47.503
Applicability
FAR 47.503 mandates the use of U.S.-flag vessels for certain government cargo shipments, with specific rules for military and foreign assistance cargo.
Overview
FAR 47.503 outlines when the Cargo Preference Acts of 1904 and 1954 apply to government cargo shipments. It specifies the types of cargo and circumstances under which these acts require the use of U.S.-flag commercial vessels for ocean transportation. The regulation covers government-owned supplies, supplies contracted for government use, and supplies for foreign assistance programs, with certain exceptions and clarifications on the extent of U.S.-flag vessel use required.
Key Rules
- General Applicability
- The Cargo Preference Acts apply to government-owned supplies in the possession of the government, contractors, or subcontractors, as well as supplies contracted for government use and certain foreign assistance supplies.
- Military Department Shipments
- Government-owned supplies for military departments must be shipped exclusively on U.S.-flag commercial vessels if available at fair and reasonable rates.
- 50-Percent Requirement Flexibility
- The regulation allows up to 100% of cargo subject to the Cargo Preference Act of 1954 to be shipped on U.S.-flag vessels, even though the law generally requires at least 50%.
Responsibilities
- Contracting Officers: Must ensure compliance with cargo preference requirements when arranging ocean transportation for applicable government cargo.
- Contractors: Must use U.S.-flag vessels as required and understand when these requirements apply to their shipments.
- Agencies: Oversee compliance and ensure proper application of cargo preference laws.
Practical Implications
- This section ensures U.S.-flag vessels are used for transporting government cargo, supporting the U.S. maritime industry and national security.
- Contractors must carefully determine when cargo preference applies and ensure proper vessel selection, especially for military and foreign assistance shipments.
- Common pitfalls include misidentifying applicable cargo or failing to secure U.S.-flag vessels when required.