Why Part 47 Matters

Transportation costs can significantly affect total contract price, particularly for supply contracts with FOB origin or destination terms. The Cargo Preference Act requires that at least 50% of government-impelled ocean cargo be shipped on U.S.-flag vessels. The Fly America Act requires the use of U.S.-flag air carriers for government-funded international air travel. Contractors must understand F.O.B. terms, government bills of lading, and the cost implications of different shipping arrangements.

Key Topics in Part 47

FAR Part 47 addresses several critical areas of the federal acquisition process. Understanding these topics is essential for both contracting officers and contractors working within this regulatory framework.

• F.O.B. origin vs. F.O.B. destination
• Government bills of lading (GBLs)
• Cargo Preference Act — U.S.-flag vessel requirements (Subpart 47.5)
• Fly America Act — U.S.-flag air carrier requirements (Subpart 47.4)
• Transportation cost evaluation in bid analysis
• Hazardous materials shipping requirements
• Military freight and household goods transportation

How FAR Part 47 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 47 (Transportation) is part of this framework and works in conjunction with other FAR parts to create a comprehensive regulatory structure. Contracting officers must comply with all applicable parts when executing procurement actions, and contractors must understand the requirements that flow from these regulations into their contracts.

The requirements in Part 47 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 47, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 47 is divided into 5 subparts, each addressing a specific aspect of transportation.

• 47.1 — General
• 47.2 — Contracts for Transportation or for Transportation-Related Services
• 47.3 — Transportation in Supply Contracts
• 47.4 — Air Transportation by U.S.-Flag Carriers
• 47.5 — Ocean Transportation by U.S.-Flag Vessels

Reading FAR Part 47

The full text of FAR Part 47 is available on the Electronic Code of Federal Regulations (eCFR). The eCFR provides the most current version of the regulation, including any recent amendments published through Federal Acquisition Circulars (FACs). For historical versions, use the eCFR's point-in-time search feature.

• What does FAR Part 47 cover?

  FAR Part 47 covers transportation within the federal acquisition process. FAR Part 47 addresses transportation in government contracting, including policies for the use of government bills of lading, shipping by sea (cargo preference under the Cargo Preference Act), and transportation clauses. Subpart 47.3 covers transportation in supply contracts, Subpart 47.4 addresses air transportation under the Fly America Act, and Subpart 47.5 covers ocean transportation under the Cargo Preference Act requiring use of U.S.-flag vessels.

• Who must comply with FAR Part 47?

  FAR Part 47 applies to all executive branch agencies conducting acquisitions, unless a specific exemption exists. Contractors must comply with the requirements that are incorporated into their contracts through prescribed clauses from FAR Part 52. Agency-specific supplements (DFARS, GSAM, etc.) may add additional requirements beyond the base FAR.

• Where can I read the full text of FAR Part 47?

  The full text is available on the Electronic Code of Federal Regulations (eCFR). You can also access it through acquisition.gov, which is maintained by the General Services Administration. Both sources reflect the most current version of the regulation.

• How does FAR Part 47 relate to contract clauses?

  FAR Part 47 establishes the substantive policies and procedures. The actual clause language that gets incorporated into contracts is found in FAR Part 52. Each clause in Part 52 includes a "prescription" that references the relevant policy part, creating a direct link between the requirement and its implementation in the contract.