Overview
FAR 47.404 establishes the guidelines for using international air freight forwarders for government-financed property shipments, ensuring that these intermediaries comply with the Fly America Act.
Key Rules
- Authorization: Government agencies are permitted to use air freight forwarders for international property movements.
- Compliance: The "disallowance of expenditures" rule applies to the actual air carriers selected by the forwarder, meaning the government will not pay for unauthorized use of foreign-flag carriers.
- Documentation for Payment: To receive prompt payment, forwarders must submit:
- An airway bill or manifest that explicitly identifies the air carriers used for the transport.
- A formal justification if foreign-flag air carriers were utilized, consistent with the requirements of FAR 52.247-63.
Practical Implications
- No Shielding via Intermediaries: Contractors and forwarders cannot bypass Fly America Act restrictions by using a third-party logistics provider; the underlying carrier must still be U.S.-flag unless a specific exception applies.
- Administrative Burden: Forwarders must maintain rigorous record-keeping practices to ensure that carrier manifests and justifications are ready at the time of billing to avoid payment delays or permanent disallowances.