Common use of Preference for Privately Owned U Clause in Contracts

Preference for Privately Owned U. S. FLAG COMMERCIAL VESSELS 25.1 Except as provided in paragraph 25.5 of this clause, the Cargo Preference Act of 1954 (46 U.S.C. Appx 1241(b) requires that Federal departments and agencies shall transport in privately owned U.S. flag commercial vessels at least 50 percent of the gross tonnage of equipment, materials, or commodities that may be transported in ocean vessels (computed separately for dry bulk carriers, dry cargo liners, and tankers). Such transportation shall be accomplished when any equipment, materials, or commodities, located within or outside the United States, that may be transported by ocean vessel are – (a) Acquired for a U.S. Government agency account; (b) Furnished to, or for the account of, any foreign nation without provision for reimbursement; (c) Furnished for the account of a foreign nation in connection with which the United States advances funds or credits, or guarantees the convertibility of foreign currencies; or (d) Acquired with advance of funds, loans, or guaranties made by or on behalf of the United States. 25.2 The Subcontractor shall use privately owned U.S.-flag commercial vessels to ship at least 50 percent of the gross tonnage involved under this Subcontract (computed separately for dry bulk carriers, dry cargo liners, and tankers) whenever shipping any equipment, materials, or commodities under the conditions set forth in paragraph 25.1 above, 25.3 (a) The Subcontractor shall submit one legible copy of a rated on-board ocean ▇▇▇▇ of lading for each shipment to both