78990 Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204, 212, 247, and 252 

[Docket DARS–2024–0007] 

RIN 0750–AL12 

Defense Federal Acquisition 

Regulation Supplement: Modification 

of Notification of Intent To Transport 

Supplies by Sea (DFARS Case 2020– 

D026) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to remove a DFARS 

solicitation provision and modify the 

text of an existing DFARS contract 

clause to include the operative text of 

that DFARS provision. 

DATES: Effective October 1, 2024. 

FOR FURTHER INFORMATION CONTACT: 

David Johnson, telephone 202–913– 

5764. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 89 FR 20924 on 

March 26, 2024, to revise the DFARS to 

remove the solicitation provision at 

DFARS 252.247–7022, Representation of 

Extent of Transportation By Sea, and to 

revise the contract clause at DFARS 

252.247–7023, Transportation of 

Supplies by Sea, accordingly, to effect 

the purpose of the provision using only 

the clause. Two respondents submitted 

public comments in response to the 

proposed rule. 

II. Discussion and Analysis 

DoD reviewed the public comments in 

the development of the final rule. A 

discussion of the comments is provided, 

as follows: 

A. Summary of Significant Changes 

From the Proposed Rule 

There are no changes from the 

proposed rule. 

B. Analysis of Public Comments 

Comment: The respondents expressed 

support for the rule. 

Response: DoD acknowledges the 

respondents’ support. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

and for Commercial Services 

This final rule removes the provision 

at DFARS 252.247–7022, along with its 

prescription at DFARS 247.574(a), and 

amends the clause at DFARS 252.247– 

7032 accordingly to include the 

substance of the provision. However, 

this final rule does not impose any new 

requirements on contracts at or below 

the SAT, for commercial products 

including COTS items, or for 

commercial services. The clause will 

continue to apply to acquisitions at or 

below the SAT, to acquisitions of 

commercial products including COTS 

items, and to acquisitions of commercial 

services. 

IV. Expected Impact of the Rule 

This change is expected to streamline 

instructions to contractors regarding 

notifications of transportation of 

supplies by sea. Presently, DFARS 

provision 252.247–7022 is included in 

nearly all solicitations and DFARS 

clause 252.247–7023 is included in 

nearly all contracts. By effectively 

combining the provision and the clause, 

this rule will reduce the number of 

provisions required to be used in 

solicitations and the number of 

representations offerors must provide, 

while still maintaining the effect of 

DFARS provision 252.247–7022. 

Therefore, this rule is expected to 

reduce administrative burden on 

contractors, including small businesses. 

V. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, as amended. 

VI. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD 

will submit a copy of the interim or 

final rule with the form, Submission of 

Federal Rules under the Congressional 

Review Act, to the U.S. Senate, the U.S. 

House of Representatives, and the 

Comptroller General of the United 

States. A major rule under the 

Congressional Review Act cannot take 

effect until 60 days after it is published 

in the Federal Register. The Office of 

Information and Regulatory Affairs has 

determined that this rule is not a major 

rule as defined by 5 U.S.C. 804. 

VII. Regulatory Flexibility Act 

A final regulatory flexibility analysis 

has been prepared consistent with the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq. and is summarized as follows: 

DoD is amending the DFARS to 

remove a solicitation provision and 

accordingly to modify the text of an 

existing DFARS contract clause to 

include the operative text of that DFARS 

provision. The objective of this rule is 

to streamline the instructions to 

contractors pertaining to the 

transportation of supplies by sea. 

Public comments received in response 

to the proposed rule raised no issues 

regarding the initial regulatory 

flexibility analysis. 

This rule will likely affect small 

entities that will be awarded contract 

actions that include DFARS clause 

252.247–7023, Transportation of 

Supplies by Sea. Data was obtained 

from the Procurement Business 

Intelligence Service for all contracts and 

modifications that include DFARS 

clause 252.247–7023 for fiscal years 

2020 through 2022. DoD awarded on 

average 642,310 contract actions per 

year that included DFARS clause 

252.247–7023 to 30,680 unique entities, 

of which approximately 359,315 

contract awards (56 percent) were made 

to 21,070 unique small entities (69 

percent). 

The rule does not impose any new 

reporting, recordkeeping, or compliance 

requirements. 

There are no known significant 

alternatives that would accomplish the 

objectives of the rule. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) applies to this rule. 

However, these changes to the DFARS 

do not impose additional information 

collection requirements to the 

paperwork burden previously approved 

by the Office of Management and 

Budget (OMB) under OMB Control 

Number 0704–0245, entitled Defense 

Federal Acquisition Regulation 

Supplement (DFARS) Part 247, 

Transportation and Related Clauses. 


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Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 78991 

List of Subjects in 48 CFR Parts 204, 

212, 247, and 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, the Defense Acquisition 

Regulations System amends 48 CFR 

parts 204, 212, 247, and 252 as follows: 

■ 1. The authority citation for parts 204, 

212, 247, and 252 continues to read as 

follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 204—ADMINISTRATIVE AND 

INFORMATION MATTERS 

204.1202 [Amended] 

■ 2. Amend section 204.1202 by 

removing paragraph (2)(xv). 

PART 212—ACQUISITION OF 

COMMERCIAL PRODUCTS AND 

COMMERCIAL SERVICES 

■ 3. Amend section 212.301 by revising 

paragraph (f)(xxi) to read as follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial products and commercial 

services. 

* * * * * 

(f) * * * 

(xxi) Part 247—Transportation. (A) 

Use the clause at 252.247–7003, PassThrough of Motor Carrier Fuel 

Surcharge Adjustment to the Cost 

Bearer, as prescribed in 247.207, to 

comply with section 884 of Public Law 

110–417. 

(B) Use the basic or one of the 

alternates of the clause at 252.247–7023, 

Transportation of Supplies by Sea, as 

prescribed in 247.574(a), to comply with 

the Cargo Preference Act of 1904 (10 

U.S.C. 2631(a)). 

(1) Use the basic clause as prescribed 

in 247.574(a)(1). 

(2) Use the alternate I clause as 

prescribed in 247.574(a)(2). 

(3) Use the alternate II clause as 

prescribed in 247.574(a)(3). 

(C) Use the clause 252.247–7025, 

Reflagging or Repair Work, as prescribed 

in 247.574(b), to comply with 10 U.S.C. 

2631(b). 

(D) Use the provision at 252.247– 

7026, Evaluation Preference for Use of 

Domestic Shipyards—Applicable to 

Acquisition of Carriage by Vessel for 

DoD Cargo in the Coastwise or 

Noncontiguous Trade, as prescribed in 

247.574(c), to comply with section 1017 

of Public Law 109–364. 

(E) Use the clause at 252.247–7027, 

Riding Gang Member Requirements, as 

prescribed in 247.574(d), to comply 

with section 3504 of the National 

Defense Authorization Act for Fiscal 

Year 2009 (Pub. L. 110–417). 

(F) Use the clause at 252.247–7028, 

Application for U.S. Government 

Shipping Documentation/Instructions, 

as prescribed in 247.207. 

PART 247—TRANSPORTATION 

247.574 [Amended] 

■ 4. Amend section 247.574— 

■ a. By removing paragraph (a); 

■ b. By redesignating paragraphs (b) 

through (e) as paragraphs (a) through 

(d); 

■ c. In newly redesignated paragraph (a) 

introductory text by removing ‘‘all’’; and 

■ d. In newly redesignated paragraph 

(d) by removing ‘‘under chapter 121 of 

title 46 U.S.C.’’ and adding ‘‘46 U.S.C. 

chapter 121.’’ in its place. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.204–7007 [Amended] 

■ 5. Amend section 252.204–7007— 

■ a. By removing the provision date of 

‘‘NOV 2023’’ and adding ‘‘OCT 2024’’ in 

its place; and 

■ b. By removing paragraph (d)(1)(viii). 

252.247–7022 [Removed and Reserved] 

■ 6. Remove and reserve section 

252.247–7022. 

■ 7. Amend section 252.247–7023— 

■ a. By revising the introductory text 

and the clause date; 

■ b. By redesignating paragraphs (b) 

through (i) as paragraphs (c) through (j); 

■ c. By adding a new paragraph (b); 

■ d. By revising newly redesignated 

paragraphs (e)(2), (f) introductory text, 

and (i); 

■ e. In newly redesignated paragraph (j) 

introductory text by removing ‘‘(b)(2)’’ 

and adding ‘‘(c)(2)’’ in its place; 

■ f. In newly redesignated paragraph 

(j)(1) by removing ‘‘paragraph (i)’’ and 

adding ‘‘paragraph (j)’’ in its place; 

■ g. In newly redesignated paragraph 

(j)(2) by removing ‘‘paragraphs (a) 

through (e)’’ and ‘‘paragraph (i)’’ and 

adding ‘‘paragraphs (a) through (f)’’ and 

‘‘paragraph (j)’’ in their places, 

respectively; 

■ h. In Alternate I— 

■ i. By revising the introductory text 

and the clause date; 

■ ii. By redesignating paragraphs (b) 

through (i) as paragraphs (c) through (j); 

■ iii. By adding a new paragraph (b); 

■ iv. By revising newly redesignated 

paragraphs (e)(2), (f) introductory text, 

and (i); 

■ v. In newly redesignated paragraph (j) 

introductory text by removing ‘‘(b)(2)’’ 

and adding ‘‘(c)(2)’’ in its place; 

■ vi. In newly redesignated paragraph 

(j)(1) by removing ‘‘paragraph (i)’’ and 

adding ‘‘paragraph (j)’’ in its place; 

■ vii. In the newly redesignated 

paragraph (j)(2) by removing 

‘‘paragraphs (a) through (e)’’ and 

‘‘paragraph (i)’’ and adding ‘‘paragraphs 

(a) through (f)’’ and ‘‘paragraph (j)’’ in 

their places, respectively; and 

■ viii. By adding ‘‘(End of clause)’’ after 

newly redesignated paragraph (j)(2); and 

■ i. In Alternate II— 

■ i. By revising the introductory text 

and the clause date; 

■ ii. By redesignating paragraphs (b) 

through (i) as paragraphs (c) through (j); 

■ iii. By adding a new paragraph (b); 

■ iv. By revising newly redesignated 

paragraphs (e)(2), (f) introductory text, 

and (i); 

■ v. In newly redesignated paragraph (j) 

introductory text by removing ‘‘(b)(2)’’ 

and adding ‘‘(c)(2)’’ in its place; 

■ vi. In newly redesignated paragraph 

(j)(1) by removing ‘‘paragraph (i)’’ and 

adding ‘‘paragraph (j)’’ in its place; 

■ vii. In newly redesignated paragraph 

(j)(2) by removing ‘‘paragraphs (a) 

through (e)’’ and ‘‘paragraph (i)’’ and 

adding ‘‘paragraphs (a) through (f)’’ and 

‘‘paragraph (j)’’ in their places, 

respectively; and 

■ viii. By adding ‘‘(End of clause)’’ after 

newly redesignated paragraph (j)(2). 

The revisions and additions read as 

follows: 

252.247–7023 Transportation of Supplies 

by Sea. 

As prescribed in 247.574(a) and (a)(1), 

use the following basic clause: 

Transportation of Supplies by Sea— 

Basic (OCT 2024) 

* * * * * 

(b) If the transportation of supplies by 

sea is anticipated under this contract, 

the Contractor shall— 

(1) Notify the Contracting Officer and 

Maritime Administration (MARAD) at 

Cargo.Marad@dot.gov— 

(i) Within 3 business days after 

contract award; or 

(ii) Immediately prior to the shipment 

departure date necessary to meet 

delivery schedules, whichever is earlier; 

and 

(2) Include in the notification— 

(i) A statement of the Contractor’s 

intent to transport supplies by sea; 

(ii) The contract number; and 

(iii) The task-order or delivery-order 

number, when applicable. 

* * * * * 

(e) * * * 


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78992 Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 

(2) Required shipping date(s) and 

required delivery date(s); 

* * * * * 

(f) The Contractor shall, within 30 

days after each shipment covered by 

this clause, provide the Contracting 

Officer and MARAD at Cargo.Marad@

dot.gov, Attention: Military Team, one 

copy of the rated on board vessel 

operating carrier’s ocean bill of lading, 

which shall contain the following 

information: 

* * * * * 

(i) If the Contractor did not anticipate 

transporting any supplies by sea at the 

time of contract award and, therefore, 

did not provide the notification required 

by paragraph (b) of this clause, but prior 

to shipment of supplies, the Contractor 

learns that supplies will be transported 

by sea, the Contractor shall— 

(1) Provide the notification required 

by paragraph (b) of this clause to the 

Contracting Officer and MARAD as soon 

as it is known that supplies will be 

transported by sea; and 

(2) Comply with all the terms and 

conditions of this clause. 

* * * * * 

Alternate I. As prescribed in 

247.574(a) and (a)(2), use the following 

clause, which uses a different paragraph 

(c) than the basic clause: 

Transportation of Supplies by Sea— 

Alternate I (OCT 2024) 

* * * * * 

(b) If the transportation of supplies by 

sea is anticipated under this contract, 

the Contractor shall— 

(1) Notify the Contracting Officer and 

Maritime Administration (MARAD) at 

Cargo.Marad@dot.gov— 

(i) Within 3 business days after 

contract award; or 

(ii) Immediately prior to the shipment 

departure date necessary to meet 

delivery schedules, whichever is earlier; 

and 

(2) Include in the notification— 

(i) A statement of the Contractor’s 

intent to transport supplies by sea; 

(ii) The contract number; and 

(iii) The task-order or delivery-order 

number, when applicable. 

* * * * * 

(e) * * * 

(2) Required shipping date(s) and 

required delivery date(s); 

* * * * * 

(f) The Contractor shall, within 30 

days after each shipment covered by 

this clause, provide the Contracting 

Officer and MARAD at Cargo.Marad@

dot.gov, Attention: Military Team, one 

copy of the rated on board vessel 

operating carrier’s ocean bill of lading, 

which shall contain the following 

information: 

* * * * * 

(i) If the Contractor did not anticipate 

transporting any supplies by sea at the 

time of contract award and, therefore, 

did not provide the notification required 

by paragraph (b) of this clause, but prior 

to shipment of the supplies, the 

Contractor learns that supplies will be 

transported by sea, the Contractor 

shall— 

(1) Provide the notification required 

by paragraph (b) of this clause to the 

Contracting Officer and MARAD as soon 

as it is known that supplies will be 

transported by sea; and 

(2) Comply with all the terms and 

conditions of this clause. 

* * * * * 

Alternate II. As prescribed in 

247.574(a) and (a)(3), use the following 

clause, which uses a different paragraph 

(c) than the basic clause: 

Transportation of Supplies by Sea— 

Alternate II (OCT 2024) 

* * * * * 

(b) If the transportation of supplies by 

sea is anticipated under this contract, 

the Contractor shall— 

(1) Notify the Contracting Officer and 

Maritime Administration (MARAD) at 

Cargo.Marad@dot.gov— 

(i) Within 3 business days after 

contract award; or 

(ii) Immediately prior to the shipment 

departure date necessary to meet 

delivery schedules, whichever is earlier; 

and 

(2) Include in the notification— 

(i) A statement of the Contractor’s 

intent to transport supplies by sea; 

(ii) The contract number; and 

(iii) The task-order or delivery-order 

number, when applicable. 

* * * * * 

(e) * * * 

(2) Required shipping date(s) and 

required delivery date(s); 

* * * * * 

(f) The Contractor shall, within 30 

days after each shipment covered by 

this clause, provide the Contracting 

Officer and MARAD at Cargo.Marad@

dot.gov, Attention: Military Team, one 

copy of the rated on board vessel 

operating carrier’s ocean bill of lading, 

which shall contain the following 

information: 

* * * * * 

(i) If the Contractor did not anticipate 

transporting any supplies by sea at the 

time of contract award, and, therefore, 

did not provide the notification required 

by paragraph (b) of this clause, but prior 

to shipment of the supplies, the 

Contractor learns after the award of the 

contract that supplies will be 

transported by sea, the Contractor 

shall— 

(1) Provide the notification required 

by paragraph (b) of this clause to the 

Contracting Officer and MARAD as soon 

as it is known that supplies will be 

transported by sea; and 

(2) Comply with all the terms and 

conditions of this clause. 

* * * * * 

■ 8. Amend section 252.247–7025— 

■ a. By revising the section heading; and 

■ b. In the introductory text by 

removing ‘‘247.574(c)’’ and adding 

‘‘247.574(b)’’ in its place. 

The revision reads as follows: 

252.247–7025 Reflagging or Repair Work. 

* * * * * 

252.247–7026 [Amended] 

■ 9. Amend section 252.247–7026 in the 

introductory text by removing 

‘‘247.574(d)’’ and adding ‘‘247.574(c)’’ 

in its place. 

■ 10. Amend section 252.247–7027— 

■ a. By revising the section heading; and 

■ b. In the introductory text by 

removing ‘‘247.574(e)’’ and adding 

‘‘247.574(d)’’ in its place. 

The revision reads as follows: 

252.247–7027 Riding Gang Member 

Requirements. 

* * * * * 

[FR Doc. 2024–21091 Filed 9–25–24; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 242, 247, and 252 

[Docket DARS–2024–0013] 

RIN 0750–AL38 

Defense Federal Acquisition 

Regulation Supplement: Preference for 

United States Vessels in Transporting 

Supplies By Sea (DFARS Case 2021– 

D020) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement a section of the 

William M. (Mac) Thornberry National 

Defense Authorization Act for Fiscal 

Year 2021 intended to increase 

compliance with military cargo 

preference requirements. 


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