Quantcast Transportation of Supplies by Sea

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(a) Definitions.
As used in this clause:
(1) "Components" means articles, materials, and supplies incorporated
directly into end products at any level of manufacture,
fabrication or assembly by the Contractor or any subcontractor.
(2) "Department of Defense (DOD)" means the Army, Navy, Air Force,
Marine Corps, and defense agencies.
(3) "Foreign flag vessel" means any vessel that is not a U.S.-flag
(4) "Ocean transportation" means any transportation aboard a ship,
vessel, boat, barge, or ferry through international waters.
(5) "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.  However, effective
May 1, 1996, the term does not include a supplier, materialman,
distributor, or vendor of commercial items or commercial
(6) "Supplies" means all property, except land and interests in land,
that is clearly identifiable for eventual use by the armed
services, or owned by the DOD at the time of transportation by
(i) An item is clearly identifiable for eventual use by the
DOD if, for example, the contract documentation contains a
reference to a DOD contract number or a military destination.
(ii) Supplies includes (but is not limited to) public works,
buildings and facilities, ships, floating equipment and vessels of
every character, type, and description, with parts, subassemblies,
accessories, and equipment; machine tools, material, equipment,
stores of all kinds; end items, construction materials and the
components of the foregoing.
(7) "U.S.-flag vessel" means a vessel of the United States or
belonging to the United States, including any vessel registered or
having national status under the laws of the United States.
(b) The Contractor shall employ United States-flag vessels in the
transportation by sea of any supplies to be furnished in the performance of
this contract.  The Contractor and its subcontractors may request that the
Contracting Officer authorize shipment in foreign-flag vessels, if the
Contractor or a subcontractor believes that--
(1) U.S.-flag vessels are not available for timely shipment;
(2) the freight charges are inordinately excessive or unreasonable; or
(3) freight charges are higher than charges to private persons for
transportation of like goods.
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