47.507 Contract clauses
Source: FAR 47.507 on acquisition.gov
FAR 47.507 mandates the inclusion of specific clauses to ensure government cargo is transported on U.S.-flag vessels, with alternates for exclusive use or military support scenarios.
Overview
FAR 47.507 prescribes the use of specific contract clauses to ensure compliance with the Cargo Preference Act of 1954, which mandates the use of U.S.-flag commercial vessels for ocean transportation of government supplies. This section details when to include the clause at 52.247-64, "Preference for Privately Owned U.S.-Flag Commercial Vessels," and its alternates in solicitations and contracts. It also allows for additional clauses under agency procedures to address vessel usage requirements.
Key Rules
- Clause 52.247-64 Requirement
- Must be included in contracts involving ocean transportation of supplies subject to the Cargo Preference Act of 1954.
- Use of Alternate I
- Required when supplies must be transported exclusively on U.S.-flag vessels, as dictated by statute or agency determination.
- Use of Alternate II
- Required (except for ocean transportation service or construction contracts) when commercial products are shipped in direct support of U.S. military contingency operations, exercises, or certain humanitarian/peacekeeping operations.
- Additional Clauses
- Contracting officers may add further clauses about vessel usage as needed under agency procedures.
Responsibilities
- Contracting Officers: Ensure correct clauses and alternates are included in solicitations and contracts; may add additional clauses per agency policy.
- Contractors: Must comply with the requirements for use of U.S.-flag vessels as specified in the contract clauses.
- Agencies: Oversee compliance and determine when exclusive U.S.-flag vessel use is required.
Practical Implications
- Ensures government cargo is transported on U.S.-flag vessels, supporting national security and U.S. maritime industry.
- Contractors must be aware of clause requirements and ensure compliance to avoid contract violations.
- Misapplication or omission of required clauses can result in noncompliance and potential penalties.
(a)
(1) Insert the clause at 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels, in solicitations and contracts that may involve ocean transportation of supplies subject to the Cargo Preference Act of1954. (For application of the Cargo Preference Act of1954, see 47.502(a)(3), 47.503(a), and 47.504.)
(2) If an applicable statute requires, or if it has been determined under agency procedures, that the supplies to be furnished under the contracts must be transported exclusively in privately owned U.S.-flag commercial vessels (see 47.502(a)(1) and 47.503(b)), use the clause with its AlternateI.
(3) Except for contracts or agreements for ocean transportation services or construction contracts, use the clause with its Alternate II if any of the supplies to be transported are commercial products that are shipped in direct support of U.S. military-
(i) Contingency operations;
(ii) Exercises; or
(iii) Forces deployed in connection with United Nations or North Atlantic Treaty Organization humanitarian or peacekeeping operations.
(b) The contracting officer may insert in solicitations and contracts, under agency procedures, additional appropriate clauses concerning the vessels to be used.