[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Rules and Regulations]
[Pages 78992-78996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21092]


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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.

[[Page 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

[[Page 78994]]

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:

0
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

0
2. Amend section 242.1502--
0
a. In paragraph (g)(i) by removing the word ``and'' at the end of the 
paragraph;
0
b. In paragraph (g)(ii) by removing the period at the end of the 
paragraph and adding ``; and'' in its place; and
0
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

0
3. Amend section 247.570--
0
a. By revising paragraph (a)(1);
0
b. In paragraph (a)(2):
0
i. By removing ``(Pub. L. 109-364)'' and adding ``(Pub. L. 109-364) (10 
U.S.C. 2631 note)'' in its place; and
0
ii. By removing the word ``and'' at the end of the paragraph;
0
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;
0
d. By adding paragraph (a)(4);
0
e. In paragraph (b) by removing ``46 U.S.C. 1241(b)'' and adding ``46 
U.S.C. chapter 553'' in its place; and
0
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.

0
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.

0
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.

[[Page 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.

0
6. Amend section 247.573--
0
a. By revising paragraphs (a) and (b)(3);
0
b. In paragraph (b)(4) by removing ``Procedures are provided at'' and 
adding ``Follow the procedures at'' in its place; and
0
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

0
7. Amend section 252.247-7023--
0
a. By revising paragraphs (a) and (d);
0
b. In paragraph (e) introductory text by revising the second sentence;
0
c. By revising paragraph (e)(7);
0
d. In paragraph (f)(10) by removing ``the steamship company'' and 
adding ``the carrier'' in its place;
0
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;
0
f. In paragraph (g)(4) by removing ``of the Contracting Officer'' and 
adding ``of DoD'' in its place;
0
g. In Alternate I--
0
i. By revising paragraphs (a) and (d);
0
ii. In paragraph (e) introductory text by revising the second sentence;
0
iii. By revising paragraph (e)(7);
0
iv. In paragraph (f)(10) by removing ``steamship company'' and adding 
``the carrier'' in its place;
0
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
0
vi. In paragraph (g)(4) by removing ``of the Contracting Officer'' and 
adding ``of DoD'' in its place; and
0
h. In Alternate II--
0
i. By revising paragraphs (a) and (d);
0
ii. In paragraph (e) introductory text by revising the second sentence;
0
iii. By revising paragraph (e)(7);
0
iv. In paragraph (f)(10) by removing ``steamship company'' and adding 
``the carrier'' in its place;
0
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
0
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

[[Page 78996]]

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.
* * * * *

0
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)

0
9. Amend section 252.247-7026--
0
a. By revising the provision date;
0
b. In paragraph (a) by revising the definition of ``Covered vessel'' 
and removing the definition of ``Shipyard'';
0
c. In paragraph (b) and paragraph (c) introductory text by removing 
``offeror'' and adding ``Offeror'' in its place;
0
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