[Federal Register Volume 89, Number 81 (Thursday, April 25, 2024)]
[Proposed Rules]
[Pages 31681-31686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08436]
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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: Proposed rule.
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SUMMARY: DoD is proposing to amend 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.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before June 24, 2024, to be considered in
the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2021-D020, using
either of the following methods:
[cir] Federal eRulemaking Portal: https://www.regulations.gov.
Search for DFARS Case 2021-D020. Select ``Comment'' and follow the
instructions to submit a comment. Please include ``DFARS Case 2021-
D020'' on any attached documents.
[cir] Email: [email protected]. Include DFARS Case 2021-D020 in
the subject line of the message.
Comments received generally will be posted without change to
https://www.regulations.gov, including any personal information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: David Johnson, telephone 202-913-5764.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS 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,
[[Page 31682]]
among other things, clarify circumstances in which DoD may seek a
waiver from the basic requirement for DoD supplies to be transported by
sea in either vessels belonging to the United States or vessels of the
United States. In particular, section 1024 specifies that DoD may waive
this requirement, where such vessels are either not available at a fair
and reasonable rate for commercial vessels of the United States or
otherwise not available. Section 1024 also modifies the requirement for
reflagging or repair work in the United States for vessels used under
time charter contracts for the transportation of supplies, and it adds
a requirement to ensure contractor compliance with 10 U.S.C. 2631.
II. Discussion and Analysis
This proposed rule includes modifications at DFARS 247.572(a)(1)
and the contract clause at 252.247-7023, Transportation of Supplies by
Sea, including its alternates, to specify that DoD may waive the
requirement for DoD supplies to be transported by sea in either vessels
belonging to the United States or vessels of the United States. Under
this proposed rule, waivers may be granted, where such vessels are
either not available at a fair and reasonable rate for commercial
vessels of the United States or otherwise not available.
This proposed rule contains changes to DFARS 247.572(c) and the
clause at 252.247-7025, Reflagging or Repair Work, to update
requirements for reflagging or repair work in the United States for
vessels used under time charter contracts for the transportation of
supplies. This rule also includes modifications at DFARS 247.573(b) and
DFARS 242.1502(g) to specify DoD procedures for increasing contractor
compliance with the requirements of the clause at 252.247-7023,
including its alternates.
This proposed rule adds a definition of ``corrective and preventive
maintenance or repair'' both to DFARS 247.571 and to the clause at
252.247-7025. Further, this proposed rule updates the definitions of
``foreign shipyard,'' ``ocean transportation,'' ``supplies'' and
``U.S.-flag vessel'' at DFARS 247.571 and at the clause at 252.247-
7023, including its alternates, and the solicitation 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. Additionally, this proposed rule
deletes the definition of ``shipyard'' from the provision at 252.247-
7026 because the common definition of this term suffices for this rule.
The definition of ``Department of Defense'' is deleted from the clause
at 252.247-7023, including its alternates, because the definition of
this term at DFARS 2.101 suffices for purposes of this proposed rule.
This proposed rule clarifies the submission requirements in
paragraph (d)(7) of the clause at 252.247-7023, including its
alternates, where a contractor requests use of foreign-flag vessels.
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 proposed rule amends the clauses at DFARS 252.247-7023,
including alternates, 252.247-7025, and the provision at 252.247-7026.
However, this proposed 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 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 proposed rule is intended to increase compliance with military
cargo preference requirements, 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 proposed rule, when finalized, 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. Regulatory Flexibility Act
DoD does not expect this proposed rule, when finalized, to have a
significant economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et
seq., because the rule does not create any new requirements or
significantly change any existing requirements for contractors.
However, an initial regulatory flexibility analysis has been performed
and is summarized as follows:
DoD is proposing to amend 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 objective of this rule is to implement section 1024 of the NDAA
for FY 2021. Section 1024 is the legal basis for the rule.
This proposed 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 (PBIS) 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).
The proposed rule does not impose any new reporting, recordkeeping,
or other compliance requirements.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known alternatives that would accomplish the stated
objectives of the applicable statute.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this proposed rule on
small entities.
DoD will also consider comments from small entities concerning the
[[Page 31683]]
existing regulations in subparts affected by this proposed rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (DFARS Case 2021-
D020), in correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this
proposed rule. However, these changes to the DFARS do not impose
additional information collection requirements to the paperwork burden
previously approved under OMB Control Number 0704-0245, titled: Defense
Federal Acquisition Regulation Supplement (DFARS) Part 247,
Transportation, and Related Clauses at 252.247.
List of Subjects in 48 CFR Parts 242, 247, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 242, 247, and 252 are proposed to be
amended as follows:
0
1. The authority citation for parts 242, 247, and 252 continue 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 ``Program); and'' and adding
``Program);'' in its place;
0
b. In paragraph (g)(ii) by removing ``(B)).'' and adding ``(B)); and''
in its place; and
0
c. By adding paragraph (g)(iii) to read 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) by removing ``(Pub. L. 109-364)'' and adding
``(Pub. L. 109-364) (10 U.S.C. 2631 note)'' in its place;
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'' in their places,
respectively;
0
d. By adding a new 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 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.
Foreign shipyard means a shipyard that is not located in the United
States.
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.
[[Page 31684]]
(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.
(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 paragraph (a);
0
b. In paragraph (b)--
0
i. By revising paragraph (3);
0
ii. In paragraph (4) by removing ``Procedures are provided at'' and
adding ``Follow the procedures at'' in its place; and
0
iii. By adding a new paragraph (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. Revising the date of the clause;
0
b. By revising paragraph (a);
0
c. By revising paragraph (c);
0
d. In paragraph (d) introductory text by revising the second sentence
and paragraph (7);
0
e. In paragraph (e)(10) by removing ``the steamship company'' and
adding ``the carrier'' in its place;
0
f. In paragraph (f)(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
g. In paragraph (f)(4) by removing ``of the Contracting Officer'' and
adding ``of DoD'' in its place;
0
h. Amend Alternate I--
0
i. Revising the date of the clause;
0
ii. By revising paragraph (a);
0
iii. By revising paragraph (c);
0
iv. In paragraph (d) introductory text by revising the second sentence
and paragraph (7);
0
v. In paragraph (e)(10) by removing ``steamship company'' and adding
``the carrier'' in its place;
0
vi. In paragraph (f)(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
vii. In paragraph (f)(4) by removing ``of the Contracting Officer'' and
adding ``of DoD'' in its place;
0
i. Amend Alternate II--
0
i. Revising the date of the clause;
0
ii. By revising paragraph (a);
0
iii. By revising paragraph (c);
0
iv. In paragraph (d) introductory text by revising the second sentence
and paragraph (7);
0
v. In paragraph (e)(10) by removing ``steamship company'' and adding
``the carrier'' in its place;
0
vi. In paragraph (f)(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
vii. In paragraph (f)(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.
* * * * *
Transportation of Supplies by Sea--Basic (Date)
(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.
* * * * *
(c) 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.
(d) * * * 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
[[Page 31685]]
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.
* * * * *
Transportation of Supplies by Sea--Alternate I (Date)
(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.
* * * * *
(c) 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.
(d) * * * 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.
* * * * *
Transportation of Supplies By Sea--Alternate II (Date)
(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.
* * * * *
(c) 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.
(d) * * * 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(c), use the following clause:
Reflagging or Repair Work (Date)
(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 removing the provision date ``Nov 2008'' and adding ``Date'' in
its place;
0
b. In paragraph (a) by revising the definitions of ``Covered vessel''
and ``Foreign shipyard'' and removing the definition of ``Shipyard'';
0
c. In paragraphs (b) and (c) by removing ``offeror'' and adding
``Offeror'' in its place;
0
d. In paragraph (e) 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.
* * * * *
[[Page 31686]]
(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.
Foreign shipyard means a shipyard that is not located in the United
States.
* * * * *
[FR Doc. 2024-08436 Filed 4-24-24; 8:45 am]
BILLING CODE 6001-FR-P