Overview
This section prescribes the mandatory inclusion of FAR clause 52.247-64 and its alternates in solicitations and contracts that involve the ocean transportation of supplies. It ensures compliance with the Cargo Preference Act of 1954 by prioritizing the use of privately owned U.S.-flag commercial vessels.
Key Rules
- Mandatory Clause: The contracting officer must insert FAR 52.247-64 in any contract that may involve ocean transportation of supplies subject to the Cargo Preference Act.
- Alternate I Usage: This version is required when statutes or agency procedures dictate that supplies must be transported exclusively via privately owned U.S.-flag commercial vessels.
- Alternate II Usage: This version is required for commercial products supporting specific military activities—including contingency operations, exercises, or UN/NATO peacekeeping/humanitarian missions—unless the contract is specifically for construction or ocean transportation services.
- Discretionary Clauses: Contracting officers are permitted to include additional agency-specific clauses regarding vessel selection as necessary.
Practical Implications
- Contractors must verify the registry of vessels used for international shipments to ensure they meet U.S.-flag requirements, as non-compliance can lead to payment withholding or contractual penalties.
- Contracting officers must perform a technical "Alternate" selection based on the specific end-use of the supplies, particularly distinguishing between general commercial use and direct military support.