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                            47.403-3 Disallowance of expenditures.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart47.047.147.247.347.447.5
Section47.40147.40247.40347.40447.405
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47.403-3 Disallowance of expenditures.47.403-3 Disallowance of expenditures.       (a) 						            Agencies shall disallow expenditures for U.S. Government-financed commercial international air transportation on foreign-flag air carriers unless there is attached to the appropriate voucher a memorandum adequately explaining why service by U.S.-flag air carriers was not available, or why it was necessary to use foreign-flag air carriers.                                          (b) 						            When the travel is by indirect route or the traveler otherwise fails to use available U.S.-flag air carrier service, the amount to be disallowed against the traveler is based on the loss of revenues suffered by U.S.-flag air carriers as determined under the following formula, which is prescribed and more fully explained in 56 Comp. Gen. 209 (1977):                Image 0Image 1(c) 						            The justification requirement is satisfied by the contractor’s use of a statement similar to the one contained in the clause at  52.247-63, Preference for U.S.-Flag Air Carriers. (See  47.405.)    **Parent topic:**  47.403 Guidelines for implementation of the Fly America Act.
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