FAR and DFARS › FAR Part 47: Transportation › Subpart 47.5

FAR 47.506 Procedures.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section outlines procedures for contracting officers when ocean transportation of supplies is subject to the Cargo Preference Act of 1954. It requires contracting officers to seek assistance from the transportation activity for shipping instructions and delivery terms, and to involve the Maritime Administration when rates are not published. Contractors may be affected by these procedures because they influence how solicitations and contracts are structured and how rate determinations are made.

Applies to: Contracting officers handling ocean transportation of supplies subject to the Cargo Preference Act of 1954

What it requires

  • Obtain assistance from the transportation activity in developing shipping instructions and delivery terms for solicitations and contracts.
  • Seek assistance from the transportation activity when a contractor notifies that a privately owned U.S.-flag commercial vessel is not available.
  • Follow agency regulations when preparing or furnishing information for reports required by 46 CFR 381.

Key terms: transportation activity · Cargo Preference Act of 1954 · privately owned U.S.-flag commercial vessel · Federal Maritime Commission · Maritime Administration

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The contracting officer shall obtain assistance from the transportation activity (see 47.105) in developing appropriate shipping instructions and delivery terms for inclusion in solicitations and contracts that may involve ocean transportation of supplies subject to the requirements of the Cargo Preference Act of 1954 (see 47.502(a)(3)).

(b) When the contractor notifies the contracting officer that a privately owned U.S.-flag commercial vessel is not available, the contracting officer shall seek assistance from the transportation activity.

(c) For purposes of determining the availability of privately owned U.S.-flag commercial vessels at fair and reasonable rates, rates filed and published in accordance with the requirements of the Federal Maritime Commission may be accepted as fair and reasonable. When applicable rates for charter cargoes are not in published tariffs, a determination as to whether the rates are fair and reasonable shall be obtained from the Maritime Administration.

(d) The Maritime Administration has issued regulations (46 CFR 381) that require agencies to submit reports regarding ocean shipments. Contracting officers shall follow agency regulations when preparing, or furnishing information for, these reports.

Sections it refers to

← 47.505 Construction contracts. · 47.507 Contract clauses. →

Rule changes for FAR Part 47

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 47.506 Procedures · SpendQuery