FAR 47.405—Contract clauses.
Plain-English Summary
FAR 47.405 tells contracting officers when to include specific air-carrier contract clauses in solicitations and contracts. It covers two separate requirements: the clause at 52.247-63, Preference for U.S.-Flag Air Carriers, and the clause at 52.247-69, Reporting Requirement for U.S.-Flag Air Carriers Regarding Training to Prevent Human Trafficking. The first clause applies when U.S. Government-financed international air transportation of personnel, personal effects, or property may occur during performance, and it is meant to implement the statutory preference for U.S.-flag air carriers. The second clause applies when the Government is buying passenger air transportation from a U.S.-flag air carrier and is intended to support reporting on training to prevent human trafficking. The section also identifies important exceptions, including simplified acquisitions under FAR part 13, commercial products under FAR part 12, and Department of Defense solicitations or contracts for the second clause. In practice, this section is a clause-selection rule: the contracting officer must identify the transportation requirement, determine whether the transaction falls within an exception, and then insert the correct clause so the contract reflects the applicable policy and reporting obligations.
Key Rules
Insert U.S.-Flag Preference Clause
The contracting officer must include FAR 52.247-63 whenever it is possible that U.S. Government-financed international air transportation of personnel, personal effects, or property will be used in contract performance. The trigger is possibility, not certainty, so the clause should be included whenever the contract may involve that type of travel or shipment.
Part 13 and Part 12 Exceptions
FAR 52.247-63 does not apply to simplified acquisitions under FAR part 13 or to contracts for commercial products under FAR part 12. If the acquisition falls into either category, the contracting officer should not insert this clause even if international air transportation might otherwise occur.
Insert Human Trafficking Training Clause
The contracting officer must include FAR 52.247-69 in solicitations and contracts with a U.S.-flag air carrier for the transportation by air of passengers. This clause addresses the carrier’s reporting obligation regarding training to prevent human trafficking.
DoD Exception for Reporting Clause
FAR 52.247-69 is not applicable to solicitations issued or contracts awarded by the Department of Defense. If DoD is conducting the procurement, the clause is excluded regardless of the passenger air transportation requirement.
Commercial Products Exception for Reporting Clause
FAR 52.247-69 also does not apply to contracts for commercial products. When the acquisition is for commercial products, the contracting officer should not add this clause even if the transportation is by a U.S.-flag air carrier.
Responsibilities
Contracting Officer
Determine whether the contract may involve U.S. Government-financed international air transportation of personnel, personal effects, or property, and insert FAR 52.247-63 when applicable unless the acquisition is under FAR part 13 or for commercial products under FAR part 12. Also determine whether the procurement is with a U.S.-flag air carrier for passenger transportation and insert FAR 52.247-69 unless the procurement is issued by DoD or is for commercial products.
Agency/Procuring Activity
Structure the acquisition so the correct transportation-related clauses are identified early, especially where travel, shipment, or passenger air service may be part of performance. Ensure acquisition planning and clause review processes account for the listed exceptions.
U.S.-Flag Air Carrier
When awarded a contract containing FAR 52.247-69, comply with the clause’s reporting requirement regarding training to prevent human trafficking, as incorporated into the contract.
Contractor
Review the solicitation and contract to identify whether either clause has been included and comply with any resulting transportation-related obligations, including use of U.S.-flag air carriers where required and any reporting or flowdown obligations tied to the inserted clauses.
Practical Implications
The key day-to-day task is clause screening: contracting officers must look for any chance of Government-financed international air travel or passenger air service and add the right clause before award.
A common pitfall is treating the U.S.-flag preference clause as optional because international air travel is only possible, not certain; the rule is triggered by possibility.
Another frequent mistake is overlooking the exceptions for simplified acquisitions, commercial products, and DoD procurements, which can make clause insertion improper.
For contractors and carriers, the practical effect is that transportation-related obligations may appear even in contracts where air travel is only one part of performance, so contract review should not focus only on the primary supply or service item.
Because the second clause is tied to U.S.-flag air carriers and passenger transportation, parties should verify both the type of carrier and the type of procurement before assuming the clause applies.
Official Regulatory Text
(a) The contracting officer shall insert the clause at 52.247-63 , Preference for U.S.-Flag Air Carriers, in solicitations and contracts whenever it is possible that U.S. Government-financed international air transportation of personnel (and their personal effects) or property will occur in the performance of the contract. This clause does not apply to contracts awarded using the simplified acquisition procedures in part 13 or contracts for commercial products (see part 12 ). (b) The contracting officer shall insert the clause at 52.247-69, Reporting Requirement for U.S.-Flag Air Carriers Regarding Training to Prevent Human Trafficking, in solicitations and contracts with a U.S.-flag air carrier for the transportation by air of passengers. This clause is not applicable to solicitations issued or contracts awarded— (1) By the Department of Defense; or (2) For commercial products.