47.505 Construction contracts
Source: FAR 47.505 on acquisition.gov
Overseas construction contractors must use U.S.-flag vessels for ocean transport unless the project qualifies for a specific exception based on recipient nation funding.
Overview
FAR 47.505 addresses the requirements for construction contractors, including subcontractors and suppliers, performing work overseas regarding the use of U.S.-flag vessels for ocean transportation. The section mandates compliance with the broader policies and regulations of Subpart 47.5, which generally require the use of U.S.-flag vessels for transporting supplies and equipment. However, an exception is provided for projects involving military assistance, foreign aid, or similar efforts where the recipient nation covers at least 50% of transportation costs. In such cases, foreign-flag vessels may be used for up to 50% of the project's gross tonnage.
Key Rules
- Mandatory Compliance for Overseas Construction
- Construction contractors, subcontractors, and suppliers working overseas must follow Subpart 47.5 policies on ocean transportation.
- Exception for Certain Government Projects
- If a recipient nation under military assistance or foreign aid projects pays for at least 50% of transportation, foreign-flag vessels can be used for up to 50% of the gross tonnage.
Responsibilities
- Contracting Officers: Ensure contractors are aware of and comply with U.S.-flag vessel requirements and exceptions.
- Contractors: Use U.S.-flag vessels for overseas transportation unless the specific exception applies.
- Agencies: Monitor compliance and verify eligibility for exceptions under military assistance or foreign aid projects.
Practical Implications
- This section ensures U.S.-flag vessels are prioritized for overseas construction projects, supporting U.S. maritime interests.
- Contractors must carefully assess project funding sources and transportation arrangements to determine compliance.
- Misinterpretation of the exception could lead to noncompliance and potential contract issues.
(a) Except as stated in paragraph (b) of this section, construction contractors, including subcontractors and suppliers, engaged in overseas work shall comply with the policies and regulations in this subpart.
(b) These requirements shall not apply to military assistance, foreign aid, or similar projects under the auspices of the U.S. Government when the recipient nation furnishes, or pays for, at least 50 percent of the transportation, in which event foreign-flag vessels may be used for a portion not to exceed 50 percent of the gross tonnage for the project.