Overview
This section establishes the regulatory framework for prioritizing the use of U.S.-flag vessels when transporting government supplies by sea. It serves as the introductory scope for cargo preference requirements while defining specific jurisdictional boundaries between civilian and defense agencies.
Key Rules
- U.S.-Flag Preference: Prescribes the mandatory policies and procedures for giving preference to United States-flagged vessels for ocean transportation.
- Applicability Trigger: The rules apply whenever the transportation of supplies by ocean vessel is required under a federal contract.
- DoD Exclusion: Explicitly states that FAR Subpart 47.5 does not apply to the Department of Defense (DoD).
- Regulatory Redirection: Directs users concerned with DoD acquisitions to refer to the Defense Federal Acquisition Regulation Supplement (DFARS) Subpart 247.5 for applicable ocean transportation policies.
Practical Implications
- Civilian vs. Defense Compliance: Contractors must distinguish between civilian agency requirements (FAR) and DoD requirements (DFARS), as the latter often involve different implementation procedures and stricter oversight.
- Logistics Planning: Prime contractors and subcontractors must factor in U.S.-flag vessel availability during the bidding and execution phases to remain compliant with cargo preference laws.