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   <concept id="DFARS_247.573" class="- topic/topic concept/concept ">
      <title class="- topic/title "> 
         <ph props="autonumber" class="- topic/ph ">247.573</ph> General.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Delegated authority</i>. Pursuant to <xref href="https://www.govinfo.gov/link/uscode/10/2631"
                  format="html"
                  scope="external"
                  class="- topic/xref ">10 U.S.C. 2631(b)(2)</xref>, the Secretary of Defense has delegated (see PGI <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-PGI_PGI_247.573"
                  href="PGI_247.573.dita#DFARS_PGI_247.573"
                  xtrc="247.573">247.573</xref> ) 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—</p>
         <p outputclass="List2" class="- topic/p ">(1) The Commander, United States Transportation Command; and</p>
         <p outputclass="List2" class="- topic/p ">(2) The Secretary of the Navy.</p>
         <p outputclass="List1" class="- topic/p ">(b) <i class="+ topic/ph hi-d/i ">Procedures</i>.</p>
         <p outputclass="List2" class="- topic/p ">(1) Contracting officers shall follow the procedures at PGI <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-PGI_PGI_247.573"
                  href="PGI_247.573.dita#DFARS_PGI_247.573"
                  xtrc="247.573">247.573</xref> (b)(1) when purchase of ocean transportation services is incidental to a contract for supplies, services, or construction.</p>
         <p outputclass="List2" class="- topic/p ">(2) Contracting officers shall follow the procedures at PGI <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-PGI_PGI_247.573"
                  href="PGI_247.573.dita#DFARS_PGI_247.573"
                  xtrc="247.573">247.573</xref> (b)(2) when direct purchase of ocean transportation services is the principal purpose of the contract.</p>
         <p outputclass="List2" class="- topic/p ">(3) See PGI <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-PGI_PGI_247.573"
                  href="PGI_247.573.dita#DFARS_PGI_247.573"
                  xtrc="247.573">247.573</xref> (b)(3) for agency and department procedures relating to annual reporting requirements of waivers granted for nonavailability of U.S.-flag vessels.</p>
         <p outputclass="List2" class="- topic/p ">(4) Follow the procedures at PGI <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-PGI_PGI_247.573"
                  href="PGI_247.573.dita#DFARS_PGI_247.573"
                  xtrc="247.573">247.573</xref> (b)(4) to accomplish security background checks pursuant to clause <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1384291"
                  href="252.247-7027.dita#DFARS_252.247-7027"
                  xtrc="252.247-7027">252.247-7027</xref> , Riding Gang Member Requirements.</p>
         <p outputclass="List2" class="- topic/p ">(5)(i) In accordance with <xref href="https://www.govinfo.gov/link/uscode/10/2631"
                  format="html"
                  scope="external"
                  class="- topic/xref ">10 U.S.C. 2631(d)</xref>, 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 <xref href="242.1502.dita#DFARS_242.1502"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">242.1502</xref> regarding assessments of the contractor's past performance.</p>
         <p outputclass="List3" class="- topic/p ">(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.</p>
      </conbody>
   </concept>
</dita>
