47.506 Procedures
Source: FAR 47.506 on acquisition.gov
Contracting officers must coordinate with transportation activities and follow specific procedures to ensure compliance with cargo preference and reporting requirements for ocean shipments.
Overview
FAR 47.506 outlines the procedures contracting officers must follow when dealing with ocean transportation of supplies subject to the Cargo Preference Act of 1954. It emphasizes coordination with transportation activities for developing shipping instructions, determining vessel availability, assessing fair and reasonable shipping rates, and complying with reporting requirements set by the Maritime Administration. The section ensures that U.S.-flag commercial vessels are used when available and that all regulatory and reporting obligations are met.
Key Rules
- Coordination with Transportation Activity
- Contracting officers must seek assistance from the transportation activity to develop shipping instructions and delivery terms for solicitations and contracts involving ocean transportation.
- Vessel Availability
- If a contractor reports that a U.S.-flag commercial vessel is unavailable, the contracting officer must consult the transportation activity for further action.
- Rate Determination
- Published rates by the Federal Maritime Commission may be accepted as fair and reasonable; if not published, the Maritime Administration must determine rate fairness.
- Reporting Requirements
- Agencies must submit reports on ocean shipments as required by 46 CFR 381, following agency-specific regulations.
Responsibilities
- Contracting Officers: Coordinate with transportation activities, verify vessel availability, determine fair shipping rates, and ensure required reports are submitted.
- Contractors: Notify the contracting officer if U.S.-flag vessels are unavailable.
- Agencies: Submit required reports on ocean shipments per Maritime Administration regulations.
Practical Implications
- This section ensures compliance with cargo preference laws and proper use of U.S.-flag vessels, supporting U.S. maritime interests.
- It impacts daily contracting by requiring coordination, documentation, and adherence to specific reporting and rate determination procedures.
- Common pitfalls include failing to coordinate with transportation activities or missing reporting deadlines, which can result in noncompliance.
(a) The contracting officer shall obtain assistance from the transportation activity (see 47.105) in developing appropriate shipping instructions and delivery terms for inclusion in solicitations and contracts that may involve ocean transportation of supplies subject to the requirements of the Cargo Preference Act of1954 (see 47.502(a)(3)).
(b) When the contractor notifies the contracting officer that a privately owned U.S.-flag commercial vessel is not available, the contracting officer shall seek assistance from the transportation activity.
(c) For purposes of determining the availability of privately owned U.S.-flag commercial vessels at fair and reasonable rates, rates filed and published in accordance with the requirements of the Federal Maritime Commission may be accepted as fair and reasonable. When applicable rates for charter cargoes are not in published tariffs, a determination as to whether the rates are fair and reasonable shall be obtained from the Maritime Administration.
(d) The Maritime Administration has issued regulations (46 CFR381) that require agencies to submit reports regarding ocean shipments. Contracting officers shall follow agency regulations when preparing, or furnishing information for, these reports.