samsearch
    Platform
    01InfluenceShape the requirement before it's on your competitor's radar.
    Signal
    Recompete window opens in 42 days
    Facilities maintenance IDIQ$8.4M
    Forecast
    Agency spend up 18% next FY
    DoD facilitiesQ3 window
    02CaptureFind and qualify the work across every market.
    Federal91%
    Network engineering support — GSA MAS
    GSA541512
    SLED88%
    Custodial services — Fairfax County Public Schools
    K-12561720
    DIBBS79%
    Aircraft hydraulic fitting — DLA Aviation
    DLANSN 5330
    03AnalyzeExtract requirements and build the compliance matrix.
    Compliance matrix
    L.2.1Technical approachVol I
    L.3.4Staffing planVol I
    M.1Past performanceEvaluated
    SOW breakdown
    Requirements extracted38
    Mapped to Section L/M38
    Every extractionCited
    Ask Sammy
    “Do we meet the small business set-aside?”
    04ManageRun the pursuit through to award.
    Pipeline
    QualifyFacilities support · USACE
    CaptureComms upgrade · DLA
    ProposalShipyard dredging · NAVSEA
    PriyaAlex
    This week
    Submit past performance refsThu
    Confirm subK teamingFri
    Upload SF 33Mon
    05RespondDraft and submit your response.
    Drafting · Volume I
    247 words
    RFI response
    CompanyAcme Robotics LLC
    UEIJK4M8…
    Capability narrativeDrafted
    06FinanceGet paid faster on what you win.
    Capital available
    $2.4M against your award
    Facilities maintenance IDIQAwarded
    Partner matched
    LenderFederal Capital Partners
    Draw available$2.4M
    UnderwritingCleared
    The platform
    Influence
    Capture
    Analyze
    Manage
    Respond
    Finance
    One pipeline, six stages, start to award.
    See the whole platform
    Solutions
    By industry
    Tech & softwareSoftware and SaaS companies entering GovCon.Defense contractorsPrimes and subs in the defense industrial base.ConstructionBuilders bidding federal, state, and local work.CybersecuritySecurity vendors pursuing federal mandates.
    By team
    Capture managers & BDPipeline, qualification, and win strategy.Proposal teamsCompliance matrices and proposal drafting.Subcontractors & primesTeaming, subcontracting, and partner fit.
    By company size
    Small businessesSet-aside and small business contractors.EnterpriseLarge contractors running multiple pursuits.ConsultantsAdvisors and capture consultants.
    Browse all industries
    CustomersPricing
    ResourcesNew
    Learn
    AcademyCourses, guides, and playbooks.WebinarsLive sessions and recordings.DocsProduct documentation and setup guides.Implementation planOperational rollout guidance.
    Tools & data
    Free GovCon toolsCalculators, lookups, and more.Gov ExploreContracts, agencies, and NAICS codes.GovCon eventsConferences, training, and set-aside events.
    Latest blogIntroducing the New SamSearch: The Operating System for Government ContractingSamSearch has a new brand, a new site, and a new way of explaining what the platform actually does — the operating system for government contracting, organized around six stages instead of a single search box. Here's what changed and why.Read the post →
    All resources and tools
    Sign inRequest a demo
    Home/FAR Navigator/47/47.5/47.505

    FAR Navigator

    • 1Federal Acquisition Regulations System
    • 2Definitions of Words and Terms
    • 3Improper Business Practices and Personal Conflicts of Interest
    • 4Administrative and Information Matters
    • 5Publicizing Contract Actions
    • 6Competition Requirements
    • 7Acquisition Planning
    • 8Required Sources of Supplies and Services
    • 9Contractor Qualifications
    • 10Market Research
    • 11Describing Agency Needs
    • 12Acquisition of Commercial Products and Commercial Services
    • 13Simplified Acquisition Procedures
    • 14Sealed Bidding
    • 15Contracting by Negotiation
    • 16Types of Contracts
    • 17Special Contracting Methods
    • 18Emergency Acquisitions
    • 19Small Business Programs
    • 22Application of Labor Laws to Government Acquisitions
    • 23Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace
    • 24Protection of Privacy and Freedom of Information
    • 25Foreign Acquisition
    • 26Other Socioeconomic Programs
    • 27Patents, Data, and Copyrights
    • 28Bonds and Insurance
    • 29Taxes
    • 30Cost Accounting Standards Administration
    • 31Contract Cost Principles and Procedures
    • 32Contract Financing
    • 33Protests, Disputes, and Appeals
    • 34Major System Acquisition
    • 35Research and Development Contracting
    • 36Construction and Architect-Engineer Contracts
    • 37Service Contracting
    • 38Federal Supply Schedule Contracting
    • 39Acquisition of Information Technology
    • 40Reserved
    • 41Acquisition of Utility Services
    • 42Contract Administration and Audit Services
    • 43Contract Modifications
    • 44Subcontracting Policies and Procedures
    • 45Government Property
    • 46Quality Assurance
    • 47Transportation
      • 47.000Scope of part.
      • 47.001Definitions.
      • 47.1Subpart 47.1
      • 47.002Applicability.
      • 47.2Subpart 47.2
      • 47.3Subpart 47.3
      • 47.4Subpart 47.4
      • 47.5Subpart 47.5
        • 47.500Scope of subpart.
        • 47.501Definitions.
        • 47.502Policy.
        • 47.503Applicability.
        • 47.504Exceptions.
        • 47.505Construction contracts.
        • 47.506Procedures.
        • 47.507Contract clauses.
    • 48Value Engineering
    • 49Termination of Contracts
    • 50Extraordinary Contractual Actions and the Safety Act
    • 51Use of Government Sources by Contractors
    • 52Solicitation Provisions and Contract Clauses
    • 53Forms
    Up to 47.5
    SectionUpdated April 16, 2026

    FAR 47.505—Construction contracts.

    Plain-English Summary

    FAR 47.505 addresses when the ocean transportation policies in this subpart apply to construction work performed overseas and when an exception is available. It covers construction contractors, subcontractors, and suppliers engaged in overseas work, and it ties their obligations to the shipping and vessel-use rules in the subpart. The general rule is that these parties must comply with the subpart’s policies and regulations, which means they must plan overseas logistics with federal cargo preference and vessel-use requirements in mind. The section also creates a limited exception for military assistance, foreign aid, or similar U.S. Government projects when the recipient nation provides or pays for at least 50 percent of the transportation; in that case, foreign-flag vessels may be used for up to 50 percent of the project’s gross tonnage. In practice, this section matters because it determines whether overseas construction shipments must follow the normal U.S.-flag preference framework or whether a partial foreign-flag vessel allowance applies. Contractors and contracting officers must therefore evaluate both the nature of the project and who is paying for transportation before arranging ocean carriage.

    Key Rules

    General overseas compliance

    Construction contractors, including subcontractors and suppliers, engaged in overseas work must comply with the policies and regulations in this subpart. This means the shipping and vessel-selection rules apply broadly to the construction supply chain, not just to the prime contractor.

    Applies to construction supply chain

    The rule expressly includes subcontractors and suppliers, so responsibility for compliance extends to all parties involved in moving materials for overseas construction work. Contractors should flow these requirements down and coordinate logistics accordingly.

    Exception for aid projects

    The requirements do not apply to military assistance, foreign aid, or similar projects carried out under the auspices of the U.S. Government when the recipient nation furnishes or pays for at least 50 percent of the transportation. This is a narrow exception tied to the funding arrangement for transportation.

    Foreign-flag vessel allowance

    When the exception applies, foreign-flag vessels may be used for a portion not to exceed 50 percent of the gross tonnage for the project. The allowance is limited and does not authorize unrestricted foreign-flag use.

    Transportation cost threshold

    The key trigger for the exception is whether the recipient nation furnishes or pays for at least half of the transportation. Parties must verify the transportation funding split before relying on the exception.

    Responsibilities

    Contracting Officer

    Determine whether the overseas construction effort falls under the general rule or the exception, and ensure solicitation and contract requirements reflect the applicable vessel-use and transportation rules. The contracting officer should also confirm that any claimed exception is supported by the project’s transportation funding arrangement.

    Contractor

    Comply with the subpart’s policies and regulations for overseas construction shipments, including planning vessel use and transportation arrangements consistent with the applicable rule. The contractor must also identify whether the project qualifies for the exception and document the basis before using foreign-flag vessels.

    Subcontractors

    Follow the same overseas transportation and vessel-use requirements that apply to the prime contract when performing construction-related work. Subcontractors must coordinate with the prime contractor to avoid noncompliant shipping arrangements.

    Suppliers

    Provide materials and shipments in a manner consistent with the applicable overseas transportation rules. Suppliers should understand whether the project is subject to the general compliance rule or the limited foreign-flag vessel exception.

    Recipient Nation

    If the project is a military assistance, foreign aid, or similar U.S. Government project, furnish or pay for at least 50 percent of the transportation to qualify for the exception. The recipient nation’s transportation contribution is the condition that allows limited foreign-flag vessel use.

    Practical Implications

    1

    Overseas construction logistics must be checked early, because vessel selection can affect cost, schedule, and compliance before materials are shipped.

    2

    Do not assume all foreign-aid or military-assistance projects are exempt; the exception depends on the recipient nation paying or furnishing at least 50 percent of transportation.

    3

    The 50 percent gross tonnage limit is a ceiling, not a target, so contractors should track cargo volumes carefully to avoid exceeding the allowed foreign-flag share.

    4

    Because subcontractors and suppliers are included, primes should flow down requirements and verify shipping plans across the entire supply chain.

    5

    A common pitfall is relying on the exception without documenting the transportation funding split or miscalculating gross tonnage for the project.

    Official Regulatory Text

    (a) Except as stated in paragraph (b) of this section, construction contractors, including subcontractors and suppliers, engaged in overseas work shall comply with the policies and regulations in this subpart. (b) These requirements shall not apply to military assistance, foreign aid, or similar projects under the auspices of the U.S. Government when the recipient nation furnishes, or pays for, at least 50 percent of the transportation, in which event foreign-flag vessels may be used for a portion not to exceed 50 percent of the gross tonnage for the project.

    Back to 47.5FAR Navigator
    samsearch

    The Complete AI Platform for Government Contracting

    Platform
    • Product
    • Pricing
    • ROI calculator
    • Integrations
    • Changelog
    Solutions
    • Solutions
    • Customers
    • Comparisons
    • Market watch
    Resources
    • Blog
    • Free GovCon tools
    • Glossary
    • Docs
    Company
    • API & partnerships
    • Careers
    • Support
    • Compliance
    • Trust centre
    • Contact
    Recognised & verified
    SOC 2 Type II Compliant, SamSearchAWS Partner - Advanced, SamSearch on AWS MarketplaceGartner Peer Insights Customer First, SamSearch
    Ask AI about samsearch
    Ask ChatGPTAsk ClaudeAsk Perplexity
    Follow

    © 2026 samsearch. All rights reserved.

    Terms of usePrivacy policy