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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Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 78993 

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 31681 on 

April 25, 2024, to implement section 

1024 of the William M. (Mac) 

Thornberry National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 2021 (Pub. L. 116–283). 

Section 1024 amends 10 U.S.C. 2631 to, 

among other things, clarify 

circumstances in which DoD may seek 

a waiver from the basic requirement for 

DoD supplies to be transported by seas 

in either vessels belonging to the United 

States or vessels of the United States. 

One respondent submitted a public 

comment in response to the proposed 

rule. 

II. Discussion and Analysis 

DoD reviewed the public comment in 

the development of the final rule. A 

discussion of the comment is provided, 

as follows: 

A. Summary of Significant Changes 

From the Proposed Rule 

There are no changes from the 

proposed rule resulting from the public 

comment. 

B. Analysis of Public Comments 

Comment: The respondent suggested 

the rule should be changed to include 

a certification requirement in paragraph 

(f) of the clause at DFARS 252.242– 

7023, including alternates, in place of a 

representation. The respondent further 

suggested the clause at DFARS 252.247– 

7025 should similarly include a 

certification requirement. The 

respondent expressed that these changes 

would help ensure full compliance with 

U.S.-flag vessel preference 

requirements. 

Response: As expressed at DFARS 

201.107, 41 U.S.C. 1304 prohibits new 

certification requirements in the DFARS 

unless either the certification is 

specifically imposed by statute or an 

approved justification exists for the 

certification. Neither condition is met in 

this case. Therefore, DoD declines the 

respondent’s suggestion to add 

certification requirements to the clauses 

at DFARS 252.242–7023 and 252.247– 

7025. 

C. Other Changes 

Two changes are made to the final 

rule. First, the final rule removes the 

definition of ‘‘foreign shipyard’’ from 

DFARS 247.501, because that definition 

is not used in subpart 247.5. Secondly, 

the final rule removes the change 

included in the proposed rule to the 

definition of ‘‘foreign shipyard’’ in the 

solicitation provision at DFARS 

252.247–7026, because this change 

created incongruity with the existing 

definition of ‘‘U.S. shipyard’’ in the 

provision. 

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 amends the clauses at 

DFARS 252.247–7023, including 

alternates, 252.247–7025, and the 

provision at 252.247–7026. 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 clauses and 

the provision 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 rule is intended to increase 

compliance with military cargo 

preference requirements, as amended 

under this rule in accordance with 

section 1024 of the NDAA for FY 2021. 

These changes are largely clarifying in 

nature, including clarification of 

operational requirements internal to 

DoD. Therefore, this rule is not expected 

to have a significant impact on the 

public. 

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 Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement section 1024 of 

the William M. (Mac) Thornberry 

National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2021. 

Section 1024 modifies 10 U.S.C. 2631 to 

add a requirement to ensure contractor 

compliance with 10 U.S.C. 2631 and 

otherwise updates the listed 

circumstances in which DoD may waive 

the requirement that DoD supplies be 

transported by sea in vessels belonging 

to the United States or vessels of the 

United States. It also modifies the 

requirement for reflagging or repair 

work in the United States for vessels 

used under time-charter contracts. 

The public comment raised no issue 

in response to the initial regulatory 

flexibility analysis. 

This rule will apply to small entities 

that have contracts that include DFARS 

clauses 252.247–7023, Transportation of 

Supplies by Sea, and 252.247–7025, 

Reflagging or Repair Work. DoD 

obtained data from the Procurement 

Business Intelligence Service for all 

contracts and modifications that include 

DFARS clauses 252.247–7023 and 

252.247–7025 for fiscal years 2020 

through 2022. DoD awarded on average 

649,016 contract actions per year that 

included either DFARS clause 252.247– 

7023 or 252.247–7025, or both, to 

31,665 unique entities, of which 

approximately 363,260 contract awards 

(56 percent) were made to 21,737 

unique small entities (69 percent). 

This rule does not impose any new 

reporting, recordkeeping, or other 

compliance requirements. 

There are no known alternatives that 

would accomplish the stated objectives 

of the applicable statute. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

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

rule. However, these changes to the 

DFARS do not impose additional 


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78994 Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 

information collection requirements to 

the paperwork burden previously 

approved by the Office of Management 

and Budget (OMB) under OMB Control 

Number 0704–0245, titled: Defense 

Federal Acquisition Regulation 

Supplement (DFARS) Part 247, 

Transportation and Related Clauses. 

List of Subjects in 48 CFR Parts 242, 

247, and 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, the Defense Acquisition 

Regulations System amends 48 CFR 

parts 242, 247, and 252 as follows: 

■ 1. The authority citation for parts 242, 

247, and 252 continues to read as 

follows: 

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

chapter 1. 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

■ 2. Amend section 242.1502— 

■ a. In paragraph (g)(i) by removing the 

word ‘‘and’’ at the end of the paragraph; 

■ b. In paragraph (g)(ii) by removing the 

period at the end of the paragraph and 

adding ‘‘; and’’ in its place; and 

■ c. By adding paragraph (g)(iii). 

The addition reads as follows: 

242.1502 Policy. 

(g) * * * 

(iii) In accordance with 10 U.S.C. 

2631(d), shall include information on 

contractor compliance with 

requirements of the clause at 252.247– 

7023, Transportation of Supplies by Sea 

(see 10 U.S.C. 2631(a), (b), and (c)). 

PART 247—TRANSPORTATION 

■ 3. Amend section 247.570— 

■ a. By revising paragraph (a)(1); 

■ b. In paragraph (a)(2): 

■ i. By removing ‘‘(Pub. L. 109–364)’’ 

and adding ‘‘(Pub. L. 109–364) (10 

U.S.C. 2631 note)’’ in its place; and 

■ ii. By removing the word ‘‘and’’ at the 

end of the paragraph; 

■ c. In paragraph (a)(3) by removing 

‘‘(Pub. L. 110–417)’’ and ‘‘chapter 121, 

title 46 U.S.C.’’ and adding ‘‘(Pub. L. 

110–417) (10 U.S.C. chapter 257 note)’’ 

and ‘‘46 U.S.C. chapter 121; and’’ in 

their places, respectively; 

■ d. By adding paragraph (a)(4); 

■ e. In paragraph (b) by removing ‘‘46 

U.S.C. 1241(b)’’ and adding ‘‘46 U.S.C. 

chapter 553’’ in its place; and 

■ f. By revising paragraph (c). 

The revisions and addition read as 

follows: 

247.570 Scope. 

* * * * * 

(a) * * * 

(1) The Military Cargo Preference Act 

of 1904 (‘‘the 1904 Act’’), 10 U.S.C. 

2631, which applies to the ocean 

transportation of cargo owned by, 

destined for use by, or otherwise 

transported by DoD; 

* * * * * 

(4) Section 1024 of the National 

Defense Authorization Act for Fiscal 

Year 2021 (Pub. L. 116–283), which 

updates the listed circumstances where 

DoD may waive the requirement that 

DoD supplies be transported by sea in 

vessels belonging to the United States or 

vessels of the United States, and it 

modifies the requirement for reflagging 

or repair work in the United States for 

vessels used under time-charter 

contracts. 

* * * * * 

(c) Does not implement— 

(1) Section 27 of the Merchant Marine 

Act, 1920 (46 U.S.C. chapters 121 and 

552), commonly known as the ‘‘Jones 

Act,’’ for the application of coastwise 

trade; or 

(2) Waivers thereof pursuant to 46 

U.S.C. 501. 

■ 4. Revise section 247.571 to read as 

follows: 

247.571 Definitions. 

As used in this subpart— 

Corrective and preventive 

maintenance or repair means— 

(1) Maintenance or repair actions 

performed as a result of a failure in 

order to return or restore equipment to 

acceptable performance levels; and 

(2) Scheduled maintenance or repair 

actions to prevent or discover functional 

failures. 

Covered vessel means a vessel— 

(1) Owned, operated, or controlled by 

the offeror; and 

(2) Qualified to engage in the carriage 

of cargo in the coastwise or 

noncontiguous trade under 46 U.S.C. 

12112 and 50501 and 46 U.S.C. chapter 

551. 

Foreign-flag vessel means any vessel 

that is not a U.S.-flag vessel. 

Ocean transportation means any 

water-borne transportation aboard a 

ship, vessel, boat, barge, ferry, or the 

like outside the internal waters of the 

United States (as defined in 33 CFR 

2.24). 

Overhaul, repair, and maintenance 

work means work requiring a shipyard 

period greater than or equal to 5 

calendar days. 

Reflagging or repair work means work 

performed on a vessel— 

(1) To enable the vessel to meet 

applicable standards to become a vessel 

of the United States; or 

(2) To convert the vessel to a more 

useful military configuration. 

Supplies means supplies that are 

clearly identifiable for eventual use by 

or owned by DoD at the time of 

transportation by sea, or are otherwise 

transported by DoD, regardless of 

ownership or use by DoD. An item is 

clearly identifiable for eventual use by 

DoD if, for example, the contract 

documentation contains a reference to a 

DoD contract number or a military 

destination. 

U.S.-flag vessel means either a vessel 

belonging to the United States or a 

vessel of the United States as that term 

is defined in 46 U.S.C. 116. 

■ 5. Revise section 247.572 to read as 

follows: 

247.572 Policy. 

(a) In accordance with 10 U.S.C. 

2631(a), DoD contractors shall transport 

supplies exclusively on U.S.-flag 

vessels. In accordance with 10 U.S.C. 

2631(b), DoD (see 247.573(a)) may waive 

this requirement when a U.S.-flag 

vessel— 

(1) Is not available at a fair and 

reasonable rate for commercial vessels 

of the United States; or 

(2) Is not otherwise available. 

(b) Contracts must provide for the use 

of vessels belonging to the United States 

when security classifications prohibit 

the use of other than vessels belonging 

to the United States. 

(c) In accordance with 10 U.S.C. 

2631(c)— 

(1) Any vessel used under a time 

charter contract for the transportation of 

supplies under this section shall have 

the following work performed in the 

United States or its outlying areas: 

(i) Reflagging or repair work, if the 

reflagging or repair work is performed— 

(A) On a vessel for which the 

contractor submitted an offer in 

response to the solicitation for the 

contract; and 

(B) Prior to acceptance of the vessel 

by the Government. 

(ii) Corrective and preventive 

maintenance or repair work for the 

duration of the contract, to the greatest 

extent practicable. 

(2) The Secretary of Defense may 

waive this requirement if the Secretary 

determines that such waiver is critical 

to the national security of the United 

States. In accordance with 10 U.S.C. 

2631(c)(2), DoD shall immediately 

submit, in writing, a notice to the 

congressional committees listed at 10 

U.S.C. 2631(e) of such a waiver and the 

reason for the waiver. 


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Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 78995 

(d) In accordance with section 1017 of 

the National Defense Authorization Act 

for Fiscal Year 2007 (Pub. L. 109–364), 

when obtaining carriage requiring a 

covered vessel, the contracting officer 

shall consider the extent to which 

offerors have had overhaul, repair, and 

maintenance work for covered vessels 

performed in shipyards located in the 

United States or Guam. 

(e) In accordance with section 3504 of 

the National Defense Authorization Act 

for Fiscal Year 2009 (Pub. L. 110–417), 

DoD may not award, renew or extend, 

or exercise an option under a charter of, 

or contract for carriage of cargo by, a 

U.S.-flag vessel documented under 46 

U.S.C. chapter 121, unless the contract 

contains the clause at 252.247–7027. 

■ 6. Amend section 247.573— 

■ a. By revising paragraphs (a) and 

(b)(3); 

■ b. In paragraph (b)(4) by removing 

‘‘Procedures are provided at’’ and 

adding ‘‘Follow the procedures at’’ in its 

place; and 

■ c. By adding paragraph (b)(5). 

The revisions and addition read as 

follows: 

247.573 General. 

(a) Delegated authority. Pursuant to 

10 U.S.C. 2631(b)(2), the Secretary of 

Defense has delegated (see PGI 247.573) 

the authority to make determinations 

either that a U.S.-flag vessel is not 

available at a fair and reasonable rate for 

commercial vessels of the United States 

or is otherwise not available to— 

(1) The Commander, United States 

Transportation Command; and 

(2) The Secretary of the Navy. 

(b) * * * 

(3) See PGI 247.573(b)(3) for agency 

and department procedures relating to 

annual reporting requirements of 

waivers granted for nonavailability of 

U.S.-flag vessels. 

* * * * * 

(5)(i) In accordance with 10 U.S.C. 

2631(d), contracting officers shall 

exercise appropriate contractual rights 

and remedies against contractors who 

fail to comply. Such remedies may 

include the determination that a 

contractor is ineligible for award of 

future contracts, termination of an 

existing contract, or suspension or 

debarment of the contractor. Also see 

242.1502 regarding assessments of the 

contractor’s past performance. 

(ii) In the event of a contractor’s 

unauthorized use of foreign-flag vessels 

in the performance of a contract, the 

contracting officer is authorized to 

consider an equitable adjustment. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 7. Amend section 252.247–7023— 

■ a. By revising paragraphs (a) and (d); 

■ b. In paragraph (e) introductory text 

by revising the second sentence; 

■ c. By revising paragraph (e)(7); 

■ d. In paragraph (f)(10) by removing 

‘‘the steamship company’’ and adding 

‘‘the carrier’’ in its place; 

■ e. In paragraph (g)(3) by removing 

‘‘had the written consent of the 

Contracting Officer’’ and adding ‘‘had 

received a prior-approved waiver for 

U.S.-flag vessels’’ in its place; 

■ f. In paragraph (g)(4) by removing ‘‘of 

the Contracting Officer’’ and adding ‘‘of 

DoD’’ in its place; 

■ g. In Alternate I— 

■ i. By revising paragraphs (a) and (d); 

■ ii. In paragraph (e) introductory text 

by revising the second sentence; 

■ iii. By revising paragraph (e)(7); 

■ iv. In paragraph (f)(10) by removing 

‘‘steamship company’’ and adding ‘‘the 

carrier’’ in its place; 

■ v. In paragraph (g)(3) by removing 

‘‘had the written consent of the 

Contracting Officer’’ and adding ‘‘had 

received a prior-approved waiver for 

U.S.-flag vessels’’ in its place; and 

■ vi. In paragraph (g)(4) by removing ‘‘of 

the Contracting Officer’’ and adding ‘‘of 

DoD’’ in its place; and 

■ h. In Alternate II— 

■ i. By revising paragraphs (a) and (d); 

■ ii. In paragraph (e) introductory text 

by revising the second sentence; 

■ iii. By revising paragraph (e)(7); 

■ iv. In paragraph (f)(10) by removing 

‘‘steamship company’’ and adding ‘‘the 

carrier’’ in its place; 

■ v. In paragraph (g)(3) by removing 

‘‘had the written consent of the 

Contracting Officer’’ and adding ‘‘had 

received a prior-approved waiver for 

U.S.-flag vessels’’ in its place; and 

■ vi. In paragraph (g)(4) by removing ‘‘of 

the Contracting Officer’’ and adding ‘‘of 

DoD’’ in its place. 

The revisions read as follows: 

252.247–7023 Transportation of Supplies 

by Sea. 

* * * * * 

(a) Definitions. As used in this 

clause— 

Foreign-flag vessel means any vessel 

that is not a U.S.-flag vessel. 

Ocean transportation means any 

water-borne transportation aboard a 

ship, vessel, boat, barge, ferry, or the 

like outside the internal waters of the 

United States as defined in 33 CFR 2.24. 

Subcontractor means a supplier, 

materialman, distributor, or vendor at 

any level below the prime contractor 

whose contractual obligation to perform 

results from, or is conditioned upon, 

award of the prime contract and who is 

performing any part of the work or other 

requirement of the prime contract. 

Supplies means supplies that are 

clearly identifiable for eventual use by 

or owned by DoD at the time of 

transportation by sea, or are otherwise 

transported by DoD, regardless of 

ownership or use by DoD. An item is 

clearly identifiable for eventual use by 

DoD if, for example, the contract 

documentation contains a reference to a 

DoD contract number or a military 

destination. 

U.S.-flag vessel means either a vessel 

belonging to the United States or a 

vessel of the United States as that term 

is defined in 46 U.S.C. 116. 

* * * * * 

(d) The Contractor and its 

subcontractors may request, via the 

Contracting Officer, a waiver of the 

requirement to use a U.S.-flag vessel, or 

identification of any available U.S.-flag 

vessels, if the Contractor or a 

subcontractor sufficiently explains 

that— 

(1) U.S.-flag vessels are not available 

at a fair and reasonable rate for 

commercial vessels of the United States; 

or 

(2) U.S.-flag vessels are otherwise not 

available. 

(e) * * * The Contracting Officer will 

process requests submitted after such 

date(s) as expeditiously as possible, 

however, if a DoD waiver is not 

approved prior to the shipper’s sailing 

date, this will not of itself constitute a 

compensable delay under this or any 

other clause of this contract.* * * 

* * * * * 

(7) A documented description of 

current, diligent efforts made to secure 

U.S.-flag vessels, including points of 

contact (with names and telephone 

numbers) with at least two U.S.-flag 

carriers contacted. Copies of quotes will 

suffice for this purpose. Copies of 

telephone notes, emails, and other 

relevant communications will otherwise 

be considered for this purpose. 

* * * * * 

Alternate I.* * * 

(a) Definitions. As used in this 

clause— 

Foreign-flag vessel means any vessel 

that is not a U.S.-flag vessel. 

Ocean transportation means any 

water-borne transportation aboard a 

ship, vessel, boat, barge, ferry, or the 

like outside the internal waters of the 

United States as defined in 33 CFR 2.24. 

Subcontractor means a supplier, 

materialman, distributor, or vendor at 

any level below the prime contractor 


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whose contractual obligation to perform 

results from, or is conditioned upon, 

award of the prime contract and who is 

performing any part of the work or other 

requirement of the prime contract. 

Supplies means supplies that are 

clearly identifiable for eventual use by 

or owned by DoD at the time of 

transportation by sea, or are otherwise 

transported by DoD, regardless of 

ownership or use by DoD. An item is 

clearly identifiable for eventual use by 

DoD if, for example, the contract 

documentation contains a reference to a 

DoD contract number or a military 

destination. 

U.S.-flag vessel means either a vessel 

belonging to the United States or a 

vessel of the United States as that term 

is defined in 46 U.S.C. 116. 

* * * * * 

(d) The Contractor and its 

subcontractors may request, via the 

Contracting Officer, a waiver of the 

requirement to use a U.S.-flag vessel, or 

identification of any available U.S.-flag 

vessels, if the Contractor or a 

subcontractor sufficiently explains 

that— 

(1) U.S.-flag vessels are not available 

at a fair and reasonable rate for 

commercial vessels of the United States; 

or 

(2) U.S.-flag vessels are otherwise not 

available. 

(e) * * * The Contracting Officer will 

process requests submitted after such 

date(s) as expeditiously as possible, 

however, if a DoD waiver is not 

approved prior to the shipper’s sailing 

date, this will not of itself constitute a 

compensable delay under this or any 

other clause of this contract.* * * 

* * * * * 

(7) A documented description of 

current, diligent efforts made to secure 

U.S.-flag vessels, including points of 

contact (with names and telephone 

numbers) with at least two U.S.-flag 

carriers contacted. Copies of quotes will 

suffice for this purpose. Copies of 

telephone notes, emails, and other 

relevant communications will otherwise 

be considered for this purpose. 

* * * * * 

Alternate II.* * * 

(a) Definitions. As used in this 

clause— 

Foreign-flag vessel means any vessel 

that is not a U.S.-flag vessel. 

Ocean transportation means any 

water-borne transportation aboard a 

ship, vessel, boat, barge, ferry, or the 

like outside the internal waters of the 

United States as defined in 33 CFR 2.24. 

Subcontractor means a supplier, 

materialman, distributor, or vendor at 

any level below the prime contractor 

whose contractual obligation to perform 

results from, or is conditioned upon, 

award of the prime contract and who is 

performing any part of the work or other 

requirement of the prime contract. 

Supplies means supplies that are 

clearly identifiable for eventual use by 

or owned by DoD at the time of 

transportation by sea, or are otherwise 

transported by DoD, regardless of 

ownership or use by DoD. An item is 

clearly identifiable for eventual use by 

DoD if, for example, the contract 

documentation contains a reference to a 

DoD contract number or a military 

destination. 

U.S.-flag vessel means either a vessel 

belonging to the United States or a 

vessel of the United States as that term 

is defined in 46 U.S.C. 116. 

* * * * * 

(d) The Contractor and its 

subcontractors may request, via the 

Contracting Officer, a waiver of the 

requirement to use a U.S.-flag vessel, or 

identification of any available U.S.-flag 

vessels, if the Contractor or a 

subcontractor sufficiently explains 

that— 

(1) U.S.-flag vessels are not available 

at a fair and reasonable rate for 

commercial vessels of the United States; 

or 

(2) U.S.-flag vessels are otherwise not 

available. 

(e) * * * The Contracting Officer will 

process requests submitted after such 

date(s) as expeditiously as possible, 

however, if a DoD waiver is not 

approved prior to the shipper’s sailing 

date, this will not of itself constitute a 

compensable delay under this or any 

other clause of this contract.* * * 

(7) A documented description of 

current, diligent efforts made to secure 

U.S.-flag vessels, including points of 

contact (with names and telephone 

numbers) with at least two U.S.-flag 

carriers contacted. Copies of quotes will 

suffice for this purpose. Copies of 

telephone notes, emails, and other 

relevant communications will otherwise 

be considered for this purpose. 

* * * * * 

■ 8. Revise section 252.247–7025 to 

read as follows: 

252.247–7025 Reflagging or Repair Work. 

As prescribed in 247.574(b), use the 

following clause: 

Reflagging or Repair Work (OCT 2024) 

(a) Definitions. As used in this clause— 

Corrective and preventive maintenance or 

repair means— 

(1) Maintenance or repair actions 

performed as a result of a failure in order to 

return or restore equipment to acceptable 

performance levels; and 

(2) Scheduled maintenance or repair 

actions to prevent or discover functional 

failures. 

Reflagging or repair work means work 

performed on a vessel— 

(1) To enable the vessel to meet applicable 

standards to become a vessel of the United 

States; or 

(2) To convert the vessel to a more useful 

military configuration. 

(b) Requirement. Unless DoD waives this 

requirement, the Contractor shall ensure 

performance of the following in the United 

States or its outlying areas: 

(1) Reflagging or repair work, if the 

reflagging or repair work is performed— 

(i) On a vessel for which the Contractor 

submitted an offer in response to the 

solicitation for this contract; and 

(ii) Prior to acceptance of the vessel by the 

Government. 

(2) Corrective and preventive maintenance 

or repair work for the duration of the 

contract, to the greatest extent practicable. 

(End of clause) 

■ 9. Amend section 252.247–7026— 

■ a. By revising the provision date; 

■ b. In paragraph (a) by revising the 

definition of ‘‘Covered vessel’’ and 

removing the definition of ‘‘Shipyard’’; 

■ c. In paragraph (b) and paragraph (c) 

introductory text by removing ‘‘offeror’’ 

and adding ‘‘Offeror’’ in its place; 

■ d. In paragraph (e) by removing 

‘‘Section 1017 of Public Law 109–364’’ 

and adding ‘‘section 1017 of Public Law 

109–364 (10 U.S.C. 2631 note)’’ in its 

place. 

The revisions read as follows: 

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. 

* * * * * 

Evaluation Preference for Use of 

Domestic Shipyards—Applicable To 

Acquisition of Carriage by Vessel for 

DOD Cargo in the Coastwise or 

Noncontiguous Trade (OCT 2024) 

(a) * * * 

Covered vessel means a vessel— 

(1) Owned, operated, or controlled by the 

offeror; and 

(2) Qualified to engage in the carriage of 

cargo in the coastwise or noncontiguous 

trade under 46 U.S.C. 12112 and 50501 and 

46 U.S.C. chapter 551. 

* * * * * 

[FR Doc. 2024–21092 Filed 9–25–24; 8:45 am] 

BILLING CODE 6820–FR–P 


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