---
kind: "section"
citation: "48 C.F.R. § 247.573"
title: "48"
number: "247.573"
heading: "General."
url: "https://uscodex.org/cfr/48/247.573"
---

# §247.573. General.

- (a) **Delegated authority.** Pursuant to [10 U.S.C. 2631(b)(2)](/usc/10/2631.md?p=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) **Procedures.**
  - (1) Contracting officers shall follow the procedures at PGI 247.573(b)(1) when purchase of ocean transportation services is incidental to a contract for supplies, services, or construction.
  - (2) Contracting officers shall follow the procedures at PGI 247.573(b)(2) when direct purchase of ocean transportation services is the principal purpose of the contract.
  - (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.
  - (4) Follow the procedures at PGI 247.573(b)(4) to accomplish security background checks pursuant to clause 252.247-7027, Riding Gang Member Requirements.
  - (5)
    - (i) In accordance with [10 U.S.C. 2631(d)](/usc/10/2631.md?p=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.

## Notes

### Amendments

[79 FR 61583, Oct. 14, 2014, as amended at 89 FR 78995, Sept. 26, 2024]

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36466, July 31, 1991, unless otherwise noted.

### Amendments

[79 FR 61583, Oct. 14, 2014, as amended at 89 FR 78995, Sept. 26, 2024]