use of foreign carriers or misunderstanding when exceptions apply, leading to unreimbursed costs.