x402_US_Flag_Carrier_Shipment_Requirements.pdf

March 24, 2016

TO: All contractors supporting DOS Overseas Building Operations (OBO) programs

SUBJECT: U.S. -Flag Carrier Air Transportation requirements and U.S. -Flag Commercial

Vessel Shipment requirements and documentation ALL Contracts

The U.S. Department of State (DOS) is providing this reminder to all contractors supporting

OBO missions worldwide.

When air or sea transportation and/or shipment is required under DOS projects, all contractors shall closely follow contract clauses 52.247-63, Preference for U.S.-Flag Air Carriers and

52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels. The requirements of these clauses apply to all firms, including subcontractors at any tier, involved in OBO projects that require shipment of materials. Contractors shall include the substance of these clauses in each subcontract supporting a DOS project that may involve international transportation.

Referencing 52.247-63, Preference for U.S.-Flag Air Carriers, and Section 5 of the International

Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 40118) (Fly America Act), DOS and all Government contractors and subcontractors shall use U.S.-flag air carriers for U.S.

Government-financed international air transportation of personnel (and their personal effects) or property, to the extent that service by those carriers is available. If U.S. Carriers are not available for international air transportation, contractors shall submit a, “Statement of Unavailability of

U.S.-Flag Air Carrier,” with its pay requests involving such transportation.

When a DOS project will require Government-impelled oceanborne cargoes, please pay close attention to the U.S. Cargo shipment requirements specified in 52.247-64, Preference for

Privately Owned U.S.-Flag Commercial Vessels. It is MARAD’s policy that U.S. flag cargo portion is shipped first.

The contractor shall submit one legible copy of an onboard rated and freighted ocean bill of lading for each shipment to both the Contracting Officer Representative (COR) and the Maritime

Administration (MARAD). The documentation must be furnished within 20 working days of the date of loading for shipments originating in the U.S., and 30 working days for shipments originating outside the U.S. All subcontractor bills of lading shall be submitted through the

Prime Contractor. Submittals to MARAD can be mailed, emailed, or faxed to:

Address: U.S. DOT - Maritime Administration

Office of Cargo and Commercial Sealift/Civilian Agencies Division

MAR 620, W23-469

1200 New Jersey Ave., SE

Washington, DC 20590